Investing in Liberia

Transcription

1 Republic of Liberia National Investment Commission Investing in Liberia Washington DC January 2017 George G. Wisner Executive Director

2 Table of Contents 1. Investment Climate a. Economic Performance b. Tax Regime & Investment Incentives c. Easy to Start Business in Liberia 2. Opportunities in Agriculture & Agri- Business a. Value addition in Key Agriculture Value Chains b. Investment Opportunities in Agriculture 3. Energy: a. Current Status b. Generation Gap Analysis c. Energy Mater plan d. Priority projects & Oil and Gas: a. Oil & Gas Upstream Opportunities and Available Data 4. Infrastructure a. Road b. Transport c. Ports d. ICT 5. Tourism 6. Medical Infrastructure 7. Opportunities in Mining a. Iron Ore b. Gold c. Various Other Minerals in Liberia

3 In the medium term, the prospects for the economy, while challenging, look favorable. With the inauguration of the hydro, economic activity in terms of energy is expected to expand at lower cost which will translate into higher growth and relatively lower levels of inflation. The economy is expected to rebound slightly around 3.0 percent at end buoyed by a further expansion in commercial gold production and continued growth in the agriculture sector. Over the medium term ( ), economic growth is expected to stabilize at about 6.0 percent. Inflation is expected to average at around 8.0 percent over the next five years ( ). Though the exchange rate has come under pressure in recent times, it has been relatively stable. It is projected to depreciate by 5.7 percent on average for the period

4 Global Financial and Food Crisis Ebola and lag effects, UNMIL drawdown & Price fall Source: MFDP, CBL and International Monetary Fund

5 Operationalize LATA The Liberia Agricultural Transformation Agenda (LATA) is the new policy framework and vision for developing agriculture and agribusiness, directly supported by H.E. Madam President. Support value addition in agriculture (through financing, public goods, market access) Strategic investment, both domestic & foreign, in value chains + downstream processed goods Support Manufacturing Expand electricity distribution Link creative financing for MSMEs + commerciallyviable businesses Attract more FDI in manufacturing Invest in Infrastructure: Link farmers to the final consumer + Connecting businesses to the grid

6 Tax Regime & Investment Incentives Liberia s Profit Tax Rate is 25% or 2% on turnover. No capital controls (100% of profit repatriation) 30% incentive deduction allowed on up to 100% of qualifying cost of equipment & machinery for investors over $1m Can also obtain a tax deduction of 10% off cost of building & fixtures used in manufacturing process that produced finished products having 60% local raw material. Investments in economically deprived zones or those generating more than 100 direct jobs qualify for additional incentives of up to 12.5% & further 10% respectively Tourism, Manufacturing, Energy, Hospitals & clinics; Housing, Transportation; IT, Banking, Agriculture, Fisheries, Agro-Processing, and banking Investments exceeding $10m qualifies for concession to be negotiated

7 Liberia Business Registry (LBR) One-Stop-Shop for enterprise development that formalizes enterprises in only 48 hours Online application process and online database Registration can be done through: E-registration: after receiving account details applicant submits dossier online. Assisted registration: applicants submit a paper-based dossier to the LBR staff who undertakes the registration procedures. Staff are on hand to provide advice to applicants. Table 1: Ease of Starting a Business Indicator Indicator Liberia Sub-Saharan Africa OECD Procedures (number) Time (days) Table 2: Fees Category Sole Proprietorship Partnership Foreign Business Registration $700 US $800 US Cost (% of income per capita) Corporation $900 US Source: Source: World Bank Doing Business 2015

8 Rubber Oil Palm Cocoa Fish Cassava Rice Rubberwood Ribbed Smoked Sheets Cooking Oil Soaps Grade A Cocoa Cocoa Butter Fresh/dried Fillets High Quality Flour Chips Cereals Feed Household Utensils Shoes Biomass fuel Feed Cosmetics Chocolate Canning Fish Sauce Starches Gari Rice Oil Noodles

9 We are looking for investors across value chains: Oil Palm: Production and processing, including investing in Outgrower Schemes; Bio-energy. Cocoa: Post-harvest processing; certification and quality control; global demand for cocoa is growing, Liberia has the potential to significantly improve productivity and quality, with committed investors. Rubber: Ribbed smoked sheets processing Fisheries: Inputs; Processing; Cold storage facilities; Aquaculture Rice/Cassava: Industrial investor; Post-harvest processing 08/24/2016 9

10 We are looking for investors across value chains: Financing: Private value chain financing; Development financing; Microfinance; strong business case for opening rural branches in (relatively isolated) agricultural concession areas employing significant number of people can have strong impact on agricultural markets and value chain; Insurance; Warehouse receipt; Other Services: Business development; ICT; Knowledge management; Branding & Marketing Cross-cutting: Agro-inputs; Agro-logistics; Packaging; Storage; Aggregators 08/24/

