Conditions for Doing Business in Liberia
Liberia: flow of FDI in 2018 - 122,2 mln US Dollars (at current prices, UNCTAD)
FDI - Foreign Direct Invetsment
Africa Capacity Index (ACI) 2019
Since 2011, the African Capacity Building Foundation (ACBF – specialized agency of the AU, located in Harara, Zimbabwe https://www.acbf-pact.org/) publishes an annual Africa Capacity Report (ACR).
The ACR measures and examines the capacity of African countries to pursue their development agenda, focusing on key determinants and components of capacity for development. ACBF defines capacity as the “ability of people, organizations, and society as a whole to manage their affairs successfully” and capacity development as the process by which “people, organizations, and society as a whole unleash, strengthen, create, adapt, and maintain capacity over time.
Capacity of African countries, examined in ACR, is reflected by Africa Capacity Index (ACI). The ACI - is a composite index computed from a quantitative and qualitative assessment of four sub-indices or indicator “clusters” on a specially designed questionnaire. “The policy environment cluster” considers the conditions that must be in place to make transformational change and development possible. “The processes for implementation cluster” assesses the extent to which countries are prepared to deliver results and outcomes. “The development results at country level cluster” refers to tangible outputs that encourage development. And “the capacity development outcomes cluster” measures change in the human condition.
Liberia ACI 2019 Rank 13 Score 57.8
Cluster 1 Policy environment for capacity development 78.3
Cluster 2 Processes for implementation 68.1
Cluster 3 Development results at country level 66.7
Cluster 4 Capacity development outcomes 37.4
Incentives and Guarantees for foreign investors
In Liberia there is main low which regulates foreign investments juridically – Investment Incentives Act of 2010. Besides these low, economic activity for foreign investors is determined in regulatory enactments on corresponding areas.
With the aim to attract more foreign investments in September 1979 Liberia’s government created National Investment Commission www.nic.gov.lr/index.php
To facilitate the encouragement, promotion, and co-ordination of all investment activities in Liberia, the National Investment Commission has adopted the “One Stop Shopping Center” concept to process and conclude investment documents; by removing the bureaucratic bottleneck of an investor moving between agencies of Government, the NIC saves investors considerable time and resources.
The Government of Liberia has implemented a series of reforms to reconstruct the country, improve financial management, strengthen the judiciary, combat corruption, and provide technical assistance to Liberians to help them manage their economy.
The Liberian authorities have taken steps to improve fiscal discipline. Efforts to work within integration schemes, international agreements and market access initiatives provide non-commercial risk coverage for foreign investors in the country. Liberia signed to the Convention on the Settlement of Investment Disputes between State and Nationals of other States on 19 September 1968. Liberia also belongs to the Economic Community of West African States, the African Union, New Partnership for Africa's Development and the Multilateral Investment Guarantee Agency. The country enjoys large preferential access to world markets under special access and duty reduction programmes. Among these are the generalized system of preferences for the least developed countries, the Everything But Arms initiative by the European Union, the Cotonou Agreement for renegotiating the partnership links between the African, Caribbean and Pacific countries with the EU and the United States' market access initiative for African countries - the African Growth and Opportunity Act [UNCTAD. World investment directory. Volume X. Africa. United Nations. N.Y. and Geneva. – 2008, p. 355].
Prospects for economic cooperation with Liberia:
- agroindustry;
- processing of foodstuff;
- mining;
- fishing;
- manufacturing;
- construction;
- energy;
- transportation;
- education;
- tourism.
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