Liberia revises investment code

The National Investment Commission of Liberia (NIC) says it has revised the Investment Code which had not been amended since 1973 to match international best practices. According to the Chairman of the NIC Dr. Richard Tolbert, changes made to the NIC include reduction of its own powers to grant incentive which has always been viewed as somewhat arbitrary and a subjective process easily subjected to abuse.

In a major speech delivered at the just ended Liberia Investment Forum held in Philadelphia, Pennsylvania on Friday, June 12th, the NIC Chairman disclosed that the Commission has eliminated the requirement for investors with investment projects below $20 million dollars, which is well over 80 percent of its investment application, to apply directly to the Commission.

As part of the revised 2009 Revenue and Investment Code, would be investors below $20 million dollars will automatically become eligible for incentives in the new Revenue Code such as duty waivers, capital allowances, tax loss carry forward and even special operation incentives.

Only large investment projects over the $20 million dollar threshold will need to go through the NIC for special negotiated incentives and concessions.

The NIC Chairman who served as one of several panelists at the Business Investment Forum told the Conference that the Business Reform Committee, which his Commissions chairs, is systemically tackling "impediments' to doing business in Liberia as identified by the World Bank Doing Business Survey. Indicators being focused on in 2008 and 2009 include starting a business, cross border trading, obtaining construction permits and registering property. Dr. Tolbert said out of these four critical areas, the NIC has been able to implement 38 specific reforms that make it easier and less costly to do business in Liberia such as reducing the number of security and other inspection personnel at the National Seaport known as the Freeport of Monrovia.

The reform measures have also reduced the time it takes to start a business in Liberia from 90 to 30 days. Fees and time it takes to obtain a construction permit have also been reduced.

Addressing the issue of capital access for investors, the NIC Chairman Dr. Tolbert said although the Commission does not expect to provide capital for foreign investors, the Commission through the Government of Liberia (GOL) is already providing land and natural resources. He identified the lack of business management skills which, according to him, is hampering most Liberian entrepreneurs, adding that "this is something that needs to be addressed."

Dr. Tolbert named several sources of investment capital funding including the Bob Johnson Liberian Enterprise Development Fund of $30 millions dollars, the African Development Foundation - a U.S. Government initiative of interest- free loans, funding for small and medium size enterprises which is facilitated by the NIC and Commerce Ministry in Liberia, local commercial banks and financial institutions and a proposal from the NIC to allocate about $2 million dollars in the national budget for direct funding and business training to Liberian businesses.

Meantime, the NIC says so far in 2009, it has achieved its annual goal of generating at least $100 million dollars in new investment projects in Liberia. In the first six months of 2009, the Commission says it processed a total of 10 investment contracts with an aggregate of over $100 million dollars and the direct creation of about 1000 jobs.

The NIC which also chairs the Inter-Ministerial Concession Committee on Mining which negotiated and concluded the largest investment contract in the country's history, the $2.6 Billion China Union Bong Mines deal also concluded a $200 million gold mining deal with another company known as AmLib.

As part of ongoing investment activities in Liberia, the NIC under the chairmanship of the U.S. trained business scientist Dr. Tolbert is currently evaluating bids for the rehabilitation and privatization of the Free Port of Monrovia and the Roberts International Airport.

A $100 million contract fort the reconstruction of Hotel African and the OAU Village and Conference Center in Virginia outside of the Liberian capital is being negotiated.

Dr. Tolbert said the Commission has addressed considerations of the protection of investment and enforcement of contracts in Liberia by international investors as part of the Business Reform Committee process, adding that there is a guarantee against government expropriation of businesses unless such business are compensated for their investments. The Reformed Investment Code now accommodates settlement of international investment disputes through a neutral arbiter body. The NIC boss, however acknowledged, that there are some issues with enforcement of contracts in Liberia courts and there is a need for the formulation of legislations and guidelines and upgrading of the Liberian Judiciary to facilitate speedy settlements of some of these issues such as foreclosure mechanisms especially in housing.

The various committees on investment at the National Legislative, Dr. Tolbert says, are always seeking ways to cooperate directly with the NIC to promote a better investment climate in Liberia.

The eloquent Liberian business executive and NIC chairman noted that in 2003,the Economist Magazine gave Liberia the dubious distinction of being "the worst place on earth to do business." However, given the progress by the GOL and the NIC, Dr. Tolbert said the same magazine in 2009 now voted Liberia as having one of the 20 fastest growing economies in the world and place to do business.

In a related development, Liberian Ambassador near Washington DC , the United States Mr. Nathaniel Barnes has acknowledged the many challenges facing post conflict Liberian but says that the prospects for Liberia are good and that he sees opportunities in the challenges.

In an exclusive interview with the WRAR 96 INTERNET RADIO on Friday in Philadelphia at the Liberia Business Investment Forum held in collaboration with the office of the Mayor of Philadelphia and other international partners, Ambassador Barnes said there is an opportunity to, as he put it, "add value to the country's vast natural resources thru investment." What was

Liberian Ambassador to the U.S., Nathaniel Barnes

Liberia's National Investment Commission Chairman - Dr. Richard Tolbert

Advertisement

Watch the latest videos on YouTube.com

most important, he said, was the creation of appropriate links for financing with USAID, the Bob Johnson Investment Fund for Liberia and other capital access avenues. Ambassador Barnes called for knowledge and technology transfer thru investments to Liberia for good.

The Trade and Investment Liaison and First Secretary at the Liberian Embassy in Washington DC Ms. Gurley Gibson who organized the Business Investment Forum has expressed her thanks on behalf of the Embassy and the GOL to all speakers, moderators, organizers, partners, sponsors, participants of the just ended Conference held in Philadelphia, PA on Friday June 12th.

The Liberian diplomat Ms.Gibson was in March 2009 appointed Trade and Investment Liaison Officer in Pennsylvania with the sole mandate to coordinate trade affairs on behalf of the Liberian government within the tri-state region of Pennsylvania, New Jersey, and Delaware. This tri-state area is home to large industries and corporations, with large African immigrant communities, and is an important agricultural producing region that is critical to support the growth of mechanized farming that would expand the agro processing industry in Liberia.

Ms Gibson has begun initiating strategies that are critical to building foundations to spur private enterprise participation in the economic recovery process that is occurring in Liberia. This Business Forum for Liberia embodies the bed rock to this strategic approach. Meantime, the trade and investment office based in Philadelphia is considering other actions that would provide impetus to take business to Liberia, control the focus and enhance investment opportunities for foreign-Liberian businesses wishing to return and invest in the local economy.

According to Ms. Gibson her office is working on proposing to Ambassador Nathaniel Barnes significant changes to tax laws and regulations concerning reduction of import duties for Liberian and foreign investors.

Additionally, Ms Gibson is thanking Mr. Stanley Straughter and his staff at the office of the Philadelphia Mayor’s Commission on African and Caribbean Immigrant Affairs for the high level of cooperation and assistance towards the successful hosting of the Liberia Business Forum. She is also expressing gratitude to Messers Anthony Lewis and Alton El of the Housing Authority of the Delaware Valley for the assistance offered to her office for its relocation to Philadelphia.

The Liberian Business Investment Forum brought together a host of Liberian and foreign investors, entrepreneurs, senior Liberian government officials and legislators and City of Philadelphia representatives.

Writes,
Emmanuel Abalo - Philadelphia