MONROVIA, November 11, 2026: Former Commerce Minister and staunch supporter of the ruling Unity Party, Amin Modad, has criticized the government’s proposed US$2.5 million allocation for small businesses in the draft Fiscal Year 2027 National Budget, warning that the amount is insufficient to stimulate meaningful economic transformation and empower Liberian entrepreneurs.
Modad argued that despite the government’s proposed US$1.539 billion budget, inadequate investment in local businesses could undermine efforts to diversify an economy heavily dependent on mining, imports, and informal economic activities.
In an analysis shared on Tuesday, November 10, Modad described the proposed budget as a commendable, people-centered, and pragmatic response to improved domestic revenue performance and pressing public service needs.
He acknowledged that the approximately 18 percent increase over the FY2026 budget reflects progress toward greater domestic financing and reduced dependence on foreign assistance.
However, he questioned whether the government’s spending priorities adequately address the structural challenges confronting Liberian-owned businesses.
“However, the budget still treats entrepreneurship mainly as a social and youth-empowerment issue rather than a core engine of local economic transformation,” Modad stated.
“The US$2.5 million small-business window and related youth/skills measures are useful entry points, especially for women and young people, but they are insufficient to shift the structure of an economy still dominated by enclave mining, importation, and informality,” he added.
The former Commerce Minister expressed concern that a significant portion of the proposed budget is directed toward recurrent expenditure and public-sector human capital development, with limited investment in initiatives capable of expanding domestic production and creating sustainable private-sector employment.
He noted the absence of substantial dedicated funding for industrial parks, local-content incentives, major small and medium-sized enterprise (SME) financing facilities, value-chain development, and systematic support for Liberian-owned medium-sized businesses.
According to him, these investments are essential to building a competitive domestic private sector capable of generating employment and expanding the country’s narrow tax base.
Modad called for increased and better-monitored allocations to improve SME access to financing, establish risk-sharing facilities, and expand business development and incubation services.
He also recommended stronger enforcement of local-content and preferential procurement policies, alongside investments in electricity, roads, and logistics to reduce operating costs for Liberian enterprises.
The former minister further urged the government to develop an ambitious strategy for formalizing informal businesses, promoting local wealth creation, and establishing measurable targets for private-sector employment.
“Specialized incentives must be designed and supported. Measurable targets for Liberian enterprise growth and job creation outside the public sector,” he emphasized.
Modad warned that without substantial investment in productive infrastructure, agricultural value chains, food security, and structural tax reforms, Liberia’s economy would remain vulnerable to domestic and external shocks.
He also questioned the sustainability of increasing government expenditure without sufficiently broadening the country’s revenue base.
According to him, the government cannot continue relying on the same limited number of taxpayers to finance its expanding development agenda.
“Projecting large jumps assumes continued strong performance; any softening in commodity prices or compliance slippage would force difficult mid-year adjustments,” he cautioned.
He further warned that increased spending on public-sector employment, salaries, education, and healthcare could produce limited long-term economic benefits unless accompanied by stronger private-sector opportunities.
“The human-capital gains we are making now in public sector job creation & salary increases, education, and health risk remaining disconnected from the private-sector opportunities needed for inclusive, job-rich growth under the ARREST Agenda,” Modad stated.
He expressed hope that lawmakers would consider adjustments to the proposed budget during legislative deliberations to ensure greater support for Liberian entrepreneurship, domestic production, and sustainable job creation.
The draft FY2027 National Budget, submitted to the Legislature for scrutiny and approval, represents the government’s proposed spending framework for the coming fiscal year.
See more Liberia News Network stories in Google Search by adding LNN as one of your Preferred Sources.
★ Add LNN as a Preferred Source