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THE NATIONAL INVESTMENT COMMISSION

THE NATIONAL INVESTMENT COMMISSION. Liberia ’ s Investment in Agriculture October 3, 2012. Table of Contents. Introduction Potential Investment Government Intervention Listed Agriculture Concession Challenges & Impact Questions and Answer. Introduction.

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THE NATIONAL INVESTMENT COMMISSION

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  1. THE NATIONAL INVESTMENT COMMISSION Liberia’s Investment in Agriculture October 3, 2012

  2. Table of Contents • Introduction • Potential Investment • Government Intervention • Listed Agriculture Concession • Challenges & Impact • Questions and Answer

  3. Introduction • The Government of Liberia (GOL) through the National Investment Commission(NIC) and the Ministry of Agriculture, has implemented initiatives that focused on increasing agricultural investments in Liberia. • As a traditional concession country, with concentration on rubber and oil palm plantations, the Government made a decision to revitalize these industries as one of the priority sectors to attract investment. • In this regard, the Government utilized a 2 prong approach: • Re-negotiation of the old, and outdated concession agreements and modernizing them with a view to improved terms which were beneficial to the country and its citizens • Privatizing of old unproductive plantations with a view of injecting new capital immediately

  4. Potential Market Opportunities Liberia’s major major concession crops: • Rubber Palm Oil Cocoa Coffee These crops have increasing demand pool with rising prices on the international markets • Ideal agro-climatic conditions for many tree crops, including rubber (as it has been proven by its position in the world market), palm oil (probably the best location in West Africa) and cocoa (shares the same condition as the large exporter, Cote d'Ivoire) • The Government’s focus has succeeded as a result of a combination of improved investment incentives, a better and more stable economic climate and industry support.

  5. Agricultural Concessions in Liberia since 2005

  6. Government Intervention • Both the Legislative and the Executive Branches have worked together to ensure that the changes in Agriculture have benefitted the Citizens • The Government’s focused on technical assistance through programs such as: • Access to Financing for small farmers • Structuring a middle skill SME farms • Meeting Large Plantation procurement needs by creating linkages with the local suppliers and the Concessionaire • Farm Builders Programs – more out grower support • Re-emphasis on Organizing Cooperatives • Opportunity to access the US / EU market though the VPA and other programs • Training programs and skill development and marketing efforts for the market women and farmers

  7. Challenges • Identification and Acquisition of Lands • Electricity: High electricity cost limits the competitiveness of processing (though palm oil farm typically can generate electricity with biofuel source from farm). • Skill: Manual labor is cheap but skilled staff for processing is not readily available and expensive. • Market structure: For Cocoa, market structure and market access also pose additional challenges for Liberian producers compared to neighboring large exporters due to inefficiency of LPMC and lack of ICCO membership • Lack of road access to energy generation sites will increase costs to plant construction

  8. Successes and Impact • Within the next 5 years the production of Oil Palm in Liberia will make it a major exporter of oil palm products in the West Africa Region • Within the next 5 years, the production of natural rubber and latex in Liberia will make it the market leader in natural latex • The Agreements made the implementation of factories for the production of value added products and limit the export of raw materials • The Forestry industry has been limited to the amounts of round logs that may be exported from Liberia. • As a result of changes in the various concession agreements which were negotiated, the lives of the workers on the plantations have improved in the following ways: • The Agreements mandate better housing facilities including indoor plumbing and toilet facilities • Improved water supply • Free elementary schools on the plantations with childcare and emergency clinics • The Agreements mandate that not less than 20-25% of the production be sold to local manufacturers.

  9. THANK YOU www.nic.gov.lr

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