MONROVIA – The Plenary of the Liberian Senate has instructed its Committee on Concession and Investment to conduct a thorough review of the country’s investment incentive frameworks, following a communication from Gbarpolu County Senator Amara Mohammed Konneh raising concerns over their long-term economic and fiscal impact.
Senator Konneh, during the Senate’s 32nd day sitting on Thursday, June 26, 2025, highlighted that Liberia’s post-war recovery strategies heavily relied on tax incentives, royalty reductions, and special concessions to attract foreign investment. These measures, he acknowledged, were instrumental in stimulating key sectors like mining, agriculture, forestry, and energy, as well as in creating jobs for Liberians.
However, Konneh cautioned that the continued use of these incentives without periodic evaluation could be detrimental. He pointed out that despite the inflow of capital through such arrangements, the government continues to face revenue shortfalls that threaten its ability to finance public sector investments and improve the livelihoods of its citizens.
He further noted that a growing number of companies benefiting from tax waivers are not complying with the terms of their concession agreements. This, he argued, raises critical questions about the effectiveness of these policies in achieving their intended goals. Of particular concern, he said, is the performance of the National Bureau of Concessions (NBC), the agency tasked with monitoring these agreements. Delays in oversight and weak enforcement, according to Konneh, have resulted in economic losses and poor transparency.
Senator Konneh, who also chairs the Senate Committee on Public Accounts and Audits, proposed a formal Senate review session to assess the relevance of Liberia’s current incentive models compared to those adopted over two decades ago during the early stages of post-war reconstruction. He said the review should be led by a special committee and supported by the Senate consultant to ensure a robust, evidence-based process.
He further recommended the participation of key stakeholders from the Executive Branch, including the Ministry of Finance and Development Planning (MFDP), Liberia Revenue Authority (LRA), National Investment Commission (NIC), and the NBC, as well as the Ministries of Mines and Energy, Agriculture, and the Forestry Development Agency.
As some tax incentive agreements near expiration and the 55th Legislature prepares to review new investment proposals, Konneh emphasized the importance of ensuring that any continued use of tax breaks and concessions genuinely serves Liberia’s broader development goals. He stressed that the upcoming review offers a timely opportunity to strengthen compliance, improve transparency, and enhance domestic revenue generation amid declining international budgetary support.
