session 1: economic outlook a presentation by george g. wisner executive director national...
TRANSCRIPT
Session 1: Economic Outlook
A Presentation by A Presentation by
George G. WisnerGeorge G. WisnerExecutive Director Executive Director
National Investment CommissionNational Investment CommissionRepublic of LiberiaRepublic of Liberia
2
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%
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)
Support for public finances, improved finance execution and governance including de-concentration
- Major Health Investment Plan- Education sector priorities- WASH services- Social protection- GoL plan for UNMIL transition
4
Revitalize and diversify growth, targeting agribusiness export sectors
Enable delivery of critical transport and energy infrastructure projects
Strategy 1: Recovering Output & Growth
Strategy 2: Strengthening Resilience and Reducing Vulnerability
Strategy 3: Strengthening Public Finances and Ensuring Service Delivery
5
Revitalize and diversify growth, and address vulnerable employment
Enable delivery of critical infrastructure projects
Strategy 1: Recovering Output & Growth
Target Agro-processing in key sectors
Increase private sector finance for agribusinesses and farmers
Value chain coordination: cocoa, rubber, oil palm, fish/aqua.
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
- Major Health Investment Plan- Education sector priorities- WASH services- Social protection- GoL plan for UNMIL transition
6
Revitalize and diversify growth, and address vulnerable employment
Enable delivery of critical infrastructure projects
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 Health workforce, including private investment in JFK Hospital & Redemption Hospital
Education: train and recruit teachers, improve quality of vocational education, strengthen county management structures, including private investment in affordable high quality education services
Increase WASH services for Ebola recovery and prevention including 100 boreholes into communities, health centres and schools, and a WASH regional centre
Increase coverage of social cash transfers to at least 50,000 households, sustain foster care grant and develop National Emergency Response Capability
Security: implement GoL Plan for UNMIL Transition
Support for public finances, improved finance execution and governance including de-concentration- Major Health Investment
Plan- Education sector priorities- WASH services- Social protection- GoL plan for UNMIL transition
7
Revitalize and diversify growth, and address vulnerable employment
Enable delivery of critical infrastructure projects
Strategy 1: Recovering Output & Growth
Strategy 2: Strengthening Resilience and Reducing Vulnerability
Strategy 3: Strengthening Public Finances and Ensuring Service Delivery
Government revenues suffered twin shock of Ebola crisis and global commodity prices
Improving expenditure compliance processes and Budget execution
Ongoing Civil service reform and Decentralization
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.
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 to Register a Business
