US warns Liberia on investment climate
American firms face corruption, delays, and demands for bribes, says State Department report.
The United States government has issued a stark warning to American companies considering investment in Liberia, describing corruption as the "primary brake" on economic growth and democratic progress. The State Department's 2026 Investment Climate Statement highlights that officials often prioritize personal gain, leading to delays, increased costs, and legal risks for investors. Businesses that follow rules may face bribe demands, while those paying political interests can find it easier to operate illegally.
The report details that extortion is common at multiple government levels, particularly in procurement, contract awards, customs, and tax administration. Liberia's adherence to anti-corruption conventions has not yielded measurable reductions, with domestic law enforcement being inconsistent. While the report acknowledges nascent efforts by President Joseph Boakai's administration, such as asset declaration requirements and investigations into irregular contracts, it notes these have not yet shown visible results.
Disputes over contracts can lead to prolonged legal battles, as Liberia's Commercial Court faces severe backlogs, with cases taking two to five years to resolve. Despite economic growth of 5.1 percent in 2025 and improvements in mining and exports, the U.S. assessment suggests a challenging environment for foreign investment due to governance issues.
Why it mattersAmerican businesses looking to invest in Liberia face significant hurdles due to widespread corruption and an inefficient judicial system.