Government says it is bent on improving the business climate of the country; outlining tangible steps needed to attract private investment into the country.
Elaborating on the steps, Finance Minister, Samuel D. Tweah, on Tuesday, July 04, during a local talk show in Monrovia, named the issues of energy, road connectivity as well as structural reform at business institutions amongst others as areas that need to be addressed to attract huge private sector investment to the country.
On the issue of energy, the Minister pointed out that the cost of energy has served as a blockage to the development of the private sector because the quantity of electricity needed to attract private investment is not available in Liberia.
The official maintained that factories need a lot of energy to implement their investment and at the same time need that energy at an affordable rate which will enable them maximize profit.
The policymaker disclosed that the current cost of electricity in Liberia is US$20 cents per kilowatt hour as compared to other West African countries that are currently at US$10 cents per kilowatt hour.
Tweah lamented the rate at which past officials have handled the issue of electricity in Liberia, noting that since the construction of the 66-megawatt Mount Coffee hydro plant by former President William V. S. Tubman between 1963 and 1966, the government of Liberia has only been able to add just over 20 megawatts to that facility which has negatively affected the growth and development of the country.
However, he disclosed plans by the government to beef up the capacity from 88 megawatts to 250 megawatts and subsequently 300 megawatts as a means of attracting the needed investment the private sector desired.
The minister argued that when Liberia gets to the point of 250 to 300 megawatts, it will enable the country to compete with other countries in the region as it relates to investment.
Tweah asserted that when an investor is choosing between Liberia, Sierra Leone, Ghana, or Ivory Coast, Liberia would only be a viable option if its cost competitiveness leans on the positive side. Otherwise, these investors would rather go where the cost of electricity and production is low.
The United States-trained economist also pinpointed the challenge of road connectivity which, according to him, when addressed will positively impact the business climate of Liberia.
He used the occasion to assure the people of the southeastern region of Liberia that the Government of Liberia is doing everything possible to ensure that the entire corridor is connected.
Minister Tweah revealed that all of the finances for the pavement of the southeastern road corridors is available but needs time to implement the project.
Also, he named structural reform as something that is needed to improve the business environment of Liberia, using the APM Terminals as a case study where the institution lacks the requisite logistics needed to fast strike the offloading of goods at the National Port Authority thus increasing import cost which is subsequently shouldered by consumers.
To address this, Tweah said the government is currently working with APM Terminals to ensure the procurement and installation of Gantry Cranes at the Freeport of Monrovia.
He unearthed that the government has negotiated with the new management of the institution to ensure that the country gets the requisite equipment for the job.
The Minister added that the management of APM Terminals has agreed to invest in Gantry Cranes as a means of implementing the president’s mandate.
“I can announce to you that two Gantry Cranes are on their way to Monrovia and will be dedicated by the President in September of this year. With those cranes, the whole Freeport of Monrovia can be cleared in hours, something which used to take days because of inefficiency,” Tweah noted.
Meanwhile, the Minister frowned on unscrupulous businesses that are profiteering at the expense of the Liberian public, citing that some businesses are in the habit of determining rate by themselves other than the Central Bank of Liberia approved rate.
He said because of the high rate of back room negotiations carried out by some dishonest businesses in the country, people are losing a lot of money, and this has been attributed to the increase in prices.
Nevertheless, Tweah called on the requisite government institutions responsible for price regulation to ensure that businesses publicize their rate on a routine basis to prevent the exploitation of Liberians which will also help stabilize prices.
He maintained that the government is working tirelessly to address such challenges through structural reforms to ensure that prices are regulated.
