Republic of Liberia National Investment Commission Investing in

Republic of Liberia National Investment Commission Investing in Liberia Berlin, Germany George G. Wisner Executive Director

Table of Contents 1. Investment Climate a. Economic Performance b. Economic Stabilization & Recovery Plan c. Tax Regime & Investment Incentives d. Easy to Start Business in Liberia 2. Opportunities in Agriculture & Agri- Business a. Rubber b. Cocoa c. Fisheries (Aqua and marine) d. Oil Palm e. Horticulture f. Cassava g. Rice h. Value Chain Financing Agriculture 3. Energy & Oil and Gas a. Progress & Current Emphasis b. Oil & Gas Upstream Opportunities c. 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

Economic Stabilization & Recovery Plan 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 - Go. L plan for UNMIL transition Support for public finances, improved finance execution and governance including deconcentration Enable delivery of critical transport and energy infrastructure projects $225 M $298 M Total financing Gap $289 M $812 M 4

Tax Regime & Investment Incentives q Liberia’s Profit Tax Rate is 25% or 2% on turnover. q No capital controls (100% of profit repatriation) q 30% incentive deduction allowed on up to 100% of qualifying cost of equipment & machinery for investors over $1 m q 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. q 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 $10 m qualifies for concession to be negotiated

Easy to Start a Business in Liberia • • 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 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 Cost (% of income per capita) 17. 4 56. 2 3. 4 Corporation $900 US Source: www. lbr. gov. lr Source: World Bank Doing Business 2015

Opportunities in Agriculture & Agri-Business • • Rubber Processing & Rubberwood Cocoa Aquaculture & Marine Fish Oil Palm Horticulture Rice Cassava Agriculture Value Chain Financing

Priority Sector: Rubber Processing � Long standing history in rubber production � Liberia searching for industrial investors in rubber compounding & production of dry rubber products such as door mats, boots, handles, chairs, pipes, bushels & gloves � Many medium size farmers investing in ribbed smoked sheets & rubber crepe � 63, 000 t produced in 2013, potential expansion to 325, 000 t � Over 200, 000 ha of arable land available: 55% of rubber from small farmers � Large unexploited ECOWAS market for ribbed smoked sheets, crepe & rubber products � Large unexploited investment opportunity in rubberwood & its products

Priority Sector: Cocoa � Cocoa sector in Cote D’Ivoire, Ghana & Nigeria is saturated: Liberia is next frontier for cocoa � 90% of cocoa bought by informal traders i. e. potential for investors to improve yields & quality � Investor-friendly regulatory framework for cocoa being developed � Cocoa yield = 200 kg/ha; potential to increase to 1, 000 kg/ha � Global demand increasing by 6% per year & is worth $4 bn. � Market for cocoa butter & powder in Liberia is growing by 4% & 2% p. a. .

Priority Sector: Aquaculture & Marine Fish AQUACULTURE • Liberia looking for first industrial investor in aquaculture, to exploit untapped market • Most renewable internal water resources per capita in Africa • Optimal natural water temperature for aquaculture (27 o Celsius) • Can produce 330, 000 mt of inland fish (current production only 2, 500 mt) • Domestic market unsaturated, particularly up-country plus large regional market • Large, untapped business opportunity – particularly as there is currently no competition. MARINE FISH • With Mt Coffee Dam completed, cheaper to process fish in Liberia vs Nigeria, Senegal, CI. • Liberia’s coastline & continental shelf offers 20, 000 sq. km of fishing ground • Only 7, 300 mt of marine fish produced locally, while consumption lies at 23, 800 mt p. a. • Fish landing, storage & processing facilities being built in Robertsport & Monrovia • Gov’t streamlining tax regime & regulations in sector

Priority Sector: Oil Palm • • • Indigenous home of oil palm; produced 176, 000 mt 2013 – little of which processed • • 4 large investors including world leaders Sime Darby & Golden Veroleum Un-tapped ECOWAS market in oil palm products Perfect place to invest in the processing of crude palm oil into refined oil for cooking, soaps, cosmetics, food processing, mulch, fertilizer, animal feed & bio-fuel Govt & SIDA developing model for outgrower schemes for large concessions Hundreds of small & medium scale farms around country, mostly in rubber belt USAID running support programme of oil palm by developing market for high variety seedlings among other types of support Oil Palm Profitability, $ per tonne Potential 40% profit

