A federal government report says that Samoa offers to businesses and investors among other things, a trained, productive, English speaking workforce with competitive wage rates, and the country’s population stands at 190,000 with a nominal gross domestic product (GDP) of USD 770 million (1.85 billion Samoan Tala).

The information is outlined in a recent 2015 report, the Samoa Investment Climate Statement released by the U.S. State Department, which provides such annual reports for world countries. These reports look at a wide range of information pertaining to each world country and their potential investment opportunities, as well as laws governing investment in each country.

For Samoa, the federal report says the country is a “peaceful parliamentary democracy within the Commonwealth of Nations”; became the 155th member of the World Trade Organization (WTO) in 2012 and graduated from least developed country (LDC) status in January 2014.

Additionally, Samoa is recognized throughout Oceania as one of the most politically and economically stable democratic countries in the region — based on strong social and cultural structures and values.

As to Samoa’s attitude towards Foreign Direct Investment, the report says the government, under the Human Rights Protection Party since 1982, welcomes business and investors.

It says Samoa’s fertile soil, English-speaking educated workforce, and tropical island climate offer advantages to focused investors, though the country's distance from major markets affect the cost of imports and exports.

Further, the main productive sectors of the economy are agriculture and tourism while depending heavily on overseas remittances.

For investors, the report notes that Samoa offers: a trained, productive and industrially adaptable work force that communicates well in English; competitive wage rates; free repatriation of capital and profits;  well-developed, reasonably priced, transport infrastructure, telecommunications, water supply, electricity; industry incentive packages for tourism and manufacturing sectors; a stable financial environment with single-digit inflation, a balanced budget and international reserves; relatively low corporate & income taxes; and a pleasant and safe lifestyle.

The federal report also says that foreign investors are permitted 100% ownership in all different sectors of the industry with the exception of restricted activities, or type of businesses reserved for Samoa citizens only. Restricted activities and businesses include: Bus transport services for the general public; Taxi transport services for the general public; Rental vehicles; Retailing; Saw milling; and Traditional elei garment designing and printing.

On the other hand, the report says that the Samoa government welcomes investment in virtually all areas of the economy, namely Travel, Agribusiness, Food Processing and Packing, and Information & Communication.

The report also provides information on an important issue when it comes to Pacific islands: land — which has special status in Samoa as it does in most Pacific island countries.

Under Samoa’s land classification system, about 80% of all land is customary land, owned by villages, with the remainder either freehold or government owned, the report says, and noted that the standard way for obtaining customary land, which cannot be bought or sold, is through long term leases that must be negotiated with the local communities.

A typical lease for business use might be for 30 years, with the option of a further 30 years after that, but longer terms can be negotiated. Customary land cannot be mortgaged, and thus cannot be used as collateral to raise capital or credit. Freehold land, mostly based in and around Apia, can be bought, sold and mortgaged.

“Only Samoan citizens may buy freehold land, unless approval is obtained from Samoa’s Head of State,” the report pointed out.

More details on the report, which also provide links to the Samoa government for other information, can be found on: www.state.gov