Presentation given by Liberian Minister of Commerce, the Honourable Axel M. Addy, during the Dutch trade mission to Liberia on July 6, 2015. Shared with permission from the Minister.

1. C. Cecil Dennis Auditorium
Ministry of Foreign Affairs
Monrovia, Liberia
July 6, 2015
9/8/2015 1

2.  Liberia’s Trade Profile
 Economic Stabilization and Recovery Plan
 Liberia-Netherlands Trade
 Trade Liberia
 Invest Liberia
9/8/2015 2

3. HOW ARE WE DOING
9/8/2015 3

4. 9/8/2015 4

5. 9/8/2015 5

6. 9/8/2015 6

7. 9/8/2015 7

8. Rubber
•Firestone
•LAC
•SRC
•Others
Oil Palm
•Sime
Darby
•GVL
•Others
Cassava
•None
Fisheries
•None
Cocoa
•None
Rubber
Wood
•Firestone
9/8/2015 8

9. 9/8/2015 9

10. Towards Recovery and Transformation for
Inclusive Growth
9/8/2015 10

11. 8.3% GDP Growth required
to achieve Vision 2030
11
Liberia Real GDP Growth
Rate (2006-2015)

12.  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
 Avoid shortage of essential commodities
 Over $58 million disbursed to public investment and recovery in 14/15
 Reopening borders and lobby 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)

13. Total financing
Gap
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
13
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
$298 M $289 M$225 M
$812 M

14. 14
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
 Finance cost overruns from EVD on priority infrastructure
(e.g. Mt Coffee)
 Road Maintenance Fund, Low-income housing

15. - Major Health Investment
Plan
- Education sector priorities
- WASH services
- Social protection
- GoL plan for UNMIL
transition
15
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 affordable high quality health services
 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

16. 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
16
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 are suffering twin shock of EVD crisis and
global commodity prices
 Improving expenditure compliance processes and Budget
execution
 Civil service reform and Decentralization

17. 9/8/2015 17

18. $0
$10
$20
$30
$40
$50
2012 2013 2014
Liberia Total Imports from and Exports to Netherlands, $ million
Imports
Exports
Sources: Asycuda and
www.trademap.org
Source: Asycuda
$0
$5
$10
$15
$20
Cocoa Techically
Specified Rubber
Cranes
Liberia Top Exports to Netherlands,
$ million 2014
Source: Trademap.org

19. 9/8/2015 19

20.  Acceding to WTO in December 2015
 Joining regional customs union, ECOWAS Common External Tariff (CET).
 Liberia’s trade-weighted average tariff is the lowest in West Africa at 6.3% (IGC, 2014)
 Liberia has trade agreements providing duty-free quota-free access to the EU, USA and China, as an
LDC, and is working with other ECOWAS states on the EPA with the EU.
 Trade Facilitation Forum works with private sector to reduce non-tariff barriers to trade
 Liberia’s Industrial Policy: Focus on diversifying the economy by moving away from mining
towards commercializing agriculture, developing agro-processing & kick-starting manufacturing of
cocoa, oil palm, rubber & fish & other products
 National Export Strategy: supports export diversity by focusing on development of agriculture value
chains & their downstream products (cocoa, rubber processing, oil palm, aquaculture, fisheries)
 Liberia also has opportunities in natural resources: forestry (incl. rubber wood, oil palm & timber
products such as furniture & bio-energy) & minerals (inc. iron ore, gold, diamonds)

21. 9/8/2015 21

22.  Liberia’s Profit Tax Rate is 25% or 2% on turnover.
 No capital controls, so any capital brought in to Liberia can easily be expatriated.
 30% incentive deduction allowed on up to 100% of the qualifying cost of equipment & machinery
for investors over $1m.
 Such investors 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 $10 million automatically incentivized.
 Investments in economically deprived zones or those generating more than 100 direct jobs qualify for
additional incentives of up to 12.5% & a further 10% respectively.
 Incentives available for:
 Tourism, Manufacturing, Energy, Hospitals & clinics; Housing, Transportation; IT, Banking,
Agriculture, Fisheries, Agro-Processing

