Liberia stands at a decisive crossroads. Blessed with abundant natural resources, a youthful population, and a strategic location in West Africa, the nation has the ingredients for profound economic transformation. Yet, although the opportunities are immense, persistent governance weaknesses, fragile infrastructure, and outdated fiscal and monetary systems continue to constrain progress.
For the Unity Party administration, the challenge is clear, it must shift Liberia’s trajectory from survival to prosperity by harnessing technology, enforcing fiscal discipline, liberalizing trade, and deliberately creating domestic and external demand to drive a modern economy that is responsive to the socio-economic needs of its citizens. Impact
Intervention of Technology as a Foundation for Economic and Revenue Governance and Growth in Liberia
Technology has become a cornerstone for transforming governance systems, strengthening economic management, and expanding revenue mobilization in Liberia. As the country pursues sustainable growth, technological intervention provides the foundation for transparent governance, efficient public financial management, and inclusive economic expansion.
Keep up with the latest headlines on WhatsApp | LinkedIn
Technology enhances economic governance by improving data systems, enabling evidence-based policymaking, and creating digital platforms that increase government accountability. Tools such as e-procurement systems, digital identity solutions, and open budget portals reduce corruption, enhance citizen participation, and ensure more effective allocation of public resources.
In the area of revenue governance, digital tax systems and e-filing platforms are transforming how Liberia mobilizes domestic resources. These platforms strengthen compliance, reduce tax evasion, and allow the Liberia Revenue Authority to forecast revenues more accurately.
Mobile money innovations have also widened the tax net by integrating the informal sector into the national tax system. Technological innovation also drives economic growth by creating new industries, expanding access to markets, and enabling financial inclusion.
Digital trade platforms, fintech solutions, and e-commerce empower small and medium enterprises while attracting foreign direct investment. Although Liberia is not yet fully integrated into continental frameworks such as the African Continental Free Trade Area, digital trade facilitation holds significant potential for boosting cross-border commerce within West Africa.
The Ministry of Finance and Development Planning must drive a forward-looking policy that integrates the informal sector into Liberia’s technological transformation agenda. This requires more than simply digitizing tax systems; it calls for deliberate design of solutions tailored to the realities of small traders, market actors, micro-enterprises, and community-based businesses that dominate the informal economy through daily sales, internal trade, and transactions.
Such a policy should focus on three interlinked pillars. Technological integration involves establishing accessible digital platforms, such as mobile payment systems, simplified e-filing tools, and digital identity solutions, that enable informal businesses to carry out sales, manage transactions, and participate in internal trade with minimal barriers. Digitizing market activities allows traders to save, record, and report income more efficiently while reducing reliance on cash-based systems.
Capacity building entails providing sustained training programs and awareness campaigns that strengthen the digital literacy of informal sector operators, particularly market women, small traders, and cross-border sellers. Equipping entrepreneurs with the skills to use mobile banking, e-commerce platforms, and digital trade tools ensures they can expand sales channels, track transactions, and compete effectively in local and regional markets.
Business opportunities and incentives involve introducing targeted measures such as tax relief for newly digitized businesses, preferential access to government procurement, and small grants or low-interest loans for entrepreneurs adopting digital solutions. Special incentives should also support market modernization, transparent sales practices, and improved transaction systems that enhance trust in internal trade.
Adopting such a holistic approach, the Ministry of Finance and Development Planning can transform the informal sector from a traditionally under-regulated and cash-dependent space into a dynamic engine of inclusive economic growth. Strengthening sales systems, digitizing transactions, and supporting internal trade will enable the sector to contribute more meaningfully to revenue mobilization, job creation, and Liberia’s long-term national development.
Understanding the national characteristics of the informal sector is critical for designing effective technological interventions. Many informal businesses are embedded in traditional trading systems, family businesses, and community trust networks rather than formal contracts. Practices such as credit based on personal relationships or extended family labor shape how the sector functions.
The informal economy is often organized along ethnic, regional, or kinship lines, influencing participation, labor distribution, and dispute resolution. Informal cooperatives, savings groups, and rotating credit associations are significant features that sustain small-scale businesses.
Women play a dominant role in Liberia’s informal economy, particularly in petty trading, agriculture, and food processing, making gender-sensitive approaches essential.
Knowledge systems within the informal sector rely heavily on indigenous knowledge, apprenticeship methods, and community-based skills transfer rather than formal education. Trust and legitimacy are maintained through reputation and community enforcement mechanisms rather than state institutions. Many actors are cautious of formalization due to past experiences of exploitation or over-taxation.
