Monrovia, Liberia — Sweden’s relationship with Liberia is undergoing a strategic shift, with the Swedish government charting a long-term course to move from aid dependency to trade and investment. This policy shift, while gradual, reflects Sweden’s broader vision of fostering sustainable partnerships and promoting economic growth in Liberia.
Sweden’s involvement with Liberia dates back to the 1960s, when Swedish investment through the Liberia American Mining Company (LAMCO) significantly contributed to Liberia’s iron ore industry. Swedish missionaries also played a crucial role, establishing schools and hospitals in Lofa County. However, Liberia’s civil war prompted Sweden to pivot toward humanitarian aid, focusing on health, human rights, and governance.
Today, as Liberia continues its recovery, the Swedish government is looking to support the country’s growth through increased trade and investment. Ambassador Karl Backéus, Swedish Ambassador to Liberia highlighted this policy direction in an exclusive interview with OK FM, noting the importance of building on Liberia’s potential to attract Swedish businesses.
A Gradual, Long-Term Shift from Aid to Trade
“Ideally, that’s where we want to be,” said Ambassador Backéus. “I think that will take some time given that Liberia is unfortunately still a very poor country. But that’s absolutely what we’re aiming for.”
This transition from aid to trade is part of a broader Swedish government policy, with the understanding that the shift will take years, possibly decades, to fully materialize. Sweden’s development cooperation, which has historically supported governance, health, and human rights in Liberia, is now being aligned to create opportunities for private-sector engagement.
This policy shift also comes at a time when the global aid landscape is facing challenges. The recent abrupt suspension of USAID funding and its ongoing review have underscored the risks of aid dependency. By fostering stronger trade relationships, Sweden hopes to help countries like Liberia build resilience and avoid similar disruptions in the future.
Swedish Businesses Urged to Explore Opportunities
To support this shift, the Swedish Embassy in Liberia is actively engaging with Swedish businesses. The goal is to raise awareness about Liberia’s market potential and encourage companies to explore investment opportunities in the country’s emerging sectors.
“We have a long history of cooperation dating back to the 50s and the 60s with LAMCO,” Ambassador Backéus said. “But I would hope that we can see more Swedish businesses here. That’s part of the job that we’re trying to do here—to talk about the potentials of the Liberian market, Swedish business interests.”
The Swedish Embassy has developed informational materials, including brochures, to present Liberia’s economic potential to Swedish business communities. The focus is on educating potential investors about the opportunities available while acknowledging the challenges posed by an unfamiliar market.
Sectors with Potential: Energy, ICT, and Mobile Technology
Swedish businesses are being encouraged to explore opportunities in sectors such as energy, information and communication technology (ICT), and mobile technology. Sweden has already made significant contributions to Liberia’s energy infrastructure, with Swedish-manufactured turbines installed at the Mount Coffee hydropower plant.
“There is already that interest,” Backéus said. “I know that they’re looking and seeing, and so probably are other Swedish companies that produce those kinds of equipment. Can we be part of the expansion of the energy network in Liberia?”
The ambassador also highlighted Sweden’s expertise in ICT and mobile networks as a potential growth area.
“I know that there is a lot of Swedish knowledge and competence in information technology, mobile technology, mobile phone networks, et cetera. So that could be another area for opportunity,” he explained.
Small and Medium-Sized Businesses: The Next Frontier
While large-scale investments like the historic LAMCO project may not be immediately on the horizon, the Swedish government believes smaller and medium-sized businesses can play a key role in Liberia’s economic diversification.
“I don’t know if we will see something on the scale of LAMCO—that was huge, of course. But there can also be smaller opportunities,” said Ambassador Backéus. “It doesn’t have to be that scale. I think diversity is good in that sense. So if we can also have more of the smaller ones, I think that would be good.”
These smaller businesses can contribute significantly to Liberia’s growth by creating jobs, transferring knowledge, and enhancing the country’s infrastructure.
Leveraging Aid to Support Trade and Investment
While the ultimate goal is to reduce aid dependency, the Swedish government recognizes that aid still has a crucial role to play in Liberia’s development. Current aid efforts are being aligned to create an environment conducive to business and investment.
“It’s also important that we see how we can try to build connections between the two today,” Backéus said. “How can we use our development cooperation to make it easier for businesses from Sweden and from other parts globally to invest here? So it’s also about trying to create synergies and complementarities between what we’re doing today and what we want to see tomorrow.”
This approach reflects a strategic use of aid to lay the groundwork for future trade and investment, ensuring that Liberia’s growth trajectory remains sustainable and inclusive.
A Policy for the Future
The Swedish government’s policy of transitioning from aid to trade in Liberia is not an overnight shift but a long-term vision that could take decades to fully implement. Ambassador Backéus emphasized that this transformation will depend on Liberia’s continued economic growth and the willingness of Swedish businesses to invest in the country’s future.
“If that will take 10 years, 15 years, 20 years, or 30 years—who knows? But that’s absolutely where we want to go,” he said.
For Sweden, the goal is clear: to help Liberia move toward economic self-sufficiency by promoting business partnerships that benefit both nations. By leveraging its historic ties and focusing on sectors with high growth potential, Sweden hopes to build a future defined by trade, investment, and mutual prosperity.
Joseph Daniels reports for OK FM Liberia as Executive Mansion Correspondent. With a vested interest in making the voices of people from different walks of life heard, he has covered investigative stories relating to education, health, the environment, corruption, and violence against women and girls, among others. He graduated from the United Methodist University with a Bachelor of Art Degree in Mass Communications in 2020. Joseph is also a fellow at New Narratives, a non-profit organization helping media deliver independent, truthful information to its people so they can make informed decisions.
