Monrovia – Hundreds of Liberians employed by local flour manufacturing companies risk losing their jobs due to unscrupulous business owners’ failure to pay surcharges on imported flour. This malpractice is depriving the Government of Liberia of crucial revenue.
Obediah Johnson, [email protected]
Two companies, Modern Mills and Premier, produce over 600 tons of flour daily and employ approximately 1,000 Liberians. However, their employees’ jobs are increasingly at risk due to the importation of flour without paying the required surcharges, particularly through the Bo-Waterside Border, which links Liberia with neighboring Sierra Leone.
The primary brand of flour being imported without paying surcharges is Bravo Flour, manufactured in Guinea and widely available in the Liberian market. FrontPage Africa’s investigation reveals that individuals and companies importing Bravo Flour are evading the surcharge tariff, paying only Goods and Services Tax (GST) to the government, a practice that disadvantages local manufacturers. These local producers are exempt from surcharge payments under Executive Order #135.
Executive Order Imposing Surcharge
President Joseph Nyuma Boakai issued Executive Order #135 (extending Executive Order #119) to protect and stimulate local manufacturing companies in Liberia. The order aims to foster job creation and stimulate economic growth by promoting commerce and trade while protecting local businesses from unfair competition from international brands.
The order reads:
“Whereas the Government recognizes the need to promote sustainable job creation by improving commerce and trade as envisaged under Pillar One of the Arrest Agenda, and by protecting local businesses from unfair competition from international brands of locally manufactured goods; Whereas in the exercise of Executive Power vested in the President by the Constitution, the President may issue Executive Orders in the public interest, either to meet an emergency or to correct situations which cannot await the lengthy legislative process; Now, therefore, the Government of Liberia hereby issues this Executive Order imposing a local industry development surcharge on the importation of certain goods and/or raw materials that are imported in such quantity and manner that may injure or undermine the survival of local manufacturers.”
Flour is among the goods and raw materials subject to this surcharge, intended to discourage smuggling and support the development of local industries in Liberia.
Low Income Generation
The unethical practice of importing flour without paying the surcharge has severely impacted local manufacturers, leaving their products stockpiled in warehouses due to reduced sales. The significant drop in sales has made it difficult for these companies to generate enough income to pay their employees. Reports suggest that redundancies may occur at these companies if the government does not take decisive action to address the situation.
Government Efforts
The government, through the Liberia Revenue Authority (LRA) and the Ministry of Commerce and Industry, continues to combat smuggling and false declarations of goods entering the country. However, multiple challenges persist.
Recently, the LRA’s Anti-Smuggling Unit launched an investigation into a Lebanese-owned company, 750 Enterprise, for allegedly making a false declaration of goods imported into the country. The company, located on Somalia Drive outside Monrovia, imported approximately 2,497 bags of flour but falsely declared the commodity as burger wheat.
An Import Permit Declaration (IPD) issued to 750 Enterprise by the Ministry of Commerce and Industry, obtained by FrontPage Africa, shows that the company imported the flour from Turkey in mid-June 2024. The goods, valued at US$30,476, including insurance and freight costs, were shipped in five 20-foot containers to the Freeport of Monrovia. In Liberia, it is a criminal offense to conceal goods or make a false declaration, as it violates the country’s Revenue Code.
The Threat to Jobs
Given Liberia’s high unemployment rate, the jobs of hundreds of Liberians working at these manufacturing companies remain at risk if the government fails to fully implement or uphold Executive Order #135. Proper enforcement is crucial to developing local industries and fostering economic growth in Liberia.
