Liberia:- ArcelorMittal’s 1.7 B. Investment Is The Guidepost to Attract High-Value Foreign Investors To Liberia, as Pres. Boakai Launched Investment Conference
President Boakai and his government’s decision to kickstart an investment conference for Liberia, yesterday, is a step in the right direction and stands in good faith to attract much-needed investment and create jobs for the thousands of unemployed youths across the country.
Under the theme, “Winds of Change: Leveraging Private Sector Investment to Spur Growth and Development,” the conference seeks ways to attract investment and create more economic opportunities in Liberia.
President Boakia pledged his government’s commitment to lead by example at the event, promising that “with no tolerance for theft and graft of public property, we have waged a war on these vices. Accordingly, I assure you all that every cent you undertake to invest in Liberia will be fully protected.”
However, one absent thing was an intentional effort to highlight large foreign investments already operating in the country. This could be a testament to Liberia’s commitment to protecting foreign investment and successful partnership in solving problems together. Companies such as Bea Mountain, MNG Gold, ArcelorMittal Liberia, Golden Verolium, and others, can be seen as the flagbearers of doing business in Liberia and the existence of the necessary enabling environment for foreign businesses to thrive.
For example, the global steel giant, ArcelorMittal Liberia, with a sales revenue of US68.28 billion and a market capital is $20 billion, having over 154,000 people employed, has invested almost $2 billion in Liberia – about 5,000 jobs, employed and contracted. A foreign company with such an outstanding global record operating in Liberia is an asset to leverage in our efforts to woo foreign investors to Liberia.
It is easy to leverage ArcelorMittal in Liberia’s investment profile. The company has been a part of Liberia’s post-conflict humble beginning – as the first foreign investment in the country and has been going along ever since. When Liberia was struck by Ebola, which drove away many foreign companies on the ground, ArcelorMittal acted contrary to other companies and partnered with the government of Liberia and local institutions to fight the virus. ArcelorMittal also went through COVID-19 with Liberia, undeterred.
Today, to the outside world, the company stands as a powerful symbol of peace and stability in Liberia. The government of Liberia can leverage this long partnership and the fact that the company’s mineral Development Agreement is being discussed for extension to expand the company’s operations is an indication that Liberia is a profitable destination for doing business.
As Liberia’s biggest investment, the highest contributor to government revenue, and the largest private sector employer, GoL should have ensured that ArcelorMittal form a part of the planning of the conference, and perhaps, get the company’s Chairman as Honorary Chair and guest of honor of the conference.
The government should have strategically utilized ArcelorMittal to discuss the investment climate in Liberia, highlight its significant investments, and encourage others to invest in the country.
Arcelor Mittal could be the biggest advocate for the government to attract more Foreign Direct Investment to the country.
We have repeatedly heard successive Liberian governments speak of private sector-led investment and it is time to make true our words to end Liberia’s cycle of poverty.
This is important because, it is only a private sector-led national investment strategy that can drive economic growth through innovation, efficiency, and job creation in a free market economy like Liberia.
AML’s role in such an investment conference is important to make others around the world see and help attract capital, leverage expertise, and foster competition which can lead to a better approach to investment.
Additionally, a private sector-led strategy can help reduce the fiscal burden on the government and encourage a more dynamic, resilient economy.
Instead of inviting ArcelorMittal as just a mere participant, the government must make its commitment to attract investments to Liberia more intentional.
It cannot be ignored that the company has had some difficult times with its host communities, and other problems created by the Weah administration, which dubiously granted exploration licenses to Solway Resources within the ArcelorMittal concession area. The issuance of this license has emboldened sporadic protests against ArcelorMittal by some members of the local communities, mostly instigated by operatives of Solway Resources who believed that the successful amendment and ratification of ArcelorMittal’s MDA would undermine their claims to the Bley and Dayton Mountains to which the License was given.
This is one of the many problems inherited by the Boakai Administration which should be resolved with immediacy, to allow ArcelorMittal to operate undisturbed and uninterrupted. Such an environment enhances investment prospects for the country.
Here’s how ArcelorMittal’s global activities and investment potential can strengthen this argument:
ArcelorMittal is the world’s leading steel and mining company, producing a wide range of steel products used in various industries, including automotive, construction, household appliances, and packaging.
The company has extensive mining operations that are extracting iron ore and coal which are critical raw materials for steel production, spanning the Americas, Europe, Africa, and Asia.
ArcelorMittal invests significantly in Research and Development, focusing on innovations in steel production, reducing environmental impact, and improving product performance.
With operations in over 60 countries, ArcelorMittal maintains a strong network of customers, suppliers, and partners globally.
Furthermore, the government of Liberia could be more strategic to have permitted ArcelorMittal Liberia to pay a more meaningful more in its effort to attract investment for the fact that the company is a weighty player in Liberia’s economy.
It’s contributing to infrastructure development noticeably the construction of the Ganta-Yekapa Road, employment, and local businesses enhancement through its mining and logistics operations which are heavily centered in Grand Bassa and Nimba Counties.
The country could have had the opportunity to hear what it means to have invested more the $500 million in railways, millions in port facilities, and roads not to only support ArcelorMittal’s operations but also to enhance the overall infrastructure, making Liberia more attractive to other investors.
It could have been better for the world to hear from ArcelorMittal as a champion of investment in Liberia so that it permits the government and other potential investors to strategize better and identify new low-hanging fruits that can put more Liberians to work.
In Liberia, we say “It is on the old mat that you play the new one”
Through various corporate social responsibility (CSR) initiatives, ArcelorMittal Liberia has supported education, healthcare, and community development projects, improving the quality of life of employees and fostering goodwill. Potential investors could be interested in knowing how this has worked and what are the associated challenges and opportunists.
Leveraging its global presence, ArcelorMittal can attract international investors to Liberia by highlighting the country’s potential in the mining sector and beyond. Since the end of the war in Liberia, nobody knows this sector more than AML does.
The company’s established reputation can reassure potential investors about the viability and stability of investing in Liberia.
For years ArcelorMittal has been fostering partnerships with local businesses and the government which has created a conducive environment for investment.
These collaborative projects can showcase the opportunities available in Liberia to a global audience for the advancement of technologies and innovative practices can be introduced in Liberia to strengthen operational efficiencies and set up high standards for other industries.
ArcelorMittal’s extensive global network and its established operations in Liberia position the company as a catalyst for attracting further investment into the country. By continuing its commitment to local development and leveraging its international connections, ArcelorMittal can play a crucial role in promoting Liberia as a promising destination for global investors.