23.  Long standing history in rubber production
 Potential to produce dry rubber products such as door mats, boots, bushels and gloves
 63,000t produced in 2013, potential expansion to 325,000t
 Over 200,000 ha of arable land available: 55% of rubber from small farmers; 45% from concessions
 Large unexploited ECOWAS market for ribbed smoked sheets, crepe & rubber products

24.  Cocoa sector in Cote D’Ivoire, Ghana & Nigeria is saturated: Liberia is the next frontier
 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 1,000kg/ha
 Global demand increasing by 6% per year & is worth $4bn.
 Market for cocoa butter & powder in Liberia is growing by 4% & 2% on average per year.

25.  AQUACULTURE
• Abundance of renewable water sources providing year-long water availability inc. Lake Piso & Mt.
Coffee reservoir
• Optimal natural water temperature for aquaculture (27 degrees)
• 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 impending completion of Mount Coffee, soon cheaper to process fish in Liberia than in
Nigeria, Senegal or Cote D’Ivoire.
• Liberia’s coastline & continental shelf offers 20,000 sq. km of fishing ground
• Only 7,300 mt of marine fish currently produced locally, while consumption lies at 23,800 mt per year
• Gov’t investing in fish landing, storage & processing infrastructure in Robertsport & Monrovia
• Gov’t streamlining tax regime & regulations in sector

26.  Liberia natural home of oil palm.
 Produced 176,000 mt 2013 – little of which was processed at a high standard
 Large un-tapped ECOWAS market in cooking oil, cosmetics, animal feed, fertilizer, biofuels.
 4 large investors including world leaders Sime Darby & Golden Veroleum
 Scope for investors in outgrower schemes linked to large concessions
 Most independent smallholder farm in northern and western, parts of country
Liberia’s Plan for Oil Palm Value Chain

27.  Liberia ideal for investment in horticulture inputs, production, aggregation, packaging & processing.
 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 market & sea access to EU & US markets.
 In 2013 Liberia produced 291,000 mt worth of fruit & vegetables. It imported 14,300 mt
 Liberia horticulture market alone is worth $103 million per year
 Highest potential: tomatoes, pineapples, mangoes, plantain, banana, sweet potatoes and chilli pepper
(high Scoville Index)
 Liberia has direct flight access to Brussels, Casablanca, Abidjan and Nairobi

28.  AGRICULTURE FINANCING
◦ Agriculture and Value Chain Financing
 ENERGY
◦ Current concessions demand over 700MW in energy
◦ Hydropower to access huge potential of Liberia’s waterways
◦ Mount Coffee hydro power generation- transmission and distribution of power lines
◦ Investment in Oil Refinery based on the LPRC’s master plan
◦ Investment in renewable energy (solar, biofuels from oil palm and rubber wood)
 TRANSPORT
◦ Agricultural transport services linking prime growing areas to Monrovia and ports.
◦ New paved road to Nimba almost complete, travel time down to 4 hours.
◦ Coastal & Inland Water Transport – 6 major waterways, also in Monrovia
◦ Seaport Infrastructure Development: ports of Buchanan, Greenville & Harper
 TOURISM
◦ Surf and Fishing Tourism in Robertsport and Lake Piso in Grand Cape Mount County
◦ Eco-tourism based on natural rainforest (Sapo National Park), inland waterways & waterfalls
◦ Rehabilitation of Hotel Africa and Old Ducor Palace

29. 9/8/2015 29

30. 9/8/2015 30
http://npaliberia.com/operations/buchanan/

31. 9/8/2015 31

32. Montserrado Bay –
Dredging/Cleaning – 6 major
water ways
Water Taxi –
Montserrado Bay
9/8/2015 32

33. Dump Trucks Flatbed Trucks
9/8/2015 33

34. THANK YOU
www.investliberia.gov.lr
www.moci.gov.lr
www.mfdp.gov.lr
34