VZCZCXRO5777
RR RUEHMA RUEHPA
DE RUEHMV #0373/01 1491105
ZNR UUUUU ZZH
R 291105Z MAY 09
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 1041
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 02 MONROVIA 000373 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV BEXP ETRD EAID ECON KMCA LI
SUBJECT:  LIBERIA: REFORMS BOOST INVESTMENT CLIMATE 
 
Ref:  08 MONROVIA 336 
 
¶1.  Liberia continues to work at improving the business climate and 
moving up the IFC's "Doing Business" index.  Eighteen new reforms, 
following up on 21 last year, simplify requirements for Starting a 
Business, Trading Across Borders, Registering Property, and 
Construction Permits.  (See para. 5.)  In 2008, Liberia ranked 157 
of 181 countries, up from 170 of 178 countries in its 2007 debut on 
the index.  The process is guided by the Cabinet level Business 
Reform Committee, in conjunction with the IFC-sponsored 
public/private Liberia Better Business Forum (LBBF). 
 
¶2.  The 18 reforms continue the effort to reduce the number of 
signatures and permits required to do business in Liberia.  The key 
is implementation:  does the LBBF structure work, and do bureaucrats 
respect the new procedures?  Businesses give us mixed reports.  LBBF 
functions through working groups, and their effectiveness depends on 
the commitment of members.  Our observation is that when an issue is 
important, public and private sector representatives have been able 
to cooperate on bringing about real change.  Bureaucrats can still 
present obstructions, but every reform reduces their scope and the 
sense of impunity in Liberia is gradually waning. 
 
¶3.  This is the first time reforms have been made in the thorny area 
of land ownership.  Land disputes are possibly the biggest threat to 
Liberia's stability and economic growth, and simplifying the 
administrative process will allow policy makers to focus on the more 
complex issues. For the first time, these reforms include the 
Environmental Protection Agency, and reach beyond the central 
government, to include actions by the Monrovia City Corporation. 
 
¶4.  The GOL's 2009-10 draft budget, submitted to the legislature May 
19, includes $2 million to support Liberian businesses.  In her 
budget submission, President Sirleaf also called for rapid action on 
other legislation that will improve the business climate, specifying 
revisions to the Revenue Code, that will lower business and personal 
tax rates, passage of the Public Financial Management Act.  The 
revised Investment Code still has not been resubmitted to the 
legislature. 
 
¶5.  Following is a list of the 18 reforms: 
 
Starting A Business 
------------------- 
 
-- Harmonization of unique corporate taxpayer IDs between agencies 
(Finance, Commerce and NASSCORP, the social security agency) allows 
streamlined business registration (e.g., all agencies will used the 
same ID number). 
 
-- Streamlining documentation required by NASSCORP:   eliminates the 
requirement to produce copies of articles of incorporation and/or 
partnership, and will rely on proof of registration from the 
Ministry of Commerce. 
 
-- Clarification and documentation of Environmental Protection 
Agency (EPA) procedures for an Environmental Impact Assessment or 
EPA permit. 
 
-- Elimination of annual re-registration requirement at the Ministry 
of Commerce.  Commerce will accept proof of payment at the Ministry 
of Finance as proof of annual registration.  (Note:  this follows up 
on last year's reform that businesses could register any time, not 
just in January.  Extending the registration period beyond one year 
is the next goal, but requires legislative action. End note.) 
 
Trading Across Borders 
---------------------- 
 
-- Establishment of a centralized facility at the port to provide a 
single location for cargo clearance. 
 
-- Introduction of a preliminary risk-based inspection regime to 
eliminate 100% inspection of imports. 
 
-- Delegation of signature authority by the Deputy Minister of 
Revenue for duty free clearances. 
 
-- Reduction in number of signatures on import permits (IPD) from 
three to two (the Director of Foreign Trade and the Assistant 
Minister of Commerce), and elimination of the fee. 
 
--  Elimination of the requirement to obtain a permit for 
destination inspection of imports.  (Ministry of Commerce) 
 
-- Elimination of the 150% collateral check requirement for vehicle 
imports; the Ministry of Finance now uses the web-based Kelly's Blue 
Book to determine vehicle values. 
 
--  Elimination of the Ministry of Agriculture import/export 
permit. 
 
 
MONROVIA 00000373  002 OF 002 
 
 
-- Elimination of the Forestry Development Agency export license. 
 
Registering Property 
-------------------- 
 
- Ministry of Lands, Mines & Energy has agreed to remove the 
requirement that surveyors be issued permits for each survey.  Will 
now accept an annual license from the Board of Surveyors. (Comment: 
This does not, however, address the problem of fraud by land 
surveyors.  End comment.) 
 
-- Clarification by the Ministry of Lands, Mines & Energy of the 
notice period that must be provided by surveyors (five days 
exclusive of Sundays). 
 
-- Archives agrees to notify the Bureau of Internal Revenue of title 
transfer upon registration (seller/buyer no longer required to do 
so). 
 
-- Probate court has agreed to approve deeds within five business 
days. 
 
Construction Permits 
-------------------- 
 
-- Significant reduction in fees by the Monrovia City Corporation, 
from 3% of value to $.04 per sq. ft., and elimination of the 
requirement to submit signed drawings.  MCC will rely on the 
approved permit from the Ministry of Public Works. 
 
-- Elimination of the need to obtain a tax waiver from the Ministry 
of Finance prior to obtaining a permit. 
 
 
THOMAS-GREENFIELD