Business Linkages

Small and medium sized businesses are at the heart of Liberia’s private sector, and the Liberia National Investment

Commission (LNIC) helps to identify opportunities for the promotion and development of such enterprises.

The LNIC, with support from the German International Corporation (GIZ), developed a report entitled Promotion of

Business Linkages in the Extractives Sector in Liberia. Developed based upon desk and field research studies conducted in

March and April of 2011, the report analyzes Liberia’s current concession environments, and identifies potential areas

where linkages could be built between large companies and local businesses through the provision of goods and services,

the development of related industries and value-adding products. This report is critical because it proposes a tangible

solution for increasing domestic benefits from large foreign concessions. If implemented this could serve as a catalyst for

domestic businesses to grow and develop.

The development of economic linkages between foreign companies and local firms has the potential to benefit both foreign

and domestic firms.

For some goods and services, foreign companies benefit from procuring locally because of cost savings and/or the

convenience of having local services.

Local procurement can also help enhance relationships with local communities and national governments.

- Accessing Finance
The Government of Liberia provides funding support for entrepreneurs and investors by working with the private sector.

- Finance Leasing

The report builds upon government, private sector and donor initiatives, such as the Liberia Better Business Forum the

Central Bank of Liberia’s Credit Support Program, and the Ministry of Commerce and Industry’s Micro, Small and Medium-

sized Enterprises (MSMEs) Policy by proposing a viable method for increasing access to markets, access to finance, and

building the knowledge and skills of MSMEs.

West Africa Venture Fund, LLC: A US $40 Million investment Fund that provides capital financing to emerging growth SMEs

in Liberia. Its target deal size is US$100,000 – US$500,000 with a goal of a minimum of 40 “Bottom of the pyramid” SME

Equity investments in Liberia and target returns of 20 - 25%.

The Liberian Enterprise Development Finance Company (LEDFC): Provides credit products for the medium-sized and larger

SMEs that form the "Missing Middle" between commercial bank customers and the beneficiaries of international donor

supported micro-credit programs; and provides targeted technical and business development services to enhance SME


In an effort to ensure that market has access to a range of financial mechanisms the Liberia National Investment

Commission (LNIC) in partnership with the Central Bank of Liberia has introduced finance leasing into the Liberian market.

Presently, there is one newly established non-bank leasing company in Liberia. M&E Leasing Limited is an independent

leasing company (non-bank lessor). M&E made an initial capital investment of US $500,000.00. The company was

inaugurated on June 2, 2014. In 2008, the potential market opportunity for leasing in Liberia was projected to be between

US $30 Million and US $88 Million.

The market is expected to increase over time due to the country’s growing equipment needs in agriculture, construction,

mining, and other sectors of the economy.