Presentation on theme: "Liberia: A Country Ripe for Investing O. Natty B. Davis, II, Chairman The National Investment Commission Government of Liberia."— Presentation transcript:
Liberia: A Country Ripe for Investing O. Natty B. Davis, II, Chairman The National Investment Commission Government of Liberia
Liberia : A Unique Opportunity for Investors The Development Opportunity Liberia, like many nations, carries scars of a past marred by civil conflict. President Johnson Sirleaf has prioritized- – restoring power, – rebuilding roads and railways, and – rehabilitating ports Progress is being made, but the government is seeking partners, who are willing to find opportunities within the challenges faced by a nation rising. National Investment Commission Government of Liberia Invest Liberia is a newly emerging and secure market. The country is rich in natural resources and ripe for investing. Grow Liberia offers a market-driven, investor- friendly environment that is steadily improving, thereby making it easy to grow and develop your business. Succeed Liberia is strategically located along the coast of West Africa thereby granting investors access to the largest and fastest-growing markets in the world. The Liberian Advantage
The Vision: A Middle-Income Country by 2030 s National Investment Commission Government of Liberia Liberia Rising, the long-term vision for the country constitutes the national aspiration for economic and political development. The aim is to transform Liberia by 2030 into a middle income economy, capable of meeting and sustaining its own development aspirations… To attain this vision, the government is operating against a growth and development strategy, which aims to consolidate peace and security, revitalize the economy, strengthen governance and the rule of law, and rehabilitate infrastructure and deliver basic services.
A Politically and Economically Stable Environment Laying the Foundation for Investors to Succeed Strong and steady growth: – Liberias GDP grew at an average rate of 6.7% ( ) - more than double the global average – GDP growth projected to rise to about 7.3% in 2011 Sound economic management: – Completed rigorous economic and governance reforms, enabling the IMF, World Bank and other Bi-lateral lenders to write-off the countrys entire USD 4.6 billion debt (July 2010) – National budget increased from USD 80 million to USD 369 million, a 400% increase. National Investment Commission Government of Liberia An improved business climate: – Procedures to open a business cut to 48 hours – Climbed 21 places in the World Banks Doing Business report since it first appeared in 2008 – Designated one of the top 10 global reformers in 2010 Increased incentives and protection for businesses: – New investment incentive code thats clear, standardized, and transparent – New revenue code lowering the max. corporate and personal tax rate from 35% to 25%
Committed to Creating an Investor Friendly Country The Private Sector is the Engine for Growth and Development The government is – formulating a strategy focused on creating economic growth and development corridors by clustering investments in strategic areas – committed to a market-driven economy and has made a policy decision to privatize state-owned enterprises (SOEs), where possible; currently evaluating which SOEs to privatize and the economic impact National Investment Commission Government of Liberia A comprehensive Commercial Code to strengthen the countrys business environment. The new code clearly sets out the provisions for sales, leases, financial leases, mortgages, secured transactions and commercial arbitration. Working Together to Improve the Investment Climate The government, private sector and international institutions work together: -The Liberia Better Business Forum (LBBF) to achieve measurable enhancement of the business enabling environment for private sector activity -The Business Reform Committee (BRC) to reduce unnecessary regulations, simplify processes, and generally make it easier to do business in Liberia
Fostering a Climate that Creates Sustained and Robust Growth Fostering a Climate that Creates Sustained and Robust Growth Investment Incentives: Priority Areas Incentives are available to foreign and domestic investors for approved investment projects in priority areas, such as the following, defined by the government: – Tourism carried out through tourist resorts, hotels, and cultural sites, – Manufacturing of finished products having at least 60 percent local raw material content, – Energy, – Hospitals and medical clinics, – Low- and medium-income housing, – Air, sea, rail, and road transport infrastructure, – High impact information and communications technology, and – Banking in the non-bank areas in the southeastern region. National Investment Commission Government of Liberia
Fostering a Climate that Creates Sustained and Robust Growth, cont. Fostering a Climate that Creates Sustained and Robust Growth, cont. Providing Investors with Incentives Investments in excess of USD 10 million are eligible for incentive packages through the Investmnent Commission Economically viable and strategically located investments up to USD 20 million are eligible for the following incentives: National Investment Commission Government of Liberia Exemptions from trade taxes: -Equipment and machinery, raw materials, capital spare parts, and other goods to be used in the project are exempted from import duty up to 100 percent of their dutiable value. -A customs user fee of 1.5% plus ECOWAS trade levy of.5% is applicable. Tax deductions: -The cost of equipment and machinery used in the year the asset is placed into service is eligible for a tax deduction of up to 30 % -The construction cost of a new hotel or tourist resort is eligible for a tax deduction of up to 30%, -The cost of buildings and fixtures used to manufacture finished products with at least 20% local raw materials is eligible for a tax deduction of up to 10%.