Horticulture • • • Ideal for investment in inputs, production, aggregation, packaging & processing. • Liberia has direct flight access to Brussels, Casablanca, Abidjan & Nairobi Rainfall of 2, 391 mm p. a. , compared to 1, 348 mm in Ghana or 730 mm in Kenya. Large, growing domestic market, access to ECOWAS & sea access to EU & US markets. In 2013 Liberia produced 291, 000 mt worth of fruit & vegetables. Imported 14, 300 mt Domestic market alone is worth $103 million p. a. Highest potential: tomatoes, pineapples, mangoes, plantain, banana, sweet potatoes and chilli pepper (high Scoville Index)

Cassava • • • Cassava is an important staple crop in Liberia, can be planted all year Average Liberian consume 5 times more, making Liberia growth economy for cassava Scope for market capture through quality & innovation. Use of quality inputs & agro-chemicals limited = large market for input providers. Potential for cassava value addition such as gari, cassava flour, high quality cassava starches, animal feed, syrup, ethanol, citric acid, sucrose & adhesives Over 80 m tonnes of cassava is consumed every year in ECOWAS. Market growing by 4% p. a. Of this Liberia accounted for 520, 000 tonnes. Cassava & Cassava Starch Market Growth $1. 6 bn market $0. 9 bn market $0. 1 bn marke t

Rice • • • Liberia consumes 570, 000 tons of rice per year Of this 55% imported giving scope for investors in efficient, high yield farming (Nerica variety) & irrigation to capture market share Growth of rice consumption in Liberia: 14. 1% p. a. since 2003. Can double yields & triple land harvested: now 230, 000 ha but can increase to 600, 000 ha Investment opportunities in: – Nerica variety farming planted in irrigated or non-irrigated swamplands – Farm inputs and technology, hulling & milling – Processing into high value rice, cereal bars, rice crackers & rice starch. Rice bran sold as fish feed or processed by pharmaceutical industry. Rice Profitability, $ per metric tonne

Agriculture Value Chain Financing • • • Potential for investors to provide financing for agriculture value chains Liberia has only 1 small agricultural bank - Afriland Gov’t & donors (USAID, IFAD, World Bank, SIDA, EU) applying value chain approach to these value chains: – Rubber processing, rubberwood, oil palm, cocoa, aquaculture, marine fish, horticulture, rice, cassava, livestock Scope for different types of investors: – Agriculture finance institutions – Development finance institutions – Social entrepreneurs – Cooperative banks – Venture capitalists – Private Equity – Business & Technical Services Providers NIC has registry of SME investment opportunities in agriculture: Contact Paye Gbelayan

Investment in Energy Priorities • Concession energy demand is 700 MW but current supply less than 20 MW creating huge investment opportunity • Huge returns to possible: Liberia has highest energy tariffs in world (56 cents per kwh) • Hydropower to access huge potential of Liberia’s waterways: – internal renewable water resources are second in West Africa only to Guinea & Nigeria Mount Coffee hydro power generation - transmission & distribution of power lines due on stream in December 2016 (up to 70 MW) • Many Investment Opportunities available in: – Biofuels from oil palm and rubber wood – 500 MW Potential – Hydro plants – 1, 000 MW Potential on St. Paul, St. John & Lofa rivers – Solar – HFO – Construction of National Power Grid • Clients: 4 million people who rely on generators plus numerous concessions in agriculture, mining, ports etc; plus Liberia being connected to West Africa Power Pool

Achievements in Restoring Energy Access Micro hydro plant constructed – to support 3000+ rural connections - Basic services restored in Monrovia - 30, 000 connections 22 MW installed Most electricity self-generated Cross-border purchase of electricity from Cote d’Ivoire, expected to support 20, 000+ connections in areas along border

Current Energy Emphasis $1. 2 bn worth of projects to be implemented in next 5 years, with funding secured. Generation 3 X Heavy Fuel Oil (HFO) Plants under construction – 38 MW capacity (~$60 M) Mount Coffee Hydro Plant (80 MW) – Rehabilitation underway( ~$300 M) Generation (Renewable) $50 M available for development of renewable energy, especially small-scale hydro and solar (in preparation). T&D 7 distinct transmission line projects 4 distribution projects (~200, 000 connections) CLSG Line: $500 M T&D projects in Liberia: ~$250 M

Oil & Gas Upstream Investment Opportunities

Available Data • • 2 D seismic data (PSTM/PSDM): 24, 773 km 2 D gravity/magnetic data: 24, 508 km 2 D angle stacks: 24, 774 km 3 D seismic data (PSTM/PSDM): 18, 345 km 2 3 D angle stacks: 18, 345 km 2 Updated Interpretation report (2010) Well Data from nine recently drilled wells

Opportunities in Infrastructure • Roads • Transport Services • Sea Ports • ICT

Overview of Road Infrastructure • $1. 4 bn invested by Govt & partners in roads since 2007 • Partners in road development: – SIDA, EU, JICA, World Bank, Af. D, 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 734 km in Liberia • Primary Laterite Roads 1, 423 km • Secondary Laterite Roads 2, 350 km • Feeder Roads 5, 410 km

