Monrovia, – Local business owners, particularly those operating small and medium-sized enterprises (SMEs), have expressed serious concerns over high interest rates on loans from banks and other financial institutions, warning that the situation is making it increasingly difficult to sustain and grow their businesses.
The concerns were raised during a one-day business dialogue held at a local hotel in Monrovia. The event brought together government institutions, private sector actors, and development partners to identify practical solutions to challenges affecting Liberia’s business climate.
The dialogue aimed to diagnose implementation gaps and agree on time-bound measures to strengthen the business environment, improve access to finance, and increase the participation of Liberian enterprises in value-added economic activities.
Bridging Policy and Reality
Panelists from the Liberia Revenue Authority (LRA), the Ministry of Commerce, the Liberia Chamber of Commerce, and other private sector institutions examined the disconnect between policy commitments and the realities faced by businesses.
They discussed what is working, where the system is breaking down, and what immediate reforms can be implemented to support enterprise growth.
Government Highlights Tax Relief Efforts
Mr. Andrew Ngollo, Assistant Minister for Revenue and Tax Policy at the Ministry of Finance and Development Planning (MFDP), outlined government efforts to tailor tax compliance policies based on business size.
“Tax compliance requirements for small businesses have been significantly reduced. A small business with a turnover of two hundred thousand or less faces minimal tax obligations. This is the government’s way of helping small businesses thrive,” he said.
Representing the LRA, Mr. H. Bashelu Kromah, Assistant Commissioner for the Small Micro Tax Division, emphasized efforts to improve tax administration through enhanced taxpayer engagement.
He noted that the LRA is working within structured networks to reach taxpayers directly, making tax payments and administration faster and more efficient.
Improving Business Registration and Services
Mr. Uriah Bryant, Assistant Minister of Trade at the Ministry of Commerce, highlighted the government’s “one-stop-shop” initiative, which simplifies the business registration process.
“The Government of Liberia has worked to decentralize service centers across the country. We now have centers in Grand Bassa, Bong, Lofa, Grand Gedeh, and other counties,” he said.
He explained that these reforms are designed to reduce bureaucratic hurdles and make it easier for businesses to formalize and operate.
Private Sector Calls for Greater Inclusion
Mr. Natty B. Davis, President of the Liberia Chamber of Commerce, stressed the need to address the high level of informality within Liberia’s business sector.
“A significant number of businesses operate outside formal regulations. Until they are brought into the formal system, their access to finance will remain limited,” he said.
He called for simplified registration processes and increased investment in institutions such as Mercy Corps and other organizations that provide business development support.
According to him, improving access to business knowledge and financial services would encourage more businesses to register, pay taxes, and contribute to the formal economy.
Incentives Needed to Drive Formalization
Mr. Jeremy Titoe, CEO of Agrolife and a private sector investor, highlighted the need for stronger incentives to encourage business formalization.
“The high level of informality is not due to refusal by SMEs to formalize, but rather resistance to doing so without clear incentives,” he explained.
He added that many businesses are more likely to register when linked to opportunities such as access to finance or government support programs. Mr. Titoe also urged policymakers to improve communication and dissemination of new policies to ensure stakeholders are well informed.
Background: Structural Challenges Persist
Liberia’s private sector is largely driven by micro, small, and medium enterprises (MSMEs), yet many businesses face persistent challenges in entering and operating within the formal economy.
Despite policies promoting private sector-led growth, entrepreneurs continue to encounter complex registration procedures, unclear regulatory requirements, and limited access to affordable financing. These barriers hinder business expansion and reduce opportunities for local value addition.
The Government’s ARREST Agenda for Inclusive Development (AAID) 2025–2029 prioritizes economic transformation, infrastructure development, rule of law, and private sector growth, with a focus on food self-sufficiency and domestic value addition.
Achieving these goals will require translating policy commitments into practical reforms that improve how businesses start, operate, and grow.
Evidence from Development Programs
Findings from Mercy Corps’ PROSPECTS IV program highlight the importance of policy consistency, targeted incentives, and access to digital finance in supporting MSMEs.
The program has demonstrated success through initiatives such as: Stock-on-credit models in fast-moving consumer goods (FMCG) distribution Out grower schemes in poultry and maize value chains
Digital micro-loan platforms
These interventions have led to increased employment and income. However, challenges remain, including Know Your Customer (KYC) requirements, procurement delays, standards compliance, and fragmented institutional processes.