Strategically Located to Easily Access the Global Market Access to a Range of Markets The domestic market is limited to approx. 4 million consumers; however the need to rebuild the economy means there are many opportunities The regional markets furnished by the Economic Community of West African States (ECOWAS), includes 250 million consumers, and the Mano River Union (MRU) with 40 million Other major markets, including the European Union, China and the United States. – Preferential treatment under the EUs Everything But Arms (EBA) initiative, and the US Africa Growth and Opportunity Act (AGOA) National Investment Commission Government of Liberia Europe, the Americas, and Asia, specifically Belgium, the United States, and China are the main export destinations for Liberia. Exports Machinery & Transport Equipment Manufac- turing Goods Petroleum Products Food & Live Animals (40% Rice) Food & Live Animals (40% Rice) Import Market
Guiding Investors through the Liberian Marketplace The National Investment Commission As the principal champion of investor relations, the National Investment Commission (NIC) is here to assist investors. The NICs current mandate is to promote Liberias many investment opportunities, attract and support the growth of value-adding foreign direct investments (FDIs), and advocate for and strengthen the domestic private sector. The NICs Role - Chairs the governments Business Reform Committee -Member of the Liberia Better Business Forum -Chairs the Inter-Ministerial Concessions Committee (IMCC) -Chair of the Commissioners meeting, which approves investment incentive contracts above USD 10 million National Investment Commission Government of Liberia
Attracting and Securing Major Investors Some Internationally Recognized Companies Operating in Liberia National Investment Commission Government of Liberia
Sector Profile: Agriculture Ample Rainfall, Fertile Soil, Abundant Farmland Tree crops: Rubber is Liberias biggest export. – Oil palm can yield cooking oil, animal food, and raw material for the manufacture of cosmetics, detergents, and pharmaceuticals. – Coffee and cocoa Food crops: Cultivation of rice could serve both domestic &export markets – Variety of fruits: banana, pineapple, mango, melon, lime, lemon, orange – Vegetables: cabbage, collards, corn, cucumber, egg plant, hot pepper, cassava, yams, eddoes, and potatoes – High potential for export to the international fruit and vegetable market; Livestock: Poultry farming and the production of ruminants (sheep, goats, and pigs) is needed. – Commercial farming, meat-processing facilities, veterinarian services, etc. Services: Pest and disease control, extension services, cold storage, transport and marketing, and training and capacity building. National Investment Commission Government of Liberia
Sector Profile: Mining Rich Mineral Deposits Iron ore: Three multinationals have signed long- term, multibillion-dollar mineral development agreements: ArcelorMittal (2006), China Union (2009), BHP Billiton (2010) Gold: Commercial opportunities are emerging – In 2008, gold exports totaled roughly 20,000 ounces and USD 13 million, more than double exports in Diamonds: In 2008, diamond exports were roughly 61,000 carats and USD 10 million. – Study found that exports could eventually reach 200,000 carats. – Numerous kimberlite pipes and dykes, the most important source of mined diamonds today, have been discovered in the western parts of Liberia. National Investment Commission Government of Liberia
Sector Profile: Fishery 20,000 Sq. Km. Fishing Ground Potential annual marine catch : Between 23,500 and 57,000 tons Potential freshwater catch: 40,000 tons. Total annual catch currently below 10,000 tons The Liberian Market Need better equipment, training, or facilities The International Market Freezers, cold storage units, and processing needed for export Potential yield for demersal species (snapper, grunter, sole, tuna, and barracuda): Between 2,500 and 15,000 tons. – On average, less than 2,500 tons harvested annually Potential for pelagic species (flat sardine, round scad, and mackerell): Between 20,000 to 40,000 tons Lobster, tuna, blue marlin and shrimp also available National Investment Commission Government of Liberia
Sector Profile: Forestry Home to the Largest Virgin Rainforest in West Africa Economic Viability To date, four forest management contacts, valued at approximately USD 60 million and nine timber sales contracts, valued at approximately USD 40 million have been awarded to local and international investors. Log exports have the potential to reach one million cubic metres which would gross about USD million in export earnings over a three year period. Processing of wood products, especially for furniture making Ecotourism opportunities and carbon offset sales. Protecting the Forest The Forestry Development Authority (FDA) has a national forestry policy that seeks to balance community use, commercial use, and conservation of the forests. In addition, Liberia has opted to include timber in its Extractive Industries Transparency Initiative, making it the first country to do so. National Investment Commission Government of Liberia
Sector Profile: Tourism Pristine Beaches, Unique Wildlife Unspoiled Beaches Liberias beaches are still relatively undiscoveredwhich means that they are also still uncrowded and unspoiled. – Surfing Nature Lovers Upper Guinea Rainforest Ecosystem Sapo National Park harbors some 2,000 varieties of flowering plants, 125 species of mammals, 590 species of birds, and 74 species of reptiles and amphibians. Lake Piso, a nursery and spawning ground for fish and sea turtles and a feeding and roosting place for large numbers of sea and shore birds. National Investment Commission Government of Liberia