Monrovia – Mahmud Johnson, one of Liberia’s youngest entrepreneurs says the bureaucracy and bottlenecks remain a major challenge to improving his business and providing jobs for more Liberians.
By Report Bettie K. Johnson Mbayo, [email protected]
Johnson currently runs a kernel oil palm processing business he founded in 2013. It is the only company in Liberia that produces palm kernel oil branded as “Kernel fresh’.
The company is called J- Palm Liberia.
In an interview with FrontPageAfrica, J-Palm CEO disclosed that Liberia’s failed system has stalled his plans to export his product.
“There are too much hurdles and so many challenges and such continues to hinder our plan to export, because every time we try we can’t succeed.”
“So the process must be straight and the bureaucracy has to be reduced and the system must be easier for the business environment to expand,” he said.
“Too many fees that I have no idea if it’s legal; the process must be transparent so as to grow smaller businesses in the country,” Johnson added in a rather frustrated tone.
He got his inspiration through his aunt who used to run a business as a palm oil intermediary where she would purchase palm oil from smallholder producers in rural areas and sell to retailers in urban markets.
However, due to inefficiencies in the value chain, her suppliers became increasingly unreliable, with too many shortages.
Erratic supply, coupled with the fact that she relied on the business to sustain herself ultimately led to her bankruptcy.
Particularly, Johnson knowing that oil palm grows in vast quantities in Liberia, he immediately became interested in learning more about the root causes of such inefficiencies in the supply chain.
His researched showed that lack of technology and the labor-intensive traditional methods used were the key drivers for low supply and that was when Johnson saw the need to establish J-Palm.
In the process, the business creates much-needed jobs for Liberia’s population and increases incomes for smallholder farmers.
He disclosed that currently he has 10 employees and 28 sales agents which he considered as a major support in the business.
Johnson said policies of Government also delay the processing of an entrepreneur’s plans.
“Look at the policy, every time another policy is changed overnight and it makes it difficult for an entrepreneur because you will have to re-strategize to suit your plan.”
Supermarket Rejection
Johnson said he is glad that some supermarkets have finally accepted his products as compared to the past.
“When we started, it was tough as every time we carried our products, the supermarket owners refused but now our products are in 50 supermarkets, but more needs to be done.”
“I think such happened because all supermarkets are managed by foreigners, which is difficult for the business atmosphere.”
This business is very capital intensive. He uses a lot of machines.
“Financing as an entrepreneur is an integral part, which needs to be prioritized by the government,” he added.
Job creation
J Palm was chosen out of 3,000 applicants as winner of the Johnson and Johnson African Innovation Challenge.
He dedicated the award to the government of Liberia and its people, stating that it is a boost for the country’s entrepreneurship growth.