UK-LIBERIA INVESTMENT FORUM

SEPTEMBER 14, 2012

IFC Strategic Pillars for Liberia

Strengthen the Financial Sector

Scale up Infrastructure and Finance Select Private Sector Companies

Improve the Country’s Overall Investment Climate

Create Effective Capacity Building Initiatives

Accelerate SME Development

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Strengthen the Financial Sector

Continue work to establish a Microfinance Bank with Access Holdings and partners

Expand Global Trade Finance Program and accelerate TA for Banks to improve take-up and utilization

Provide IFC funding (Investment and TA) to establish a leasing company with a credible partners Review BEE for leasing Implement AS leasing program including micro-leasing

Proactively partner with a regional Bank seeking to enter the Liberian market

Wholesale lending to Banks for SMEs, especially along the Value Chain of Growth Sectors

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Scale up Infrastructure and Finance Select Private Sector Companies

Explore the creation of IFC post-conflict infrastructure fund to finance specific portions of the “public P” in PPPs e.g. electricity T&D (similar to the AfDB one)

Continue CAS-CIN work for PPP in Monrovia power sector

Develop early stage involvement (equity & debt) in reopening Guthrie plantation

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Improve the Country’s Overall Investment Climate

Focus Investment Climate Program with specific tasks: Reducing Barriers to formalization,

Creating a Public-Private Dialogue

Drafting an Commercial Code

Improving the Country’s Doing Business Ranking

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Create Effective Capacity Building Initiatives

Target Schools and Universities

Through the proposed IFC Schools Program

Grants to rehabilitate and Start/Restart Business Programs

Businesses through SME EDI, VA2F and AMSCO

Business Incubation

InfoDev, Business Edge, etc

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Accelerate SME Development

Accelerate implementation of US$10mm post-conflict equity fund for SMEs in Liberia

Extend GMS Outreach initiative to include Liberia – potential opportunities in RHPC

Undertake review and develop strategies to incubate MSME opportunities along value chain of growth sectors

Structure wholesale lending products to local banks for on-lending to MSME prospects

AS services to improve Corporate Governance in SMEs

Creation of at least one Business Incubator

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IFC INVESTMENTS

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Investment Activities

ACCESS BANK IFC has an 18% equity investment in Access Bank, the First Commercial

Microfinance Bank in Liberia, along with EIB and AfDB, and is providing $1.25 million advisory services to support the management and build up the institution.

ECOBANK (LIBERIA) IFC committed a US$3 million tier 2 facility to Ecobank Liberia. The facility will

improve the capital base of EcoBank Liberia and provide funds available for longer term lending.

WEST AFRICA VENTURES FUND IFC worked to set up the West Africa Venture Fund (“WAVF”), in Liberia and Sierra

Leone, to provide risk capital and advisory services to small and medium sized businesses.

GUARANTY TRUST BANK In August 2011, a trade finance facility of US$4 million ($2mn Risk Weighted) was

approved for GTB Liberia

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Investment Activities

LIBERIA BANK FOR DEVELOPMENT & INVESMENT (LBDI) IFC has a 44 year old equity investment in LBDI – the only majority Liberian-

where IFC is also a founding shareholder IFC also has a US$2mm trade finance line.

SALALA RUBBER CORPORATION IFC has initially made the first real sector investment of a $10 million loan

in rubber sector in mid 2008 to Salala Rubber Corporation to rehabilitate plantations, upgrade processing facilities and improve social and environmental infrastructure.

CEMENCO IFC commitment of US$110 million equity investment in Heidelberg Africa

(parent company of Cemenco) for its operations in African subsidiaries including Liberia is part of the proceeds that is going towards financing the installation of a new cement mill in the Liberia subsidiary.

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WAVF Investment in 2012

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WAVF Investments in Liberia (as of June 2012). Project Name Sector Investment Size Equity

1. JD Trading, Liberia Logistics/Trading $464,340.00 64% 2. Afbeko Inc, Liberia Agric Business (Coffee) $275,000.00 51% 3. Continental Machinery & Support Services, Liberia Construction $500,000.00 Lease 4. Wen Inc. Liberia ICT $447,599.00 68% 5. Fabrar Rice Agric Business (Rice processing) $405,527.00 54% 6. National Toiletries Inc, Liberia Manufacturing (Toilet Tissue) $328,430.00 66% 7. Mano River Livestock Inc, Liberia Agric Business (Livestock) $478,000.00 69% 8. Global Logistics Services Inc, Liberia Logistics $450,000.00 40% 9. Hope Bakery Manufacturing (Foods-Bakery) $289,041.00 58%

ADVISORY SERVICES

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C.A.S.A Program Achievements

LIBERIA BUSINESS REGISTRY IFC worked to establish a state of the art business registry by providing all

Liberian businesses an opportunity to formalize and register their business with the government. The Business Registry now allows individuals to register their business within 48 hours.

