Liberia: Senator Konneh Calls for Urgent Overhaul of Liberia’s Investment Incentive Policies

Monrovia — Senator Amara Mohammed Konneh of Gbarpolu County has called on the Liberian Senate to take immediate legislative action to overhaul the country’s decades-old investment incentive regime, warning that the current framework is draining national revenue and undermining development.

In a formal communication addressed to Senate President Pro Tempore Nyonblee Karnga-Lawrence and members of the Plenary, Konneh painted a dire picture of the state of Liberia’s investment governance, stressing that tax breaks, royalty waivers, and concession privileges–originally intended to jumpstart post-war recovery–have outlived their usefulness and are now a threat to fiscal sustainability.

“As we continue our development journey, emerging concerns about the perpetuity of these incentives warrant critically assessing their effectiveness, fiscal implications, and developmental impact,” Konneh wrote. “Persistent revenue performance challenges limit our capacity to finance vital public sector investments and invest in Liberians.”

At the heart of Konneh’s critique is the National Bureau of Concessions (NBC), which he described as alarmingly ineffective in its role as watchdog over major concession agreements. He charged that Liberia is suffering economic losses due to the Bureau’s failure to enforce compliance and conduct timely reviews.

“Delays in conducting timely and thorough reviews and holding concessionaires accountable to their commitments in exchange for tax incentives have led to gaps in oversight, resulting in economic losses that may hinder Liberia’s fiscal sustainability and development,” the senator warned.

The former Finance Minister argued that the Senate must immediately reassess whether existing investment incentives are appropriate for the current realities of Liberia’s economy, 23 years after the war. He is urging the Plenary to establish a special review session led by a dedicated Senate committee and supported by technical experts. This session, he said, would bring together legislative and executive stakeholders to determine whether current incentive policies are delivering meaningful economic returns for Liberians.

“To address these concerns proactively, I propose that the Senate Plenary convene a formal review session to assess Liberia’s investment incentive frameworks and their overall economic and fiscal impacts,” he wrote. “This session will enable informed legislative discussions with Executive Branch stakeholders and guide necessary adjustments to ensure incentives align with our broader economic and development goals for fostering economic expansion and opportunities for Liberians.”

Konneh called for the urgent involvement of key government entities–including the Ministry of Finance and Development Planning (MFDP), Liberia Revenue Authority (LRA), National Investment Commission (NIC), National Bureau of Concessions (NBC), and the sector ministries for mines, agriculture, and forestry–to provide critical data and insight during the review process. He emphasized the need for a complete picture of compliance, sector performance, and fiscal costs associated with ongoing incentive agreements.

“This review will help us pinpoint areas for improvement, enhance compliance mechanisms, and optimize revenue generation, thereby securing the vital resources necessary for our national development, especially in light of the recent reductions in financial assistance from our international partners,” Konneh stated.

According to the senator, Liberia’s economic survival depends on swift and courageous reforms. He cautioned that the country cannot continue to “hand out tax breaks without holding beneficiaries to account,” especially in the face of dwindling donor support and rising budgetary demands.

“We stand at a pivotal juncture in our development journey,” he told colleagues. “It is imperative that Liberia takes proactive steps to shape its economic future as a small developing nation by leveraging its natural endowments, ensuring its investment incentives and fiscal policies are comprehensively reviewed, thoughtfully crafted, sustainable, and adaptable to the evolving circumstances.”

The call comes as several key investment incentive agreements approach expiration and as the 55th Legislature considers the ratification of new ones. Konneh’s warning suggests that without stronger oversight and reform, Liberia may continue to forfeit critical domestic revenues while foreign investors reap benefits unchecked.

“It is an opportune moment for us to engage in a comprehensive review of Liberia’s investment incentives,” he stated.

By Liberian Investigator.