By Dwoe Peter
Liberia is endowed with abundant natural resources, including iron ore, oil, timber, and other valuable minerals. Historically, these resources have been extracted and exported in raw form, depriving the country of significant economic benefits. Encouraging concessions to process these resources within Liberia before shipping them out would yield numerous advantages, including economic growth, job creation, increased government revenue, industrial development, and greater value addition to the country’s exports (World Bank, 2021).
Economic Growth and Industrialization
Processing raw materials within Liberia would spur industrialization and economic diversification. Currently, Liberia primarily exports raw materials, leaving the country vulnerable to fluctuations in global commodity prices. By processing resources such as iron ore into steel or refining crude oil into petroleum products, Liberia could establish a stronger industrial base. This industrialization would not only strengthen the economy but also create new business opportunities in manufacturing, construction, and technology, fostering sustainable development (UNCTAD, 2020).
Job Creation and Skills Development
One of the most immediate benefits of local processing is the creation of employment opportunities. Extracting raw materials requires labor, but processing them demands a significantly larger workforce, including engineers, factory workers, logistics personnel, and managers. This would help alleviate the high unemployment rate in Liberia, particularly among young people (ILO, 2019). Additionally, operating processing plants would necessitate training programs, leading to skill development and a more skilled workforce capable of contributing to other sectors of the economy.
Increased Government Revenue
When raw materials are processed locally, the government benefits from increased tax revenues. Processing plants pay corporate taxes, income taxes from employees, and other levies that contribute to national development. Additionally, by exporting refined products rather than raw materials, the country can negotiate better trade terms, ensuring that more wealth remains within Liberia rather than being transferred to foreign corporations and processing facilities overseas (African Development Bank, 2022).
Higher Value Addition and Competitive Exports
Processed goods command higher prices in international markets compared to raw materials. For example, exporting refined oil generates more revenue than selling crude oil, and finished wood products fetch more value than unprocessed timber (OECD, 2021). By increasing the value of its
exports, Liberia could improve its trade balance, attract more foreign investment, and strengthen its economic position globally.
Infrastructure Development and Technology Transfer
Establishing processing facilities would necessitate improved infrastructure, such as roads, electricity, and water supply, benefiting both businesses and local communities. Additionally, the presence of industrial operations would facilitate technology transfer from international companies to local businesses, promoting knowledge sharing and long-term economic sustainability (World Economic Forum, 2020).
Environmental and Social Benefits
By processing resources locally, Liberia can enforce stricter environmental regulations to ensure sustainable practices. When resources are exported in raw form, foreign processing plants may not adhere to environmentally friendly standards, contributing to global pollution. By keeping processing activities within the country, Liberia can regulate emissions, waste management, and sustainable extraction practices, ensuring long-term environmental conservation (UNEP, 2018).
Conclusion
Requiring concessions to process Liberia’s natural resources within the country before export would provide immense economic, social, and environmental benefits. It would drive industrialization, create jobs, boost government revenues, increase the value of exports, and foster infrastructure development. By implementing policies that encourage local processing, Liberia can maximize its natural wealth for the benefit of its citizens and future generations, ultimately ensuring a more prosperous and self-sufficient nation.
