As the clock ticks down to a new year, many Liberians reflect on a challenging 2024. Local business owners in Monrovia report substantial difficulties. From rapid increases in the prices of goods to slow sales, many local vendors say that the previous year (2023) was far more prosperous.
According to the International Finance Corporation (IFC), only about 20% of small businesses have access to formal credit. The World Bank’s “Doing Business 2023” report ranks Liberia 176 out of 190 countries in terms of ease of doing business.
Vendors lament the challenges
Rachel Arday, another vendor, sells fufu in Monrovia. She described her struggles this year, saying, “This year the business tough. No market.” Last year, she bought a bag of fufu for $LD1,300. This year, the price has jumped to $LD2, 200, an increase of $LD1,000. At times, she has even paid $LD2,500 for the same bag.
Nyanpu Kollie, a palm nut vendor at Rally Town Market, shared her experience. “Things were going well at the beginning of 2024 until it took an awkward trend for us from March up to December,” she explained. The price of a bag of palm nuts has surged from $LD1,200 to $LD1,800. This increase has forced her to raise the retail price. “The palm nut pound used to be sold for $LD50 but it’s currently being sold for $LD100,” she added. “If you don’t take time, you can’t even get your money from inside.”
Mary, a pig feet vendor, expressed her gratitude despite the hardships. “The time hard small but we just tell God thank you,” she said. She believes the economic challenges are not solely the government’s fault. “We can’t say it’s the government making it hard. No way. Any government comes, it will be the same way. But there’s no money in time,” she noted.
In contrast, Taywah Tamba, who sells fresh peppers and other food items, reported stability in her business. “Both 2023 and 2024 were the same for me,” she said. With over ten years of experience in the business, she remains hopeful that things will get better.
However, Brown Tenneh, a tailor since 1956, described 2024 as a “very poor” year for his trade. “I mean no job. No business running,” he stated. He pointed out that his work primarily picks up during specific events. “The only time we sell is when somebody dies or when somebody is getting married,” he lamented. Brown also attributed some of the struggles to the influx of Chinese products in the Liberian market.
Meanwhile, Famata Sheriff, a single mother and marketer in Sinkor, expressed her frustrations about the rising cost of goods. “Argo oil gallon is LD 6,000, red oil is LD 5,500, paper bucket is LD 5,000, dry pepper is LD 1,000, and an onion bag is LD 2,500,” she said. She noted that prices this year are significantly higher than in previous years. “We used to buy an onion bag for LD 1,500 or LD 1, 300,” she added.
Sheriff also highlighted the impact of decreased sales on her family. “A seller has more than a buyer; no buying is going on in the market from January 2024 to now.” She used to earn a profit of LD 5,000 daily but now struggles to make just LD 1,000. “The slowness of buying in the market has made it impossible for my children to attend school in 2024,” she lamented.
She appealed to the national government, specifically the Ministry of Commerce, to regulate market prices. “Sierra Leoneans are increasing prices in the market, so there should be government regulations on local business owners in Liberia,” she urged.
Victoria Diggs, another vendor, emphasized similar concern. “The way we used to buy goods is not like before,” she said. “We used to buy chicken feet for LD 3,200, but now it’s LD 4,500 for one carton. Sausages used to be LD 3,200, but now itcosts LD 4,300. Everything is very hard in prices, and even LD 15,000 can’t get you the items you need.”
The economy
According to the World Bank, about 50% of Liberia’s population lives below the poverty line. Economic growth has not been inclusive, and many citizens continue to struggle with basic needs. As of December 27, 2024, Liberia is grappling with a budget shortfall exceeding $35 million.
However, corruption remains a significant issue, impacting business operations and investor confidence. Transparency International’s Corruption Perceptions Index rated Liberia poorly, indicating widespread corruption.
Liberia’s GDP growth rate was projected to be around 3.6% by 2023, according to the World Bank. This growth is primarily driven by the agriculture, mining, and services sectors. The inflation rate in Liberia has been a considerable concern. As of mid-2023, it was reported at approximately 9.5%, driven by rising food prices and supply chain disruptions.
Revenue Collection
The Liberia Revenue Authority (LRA) reported that it collected approximately $572.6 million in revenue by the end of October 2024, exceeding its target of $568.2 million. However, a significant shortfall was noted in the Domestic Tax Department’s collections, leading to concerns about the overall fiscal health.
The unemployment rate in Liberia also remains high, particularly among youth. Estimates suggest that youth unemployment could be as high as 40%, which poses a notable challenge to economic stability and growth. By Jerromie S. Walters
