Liberia - Afrikan Heroes

Crisis as More Banks Run Out of Cash in Liberia

November 6, 2019

Many businesses and even families are facing financial crisis as more banks claim they have run out of cash in Liberia. What started as a rumour few days ago has become a reality as Liberian commercial banks announce they are running out of cash due to shortages of bank notes across the country. This is not the first time this is happening according to the banks, sometime in 2018; the country faced similar challenge as a result of claims that there was missing money at the country’s apex bank. However, this present shortage according to reports have seen the emergence of long queues at cash machines, and many banking halls with the banks saying they are also short of cash to dispense. The Ministry of Finance of Liberia has confirmed that there is not sufficient money in the vaults of commercial banks to meet customers’ needs.

Officials say that the shortage is as a result of growing concern by customers and loss of confidence in the banking sector and by extension, the Liberian economy. To this end, even the banked have resorted to keeping their money at home. This is as a result of the economic challenges facing the country and the flattening the confidence people have in the local currency.

It could be recalled that protests broke out of the country in 2018 over claims that over $104 million worth of bank notes printed in China and Sweden disappeared from the central bank. And when officials were unable to account for the missing consignments containing the banknotes, the people took to the streets.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

President Weah Plans to Print New Currency Notes

September 14, 2019

The Liberian President George Weah has mulled plans to print new currency notes worth about L$ 34 Billion in line with advice from the Central Bank of Liberia.The decision according to government sources is aimed at stemming the runaway inflation the Liberian economy is facing presently. The Central Bank of Liberia is said to have informed the President advising that the Liberian economy may be in serious problem if nothing is done urgently. This is because of the high rate of unaccounted local currency infused into the economy that is causing high inflation, thus the recommendation for the printing of new local currency to replace existing ones.

Observers say that President Weah’s quest to print new bank notes may not be unconnected with the controversies trailing the country’s financial system especially the central bank due to the issues relating to the executives of the apex bank who were facing trial for illegally printing over L$16 billion during the regime of former President Ellen Johnson-Sirleaf.

While notifying the country’s Senate about the decision, President Weah notes that “the decision needs to be made now to address this issue that impacts the economy, it is important to note that the printing of new banknotes will require your approval, in accordance with Article 34(d) through the 1986 Constitution,” he added. Though the CBL has not defined any set values or pattern to limit the printed amount of currency (new money), it should be enough to provide services, transfer goods and also regain the value of currency that is in circulation.

President Weah told the Senate that in view of the Central Bank’s advice, it became imperative to discuss the matters with the apex bank for their approval to on the way forward to enable the CBL to move in a timely manner to conclude arrangements for the printing of the [new] currency. After the president’s address to the Senate, a motion was moved to direct the Senate committee on Banking and Currency to appropriately advise plenary.

Critics however, say that the problem plaguing the Liberian economy is beyond printing of a new currency, the challenges are mostly fiscal indiscipline thus printing of new bank notes may not have the desired effects. Moreso, there are allegations that President Weah’s notification to the Senate was simply a window dressing because the apex bank already had the new currency printed. This claim could not be independently verified as at the time of going to press. Whether the printing of the new currency would help address the challenges being faced by the country is left to be seen.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

U.S. based group installs 435 solar suitcases in health facilities across Liberia

July 22, 2019

A Non-profit organization called We Care Solar, based in California; the USA says it has installed 435 Solar Suitcases in 430 health facilities across Liberia. The organization working in partnership with the Ministry of Health (MOH) here is dedicated to improving maternal health care in health facilities through access to renewable energy.

We Care Solar Global Program Officer Kim Gordon presented the evaluation study result of the organization at a one-day conference held at the Paynesville City Hall outside Monrovia on 18 July. During the presentation, Mr. Gordon said 518 health facilities were assessed and it was found that 430 were in need of reliable electricity, following which 435 solar suitcases were installed in 430 health facilities.

According to him, 44 installers were trained; 2,203 health workers trained, and 220,000 mothers and newborns served in health facilities using Solar Suitcases. He discloses that since 2010, the organization has designed technology and developed programs to bring compact rugged solar electric systems-Solar Suitcases-to under-resourced health centers.

To date, Mr. Gordon reveals that more than 3,800 health centers globally have been equipped with this technology, replacing candles and kerosene lanterns with bright, efficient LED lights which provide electricity for photo charging, fetal monitoring and small medical devices which enable health workers to promote life-saving care.

