MONROVIA, Montserrado – Sources within the government have told The Bush Chicken that the ongoing three-day strike by a group of businesspeople under the banner of the Patriotic Entrepreneurs of Liberia has caused a significant reduction in the revenue generation of the country.

The group, which claims it is made up of several business associations, has been protesting against what it says is rising inflation and a high level of taxes and duties levied on commodities.

Another concern of the group was the accelerating depreciation of the Liberian Dollar against the US Dollar. Between December 2014 and December 2015, the buying rate of Liberian Dollars to US Dollars increased by 7.3 percent, whereas between December 2015 and December 2016, the percentage of increase essentially doubled to 13.6.

Moreover, the rates supplied by the Central Bank of Liberia appears to be artificially suppressed as the US Dollar has more value with money changers on the streets. At one point, money changers were selling Liberian Dollars for as much as L$115 for US$1 while the official rate supplied by the CBL was L$105.

Monthly average buying and selling rates of Liberian dollars per US dollars between 2014 and 2016. Source: Central Bank of Liberia

As a result of the strike, the exchange rate has been reduced to L$100, but it remains to be seen whether this was an artificial reduction.

An anonymous official of the Liberia Revenue Authority told The Bush Chicken that while “it is too early to release figures,” the strike is having an adverse effect on government revenue.

“Authorities at the LRA will, on next Monday, hold a meeting at which time a full report will be released on how much the government is losing as a result of the strike,” the official said.

The usually bustling Waterside market is emptied as a result of the strike. Photo: Zeze Ballah

Another employee at the National Port Authority, also speaking on the basis of anonymity, said that though the port is no longer in charge of clearing of containers, the strike by marketers has slowed activity down.

The NPA employee indicated that the strike is also having a serious impact on the government, but could not elaborate on the exact figures.

“Though the inflation is affecting countries globally, the government needs to find an amicable solution to the marketers demand,” he said.

The Bush Chicken’s visit to the Duala, Red Light, Rally Time, Waterside and Old Road markets saw that though the strike was largely being observed, a few shops, stores, and supermarkets were open for business.

A few consumers in need of rice, oil, and other commodities were seen begging store owners to purchase something for their homes.

Scenes of closed shops and stalls at the Waterside market. Photo: Zeze Ballah

Reports gathered from Margibi say as a result of the strike, there are no goods presently leaving Monrovia through the area, thereby further depleting the supply of commodities in that part of the country.

In those areas, while businesses were shut down on the first day of the strike, they did not last the full three days and normal business activities have resumed in the area.

Reports from farther counties like Nimba, Lofa, Bong, Rivercess, Grand Gedeh, Grand Bassa, and Maryland say normal business activities have not been interrupted.

Scenes of closed shops and stalls at the Waterside market. Photo: Zeze Ballah

The protests have prompted President Ellen Johnson Sirleaf to promise an “economic management team meeting” to address the concerns of the business community, according to a press release by the Executive Mansion.

“She, however, expressed concerns over the protest by some members of the business community, but was quick to note that some of the people involved in the protest were also part of the problem because according to her some of the very business people who even closed their shops and stores in protest were engaged in hoarding the U.S dollars,” the release read.

As the Liberian economy weathers a recession, recent tax increases imposed by the government on telephone calls, water, and soft drinks, and goods and services have contributed to the frustration of business people and ordinary consumers alike.

Featured photo by Zeze Ballah