The recent attack on ArcelorMittal’s Mount Yuelliton base camp by armed assailants is a grim reminder of the dangers businesses face here.
Monrovia – Liberia stands at a crossroads. Our rich natural resources offer an unprecedented opportunity for growth and prosperity. Yet, time and time again, our headlines have been dominated by protests, violent disruptions, and vandalism against the foreign companies that could help shape our future.
By: Wremongar B. Joe II, contributing writer
I do not argue that foreign companies in Liberia have operated flawlessly, nor do I deny that communities have the right to voice concerns. However, after years of reporting on Liberia’s extractive industry and witnessing the repeated destruction of major investments, it has become clear: the future of Liberia’s economy is in jeopardy.
In the face of global economic challenges, Liberia desperately needs foreign direct investment (FDI) to drive growth, create jobs, and improve livelihoods. But the persistent violence targeting companies such as ArcelorMittal Liberia and Bea Mountain Mining Corporation sends a dangerous message to investors: Liberia is a high-risk environment.
The recent attack on ArcelorMittal’s Mount Yuelliton base camp by armed assailants is a grim reminder of the dangers businesses face here. Vandalizing critical infrastructure, brutalizing security personnel, and halting operations are not isolated incidents—they are part of a troubling trend that threatens Liberia’s ability to attract and retain investment.
In March 2024, protests erupted at Bea Mountain’s Matambo corridor in Grand Cape Mount County, resulting in the destruction of heavy machinery, the burning of homes, and the suspension of operations. The protests were fueled by allegations that the company had violated its Mineral Development Agreement and demands to replace its non-local top executives. Similarly, in Nimba County, ArcelorMittal faced disruptions as masked “Country Devils” erected roadblocks, stalling operations and damaging relations between the company and local communities.
These events demonstrate the fragility of Liberia’s investment climate. No serious investor will risk operating in an environment where their workforce is at risk, their equipment is destroyed, and their business activities are continuously disrupted. If Liberia fails to address this growing instability, we risk losing potential investors to neighboring countries like Ghana and Sierra Leone, where the investment environment is perceived as more secure and welcoming.
The Root Cause: Frustration in Host Communities
At the heart of these protests lies a deep frustration within host communities. These communities, who bear the environmental and social burdens of industrial activities, do not benefit from the corporate social responsibility (CSR) funds that companies like ArcelorMittal contribute to national development. According to Liberia’s Public Financial Management Law, these funds are supposed to be channeled through the government and redistributed to the counties for development. But in practice, these funds often do not reach the communities that need them most.
A glaring example of this failure occurred two years ago in Buchanan, where funds intended for community development were diverted for the construction of a district office for a local politician. Such misappropriations deepen the perception among locals that they are being denied their rightful share of CSR funds, further fueling resentment towards both the government and the companies.
This frustration is often directed at the companies themselves. Last year, youth in Buchanan blocked roads, set fire to tires, and obstructed access to ArcelorMittal’s concession area. Similar protests have taken place in Nimba County, where locals have set up roadblocks to halt the movement of ArcelorMittal locomotives. These protests not only disrupt business operations but also tarnish Liberia’s reputation as a stable investment destination.
One Solution: Direct Community Management of CSR Funds
To prevent further disruptions and protect Liberia’s investment future, the government must reconsider its approach to managing CSR funds. Instead of allowing these funds to pass through central government or county administrations, companies should work directly with host communities to determine how CSR funds are spent.
Empowering communities to manage their own development funds has several key benefits:
Communities directly impacted by industrial operations are best equipped to identify their own development priorities. Whether it’s better roads, schools, healthcare, or clean water, allowing them to decide how CSR funds are used will lead to more relevant and impactful projects.
When funds pass through multiple layers of government, they are prone to corruption and misallocation. By working directly with local communities, companies can ensure that funds are used effectively and transparently.
When communities see direct benefits from investments, they are more likely to protect and support them. A sense of ownership over local development fosters collaboration, turning potential conflict into a cooperative partnership.
Investors need stability. Disruptions such as roadblocks and violence create an image of Liberia as a risky investment destination. By ensuring that CSR funds directly benefit host communities, the government can foster a more stable and attractive investment climate.
A Path Forward for Liberia
To implement these changes, Liberia should introduce reforms that:
- Mandate direct engagement between companies and host communities in CSR planning and execution.
- Create transparent community development funds, managed by local leaders, representatives, and independent oversight bodies.
- Require regular public reporting on CSR expenditures to ensure accountability and demonstrate the impact of investments.
By taking these steps, Liberia can replace a system that breeds resentment and instability with one that fosters trust, transparency, and sustainable economic growth. Companies will be more likely to protect their investments, and communities will finally receive the benefits they deserve.
Why Peace and Security Matter for Development
The connection between security and economic prosperity is undeniable. Countries that uphold law and order, protect businesses, and encourage peaceful coexistence between investors and communities thrive. Liberia has the opportunity to follow this path—but only if it makes a firm commitment to securing its investments.
The government must take decisive action. It must strengthen laws to protect investors, empower security forces to respond to threats, and introduce policies that foster investor confidence. Liberia must send a clear message: the country is open for business, and those who threaten progress will face consequences.
Attacking investors does not lead to progress. It leads to stagnation and poverty. Those who sabotage foreign investments are harming their own future. If Liberia is to achieve lasting development, it must prioritize investment protection. The time for change is now.
