The Liberian Business Reform Experience Corporate Registry Forum Cape Town, South Africa March 30 – April 3, 2009 Presented by Ms. Aletha Browne, Assistant Minister of Commerce & Industry

Introduction The Civil War Reform Agenda of the Government Collaborative efforts with development partners IFC Investment Climate Team for Africa Investment Climate Facility (ICF) for Africa

The Civil War

Reform Agenda of the Government

Collaborative efforts with development partners

IFC Investment Climate Team for Africa

Investment Climate Facility (ICF) for Africa

GoL Agencies Involved in Business Start-up Ministry of Commerce & Industry Ministry of Finance Ministry of Foreign Affairs Central Bank Environmental Protection Agency National Social Security & Welfare Corporation

Ministry of Commerce & Industry

Ministry of Finance

Ministry of Foreign Affairs

Central Bank

Environmental Protection Agency

National Social Security & Welfare Corporation

Motivations/Drivers for Reform Stimulation of the private sector Job creation Formalization of the large informal sector of the economy Streamline bureaucracy in registration process (introduce GoL efficiencies) Adopt international standards World Bank Group’s Doing Business Survey

Stimulation of the private sector

Job creation

Formalization of the large informal sector of the economy

Streamline bureaucracy in registration process (introduce GoL efficiencies)

Adopt international standards

World Bank Group’s Doing Business Survey

The Starting Point World Bank 2008 Doing Business Report Liberia ranked at 144 for Business Start-up Registration reported to take 99 days Involve 12 steps And cost 493 % of income per capita ($US 130)

World Bank 2008 Doing Business Report

Liberia ranked at 144 for Business Start-up

Registration reported to take 99 days

Involve 12 steps

And cost 493 % of income per capita ($US 130)

The Reform Agenda Presidential request for formation of Cabinet level Business Reform Committee (BRC) to drive reforms Each indicator had technical working group that reported into BRC Team began with quick hit administrative reforms

Presidential request for formation of Cabinet level Business Reform Committee (BRC) to drive reforms

Each indicator had technical working group that reported into BRC

Team began with quick hit administrative reforms

Implemented Reforms Introduced standard incorporation forms that significantly reduced costs Simplified and streamlined processes Co-located functions of GoL Ministries (Min of Foreign Affairs and Finance) to eliminate steps Reduced approval times and required signatures Eliminated physical inspections of new businesses

Introduced standard incorporation forms that significantly reduced costs

Simplified and streamlined processes

Co-located functions of GoL Ministries (Min of Foreign Affairs and Finance) to eliminate steps

Reduced approval times and required signatures

Eliminated physical inspections of new businesses

Results of Reform World Bank 2009 Doing Business Report Liberia ranked at 88 for Business Start-up Registration reduced from 99 to 27 days Number of steps reduced from 12 to 8 And costs reduced to 1/5 of previous costs (now 100 % of income per capita – $USD 130 )

World Bank 2009 Doing Business Report

Liberia ranked at 88 for Business Start-up

Registration reduced from 99 to 27 days

Number of steps reduced from 12 to 8

And costs reduced to 1/5 of previous costs (now 100 % of income per capita – $USD 130 )

Planned Next Steps Design of modern Business Registry now underway Will automate process and create one stop shop bringing together all relevant Ministries Will also allow GoL to decentralize registry function and allow for registration at county level Registry will serve as the ultimate source for information on registered businesses Will be facilitated by revision of legal framework (Associations and General Business Laws) Continued engagement with Private Sector through the Liberia Better Business Forum, a public private dialogue

Design of modern Business Registry now underway

Will automate process and create one stop shop bringing together all relevant Ministries

Will also allow GoL to decentralize registry function and allow for registration at county level

Registry will serve as the ultimate source for information on registered businesses

Will be facilitated by revision of legal framework (Associations and General Business Laws)

Continued engagement with Private Sector through the Liberia Better Business Forum, a public private dialogue

Challenges Involvement of multiple ministries in registration process Manual processes at all ministries with minimal inter-ministerial integration Lack of capacity of administrative staff

Involvement of multiple ministries in registration process

Manual processes at all ministries with minimal inter-ministerial integration

Lack of capacity of administrative staff

Lessons Learned Importance of including all stakeholders, including the private sector, in the reform process – helps to ensure buy-in and ownership of reforms Elimination of administrative barriers has resulted in an increase in the number of registered businesses Widespread communication of the reforms is a key element of implementation Significant reforms can be made even in the absence of automation

Importance of including all stakeholders, including the private sector, in the reform process – helps to ensure buy-in and ownership of reforms

Elimination of administrative barriers has resulted in an increase in the number of registered businesses

Widespread communication of the reforms is a key element of implementation

Significant reforms can be made even in the absence of automation

Thank You

Thank You