Africa-Press – Liberia. As Christmas approaches, the usually bustling Red Light commercial hub is witnessing an unusual slowdown, with traders and commuters describing a “bitter-sweet” festive season marked by declining prices but a severe shortage of cash in circulation.
Market actors say reductions in the prices of basic commodities—such as rice, gasoline, and other food items—have failed to boost sales, as many Liberians grapple with low incomes and weak purchasing power.
“This year business is still going. It is better than last year, but it is still very tough,” said Matthew D. Kenneth, a trader at the Red Light Market. “The sellers are more than the buyers, so people are not really buying.”
Kenneth said the influx of so-called “Christmas sellers,” who often market substandard goods at cheaper prices, has further squeezed established traders. He also blamed the unstable exchange rate and the rising cost of basic services for the slow pace of business transactions.
Traditionally, the Christmas season brings increased cash flow into the economy through double salaries, end-of-year bonuses, susu club disbursements, and remittances from abroad. This year, however, traders say those inflows have largely failed to materialize.
“Around this time, we expect to see money coming outside, but we can’t see the money,” said Lovetee Martor, a small business owner in Red Light. “We expect double salary, the yearly susu clubs to burst, or money from abroad, but nothing is happening.”
Martor, who sells imported apples and grapes, said her goods now stay far longer on the market than in previous festive seasons.
“When a box of apples finishes, I make just about L$2,000 profit, and it takes three to four days,” she explained. “I buy the apples for L$11,000. From this same small profit, I have to pay house rent, children’s school fees, transportation, and food. Things are not easy.”
Because of the perishability of her fruits, Martor said she has diversified her business by adding children’s candies and biscuits to cushion potential losses.
“These apples and grapes spoil quickly, so I decided to add candies and biscuits to back me up,” she said.
Commuters echo similar frustrations, noting that while falling prices are welcome, they offer little relief without steady income.
“It’s really a bitter-sweet Christmas this year,” said Jerry M. Kollie, a commuter. “We are happy that prices have gone down—rice, gasoline, and other food items—but there is no money.”
Kollie attributed the situation partly to reduced employment opportunities, particularly in the non-governmental organization (NGO) sector.
“Fewer people are working in NGOs like before, especially since USAID has left,” he said.
Mobile Money Also Hit
The slowdown is not limited to physical goods trading. It has also affected digital financial transactions, particularly mobile money services.
Vamuyam K. Garfi, a mobile money agent, described business as “extremely tough” following the Central Bank of Liberia’s (CBL) reduction of mobile money cash-out fees.
He alleged that some financial institutions are delaying remittances, creating bottlenecks that encourage unofficial charges.
“If you go to the bank, they ask for extra fees before processing your transaction,” Garfi claimed. “Some people have money on their phones, but withdrawing it has become a nightmare.”
He said money changers are also forced to charge additional fees to compensate for reduced margins.
“You can’t really blame us,” he said. “When we go to the banks or Fulani bureaus, we face the same problem.”
Recently, the CBL mandated a standardized 2% cash-out fee for all mobile money withdrawals, replacing varied and often higher charges by service providers such as Orange Money and Lonestar Cell MTN. The policy aims to promote fairness, expand financial inclusion, and reduce reliance on cash.
However, Garfi also cited the unstable exchange rate as worsening conditions in the money market.
“The rate is dangling,” he said. “One place says 174, another says 175 or 173. You never know what rate you will meet at the bank.”
Impact of USAID Shutdown
Economist Abraham Toure agrees that the abrupt shutdown of the United States Agency for International Development (USAID) has compounded the economic strain.
“USAID was one of Liberia’s largest development partners,” Toure said, noting that its exit triggered layoffs of Liberian professionals, project staff, drivers, consultants, and support workers—many of whom earned stable, dollar-denominated incomes.
“For many urban households, especially in Monrovia, USAID salaries were a major source of Christmas spending, school fees, and remittances,” he said. “Their disappearance has sharply reduced purchasing power.”
Toure said USAID-funded projects injected millions of U.S. dollars annually into the economy, supporting not only NGOs but also hotels, guesthouses, printing presses, media outlets, transport providers, and fuel suppliers.
“The shutdown affects a wide network of small and medium-sized businesses,” he said, describing it as a wake-up call for Liberia to pursue economic diversification.
Outlook
Economic observers say Red Light—one of Monrovia’s busiest commercial centers—often serves as a barometer of urban economic health. The subdued Christmas trade, they note, reflects broader challenges including job losses, reduced donor-funded activities, and declining household incomes.
For now, traders say they remain hopeful that the final days before Christmas may bring some improvement. But for many at Red Light, the 2025 festive season is shaping up to be defined less by celebration and more by survival.
Source: FrontPageAfrica
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