Project Brief Investment Climate | World Bank Group 90705 Transforming Trade Logistics in Liberia Project At A Glance Results and Impacts Country/Region LIBERIA/SUB-SAHARAN AFRICA • With the help of the trade logistics Product TRADE LOGISTICS team, Government of Liberia Theme Fragile and conflicted-affected area implemented targeted reforms aimed at improving the country’s trade In 2007 the World Bank Group chose Liberia as one of four logistics systems and services. pilots for a new trade logistics program. The project is part of a larger Investment Climate Program meant to sustain and • Results include reducing customs deepen reforms in business regulation, taxation, trade logistics clearance steps by 74 percent from and investment generation in key sectors. The trade logistics 42 to 10 and automating the customs component aims to reduce the time and cost of import and clearance system, which resulted in export transactions through targeted reforms. an 80 percent increase in customs revenue from $5 million in 2009 to $9 million in 2011. Context In Liberia, importing and exporting had been a long and cumbersome paper-intensive process involving more than 40 customs clearance steps and a myriad of required documents. These inefficient and unpredictable trade logistics inflated transaction times and costs for traders accessing global markets. Despite many post-conflict challenges, the Government of Liberia recognizes the vital role played by private sector development and trade in building the country’s In Partnership with THE EUROPEAN UNION, THE NETHERLANDS, IRELAND, DENMARK, NORWAY, TRADE MARK EAST AFRICA World Bank Group future. Accordingly, the government has committed to an required for the clearance process fell from 42 in 2007 to ambitious reform agenda focused on modernizing trade just 10 in 2011, a 74 percent reduction. logistics systems and services to improve Liberia’s economic Improving the investment climate has been important for growth prospects. the country’s overall economy, which grew in 2011 and 2012 largely as a result of demand for Liberia’s rubber and OUR ROLE iron-ore exports. In the import-dependent country, which Investment climate teams of the World Bank Group have relies on exports for economic growth, reforms in trade been assisting the Government of Liberia to improve the logistics have shown tangible and timely results. efficiency of trade logistics systems and services, with a focus on reducing the time and cost to trade. The project has thus far achieved 30 trade logistics improvements, which include: • Setting up a centralized facility at the Freeport of Monrovia, the country’s main commercial trade facility, to provide a single location for the clearance of cargo. • Introducing a preliminary risk-based inspections regime to reduce the number of physical inspections for imports. • Implementing ASYCUDA World, an automated customs clearance/data system. • Simplifying import and export processes and procedures. The second phase of the project builds on previous • Reducing the cost of import and export as well as the achievements, focusing on implementing reforms that number of documents required to trade. address more systemic issues, including: Prior to these reforms, Liberia operated under an • Integrating best practice risk management procedures. entirely manual customs clearance system. As a result of • Adopting rationalized documentation and procedures. administrative and customs automation reforms supported by the Government of Liberia, the number of steps • Simplifying duty-free procedures. • Supporting the further implementation of ASYCUDA World. “Clearing customs used to be hard, it could take • Supporting the drafting and implementation of an updated Customs Code. almost three months to get the goods from the container. But now, two weeks, one week and a • Supporting the Government of Liberia’s accession to half, you take your goods from the port.” the WTO. Choko Harris Phase 2 of the Liberia trade logistics project aims to Shop Owner increase exports by $5 million and generate $1.5 million in (Sells plastic goods from China & Thailand) private sector savings. Contact Inoussa Ouedraogo | Operations Officer | Investment Climate Email: Oedraogo2@ifc.org | TEL: 226-5049-6353 | www.wbginvestmentclimate.org