“Foreign investors report difficulties in meetings with government officials to discuss investment deals unless bribes are offered. Widespread corruption also deters foreign direct investment. Government officials view foreign investors as opportunities for short-term graft.”
In a damning assessment of Liberia’s business environment, the U.S. State Department 2025 Investment Climate report has spotlighted systemic corruption as a major deterrent to foreign direct investment in the country.
The report states that investors face an uphill battle simply securing meetings with government officials-often requiring bribes before discussions on investment opportunities can even begin.
Despite public claims by Liberian authorities to attract foreign investment, the report describes an environment where unethical practices are not the exception, but the norm.
“Government officials view foreign investors as opportunities for short-term graft, rather than as partners in creating long-term growth for the benefit of the country,” the report reads.
The lack of transparency in awarding contracts further undermines investor trust, with many foreign companies perceiving the process as being driven more by personal and political connections than by merit.
Corruption is compounded by a weak legal and regulatory framework that offers little protection or recourse for investors seeking to operate by the book.
The report notes that while businesses willing to engage in unofficial payments find it easier to operate, those following the rules are either neglected or actively targeted by officials demanding bribes.
This creates a perverse incentive structure-rewarding illegal behavior and penalizing law-abiding enterprises-deepening a culture of corruption and eroding the rule of law.
The 2025 report also points to the 2010 Investment Act as a structural barrier, citing its restrictions on foreign ownership in several sectors as an added limitation for U.S. investors.
Additionally, Liberia’s limited pool of skilled labor poses a challenge to foreign companies, many of whom struggle to meet workforce needs without adequate training infrastructure.
Government decisions affecting the private sector, the report suggests, are influenced less by economic strategy and more by political cronyism and favoritism.
This political interference further weakens confidence in Liberia as a reliable and fair investment destination.
International investors are increasingly wary, with some opting to divert capital to more predictable and transparent markets in the region.
While Liberia continues to promote its untapped potential and natural resources, the gap between promotional messaging and operational reality remains wide.
The U.S. Investment Climate report concludes that meaningful progress will require sweeping reforms, strengthening institutions, enforcing anti-corruption measures, and overhauling outdated investment laws.
Until then, Liberia may struggle to shake off the perception, and the reality, that doing business there means navigating a system where bribes come before business.
