Monrovia, Liberia – July 9, 2025
We, as concerned citizens and advocates for economic justice, transparency, and the preservation of Liberia’s sovereign rights, raise grave concerns over the proposed reduction of Liberia’s equity stake in ArcelorMittal Liberia (AML) from 30% to 15%. This move, lacking transparency, accountability, and justification, is not only ill-advised it is an affront to Liberia’s constitutional and developmental interests and must be firmly rejected.
Liberia Must Not Be a Spectator in Its Own Economy
It is unconscionable that, in 2025, Liberia a nation still recovering from decades of conflict and underdevelopment is being asked to surrender half of its equity share in its most lucrative mineral concession, without any clear explanation or audited financial justification. This is a direct assault on Liberia’s right to benefit meaningfully from its natural resources and to strengthen its domestic resource mobilization (DRM) agenda, as enshrined in the Addis Ababa Action Agenda on Financing for Development and other international frameworks to which Liberia is a signatory.
A Pattern of Exploitation in Africa’s Extractive Sector
The situation with AML reflects a much broader and disturbing pattern across Africa: multinational corporations extracting immense wealth while contributing little in return. Countries rich in minerals and natural resources remain poor because the rules of engagement, shaped by opaque contracts, aggressive tax planning, and illicit financial flows benefit corporations over communities. According to the United Nations Economic Commission for Africa (UNECA), Africa loses over $88 billion annually to IFFs, much of it linked to the extractive sector. Liberia is not immune. In fact, we are a textbook example.
ArcelorMittal, one of the world’s largest steel producers, has consistently reported no profits in Liberia, despite exporting millions of tons of iron ore, thereby avoiding corporate income tax obligations under the pretext of loss-making. Meanwhile, the company continues to enjoy generous tax incentives, exemptions, and operational privileges. This is neither fair nor sustainable. It undermines Liberia’s ability to fund schools, hospitals, infrastructure, and public services. It hollows out the very foundation of state-building and accountability.
This is a Matter of National Security and Generational Justice
A country that cannot mobilize its own resources cannot stand on its own feet. Reducing our stake in AML weakens our fiscal space, compromises our bargaining power, and deepens our dependency. This is no longer just an economic issue, it is a matter of national sovereignty and security. Future generations of Liberians will inherit depleted resources, broken infrastructure, and unsustainable debt, while foreign corporations walk away with untold profits and wealth.
Recommendations
- Reject the Proposed Equity Reduction
Lawmakers must unequivocally reject any attempt to reduce Liberia’s equity in AML without clear, evidence-based justification, including audited financials, third-party evaluations, and transparent negotiations. - Renegotiate the AML Agreement in the National Interest
The government must initiate a comprehensive review and renegotiation of the AML agreement to ensure it reflects fair profit-sharing, stronger local content provisions, and binding commitments to pay taxes and royalties. - End Harmful Tax Incentives and Close Loopholes
Liberia must review all tax incentives granted to multinational companies and align them with international best practices to prevent base erosion and profit shifting (BEPS). - Enhance Oversight and Public Accountability
The Legislature must exercise stronger oversight over all concession agreements and require full public disclosure of contracts and payments, in line with the Extractive Industries Transparency Initiative (EITI) standards. - Position Liberia within the Pan-African Resource Justice Movement
Liberia should align with the African Union’s Mining Vision (AMV) and support regional efforts to fight IFFs, stop exploitative contracts, and push for global reforms in corporate taxation and investment policy. - Empower Civil Society and Communities
The government must ensure that affected communities benefit directly from mining activities through transparent, community-driven development funds and environmental protections.
A Challenge to Our Lawmakers and Government
The time has come for courageous leadership. We challenge the Liberian Legislature, the Executive, and all relevant institutions to put country before corporate interest. This is not just about iron ore, it is about dignity, sovereignty, and the kind of country we want to build. Liberia cannot afford to be shortchanged again.
We must negotiate better. We must demand better. And we must govern better.
Harold Marvin Aidoo, Sr.
Executive Director
Integrity Watch Liberia
