Liberia aims for US$3 billion a year from mining and energy by 2029

Liberia has unveiled an ambitious national strategy aimed at transforming its mining and energy sectors into major revenue pillars of the economy. Covering the period from 2025 to 2029, the plan sets a bold target of generating more than US$3 billion annually from natural resources by the end of the decade. The initiative reflects the government’s intention to leverage Liberia’s mineral and energy potential more effectively, while strengthening public finances and reducing long term dependence on external aid.

At the core of the strategy is a strong emphasis on improving exploration capacity and modernizing the governance framework that oversees mining and energy activities. The Ministry of Mines and Energy plans to update national geological information that has not been comprehensively revised since 1972. By investing in modern geological surveys and improved data management systems, the government hopes to attract higher quality investors and reduce uncertainty around resource potential. To support this effort, Liberia is seeking technical cooperation from international partners including France, China, and the United States, particularly in advanced exploration techniques and institutional capacity building.

Digital transformation is another key pillar of the plan. The ministry aims to digitize 80 percent of its operational procedures by 2029, a move intended to improve transparency, reduce administrative delays, and strengthen regulatory oversight. This modernization agenda is supported by a total investment envelope of US$39.5 million, with financing contributions from development partners such as the African Development Bank. Improved governance and efficiency are expected to enhance investor confidence while ensuring that the state captures a fairer share of resource revenues.

A significant policy shift outlined in the strategy involves reducing reliance on traditional royalty based income. Instead, the government plans to increase its direct participation in mining projects through equity stakes. Under existing provisions, the state is entitled to a free carried interest of between 10 and 15 percent in mining operations. By actively managing these stakes, Liberia aims to secure more stable and potentially higher long term revenues, especially during periods of strong commodity prices.

The strategy also prioritizes the formalization and expansion of artisanal and small scale mining, which plays a crucial role in rural livelihoods. The government plans to double the number of artisanal and small scale mining licenses to 1,000 by 2029 and establish 15 cooperatives to improve productivity, safety, and environmental compliance. This approach is intended to integrate small scale miners into the formal economy while broadening the domestic revenue base.

Liberia’s recent performance highlights the importance of the sector to the national economy. Mining exports reached approximately US$1.16 billion in 2023, driven mainly by gold and iron ore. Looking ahead, the award of offshore exploration blocks signals renewed hope for future oil discoveries, which could further diversify energy revenues if commercially viable resources are confirmed.

Overall, the government believes that a targeted focus on high return investment areas in mining and energy can significantly boost national revenues, even though detailed revenue projections by individual minerals have not yet been disclosed. If successfully implemented, the 2025 to 2029 strategy could reshape Liberia’s extractive industries, strengthen fiscal stability, and enhance the country’s position as a competitive resource producer in West Africa. For the broader African mining sector, Liberia’s approach underscores a growing trend toward stronger state participation, improved governance, and value driven resource management, which could influence policy reforms across the region.

Mini-Glossary

• Artisanal and small scale mining (ASM): Low capital mining activities carried out by individuals or small groups, often using simple tools and methods.
• Equity stake: Ownership interest held by the government or another party in a mining or energy project.
• Free carried interest: A share in a project granted to the state without requiring it to contribute to upfront investment costs.
• Geological data: Scientific information about rock formations and mineral deposits used to assess resource potential.
• Royalty: A payment made to the government based on a percentage of the value or volume of minerals produced.

Editor: Vural Burç ÇAKIR