11 Electricity Coverage 100% 50% 0% $0.60 $0.40 $0.20 $ % 71% 30% 2% 11% Liberia Ghana Ivory Coast Guinea Sierra Leone $0.49 Electricity Tariff $0.28 $0.12 $0.15 $0.18 Liberia Ghana Ivory Coast Guinea Sierra Leone

12 Total On Grid Demand (MW) Total Off Grid Demand (MW) Total Demand (MW) Total Available Generation (MW) 80 Generation Gap (MW)

13 The Government of Liberia, through the Ministry of Lands, Mines and Energy (MLME), is implementing a comprehensive Electricity Master Plan for developing the sector in Liberia up to Key objectives of this plan include; 1. Aggressive reconstruction and expansion of the transmission and distribution infrastructure 2. Expansion of firm generation capacity and diversification of generation sources 3. Reduction in cost of electricity and increasing the reliability of electricity supply; 4. Development of the capacity to effectively manage the energy sector 5. Developing a new legal and regulatory framework which facilitates execution of this strategy 6. Attracting private investment to the energy sector, particularly in generation, transmission and distribution of electricity in order to leverage the use

14 o St. Paul River Via Reservoir Development o Diversification of Generation Sources from HFO to PV Solar Power, Wind Power, Waste to Energy and Hydro Power. o Improving energy access through Grid Extension to Rural Areas and the development of Mini-grids and Micro-grids. o Building human resource capacity in the Energy Sector.

15

16 $1.4bn invested by Govt & partners in roads since 2007 Partners in road development: SIDA, EU, JICA, World Bank, AfD, USAID National Road Infrastructure Strategic Goals: Connect all (15) county capitals to Monrovia with paved roads Prepare detail engineering designs as the basis to attract construction funding Plans to establish road maintenance fund & establish Roads Authority Total Paved Roads are now 734km in Liberia Primary Laterite Roads 1,423 km Secondary Laterite Roads 2,350 km Feeder Roads 5,410 km

17 Buchanan (Grand Bassa County) to Greenville (Sinoe County) 320 kms Gbarnga (Bong County) to Medikorma (Sierra Leone Border) 281 kms Part-Financing construction of primary highway from Ganta Tappita (World Bank providing part financing already): 100 kms Financing construction of primary highway from Tappita Fish Town: 238 kms Rehabilitation of Monrovia to Bo-Waterside border & Sanniquelle to Cote d Ivoire (Danane) ELWA (Monrovia) to Roberstfield International Airport road

18 Agricultural transport services linking prime growing areas to Monrovia & ports Coastal & Inland Water Transport: 6 major rivers, also in Monrovia PPP Opportunities: Provision Of Mass Transport Services Public Parking Facilities Construction of bus stations & bus services Construction & management of road links (toll road system) as reform progresses for fair payments for road users. Long term road maintenance initiatives

19 Freeport of Monrovia: 200m quay wall extension: design and construction of 200m quay wall extension; dredging to -13m CD as indicated on the current bathymetric survey; Removal of wrecks which prevents installation of a new quay wall. Port of Greenville: Expression of interest for the rehabilitation (PPP or JV Oprs) seeking Private Public Partnership (PPP) to engage in works and services that will include: Dredging of the berthing area at the end of the quay; Rehabilitation of main harbor basin; Rehabilitation of main infrastructures including port infrastructures and roads Dry Port Development: Basically it is an inland terminal to and from which shipping lines could issue their bills of lading for clearing cargos; It is driven by the longterm stimulus of increasing worldwide trade and

20 ICT in Liberia: 60% of population inclined to use ICT services Establishment of Liberia Internet Exchange Point Undersea Fiber Optic Cable Landing accessible Partial Roll-out of Monrovia Fiber Ring Gov t willing to further divest part of its 55% share in Cable Consortium Liberia Major Investment Opportunities in Liberia s ICT Sector: National Backbone: $67m Digital Migration Platform: $48m National Postal Addressing System: $13.7m Data Centres and Internet Services Providers

21 Eco-Tourism based on natural rainforest (Sapo National Park, Gola Forest National Park), mountains (Mt. Nimba, Wologisi), inland waterways & waterfalls (Kpatawee, St. John s River Waterfall etc). Looking for investors in facilities & tourist services. Surf & Fishing Tourism in Robertsport/Lake Piso (972 km sq) in Grand Cape Mount Rehabilitation of Hotel Africa, E.J. Roye Building, etc. Large Global/ Continental brand name hotels

22 PPP Opportunity for John F. Kennedy Medical Center Largest medical facility with a paramedical and nursing school and several units PPP to Finance, Build, Design, Equip, Operate and Transfer. Well-equipped laboratories for MRI, CT scan, Diagnostic, Imaging and scanning; advance testing (DNA, drug, mammogram, prostate, etc.) Mobile labs and clinics for rural areas.

23 Some Major players operating in Liberia

24