Incentives Available for Investors

Exemptions from trade taxes

Machinery, equipment, raw materials, semi-finished products and other supplies to be used in the project are exempted from import duty up to 90% of their dutiable value. Manufactured goods exported from the production of the project are entitled to full rebate on import duties and full refund of both income tax and excise tax.

Exemptions from income tax

Reinvested profits are exempted from income tax. However, if the reinvestment is in employee housing, the exemption is subject to prior approval from the National Investment Commission (NIC).

Profits not reinvested are exempted from 50% of the income tax otherwise payable.

Conducive Operating environment

Infrastructure: Infrastructure is a challenge all investors face in Liberia. However, the obverse of this is that it is also an area of opportunities.

Power stability

The Liberia Electricity Corporation (LEC) had an installed capacity of 200 mw before the conflict period. Mining and rubber concession operators and others had installed capacities of over 250 mw. The transmission network of the LEC was over 400 km long and the distribution network was over 800 km long. the government is about to announce a new national energy policy and is seeking partnerships with private investors to reconstruct the system.

Land

The ownership, leasing and use of land is governed by both statutory and customary law.

Available Labour

Estimates for formal unemployment in Liberia are as high as 80%, although there is much self-employment in the informal sector -Wages are low — the official minimum wage is 25 US cents/hour — and the demand for jobs is high. The willingness of the workforce is high when it is well managed and well-paid. There is much need for training, which also offers an opportunity for investors.

Other incentives

Approved investment projects may receive certain additional benefits on application to the government, such as lease of land in government-owned industrial parks at a preferential rate, reasonable tariff protection, purchase of project products by government agencies, etc.

Five commercial banks are in operation today, all of which have some measure of foreign equity. They are Ecobank Liberia Limited, Global Bank Liberia Limited, International Bank Liberia Limited, First International Bank Liberia Limited and the Liberian Bank for Development & Investment. The last of these has a minority shareholding by the government as well as by the International Finance Corporation (IFC), the private-sector arm of the World Bank, and provides project financing for agriculture, infrastructure and small businesses.

National Investment Commission (NIC) –security commission for investors

The NIC was established in 1979 to “encourage, promote, and co-ordinate” all investment promotion activities in Liberia with the aim of accelerating economic growth and development. The Commission has six members: the Minister of Commerce & Industry, the Minister of Finance, the Minister of Justice,
the Minister of Planning & Economic Affairs, the Minister of State for Presidential Affairs, and a Chairman with cabinet status appointed by and reporting to the President.