MONROVIA – The Senate Committees on Judiciary and Concession held a hearing with officials from the Ministry of Commerce and the National Investment Commission on the matter of granting incentives to Fouani Brothers Inc. This agreement pertains to the development of a palm oil refinery, involving a $30 million long-term incentive agreement spanning 15 years, in compliance with Liberia’s revenue laws.
By Henry Karmo [email protected]
According to Molewuleh Gray, the Chairman of the National Investment Commission, this investment, once ratified by the Legislature, is expected to create 25 direct jobs and 50 indirect jobs. Additionally, the agreement allows the investors to construct, use, improve, and maintain existing roads and transportation facilities in the project areas.
Initially, when the proposal was made, the investors requested to construct the facility at the Monrovia Industrial Park. As part of their social contribution, the agreement includes provisions for a health, safety, and environmental plan, which encompasses a modern public health center in the area where they operate.
In terms of education, the investor is obligated to provide training to Liberians to help them qualify for jobs related to the project. Moreover, the investor is required to pay the Ministry of Agriculture an annual direct support of US$75,000, which will be allocated towards training and the implementation of the Agro scheme.
Response to the Presentation: Senator Snowe of Bomi County, who is himself a palm farmer, strongly criticized this concession agreement and called for its withdrawal by the executive branch of the government. He asserted that this deal is detrimental to the economy, local farmers, and other companies that have invested significant amounts of money in the palm oil sector, such as Golden Veroleum and Mano Palm.
Senator Snowe argued that if the Fouani Brothers are genuinely committed to their stated goals, they should acquire farmland and start palm farming. He labeled this agreement as an “armed bush marketing” strategy, expressing doubts about their ability to produce the stated 13,000 metric tons of Crude Palm Oil (CPO) per month.
He also expressed skepticism regarding the company’s commitment, as they have benefited from similar agreements for many years without fulfilling their obligations. Senator Snowe pointed out that they should have been producing vegetable oil for local consumption and export instead of importing it and only packaging it in Liberia.
Senator Snowe also argued that accepting this agreement would result in job losses for citizens of Capemount, Bomi, and Sinoe counties. He emphasized that if the investors wish to process oil, they should start by establishing their own farms.
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