Foreign Direct investment is one of the most crucial and delicate sectors for emerging economies. Inevitably, a country’s economic development and job prospects will increase if its government fosters an atmosphere conducive to attracting foreign direct investment. Furthermore, the investment made by ArcelorMittal over the last 15 years demonstrates this point. The investment made by AML in Liberia has contributed to the growth of the economy.
ArcelorMittal has not only brought a slew of highly productive resources to the Liberian economy, its presence has had a discernible and beneficial effect on the local employment market. As such, it is imperative to approve AML’s phase two expansion project, particularly in light of the company’s desire to increase its commitment in Liberia by spending an extra US$1 billion.
Significant decrease in foreign direct investment and economic contractions have already occurred as a consequence of the global economic crisis of Covid-19 and the efforts adopted by African countries to limit the spread of the epidemic. IMF and World Bank predictions show that the Liberian economy would bloom and GDP will increase if AML decides to remain in Liberia and extend its activities. This is in contrast to the situation with other African governments, which are dealing with the disastrous consequences of Covid-19 on their economies.
Foreign direct investment (FDI) prospects in many countries in sub-Saharan Africa remain cloudy due to the on-going and unknown impacts of the COVID-19 epidemic. Unfortunately, this is bad news for Africa. Therefore, keeping the biggest investor Liberia has right now, which wants to develop beyond its existing capacity and generate more employment for the young people and boost the size of government’s budget via royalties and other taxes, is of essential significance. While Liberians urge prudence on the part of their government, they also believe that government should ratify the agreement and show their support for AML’s phase two expansion.
“Trying to improve our people’s standard of living in Liberia is becoming very challenging. Therefore, we must never say goodbye to ArcelorMittal, whose phase two development may open doors to economic growth and provide direct and indirect employment prospects for our hopeless young people who live in acute despair,” says Julius T. Jaeson, a pundit.
