Monrovia – The Chairman of the Fula Business Association of Liberia has exposed numerous bottlenecks strangulating free movement of goods and services in Liberia. According to Mr. Mohammed Barrie, the multiplicity of checkpoints between the Bo-Water to Monrovia and other corridors makes it difficult for members of the Fula Business Community and others to bring in and trade their goods in the country.
Mr. Barrie, who is also the Chairman on Trade of ECOWAS Citizens and the Trade Union Congress in Liberia, made the observation at a one-day roundtable dialogue on the African Continental Free Trade Agreement (AfCFTA) held in Monrovia over the weekend.
The AfCFTA aims to promote industrialization and diversify economies by encouraging the development of regional value chains and the manufacturing sector across Africa.
It came into force on May 30, 2019, after 24 Member States of the African Union (AU) deposited their Instruments of Ratification following a series of continuous continental engagements spanning since 2012.
It was launched at the 12th Extraordinary Session of the AU Assembly of Heads of State and Government in Niamey – Niger, in July 2019 with the elimination of barriers to trade in Africa, by significantly boosting intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy. The commencement of trading under the AfCFTA was on January 1, 2021.
Recently, Liberia joined 47 other countries in the region to submit its Instrument of Ratification to form part of the African Continental Free Trade Agreement (AfCFTA).
But Mr. Barrie observed that despite the presentation of the relevant instrument by Liberia to the AU, there are a series of obstacles that continue to hamper the trade at border points and ports in the country.
“We are very happy to see AfCFTA being introduced in Liberia. But let me quickly let you know that the Fula Community in Liberia and the sub-region, we are the largest in small and medium businesses. We know the taxes on cross border trade; we know the challenges it’s having on the people of Monrovia, and we know the challenges that we are facing at the airport and to take goods from Monrovia to the south-east and so many areas. Just to take your goods from Monrovia to Maryland, you will see thousands of checkpoints.”
Checkpoints
Mr. Barrie observed that free trade cannot be effective and efficient in Liberia in the midst of numerous checkpoints across the country with different security personnel.
He observed that these checkpoints are most often mounted from morning to night hours, thereby imposing fear in local and foreign traders transporting their goods via roads.
He attributed decline in small and medium businesses to these challenges.
“From Sierra Leone to enter Monrovia, there are so many checkpoints. This has been an aged-old situation that our people are faced with. That’s the reason the small businesses in Liberia cannot grow because of the challenges our people face with security. Even at night, the checkpoints are there.”
High interest rates
Mr. Barrie said local traders are also finding it very difficult to pay back loans taken from commercial banks operating in Liberia due to decline in their businesses.
He furthered that interest rates on loans are also very high.
“We are talking about AfCFTA; we are talking about free trade in the region and about 60% to 75% of the goods in our market here today come from neighboring countries.”
Customs on cattle
Mr. Barrie disclosed that some local traders, who are ignorant to the laws in Liberia, are also made to pay customs on cattle, including sheep and cows being brought in the country.
He stressed that additional tax called “MedTech” is also being paid by traders.
He said it is unacceptable for limited time to be given to traders to free their goods from the ports.
Limited port operational hours
According to him, the government has failed to also ensure that the gateway to the country’s economy operates full time, instead of shutting its operations at 4PM.
As a result of these challenges, he noted that consumers or Liberians are feeling the pinch in purchasing their goods at reasonable prices.
“Our people are facing so many challenges. We believe that this particular meeting will continue to discuss these issues so we cannot come out with good policy without implementation. The AU protocol is not being implemented to the fullest. There is no free movement of goods and services in our sub-region. We want to be very clear on it and thank God some of our government officials are here.”
Responding to the concerns raised by the Fula Business Community, Commerce and Industry Minister Amin Modad admitted to economic and security issues hindering trade in Liberia.
He assured that those issues will be catalogued and engaged by the government and its counterparts.
He, however, encouraged local business owners having issues to not hesitate or relent on seeking redress at the ministry any time.