Road Infrastructure Priorities • 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

Transport Services Priorities • • 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

Sea Port Infrastructure Overview • • Liberia has 4 ports: – Freeport of Monrovia is main port & handles over 91% of Liberia’s Bomboja vessel traffic. – Port of Buchanan handles 60% of NPA’s Summer Dead Weight & 65% of Authority’s throughput. – Port of Greenville saw 470% vessel traffic increase from 2012 to 2013 by 47 vessels. – Port of Harper is smallest port, handling domestic trade only National Port Authority is Govt enterprise established by 1967 Port Act. Responsible to plan & develop ports. NPA conducting feasibility study in Bomboja to gain approval for 5 th port. NPA became ISPS Compliant in Monrovia and Buchanan in 2010.

Sea Port Infrastructure Priorities Planned projects at Freeport of Monrovia: Planned projects at Port of Buchanan: 1. Project M 1: Marginal Wharf Extension by 1. Project B 1: Iron Ore Quay Expansion 200 meters, presently 600 meters 2. Project B 2: Extension of Fuel Quay 2. Project M 2: One new berth and reclamation 3. Project B 3: Commercial Berth for container and general cargo 300 meters Expansion from 326 to 400 m LOA. 4. Project B 4: Logistical Shore base 3. Project M 3: Coastal vessel terminal – to (Phases 1 & 2): supply boats & waste enhance the distribution and movement of management reception facility operations cargoes along the coast of Liberia and sub region & warehousing, open yard 4. Project M 4: Dredging of entrance channel (widening) to 250 meters 5. Project M 5: Fishing Harbour Pier – Local and international fishing activities, 150— 200 meters LOA Top Priorities: Projects M 1, M 5 & B 4

Sea Port Infrastructure Priorities Planned projects at Port of Greenville: Planned projects at Port of Harper: 1. Project G 1: Construction of Liquid Bulk Pier • Project H 1: Marginal Wharf Expansion • Project H 2: Oil Palm Quay (200 m to 250 m long) pier for crude palm oil Main clients: Maryland Oil Palm, Cavalla (Golden Veroleum Liberia - potential of Rubber, logging 300, 000 tons of crude palm oil per year) 2. Project G 2: Construction of dry bulk (200 to 250 m long) quay and breakwater (south) – Main Clients: GVL, Hummingbird & logging – 400 m breakwater protects harbour. 2 quays at present (70 m & 180 m) on inner side of breakwater for berthing facilities, with existing depth of 8/9 m below chart datum.

ICT Infrastructure Priorities • 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: $67 m – Digital Migration Platform: $48 m – National Postal Addressing System: $13. 7 m – Data Centres and Internet Services Providers

Tourism Investment Opportunities • • 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 and Old Ducor Palace

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. PPP opportunity for better service delivery (state of the art medical equipment & facilities)

Opportunities in the Mining Sector

Iron Ore WOLOGISI-1 BT @36%Fe TAWANA 62 Mt @64%fe KITOMA 64 MT @61%fe BAO CHICO WESTERN CLUSTER 563 Mt @53%fe ARCELOR MITTAL 471 Mt@67%fe CHINA UNION – 1. 05 BT @36%fe • 3 Age Provinces in Liberia • Liberian (Archeaen-Meta Volcanic) • Eburean Formations • Pan-African (youngest) • Iron formation occurs across all age provinces GOE-FANTRO 64 MT @59%Fe PUTU -4. 5 BT @39%Fe • Iron formation commonly associated with composite rock units; schist, mafic, felsic & ultramafic units • All major deposits occur within Liberian & Eburnean provinces except Goe-Fantro which occurs within Pan-African

Gold • Gold occurrences are widespread Aureus Mining • Gold production is dominated by ASM activities MNG Gold • One mechanized gold mine: Aureus Mining: 1. 5 Moz @3. 8 g/t • MNG Gold: 750 k ounces @13 g/t Hummingbird • Hummingbird: • Tuzon 2. 47 Moz @1. 4 g/t • Dugbe 1. 8 Moz @ 1. 3 g/t

Various Other Minerals in Liberia 3 distinct kimberlite diamond clusters have been identified in Western Liberia: • Kumgbor cluster ~ 135 Ma • Weasua cluster ~ 800 Ma • Mano Godua cluster ~ 135 Ma Copper, Lead , Barite, Bauxite, Kyanite, Phosphate, Platinum, Manganese, Uranium, Chromite, Corundum, Nickle etc

Some Major players operating in Liberia

www. investliberia. gov. lr wisnergeorge 5@gmail. com