1. What is NIC?
The Liberia National Investment Commission (LNIC) is the Government of Liberia’s agency that attracts foreign direct investments (FDI) and supports the growth of the domestic private sector while advocating for the improvement of the business environment. The Commission formulates and implements several measures geared towards the actualization of this mandate.
2. What is NIC’s Vision?
The Liberia National Investment Commission aspires to be the premier institution providing quality investment and promotional services to local and foreign investors in order to build a vibrant economy.
3. How is NIC structured?
LNIC is headed by the Chairman, who has a cabinet ministerial rank, and five other presidential appointees/ Commissioners through the Inter-Ministerial Concession Committee. Those Ministers/Commissioners include Minister of Finance and Development Planning, Minister of Justice, Minister of Commerce & Industry, Minister of State for Economic Affairs, and the investment sector-specific Ministries Agencies & Commissions.
The LNIC has a Secretariat, the working body of the Commission, headed by the Executive Director who reports directly to the Chairman of LNIC.
4. What is the IMCC?
The IMCC is the Inter-Ministerial Concession Committee which is chaired by LNIC. It comprises of the Ministry of Finance & Development Planning, Ministry of Justice, Ministry of State, and the Sector-specific Ministry/Agency/Commission (Ministry of Agriculture for agriculture-related projects, Ministry of Lands & Mines for mining and energy-related projects, etc). This Committee negotiates Investment contracts valued above US$10m which requires legislative ratification and presidential approval.
5. What are the types of incentives provided by NIC?
Provided that the items/supplies are purchased for use with the investment activity and placed in service within one year of purchase, duty exemption is given on the following;
- Medical and educational equipment and supplies purchased in connection with the investment activity;
- duty exemption on the importation of machinery and equipment
- duty exemption on the importation of capital spare parts
- Tax holiday
- Preferential tariff for electricity-when available
Automobiles, small trucks, and importation of fuel and lubricant are prohibited from exemption under this provision
6. Who qualifies for investment incentives?
According to the Economic Empowerment Tax Amendment Act of 2016 Amendments to Section 16 and related amendments to Section 204 (d), to qualify for investment incentives;
- Investment capital must be at least US$500,000.00.
- If the investment is for establishing a hospital or health clinic, the minimum capital should be no less than $50,000.00
Investment should fall within specific sectors:
- Tourism- carried out through tourist resorts, hotels, and cultural sites
- Manufacturing – at least 60% of local raw material content
- Hospitals and medical clinics Low and medium income Housing
- Transport infrastructure
- Information Technology
- Banking in the non-banking areas in the southeastern regions and in zone 1
- Exportation of sea products
- Agricultural – food crop cultivation and processing including cocoa and coffee
- Small and medium scale rubber and oil palm cultivation and processing.
7. What are the priority sectors of the Government of Liberia?
- Agriculture and Agro-processing (Rubber, Oil palm, rice, cassava, marine fisheries, aquaculture, horticulture, cocoa)
- Infrastructure (ICT, Port management, Real Estate/ Housing, logistics, oil, and gas)
- Waste management
8. What are the businesses reserved exclusively for Liberians?
Provisions in the Investment Act of 2012 reserves ownership of the following business activities exclusively for Liberians.
(a) Supply of sand
(b) Block making
(d) Travel Agencies
(e) Retail sale of rice and cement
(f)Ice making and sale of ice
(g) Tire repair shops
(h) Auto repair shops with investments of less than US 50,000
(i) shoe repair shops
(j) Retail sale of timber and planks
(k) Operation of gas stations
(l) Video clubs
(m) Operation of taxis
(n) Importation or sale of second-hand or used clothing
(o) Distribution in Liberia of locally manufacture products
(p) Importation and sale of used cars (except authorized dealerships which may deal in certified used vehicles of their make
Foreign investors may invest in the following with these conditions, a. exclusively owned by non-Liberian, the capital requirement shall not be less than US$500,000 and where Liberian own at least 25%, the capital requirement shall not be less than US$300,000:
- Production and supply of stone and granite
- Ice cream manufacturing
- Commercial printing
- Advertising agencies, graphics and commercial artists
- Production of poultry and poultry products
- Operation of water purification or bottling plant (excludes the production and sale of water in sachets
- Entertainment centers not connected with a hotel establishment
- Sale of animal and poultry feed
- Operation of heavy-duty trucks
- Sale of pharmaceuticals
9. What are the steps for granting Investment Incentives?
10. How is NIC helping the Domestic Private Sector?
The LNIC is working towards the growth of a sustainable domestic private sector in Liberia. Amongst the steps taken are:
Business Linkage-a program to increase the procurement of local goods and services
- by the many concessionaires operating within our borders
- Seeking budgetary support for a two million United States dollars Economic Stimulus Package intended to support the growth of small l& medium enterprises
- The LNIC is working with the Liberia Bankers Association on access to finance and the availability of financial products to Liberian businesses throughout the country.
- The LNIC is working with other partners to ensure the availability of business support services throughout the length and breadth of Liberia.
- The LNIC is also working with business associations such as Liberian Business Association, Liberia Chamber of Commerce, etc. in addressing issues affecting them and has successfully assisted individual Liberian businesses to access incentives, finance, and land among other things.
For more information, you can contact the NIC as follows:
Visit our Office in Monrovia, Call us @: +231-777-405-511 / +231-777088828 Email: firstname.lastname@example.org