investing in liberia...oil & gas upstream opportunities and available data 4. infrastructure a....
TRANSCRIPT
Republic of Liberia
National Investment Commission
Investing in Liberia
Washington DC
January 2017
George G. Wisner Executive Director
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
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-
2017 buoyed by a further expansion in commercial gold production and
continued growth in the agriculture sector.
Over the medium term (2018-2021), 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 (2017-21).
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 2017-2020.
8.2
12.7
6.0
5.1
6.1
7.4
8.2 8.7
0.7
0 -0.5
3.2
5.2 5.7
6.0
-2
0
2
4
6
8
10
12
14
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Global Financial and Food Crisis
Ebola and lag effects, UNMIL drawdown & Price fall
Source: MFDP, CBL and International Monetary Fund
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 +
commercially-
viable businesses
•Attract more FDI in
manufacturing
Invest in Infrastructure: Link farmers to the final consumer + Connecting businesses to the grid
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
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.
Indicator Liberia Sub-Saharan
Africa
OECD
Procedures (number) 4 7.8 4.8
Time (days) 4.5 27.9 9.2
Cost (% of income
per capita)
17.4 56.2 3.4
Source: World Bank Doing Business 2015
Category Foreign Business Registration
Sole
Proprietorship
$700 US
Partnership $800 US
Corporation $900 US
Source: www.lbr.gov.lr
Table 1: Ease of Starting a Business Indicator Table 2: Fees
Rubber Rubberwood Ribbed Smoked Sheets
Household Utensils Shoes
Oil Palm Cooking Oil Soaps
Biomass fuel Feed
Cocoa Grade A Cocoa Cocoa Butter
Cosmetics Chocolate
Fish Fresh/dried Fillets
Canning Fish Sauce
Cassava High Quality Flour Chips
Starches Gari
Rice Cereals Feed
Rice Oil Noodles
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
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
08/24/2016 10
2%
76% 71%
11% 30%
0%
50%
100%
Liberia Ghana Ivory Coast Guinea Sierra
Leone
Electricity Coverage
$0.49
$0.12 $0.15 $0.18 $0.28
$0.00
$0.20
$0.40
$0.60
Liberia Ghana Ivory Coast Guinea Sierra
Leone
Electricity Tariff
2010 2015 2016 2020
Total On – Grid
Demand (MW)
20.10 108.47 189.67
Total Off – Grid
Demand (MW)
17.69 131.07 354.18
Total Demand (MW) 37.79 239.54 239.54 543.86
Total Available
Generation (MW)
80
Generation Gap (MW) 159.54
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 2030. 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 of public resources.
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.
$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
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
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
Agricultural transport services linking prime growing areas to Monrovia & ports
Coastal & Inland Water Transport: 6 major rivers, also in Monrovia
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 long-term stimulus of increasing worldwide trade and globalisation; It is also applicable to handle all types of
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
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
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.
Some Major players operating in Liberia
