By: Rufus S. Berry II, MBA
Financial expert and anti-corruption activist
In a recent address at the US-Africa Business Summit in Dallas-Fort Worth, Texas, President Joseph N. Boakai Sr. criticized ArcelorMittal-Liberia’s management of the Yekepa region, highlighting the stark contrast between its current state and its past glory under Lamco. Once a vibrant and world-class place to live and work, Yekepa has deteriorated significantly under ArcelorMittal’s tenure, now resembling a ghost town.
President Boakai singled out the iron ore giant for its failure to comply with the multi user rail framewor set forth by the Liberian government. The Yekepa-to-Buchanan railway, a critical infrastructure asset owned by the Republic of Liberia, has not been utilized to its full potential under ArcelorMittal’s exclusive control. President Boakai emphasized that this railway should serve multiple users to maximize its benefits for the nation.
The question of whether ArcelorMittal has failed the people of Liberia is complex and multi-faceted, involving economic, social, and infrastructural considerations. Here are several key points that contribute to this debate:
Economic Contributions and Shortcomings
Contributions:
• Investment and Jobs: ArcelorMittal has invested significantly in Liberia, bringing in much-needed capital and creating jobs. The company’s operations have contributed to the national economy through taxes, royalties, and employment.
• Infrastructure Development: ArcelorMittal has been involved in the development and maintenance of key infrastructure, including the Yekepa-to-Buchanan railway and port facilities.
Shortcomings:
• Economic Benefits: Critics argue that the economic benefits of ArcelorMittal’s presence have not been distributed equitably. The local communities, particularly in Yekepa, have not seen proportional improvements in their living standards.
• Local Development: There have been complaints about the company not fulfilling all its commitments to community development, including education, healthcare, and infrastructure.
Social and Environmental Impact
Positive Impact:
• Corporate Social Responsibility: ArcelorMittal has engaged in various CSR activities, including supporting local schools and healthcare initiatives.
Negative Impact:
• Living Conditions: The contrast between the current state of Yekepa and its former glory under Lamco is stark. Once a thriving, well-maintained community, Yekepa has been described as a “ghost location” under ArcelorMittal, with significant deterioration in living conditions.
• Environmental Concerns: There have been environmental concerns related to mining activities, including deforestation and pollution, which affect local communities’ health and livelihoods.
Compliance with Multiuser Infrastructure framework.
Government Mandates:
• Multiuser Railway: The Liberian government is advocating for a multiuser railway system to ensure that the infrastructure serves a broader range of stakeholders and maximizes national benefits.
President Boakai, in his strong support for a multiuser railway and port system, called for the establishment of clear rules and responsibilities to ensure that Liberia’s infrastructure effectively meets the country’s needs. He emphasized the importance of a collaborative approach that accommodates various stakeholders, fostering economic growth and sustainable development.
ArcelorMittal’s Performance:
• Exclusive Control: ArcelorMittal’s control over the Yekepa-to-Buchanan railway has been criticized for not aligning with the multiuser mandate. This exclusivity limits other potential users, hindering broader economic development.
By advocating for a multiuser model, President Boakai aims to unlock the full potential of Liberia’s railway and port infrastructure. This approach is expected to attract more investments, enhance operational efficiency, and promote equitable access to vital transportation networks. Ultimately, President Boakai’s vision seeks to restore Yekepa’s former prosperity and transform the nation’s infrastructure landscape, driving Liberia towards a more inclusive and prosperous future
We can conclude with confidence that the company has failed to deliver for the people of Liberia. While ArcelorMittal has made significant contributions to Liberia’s economy and infrastructure, its performance has been met with considerable criticism. The company’s failure to fully realize the potential benefits for local communities, along with its non-compliance with the multiuser infrastructure mandate, suggests that it has fallen short in several key areas. Addressing these issues requires a collaborative effort between the Liberian government, ArcelorMittal, and other stakeholders to ensure that the nation’s resources and infrastructure truly benefit all Liberians.
