Liberia’s private sector in focus: What the data reveal

The result is a troubling negative cycle. Without access to capital, firms cannot innovate; without productivity gains, they cannot self-finance or qualify for credit. Breaking this cycle is essential to restoring dynamism to Liberia’s private sector.

Policy implications and the path forward

Together, these findings have significant implications for development policy in Liberia and West Africa — particularly for private-sector growth, economic diversification, and job creation — and are highly relevant to advancing the government’s ARREST Agenda for Inclusive Development (AAID).

Access to finance remains the most pressing barrier, despite improvements in political stability and governance. Expanding financial inclusion alongside regulatory reforms would help ease this constraint. At the same time, sustained investment in electricity infrastructure is critical, as high energy costs continue to limit firm capacity. Firms also need stronger innovation support and clearer pathways to formalization that do not impose excessive regulatory burdens.

This analysis directly informs the World Bank Group’s broader jobs agenda, which seeks to help developing countries translate growth into more and better-quality local jobs. With 1.2 billion young people set to enter the global workforce over the next decade, accelerating firm growth and expanding access to finance in countries like Liberia will be critical to turning economic potential into real opportunities for workers on the ground.

With more than 4.02 million acres of arable land, a strategic location in West Africa, and a young, growing population, Liberia is well positioned for growth. The right policy framework and targeted private-sector support, can help reverse the decline in productivity and innovation, unlocking sustainable, inclusive growth and more — and better — jobs for all Liberians.