Liberia Firms' Sales Growth Slows to 7.9% as Finance Constraint Hits 39.8%
Updated
Updated · World Bank Blogs · May 12
Liberia Firms' Sales Growth Slows to 7.9% as Finance Constraint Hits 39.8%
2 articles · Updated · World Bank Blogs · May 12
2025 World Bank survey data showed Liberia’s private sector losing momentum, with real annual sales growth falling to 7.9% from 27.3% in 2017 and employment growth dropping to 8.9% from 19.8%.
39.8% of firms now cite access to finance as their biggest obstacle, up from 29.9%, with high collateral demands, thin credit histories and costly borrowing limiting expansion, equipment upgrades and innovation.
Electricity remained a major drag: 21.6% of firms flagged it as their top problem, and generator ownership climbed to 91% from 73%, underscoring weak grid reliability and higher operating costs.
Innovation weakened sharply alongside those constraints, with firms introducing new products or services plunging to 13.1% from 53.5% and process innovation falling to 14.2% from 30.8%.
The findings matter for a country where agriculture made up 33.8% of 2024 GDP, 87% of work is informal and 63% of the population is under 25, raising pressure for reforms to finance, power and formalization.
Liberian business innovation has plummeted by 75%. Is a lack of capital the only cause, or is a deeper economic crisis unfolding?
With 91% of firms needing generators, can Liberia's new plan fix its deep-rooted infrastructure and financial crises?
Africa's free trade pact offers a historic opportunity. Why might Liberia's struggling businesses be unable to compete and benefit?
Liberia’s Path to Inclusive Growth: Addressing Finance, Infrastructure, and Innovation Barriers in the Private Sector
Overview
Liberia’s private sector faces major challenges in finance, infrastructure, and innovation, which together hold back job creation, productivity, and inclusive economic growth. Addressing these deep-rooted issues is essential for the country’s structural transformation and a more resilient economy. Access to finance remains a key obstacle, especially for MSMEs, despite World Bank support and proposed solutions like credit guarantee schemes and digital marketplaces. Overcoming these constraints will help local firms grow, improve market access, and drive the broader economic progress that Liberia needs.