George G. Wisner Executive Director National Investment Commission

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Transcript George G. Wisner Executive Director National Investment Commission

Session 1: Economic Outlook
A Presentation by
George G. Wisner
Executive Director
National Investment Commission
Republic of Liberia
Liberia Real GDP Growth Rate (2006-2017; IMF Forecast from 2015)
Pre-Ebola
Forecast
World Bank 2015 GDP Growth Forecast 3.0%
AfDB 2015 GDP Growth Forecast 3.8%
2

Fiscal restrictions imposed to manage impact of increased expenditure

Stabilized the exchange rate, enhanced banking sector liquidity

Paid civil servant salaries on time; accelerated goods & service spending

Avoided shortage of essential commodities

Over $58 million disbursed to public investment and recovery in 14/15

Reopened borders and lobbied for return of flights

Immediate cash transfers with the support of our Development Partners
Revised projections for 2015 GDP Growth are 0.9% (IMF) – 3.0 % (World Bank)
Strategy 1: Recovering Output
& Growth
Strategy 2: Strengthening
Resilience and Reducing
Vulnerability
Strategy 3: Strengthening
Public Finances and Ensuring
Service Delivery
Revitalize and diversify growth,
targeting agribusiness export
sectors
- Major Health Investment
Plan
- Education sector priorities
- WASH services
- Social protection
- GoL plan for UNMIL
transition
Support for public finances,
improved finance execution
and governance including deconcentration
Enable delivery of critical
transport and energy
infrastructure projects
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Strategy 1: Recovering Output
& Growth
Revitalize and diversify growth,
and address vulnerable
employment

Target Agro-processing in key sectors
 Increase private sector finance for agribusinesses and farmers
 Value chain coordination: cocoa, rubber, oil palm, fish/aqua.
Enable delivery of critical
infrastructure projects
 Targeted investment in these value chains & agro-processing
 Labor and supplier skills aligned to growth sectors

Financed cost overruns from Ebola on Priority
Infrastructure Projects (e.g. Mt Coffee Hydro Dam)

Road Maintenance Fund, Low-income housing
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Strategy 1: Recovering Output
& Growth
Strategy 2: Strengthening
Resilience and Reducing
Vulnerability
Health Investment Plan: to improve and extend existing infrastructure and build fit for purpose
Healthand
workforce,
Revitalize
diversifyincluding
growth, private investment in JFK Hospital & Redemption Hospital
- Major Health Investment
and
address
vulnerable
 Education: train and recruit teachers,
Plan improve quality of vocational education, strengthen county
employment
management structures, including
private investment
in affordable high quality education services
- Education
sector priorities
- WASH
services
Enable
delivery
of critical
 Increase
WASH
services for Ebola
recovery
and prevention including 100 boreholes into
Social protection
infrastructure
projects
communities,
health centres and -schools,
and a WASH regional centre
- GoL plan for UNMIL
 Increase coverage of social cashtransition
transfers to at least 50,000 households, sustain foster care grant
and develop National Emergency Response Capability


Security: implement GoL Plan for UNMIL Transition
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Strategy 1: Recovering Output
& Growth
Strategy 2: Strengthening
Resilience and Reducing
Vulnerability
Government revenues suffered twin shock of Ebola crisis and
globaland
commodity
Revitalize
diversifyprices
growth,
- Major Health Investment
and address vulnerable
 Improving expenditure compliance
processes and Budget
Plan
employment
execution
- Education sector priorities
- WASH services
Enable
delivery
of critical
 Ongoing
Civil
service reform and Decentralization
- Social protection
infrastructure projects
- GoL plan for UNMIL
transition

Strategy 3: Strengthening
Public Finances and Ensuring
Service Delivery
Support for public finances,
improved finance execution
and governance including deconcentration
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

Liberia’s Profit Tax Rate is 25% or 2% on turnover.
No capital controls
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 exceeding $10m automatically incentivized
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
Incentives available for:
Tourism, Manufacturing, Energy, Hospitals
& clinics; Housing, Transportation; IT,
Banking, Agriculture, Fisheries,
Agro-Processing


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
Table 2: Fees to Register a Business
Indicator
Liberia
Sub-Saharan
Africa
OECD
Category
Foreign Business Registration
Procedures (number)
4
7.8
4.8
Sole
Proprietorship
$700 US
Time (days)
4.5
27.9
9.2
Partnership
$800 US
56.2
3.4
Corporation
$900 US
Cost (% of income 17.4
per capita)
Source: www.lbr.gov.lr
Source: World Bank Doing Business 2015
Thank you!
George W. Wisner
[email protected]