By Domingo Dargbeh
In the wake of ongoing national discourse about the need to harness the nation’s mineral resources for national development, critics have blamed this and successive administrations for lack of prudence in managing the mineral wealth as it relates to concession agreements, and the incomes.
Others suggested that it is beneficial to have the raw materials exported raw for quicker income generation.
While bolstering these contrasting views, recent figures released by the Liberia Extractive Industries Transparency Initiative (LEITI) show that the extractive sector generated a gross income of US$1.35 billion, yet the government received only US$152.46 million, representing 11.293 percent of the total value.
This overwhelming disparity has renewed the debate over how the country can increase its earnings from its abundant natural resources, mainly on refining minerals at home before export.
Albert Bleh, a miner and mineral dealer from the Southeast, questioned government about the logic of shipping raw rather than refining at home.
“We have the minerals, all we need is to leverage what we have, to build the necessary facilities for refining before shipping abroad. This process will create jobs and build industrial capacities; I think if Burkina Faso can do it, we too can do the same.”
In response, government says it is rolling out series of reforms aimed at ensuring the nation captures greater value from the extractive industries, while promoting inclusive and sustainable development.
Local processing to capture more value
One of the key strategies being advanced is mandatory local processing of raw materials, including iron ore and timber, before export. According to Civil Service Agency (CSA) Director General, Dr. Josiah Joakai, Jr., exporting unprocessed resources denies Liberia significant revenue, jobs, and industrial growth.
By processing minerals and timber locally, Liberia stands to move up the value chain, earning more per unit exported, creating employment, stimulating industrialization, and expanding the tax base.
This approach could significantly raise government revenue beyond the current 11.293 percent share.
Strengthening Governance and Transparency
To address revenue leakages, government has planned to strengthen the implementation of the Extractive Industries Transparency Initiative (EITI). Full compliance with EITI reporting standards will improve revenue tracking and accountability, ensuring that all payments due to the state are declared and collected.
Joakai also spoke of the fight against corruption, particularly through beneficial ownership disclosure, which will require companies to reveal their true owners.
This measure is intended to curb illicit financial flows and prevent revenues from being diverted away from national development.
Improved Policies and Regulatory Enforcement
Government is also working to strengthen policies, and regulatory oversight in the mining and forestry sectors.
Enhanced monitoring and enforcement will reduce underreporting, tax evasion, and non-compliance with concession agreements.
While creating a stable and predictable macroeconomic environment, Dr. Joakai said, the process will also help at responsible foreign direct investment (FDI) that aligns with Liberia’s development priorities rather than exploiting regulatory weaknesses.
Economic Diversification and Local Development
As he recognizes the risks of overdependence on mining, Liberia is pursuing economic diversification, particularly into agriculture and manufacturing.
This strategy will reduce vulnerability to global commodity price fluctuations and create alternative revenue streams.
The government also plans to formalize and support artisanal and small-scale mining (ASM), enabling local miners to operate legally, contribute taxes, and reinvest in their communities, thereby increasing domestic wealth generation.
Infrastructure and Skills Development
To sustain higher extractive revenues, government intends to reinvest proceeds into critical infrastructure, including roads and electricity. Improved infrastructure will lower operational costs for companies and increase overall productivity across the economy.
In parallel, investments in education and skills training will prepare Liberians for higher-skilled jobs in processing, manufacturing, and resource management, ensuring that more income remains within the country.
With extractive industries generating US$1.35 billion, but yielding only US$152.46 million to the state, Liberia’s challenge is not resource scarcity, but value capture and governance efficiency.
By promoting local processing, tightening transparency and regulation, diversifying the economy, and investing in infrastructure and human capital, the government aims to significantly increase national income from the sector.
Dr. Joakai said, this comprehensive approach is designed not only to raise revenue, but ensures that the natural wealth translates into sustainable growth and shared prosperity for all citizens.