Lensing the Impact on Local Businesses
By: Daniel Sloh Sargbe/A public sector professional
Monrovia, Liberia – On Thursday, March 20, 2025, Representative Austin Blidi Taylor, who represents the 3rd district of Maryland County in the 55th Legislature, proposed a piece of legislation seeking to amend Section 5 of the National Investment Commission Act of 2010.
Representative Austin Blidi Taylor, District 3 Maryland County
The Bill aims to create a favorable economic climate for all Liberians and strengthen Liberian-owned enterprises. In particular, this article discusses the Bill’s proposed clause with the goal of empowering Liberian-owned enterprises: “Procurement of local contents in the operation of foreign investment: All foreign investments operating as a concession in Liberia, shall be required to procure through Liberian-owned businesses, local contents of any goods and services needed for the operational activities of the industry”.
Introduction:
To compete in a setting that safeguards the interests of the country, citizens should be granted preferential treatment. based on historical evidence. Liberian-owned enterprises have been subjected to the cruel practices of foreign traders, who maintain the people’s extreme poverty and suffering. “We have been unaware of how severely this is harming our country for a very long time.”
For instance, multimillion-dollar concessions such as Arcelor Mittal, Firestone, and Bea Mountains engage in international procurement without consulting Liberian-owned companies. Regrettably, this denial is making it harder for Liberian companies to compete and, it is causing significant economic leaks, which causes Liberia to endure unspeakable agony. In my view, the bill introduced by Honorable Taylor will encourage the achievement of decency and create an atmosphere that supports economic growth and development that may be distributed across Liberia.
This bill requires foreign enterprises and spending organizations to favor Liberian-owned businesses when creating chances. It seeks to lower barriers to effective competition and create clear guidelines for market governance in light of the consequences of said commitment to Liberian companies. We anticipate that once this bill is signed into law, thousands of private sector jobs will be available to Liberians, fostering a long-term economic climate for the nation.
My perspectives on the benefits of the Bill when passed:
The following elements constitute the basis for my argument, as summarized in my introduction:
Empowerment of Local Businesses:
- Access to resources: If the measure is approved, it will improve local entrepreneurs’ access to funding, technology, and training by revising the Act to support Liberian-owned enterprises. This assistance could encourage local businesses’ expansion and sustainability.
- Market Opportunities: By giving local enterprises preferential treatment, they may become more competitive with international firms and be able to prosper in the local market.
- Economic growth and employment opportunities: promoting the expansion of Liberian-owned businesses can result in job creation, which will lower unemployment rates and strengthen local economies.
- Local community investment: Liberian companies are more likely to put their earnings back into the local economy, which promotes a growth and development cycle.
- Strengthen competitive advantage: assistance for small and medium-sized businesses: the bill may include provisions especially intended to assist SMEs, which are essential for resilience and economic diversity. As local companies try to stand out in the market, this might also encourage innovation.
- Establishing Trust: The government may foster a more stable and alluring investment environment for international investors who could be seeking to form partnerships with local enterprises by showcasing its dedication to assisting them.
- Balanced ecosystem: a balance between foreign and domestic investment promotes a cooperative atmosphere where both can prosper, resulting in capacity growth and knowledge transfer.
- Encouragement of Sustainable Practices/Local Resource Utilization: By enabling local businesses, there can be a stronger focus on making sustainable use of local resources. This lessens reliance on imported goods and promotes the growth of domestic supply networks.
- Social Responsibility: Businesses with more authority in Liberia could be more likely to take part in CSR programs that improve their local communities and promote the general welfare of society.
- Greater Participation: The measure can contribute to a more fair economic environment by lowering economic gaps between foreign and domestic companies by providing incentives for Liberian ownership.
- Wealth allocation: As Liberian-owned businesses expand, their prosperity may result in a more equitable allocation of wealth, which would lower poverty and foster social stability.
- Strengthening Governance and Regulatory Framework- *Enhanced Compliance By – revising current laws, the bill may contribute to the development of stronger rules and safeguards for local businesses, encouraging compliance and a sense of security.
- Accountability and openness: More accountability and openness in investment activities might be encouraged by more stringent regulations, which would support good governance.
Conclusion:
In conclusion, by empowering local companies, creating jobs, and promoting a thriving and sustainable economic environment, the proposed change to Section 5 of the National Investment Commission Act of 2010 has the potential to have a major impact on Liberia’s economic landscape. All things considered, such reforms might contribute to the development of a more resilient economy that strengthens local communities and lessens reliance on external funding. To guarantee that the anticipated benefits are effectively realized, however, the amendment’s provisions would need to be carefully implemented and monitored.
