Liberia: House Grants Gboni Enterprises Tax Waiver, But

The House of Representatives has given Gboni Enterprises Incorporated, a petroleum company, a tax waiver following  the ratification of an investment incentive agreement between the company and the government.

The lawmakers, however, refused to act similarly in favor of the Liberian American Poultry (LAP) as its tax waiver’s deal remained in the ‘Committee Room’ to be hopefully acted upon in October during the Legislature’s 3rd and final quarter of the 6th Session of the 54th Legislature.

Members of the House of Representatives on Wednesday night made the decision following a report from the House’s Joint Committee on Investment & Concessions, Judiciary and Ways, Means, Finance & Development Planning on the “Investment Incentive Agreement between the Republic of Liberia and Gboni Enterprises.”

The agreement was signed on April 21, for Gboni to construct a 25,000MT ultra-modern petroleum storage terminal. The construction of this terminal is expected to help alleviate the country’s periodic petroleum products shortage.

The House’s Joint  Committee said in its report that the investment will also create approximately 500 direct jobs and 1,500 indirect jobs, as well as boost the Country's economic growth.

The total cost of the investment is valued at US$22 million. The Joint Committee further indicated that Gboni Enterprise is a 100% Liberian owned oil and gas importation and distribution company that has been successfully operating in Liberia for over twelve (12) years.

Following the reading of the report, Margibi County Electoral District #5 Representative, Clarence Gahr, proffered a motion for the body’s endorsement, thereby ratifying and forwarding the instrument to the Liberian Senate for concurrence.

Gboni Enterprise was established in 2010 and is currently operating in three vital sectors of the Liberian Economy; Oil & Gas, Trucking, and General Construction, which have created over 40 jobs and hundreds of contractors over the past few years in operation.

Meanwhile, the House has failed to grant a tax waiver to the Liberian American Poultry Farm to facilitate the construction of a US$15 million poultry farm, which would have boost egg production in the country by over 100 million eggs annually. 

The decision to deny LAP such investment incentive is as a result of the Joint Committee’s failure to make a report to the August Body before its adjournment on Wednesday night.

Had the Legislature approved the LAP’s tax waiver, the company would have constructed a state-of-the-art poultry farm to supply over 300,000 fresh eggs — a move that would have reduced Liberia’s heavy reliance on egg imports.

The country’s import data for eggs, which is an important source of protein for millions of Liberians, stood at US$13.4 million in 2021, effectively making Liberia the 55th largest importer of eggs in the world, data from the Observatory of Economic Complexity shows.

Also, eggs in that same year were the country’s 39th most imported product, with imports primarily from: Spain ($4.72M), Poland ($4.04M), Ukraine ($1.92M), Turkey ($963K), and Portugal ($557K).

The President’s request, if approved, would grant the Liberian American Poultry Farm about 10 years’ tax waiver and the creation of 250 direct jobs and 500 indirect jobs.

Under the Agreement, Weah noted that the company would also grow maize on 200 acres of land to produce 30,000 tons of chicken feed annually, while at the same time, “working with smallholders by providing seed inputs and technical support for the growth of maize.”

“Additionally, the project shall create about 250 direct jobs and over 500 indirect jobs for our people,” the President added. “Most importantly, the success of this project will offset the deficiency of the random shortage of eggs, making provision to produce fresh eggs on our market, as well as exporting fresh eggs to neighboring countries.”