Liberia: $3 billion in investment on the horizon following mining discoveries

The President of Liberia, Joseph Boakai, announced during his State of the Nation address that the country hopes to attract 3 billion dollars in investment following the discovery of new strategic minerals. Uranium, lithium, cobalt, manganese and neodymium, discovered thanks to five decades of studies financed by China, open up new economic prospects for the country.

This breakthrough could enable Liberia to diversify its economy, which has historically been dominated by iron ore and rubber exports. Recognising the opportunity, the government has entered into negotiations with multinationals and local investors to develop the mining sector and related industries, including energy, infrastructure and technology.

The Boakai administration is counting on these investments to accelerate economic growth, which should rise from 5.1% in 2024 to 5.8% in 2025. In addition, the stabilisation of the economy could help bring down inflation, which was forecast at 12.3% in March but is expected to fall to 6% by the end of next year. According to World Bank forecasts, this growth dynamic could also reduce the poverty rate, from 31% in 2023 to 27.8% in 2024.

While the new mineral reserves offer promising prospects, their exploitation will have to be rigorously supervised. Effective management of the wealth of resources will be crucial to maximising economic benefits and avoiding the pitfalls of poor governance. The transparency of mining agreements, the development of local refining capacity and the consideration of environmental issues will be decisive factors in ensuring sustainable development.

As global demand for lithium and cobalt continues to grow, Liberia has the opportunity to position itself as a key supplier to the renewable energy and electric vehicle industries. For President Boakai, the challenge will be to turn this influx of investment into a tangible improvement in people's living conditions. Effective management could anchor Liberia on a path of sustainable economic stability and contribute to long-term poverty reduction.