 INVESTMENT |
Created by an Act of the Liberian parliament in 1979, the National Investment Commission (NIC) is charged with the responsibility to encourage investors and to promote investment activities in the Republic of Liberia.
Over the years, this commission has regularly devised and revised investment codes and strategies to meet the demands of changing times and growing economic and investment exigencies.
Two of such new approaches to encouraging investment in Liberia are the Strategic Windows Investment Policy and the One Stop Shopping Center Concept introduced under the administration of Dr. Q. Somah Paygai, Chairman of the National Investment Commission (NIC).
The Strategic Windows Investment Policy was enunciated in January 2000 to promote and encourage international business and to attract private/foreign investment into Liberia.
Considered to be the most liberal investment incentive package in West Africa today, the policy offers basic opportunities such as non-nationalization of investments; free repatriation of investment capital and profits; 100% foreign share ownership, if so desired by the investor in non-iron ore mining ventures and participation in almost all economic ventures except those set aside by law under the Liberianization Acts.
"Stratification in our investment will be done through the Strategic Windows Investment policy," Dr. Paygai insists. He says incentives would be granted on the basis of the volume of the investment, the bigger the investment, the better the incentives offered.
The NIC also provides long-term land leases with renewable options to investors eyeing the agricultural sector of the Liberian economy.
The One Stop Shopping Center Concept removes all the bottlenecks prospective investors face having to go from one government ministry or agency to another to obtain documentation, including permits and certificates, to venture into the sector of their choice.
"Previously, it took two to three months to get all the paper work done, but now it requires seven to 14 days to expeditiously process all the documents to allow the investor operate smoothly, without hindrance," Dr. Paygai asserts.
Already, a revised tax code is pending before the National Legislature (parliament) for ratification to grant more incentives and attractions to individuals, groups or concessions desirous of doing business in areas outside the capital city that would create job opportunities for rural inhabitants.
| Exportable development, another concept introduced by the ruling National Patriotic Party (NPP) under its economic recovery program, calls for the establishment of factories or industries (small, medium or large scale) for the transformation of the country's natural resources into semi-finished or finished products.
"You bring in the technology and training programs and we will give you the human resources, the land and facilities near the plantation sites to do your operation," say the Chairman of the ruling NPP, Chief Cyril Allen.
The objectives are to add value to our commodities and attract higher export earnings as well as create income for the Liberian people to raise their standard of living, government officials say.
"We are hoping and expecting investors who are coming into this country to be involved with the social development of our people…to participate in the building of schools, clinics, hospitals, roads…to help rebuild the lives of our people and improve the quality of life of our people," Information, Culture and Tourism former Minister, Mr. Jonathan Reffell opines.
Feelers in officialdom indicate the government would bend backwards over to grant the best of incentives to persons or groups wanting to salvage the economy and help bring a level of self-respect to thousands of unemployed yearning for sources of income.
Finance Minister, Mr. Nathaniel Barnes notes that the "largest problem" facing macroeconomic management is the issue of employment in the country.
"We do not have significant investment at this point in time to support employment sources. This is very important to us. Right now, for each person employed, you are feeding six to nine persons. So we are trying to create the environment that will encourage investment into Liberia," the finance Minister points out.
Finance Minister Mr. Barnes admonishes investors that the environment is "ripe" with opportunities. He frankly notes the "risks", but says there's an old adage, the higher the risk the bigger the returns. In an honest assertion he points out, however, "We are looking for partners to help us mitigate as much as possible their risk together in a win-win situation, and they would be surprised what kind of returns they will get from here." |
