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MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Definitions

MSME means a micro, small or medium enterprise formally registered as a business organization with fewer that one hundred (100) employees or annual gross revenue taxable in the micro, small or medium tax category as is stipulated in the Liberian Revenue Code or which meets certain standards or criteria prescribed from time to time by the Ministry through regulations, which standards or criteria may relate to the number of employees, gross revenue or sales, net revenue or profit, net worth, or any combination thereof, or any other factors the Ministry considers to be appropriate or relevant.

Liberian-owned MSME means any micro, small or medium enterprise of which more than 50% of the securities, equity and/or ownership interests carrying sufficient votes to elect a majority of the board of directors or other similar body of the MSME is owned, directly or indirectly, by one or more Liberian citizens, including women-owned MSMEs, with such majority shareholder being a signatory to the official documents and bona fide bank accounts of the business.

Women-owned MSME has the same meaning as Liberian-owned MSME except that the persons with the required securities or ownership interests and signatory rights are women who are Liberian citizens.

Benefits Under The Law

Section 4.1 (a) In furtherance of the objectives of this act, all Liberian-owned MSMEs shall be provided with the greatest practicable opportunity to participate in the performance of Procurement Contracts.

Section 4.1 (b) Consistent with subsection (a) above, it shall be mandatory that prime contractors under any Procurement Contracts establish procedures that guarantee that Liberian-owned MSMEs are provided the ability, whether through subcontracts or otherwise, to participate to the greatest extent practicable, in the performance Procurement Contracts to which a prime contractor is party.

Section 4.1 (d) To facilitate the achievement of the percentage set forth in subsection (c), the Department (SBA) shall consult with each Government Agency on a regular and continuous basis throughout each fiscal year to ensure that, in respect of that year, each such Agency sets aside and allocates, to the best extent possible, at least twenty-five (25%) of all Procurement Contracts which it proposes to enter into during the year exclusively for Liberian-owned MSMEs. Each government agency shall make appropriate adjustments to its ‘set-asides’ of Procurement contracts throughout each year as circumstances warrant to ensure that the 25% allocation is achieved. Each Government Agency on a quarterly basis shall provide to the Department (SBA) such reports, materials, data and statistical information to confirm that the requirements of this section have been and will continue to be satisfied.

Section 4.2 (a) Each Government Agency shall at the conclusion of each fiscal quarter, or more frequently, if so requested by the Department, submit a report to the Department (SBA) setting out:

i. the extent of participation by Liberian-owned MSMEs in procurement contracts entered into by such government agency during the year;

ii. whether the Government agency achieved the goals established for that respective year pursuant to section 4.1; and

iii. if the Government Agency did not achieve such goals, the reason or reasons for such failure.