MONROVIA – With nearly seven out of every ten Liberians earning a living outside the formal economy, the informal sector has long functioned as the country’s economic backbone while remaining largely unprotected by policy enforcement. Despite existing laws reserving certain business activities and a share of public procurement for Liberians, weak implementation has allowed foreign dominance and exclusion to persist. Against this backdrop, Amara M. Konneh, Senator of Gbarpolu County, is advancing a legislative initiative aimed at redefining how the state engages with informal workers and small Liberian-owned enterprises. The proposed bill seeks to formalize, protect, and economically empower the informal sector while unlocking millions of dollars in public procurement for Liberian businesses.
Senator Amara M. Konneh has announced plans to introduce a major piece of legislation during the current session of the National Legislature aimed at protecting Liberia’s informal economy and enforcing the statutory requirement that 25 percent of public procurement be awarded to Liberian-owned businesses.
The proposed legislation, according to the Senator, is designed to address longstanding structural weaknesses that have left informal workers—who constitute the majority of Liberia’s labor force—operating without adequate protection, organization, or access to economic opportunities guaranteed under existing laws.
Speaking on the floor of the Senate, Konneh emphasized that market women, petty traders, motorcyclists, block makers, tailors, mechanics, and other informal workers form the backbone of the national economy. He noted that despite accounting for nearly 68 percent of Liberia’s workforce, these groups remain marginalized in national economic planning.
“These hardworking Liberians sustain our economy every day,” Konneh said. “Yet they operate without structure, without protection, and without access to economic space that our own laws already guarantee them.”
Central to the Senator’s proposal is a new legislative framework titled the Informal Economy Development and Protection Act, which seeks to modernize, organize, and enforce the rights of Liberian informal workers. The bill would formally recognize the informal economy as a legitimate and critical sector of national importance, rather than a peripheral or temporary feature of the labor market.
Under the proposed Act, the government would enforce the 26 business activities reserved exclusively for Liberians under the Liberianization Act, sectors which Konneh warned are increasingly being taken over by foreign operators due to lax enforcement. These sectors include petty trading, used clothing sales, small retail, transportation services, auto repair, block making, and bakeries.
Konneh cautioned that the continued erosion of Liberian participation in these areas represents not only an economic injustice but also a governance failure. According to him, the absence of enforcement has allowed Liberians to be pushed out of their own economy, fueling unemployment and social tension.
The bill further proposes the establishment of a unified registration and citizenship verification system to ensure that reserved business categories are occupied by eligible Liberians. In addition, it would create designated trading zones equipped with sanitation, security, and order to improve working conditions for informal operators.
Other provisions outlined by the Senator include the organization of sector-based associations, the setting of standards to guide gradual formalization, and protections against harassment, extortion, and arbitrary confiscation of goods—problems frequently reported by informal workers across the country.
The proposed legislation also calls for coordinated enforcement among key government institutions, including the Ministries of Commerce, Immigration, Local Government, and the Liberia National Police, to ensure consistency and reduce abuse.
Beyond regulation, Konneh said the bill aims to expand access to microfinance, skills training, and business development support, enabling informal workers to scale their operations and improve productivity.
A significant fiscal component of the proposal focuses on enforcing the existing requirement that 25 percent of all public procurement be awarded to Liberian-owned small and medium enterprises. According to Konneh, the FY2026 National Budget includes approximately US$467.3 million in procurement-eligible spending, meaning that by law, US$116.8 million should be directed to Liberian businesses.
“If we formalize even a fraction of our informal operators, tens of millions of dollars can flow directly into the hands of Liberian market women, petty traders, block makers, tailors, mechanics, and micro-contractors,” the Senator said. “That is how policy becomes prosperity.”
Konneh cited international examples to support his argument, noting that the United States requires large companies to include small businesses in federal contracts—a policy that delivered US$178.6 billion to small firms in 2023 alone. He argued that Liberia could adopt similar enforcement mechanisms suited to its own context.
Framing the initiative as a matter of economic justice, Konneh stressed that empowering the informal economy is essential for peace, stability, and inclusive growth. He warned that failure to protect livelihoods undermines social cohesion and weakens confidence in the state.
“If we want peace, we must protect people’s livelihoods,” he said. “If we want growth, we must empower our own citizens.”
The Senator announced that he plans to conduct nationwide consultations ahead of formally introducing the bill, engaging directly with market women, motorcyclists, informal traders, and other workers to ensure that the legislation reflects lived realities on the ground.
Describing the proposal as a “people’s bill,” Konneh said the consultations would help shape implementation mechanisms that are practical, inclusive, and responsive.
Senator Konneh represents Gbarpolu County in the Liberian Senate and is widely regarded as a leading voice on economic governance, public financial management, and inclusive development. His legislative agenda has focused on strengthening institutions, expanding economic opportunity, and protecting the rights of Liberian workers and entrepreneurs.
The introduction of the Informal Economy Development and Protection Act is expected to spark debate within the Legislature as lawmakers consider how best to balance regulation, enforcement, and economic inclusion in a sector that employs the majority of Liberians.