BUSINESS EDGE The deployment of IFC’s widely acclaimed range of management training

products & services specially designed for SME owners / managers. Four franchisees signed as BUSINESS EDGE Local Partners. Six trainers were certified as BUSINESS EDGE trainers, 45 SMEs /291 persons trained by certified trainers. BUSINESS EDGE has so far helped 10 SMEs devise and submit 10 Business Plans to fund managers for investment decisions.

COMMERCIAL CODE AND COMMERCIAL COURT IFC spearheaded the drafting NINE (9) Laws comprising the Code in order

to improve investment climate and enhance security of commercial transactions. Additionally, IFC assisted in the court design and operational structure of the Court which seeks to improve access to finance by ensuring speedy resolution of commercial disputes.

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C.A.S.A Program Achievements

FINANCE LEASING IFC’S continued efforts to assist the GoL to improve access to and the cost of

finance by local entities has seen the ongoing project to implement a comprehensive finance leasing regimen which will vastly expand the manner in which businesses finance their operations in Liberia.

SECURED TRANSACTIONS REGISTRY IFC is presently working closely with the Central Bank of Liberia (CBL) and other

government on establishing a secured transactions regime which will contribute substantially to the legal certainty and flexibility necessary for banks and other financial institutions to lend to businesses and individual consumers

CREDIT REFERENCE BUREAU Credit bureaus and credit references are crucial building blocks that allow for

greater access to finance for both individuals and small businesses. They are critical to the expansion of credit and improved risk management. IFC is currently working closely with the CBL and National Banker’s Associations to ensure such measures are implemented within a timely manner.

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Investment Climate Program Achievements

TAX ADMINISTRATION REFORM IFC’ is supporting the designing of an appropriate tax policy and tax

administration program, particularly as it relates to small and medium sized enterprises. The team has designed the work program to integrate, build upon and leverage, as appropriate, ongoing assistance being rendered by other development partners

BUSINESS REGULATION REFORM This component is a cross-cutting component aimed at reducing compliance

costs of business regulations, including through providing assistance to support improved institutional frameworks.

TRADE LOGISTICS Trade Logistics component aims to assist the GoL in reducing the time and

costs for traders to import and export. The reform program focuses on the simplification and harmonization of border clearance documents and processes, the introduction of risk-based border clearance procedures and introduction of automated systems for border clearance.

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Investment Climate Program Achievements

SUPPORT FOR THE LIBERIA BETTER BUSINESS FORUM To strengthen private sector participation in the reform agenda, IFC will

continue to support the Liberia Better Business Forum (LBBF), Liberia’s public private dialogue. A key to IFC’s support will be enhanced communications and capacity building of local actors to ensure local ownership of the Forum.

INDUSTRY SPECIFIC INVESTMENT CLIMATE REFORM IFC will support the strengthening of the National Investment Commission

and the Ministry of Agriculture’s investment facilitation functions to see through the successful completion (and start-up of) the various tree crop investment project leads currently in the pipeline. The tree crop investment generation dimension of the program will build upon and integrate the tree crop out-grower framework developed by the team

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SME Ventures Program Achievements

BUSINESS EDGE The deployment of IFC’s widely acclaimed range of management training

products & services specially designed for SME owners / managers is well on its way for full implementation:• Four franchisees signed as BUSINESS EDGE Local Partners• Six trainers were certified as BUSINESS EDGE trainers• 45 SMEs /291 persons trained by certified trainers

SCHOOLS PROGRAM IFC’s Liberia Schools Program is an integrated advisory and investment program

that will allow IFC to support educational institutions that develop employable skills in Sub-Saharan Africa through:• A technical support program to train partner financial institution in the

marketing, credit assessment, and monitoring of education sector loans; • A capacity building program to permit schools to undertake self-diagnostics,

business planning, and curricula development;• An investment framework through which IFC provides risk participation to

commercial banks to support their lending to the education sector.

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