Recognizing these cultural and social dynamics is critical for introducing digital solutions, building capacity, and designing incentives that are socially accepted and effective. Policies that respect these norms while gradually integrating formal structures will reduce resistance and support sustainable transformation of the informal sector.
Government Led Digital Transformation for Economic Competitiveness and Development
It is the policy responsibility of all government ministries, agencies, and commissions to implement the automation of business processes as a strategic mechanism for enhancing Liberia’s economic competitiveness, fostering technological advancement, and driving sustainable business growth.
The Ministry of Finance and Development Planning and the Liberia Revenue Authority will serve as primary facilitators and coordinators, ensuring that public institutions adopt digital workflows, minimize bureaucratic bottlenecks, and support efficient and transparent service delivery.
Digital payment systems, mobile banking, e-commerce platforms, and online marketplaces should be integrated across relevant economic sectors to expand financial inclusion, empower small and medium enterprises, particularly those led by women and youth and stimulate entrepreneurship and investment.
At the national level, government institutions are tasked with automating customs operations, border management, and internal business workflows to reduce delays, lower operational costs, and strengthen Liberia’s competitiveness in regional and international markets, including the African Continental Free Trade Area.
Streamlined processes for revenue collection, licensing, procurement, and permit approvals are to be prioritized to enhance operational effectiveness, efficiency, and turnaround time, ensuring that public institutions function with accuracy, speed, and reliability while supporting broader economic development objectives.
Automation will further advance accountability, transparency, and organizational productivity across the public sector. Digital systems must provide verifiable audit trails, improve public access to information, and reduce opportunities for corruption. Delegating routine administrative and business processes to technology, public sector personnel can focus on higher-value tasks, enabling scalable service delivery and fostering a business-friendly environment.
Integrating technology-driven automation across government ministries, agencies, and commissions should therefore be considered a core policy development priority, critical for promoting inclusive economic growth, strengthening institutional capacity, and achieving sustainable national development.
Creating Demand in Liberia’s Economy
No economy can thrive without effective demand, and in Liberia both household spending and investment-driven demand are crucial to unlocking growth. Raising disposable incomes through fair wages, social protection programs, and access to microfinance empowers households to consume and invest. Infrastructure development in roads, energy, water, and telecommunications expands market access, creates jobs, and stimulates domestic demand when local resources are prioritized.
Strengthening small and medium enterprises, which form the backbone of Liberia’s economy, is equally critical through affordable finance, training, and simplified regulations. Agriculture also requires strategic investment, with support for inputs, irrigation, storage, and value chains to shift from subsistence farming to wealth creation.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
At the same time, consumer confidence must be nurtured through predictable policies, stable prices, and rule of law, while innovation and the digital economy open new opportunities for the youth.
Strengthening Economic Enablers and Fiscal Policies
For Liberia to sustain growth, investment in enablers of productivity such as energy, ICT, transport, and human capital must be prioritized. Expanding broadband access, scaling renewable energy, and modernizing logistics infrastructure will build the foundation of a competitive economy.
However, these investments must be matched by credible fiscal and monetary reforms. A digitalized tax system, broadened revenue base, and reduced leakages could generate significant domestic resources for national priorities.
At the same time, fiscal discipline, rationalized spending, and stronger debt management are needed to reduce vulnerability. Strengthening the Central Bank’s role in interest rates, credit control, and price stability will help anchor macroeconomic stability, while countercyclical fiscal policies can cushion shocks and sustain growth.
Trade Integration and Inclusive Growth
Trade liberalization offers Liberia the opportunity to expand beyond raw commodity exports and integrate into regional and global value chains. By aligning with ECOWAS and AfCFTA protocols, reducing trade barriers, and investing in agro-processing, renewable energy, and digital services, Liberia can expand exports and attract investment. Public investment in health, education, housing, and strategic sectors will create short-term demand while boosting long-term productivity.
Yet growth must remain inclusive, with civic participation, SME empowerment, and digital entrepreneurship ensuring prosperity is widely shared. Ultimately, Liberia’s national development depends not on chance but deliberate action, leveraging technology, governance reform, and trade integration with strong political will and institutional courage.
With a people-centered vision, Liberia can move decisively from fragility to resilience and from promise to prosperity.
Senior Advisor on Governance, National Policy Development and Institutional Reform Professional
