Liberia: CDG Hosts Dialogue on Special Economic Zone Act

The Center for Democratic Governance (CDG), with funding from USAID, is expected to commence a one-day national policy dialogue on the Special Economic Zone (SEZ) Act today in Monrovia.

The dialogue, which is being held in partnership with the Liberia Economic Policy Dialogue Activity (LEPDA), will explore issues around the prospects, opportunities, and challenges related to the implementation of the Special Economic Zone (SEZ) Act. It will also bring together policymakers and representatives from the private sector, among others. 

According to Spark, an entrepreneurship and business growth NGO that contributed to the authorship and passage of Liberia’s SEZ Act, the overall objective is to create a world class business environment that is predictable, productive, and profitable. 

“SEZ policies allow countries to designate industries and/or physical areas in which business and trade laws differ from the rest of the country in order to stimulate increased trade, increased investment, job creation and effective administration,” the NGO says.  

A statement issued on Monday, December 12, by its Executive Director, Oscar Bloh, explained that the dialogue is built on consultations held recently in Monrovia, Grand Bassa, and Nimba Counties with relevant government agencies, the private sector, and local leaders.

CDG disclosed that SEZs are becoming an emerging development model to accelerate inclusive economic growth. As a targeted way to attract and generate investment, the government enacted the SEZ Act in 2017.

According to the statement, the government would create a draft implementing regulation in 2019 to put the Act into effect. 

“These two laws combined create the legal framework for the operations of SEZs in Liberia,” the release said.

However, pursuant to this legal framework, the release said, the government is expected to establish the Liberia Special Economic Zone Authority (LSEZA) as the administrative institution to regulate the sector, including the issue of licenses to SEZ developers and operators.

The statement said that the law further provides that the government can designate industries and/or physical areas in which business and trade laws differ from the rest of the country in order to stimulate increased trade, investment, job creation, and economic growth. 

“A major challenge has been the delay in the establishment of the LZEZA, which sets the institutional framework to provide oversight of the sector.” The statement said, “This has made the institutional framework dormant.”