He notes that the organization had a special interest in supporting Liberia conduct a plot solar suitcases program in Bong and Lofa counties in 2011, in partnership with Liberian Institute of Biomedical Research and the Light Every Birth initiative.

Mr. Gordon discloses that funding came from UN DESA, UBS Optimus Foundation, Gilead Foundation, Music for Relief, Meadow Fund, and other generous donors. According to him, assessment of health facility electricity needs was conducted by the Family Health Division of the Ministry of Health, County Health Teams and We Care Solar.

In order to qualify for solar suitcase development, he says the health facility must offer delivery services by a skilled trained professional, have unreliable electricity and lighting, and be a building suitcase for installation, among others.
Liberia’s Minister of Health Dr. Wilhelmina Jallah expressed gratitude to We Care Solar for helping to save the lives of newborns in health facilities across the country. She assured the organization of the government’s continued commitment to collaborating with it in achieving the goal of providing solar suitcase to every health facility in Liberia.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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Businesses Can Now Be Registered Online In Liberia

July 5, 2019

Liberia is shooting to loosen up its business environment for investors and businesses. Unlike what used to be the case in the past where all registration of businesses has to be done online, the Liberia Business Registry (LBR) has launched a website which has an online application for effective and efficient service delivery to the business community. The service became effective Wednesday, July 3.

What The Liberian Online Business Registration Looks Like

With the new online platform, the time limit for establishing a business in the country would be significantly reduced.

“People from Pleebo, Nimba, Lofa and all far-to-reach areas will no longer have to commute to Monrovia, and bear the cost of transportation and accommodation just to get registered or obtain Articles of Incorporation, said Mr. Dee, Registrar General of the Liberia Business Registry.

The website also will provide different kinds of corporate registration information and will help taxpayers directly apply for certificates and Articles of Incorporation with a user account, according to Registrar General Samson Dee.
The reform is coming after Liberia’s President George Weah established the “Business Climate Working Group” which informed the establishment of the Website and online Application.

The registry is supported by a worldwide network of Liberian representatives and Special Agents

The Challenges Of Setting Up Business In Liberia Is Noted In This Statement From Mr. Dee

“There have been series of challenges, in fact the last rating that came up from the World Bank, said it was taking Liberia 18 days to register a business in the Country and I think we all know that this is highly unfriendly when it comes to the business sector. So, on that basis President George M. Weah, set up a Business Climate Working Group, of which we are member and we were tasked with the singular responsibility to turn the picture around to improve the business climate and ensure that we attract investors from every part of the world,” he said.

“We heard the Registrar General say there are foreign entrepreneurs who may come to Liberia and may like to have information of doing business in the Country, and this development will undoubtedly help in the process.” Acting Commerce and Industry Minister Mr. Wilfred N. Bangura observed.

Under Liberian corporate law, all businesses are required to register or apply for a Business Registration Certificate to authorize doing business or providing services in Liberia.

The Liberia Business Registry (LBR) under the Ministry of Commerce and Industry (MOCI) handles the applications and business registration processes. The fee structure for registration varies depending on whether a business is local, foreign, a sole proprietorship, a partnership, or a corporation. The standard steps to follow in establishing a local business office are noted below:

Reserve a unique company name with LBR: an applicant can do a name search online or at the LBR helpdesk; business names can be reserved for up to 120 days.
Register the company using the registration application form (RF-001), and submit the completed application with the company’s articles of incorporation, proof of identification, empowered person’s or registered agent’s form, incorporator’s form, shares and shareholders’ form, and information for tax authority form.
LBR will review the application package and request a Tax Identification Number (TIN) and bank payment slip (BPS) on behalf of the business in question; all businesses operating in Liberia must have a TIN, which is obtained free of charge from Ministry of Finance and Development Planning.
Once a TIN has been obtained, pay associated business registration fees at the Central Bank of Liberia (CBL)’s window at LBR or use the mobile money payment system; mobile money services are provided by the two leading mobile network operators, Lonestar MTN and Orange Liberia.
Present the proof of payment to the LBR registrar where the process is completed.

The entire process takes one to four weeks. Registration of business is valid for 12 calendar months from the date of registration. Conducting commercial activities in Liberia without being registered will result in penalties.

The LBR publishes a fee schedule for new enterprise registrations applicable to different types of legal entities.

All that will now have to be done online with this new move.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.