Monrovia – In accordance with Rule 39.1 of the Rules and Procedures of the House of Representatives, Representative Fonati Koffa (CDC-Grand Kru County) has written his colleagues notifying them of “Discharge Petition” on the Liberia Empowerment and Economic Act of 2018.
The Act was introduced by Rep. Koffa and read in plenary on January 30, 2018.
According to him, the 30-day period in their Rules for an act to stay within a committee room has now elapsed since the Economic Empowerment Act was referred to the relevant committees.
The Act seeks to empower local Liberian entrepreneurs.
The bill, dubbed Liberian Business and Economic Empowerment Act of 2018, is also intended to provide criminal penalties for violators of the 1973 Investment Act.
It also seeks to create fund to ensure that Liberian businesses in the subject category succeed.
The bill, according to its framer, was necessitated by the finding of the Legislature that the “Liberianization” has minimally achieved its objectives due to circumvention and limited access to capital by Liberian.
“Accordingly, the need for the creation of a more restrictive environment and a stronger enforcement mechanism so that Liberianization as envisaged by the government and people of Liberia becomes full-fledged reality and not just a goal was realized,” Rep. Koffa further added.
What’s in the draft law?
The act, if passed, will ensure that businesses reserved for the exclusive ownership of natural persons, who are citizens of Liberia are protected.
In the act, businesses including supply of sand, bricks making, real estate agencies and real estate management services, travel agencies or travel agency contract for airlines and distribution and retail sale of flour, cement and rice.
The act is also aimed at protecting businesses including retail of stationery and office supplies, ice making and its sale, tire repairs shop, independent auto repair shop (not associated with a dealership), shoes repair shop, retail of timber and planks, operation of gas stations, video clubs and as well as importation and sale of used cars (except for certified used cars imported by authorized dealership of the same make).
In the draft law presented by the Grand Kru District 2 lawmaker, if passed into law foreign investors may invest or engage in businesses with investment capital being more than US$1 million and at least 25 percent of the common stock share of the company is owned by natural Liberian persons or businesses wholly owned by natural persons.
Businesses under this category include; production and supply of stone and granite, ice cream manufacturing, advertising agencies, graphics and commercial artists, production of poultry and poultry products and entertainment centers not connected with hotel establishment sale of animal and poultry feed.
The draft law crafted by the Grand Kru lawmaker is also intended to ensure that all foreign companies doing business in Liberia and enjoying duty-free services or other tax incentives will be required to source all supplies and services that are available on the local market.
Provided, however, that the requirement of this act may be waived if the cost of the goods or service is more than 20 percent when compared to ECOWAS region countries.