Sierra Leone Investment and Export Promotion Agency brochure

Logo Option 1

Improving Investment and Facilitating Export.www.sliepa.org

INVEST IN SIERRA LEONE

Dear InvestorFor those of you who do not know much about Sierra Leone, I can confidently say that you are in for a pleasant surprise. We have a wonderful heritage and a history of achieving many firsts in Africa—from being pioneers in printing newspapers and delivering radio to establishing Fourah Bay College, the first university in Sub-Saharan Africa. More recently, we have demonstrated our desire and ability to freely choose our government. Recognizing that ill-informed perceptions of our country persist, we are determined to be more active in articulating the good things that we have and to provide the world with positive insights into our country, its peoples and institutions, and the opportunities that Sierra Leone has to offer. This guide is a strong step forward in that process.

We remain committed to consolidating our gains in democratic governance. A prime example is my government’s policy of zero tolerance for corruption. In pursuing this goal, we revised and launched the National Anti-Corruption Strategy and passed one of the toughest anti-corruption acts in Africa. The act requires all public servants to declare their assets, and compliance has been strong.

Furthermore, having laid a solid foundation for the advancement of our country, we intend to proceed with a focus on the priorities identified in our Agenda for Change program. With private sector–led economic growth as the key driver of change, particular emphasis will be placed on three areas of our development: energy, agriculture, and infrastructure. In energy, we are working to capitalize on the massive hydroelectric potential in every district of our country. In agriculture, we look to push forward with commercialization of a sector that already accounts for 45 percent of GDP—and where more than 70 percent of our arable land is available for cultivation. Meanwhile, investments in road, river, airport, and seaport infrastructure will modernize our transportation network and take advantage of Sierra Leone’s strategic location, making the country both a regional and transatlantic trade hub.

Sierra Leone is remarkably beautiful, with pristine beaches, green mountains, and jungles that remain largely untouched. Thus my government is working assiduously to maximize our tourism potential by supporting the development and promotion of sustainable ecotourism resources and enhancing the country’s image as a middle- and up-market tourist destination. At the same time, our strategy for tourism development mirrors our firm belief that responsibility for delivering national economic growth requires a strong partnership between the public and private sectors.

My government’s Agenda for Change is inextricably linked to the pursuit of inclusive, broadly based,private sector–led growth. This is reflected in our commitment to reforms, enhancement of required infrastructure, and development of entrepreneurial and technical skills, all of which will make it easier to do business in Sierra Leone. Partnerships with the private sector will ensure that we deliver on the promises we have made to our people, and we are thrilled that you are considering such a partnership. We look forward to you visiting our great country, to experience first hand the beauty and remarkable investment potential reflected in this guide. You will not be disappointed.

Again, a very warm welcome, and God bless Sierra Leone.

Ernest Bai KoromaPresident of Sierra Leone

2 INVEST IN SIERRA LEONE

SIERRA LEONE

November 2004

1 Welcome to Sierra Leone!

4 Sierra Leone—A Snapshot 5 Sierra Leone: Basic Facts and Figures 5 Location and Attributes 6 History, Politics, and People 6 Economic Growth and Foreign Investment 7 Market Access, Size, and International Organizations 8 Safety and Security 8 General Health and Travel Advice

9 Employment 9 Human Resources 9 Work Week and Pay 9 Worker Dismissal 9 National Pension Plan

10 Infrastructure, Utilities, and Real Estate10 Infrastructure13 Real Estate and Industrial Land

14 Banking and Business Services14 Commercial Banks14 Insurance14 Capital Market

15 Taxes, Tariffs, and Incentives15 Taxes and Tariffs16 Fiscal and Financial Incentives

17 Opportunities for Investors17 Agribusiness19 Fishing20 Mining21 Tourism22 Infrastructure22 Telecommunications23 Privatization

24 Legal and Regulatory Environment24 Legal and Judicial System25 Dispute Resolution25 Ownership and Property25 Performances and Requirements

27 Investment Procedures27 SLIEPA: A New Agency to Help with Foreign Investments and Exports28 Business Registration and Licenses30 Accessing Land 30 Import and Export Procedures and Fees

32 Appendix 1 Useful Contact Information

36 Appendix 2 Costs of Doing Business in Sierra Leone

37 Appendix 3 Foreign Firms Currently Investing in Sierra Leone

38 Appendix 4 Customs Clearance Procedures

INVEST IN SIERRA LEONE 3

CONTENTS

November 2004

SIERRA LEONE—A SNApShOT

With Sierra Leone’s long civil strife behind it, the country is poised to usher in a new era of

economic growth and prosperity. Having held successful democratic elections, economic

recovery has begun, and increasing attention is being paid to creating the policies and

developing the infrastructure needed to support economic development and create jobs.

Sierra Leone is an attractive investment destination for many reasons. The country is rich in natural resources, has a gorgeous climate year round, and offers stunning panoramas, pristine beaches, and extensive wildlife-viewing opportunities for tourists. Moreover, the low number of current investors offers the benefits of first-mover advantage for many investment possibilities.

Sierra Leone provides duty-free access to large markets such as the European Union and United States under treaties such as the EU Everything But Arms (EBA) initiative and U.S. African Growth and Opportunity Act (AGOA). In addition, regional and domestic demand is high for many agricultural products, as well as fresh and processed fish and meat, and investors could strategically establish themselves in Sierra Leone to supply all these markets.

Numerous sector-specific investment opportunities exist in government priority sectors such as agriculture, fisheries, mining, telecommunications, and infrastructure. For example, agricultural production is rising and certain products have experienced steady growth—including ginger, palm oil, cocoa, coffee, and rice—showing the sector’s export potential. Some West African crops receive premium prices in international markets.

Recent studies by the European Commission and the U.K. Department for International Development (DFID) show that Sierra Leone’s coast is well-stocked with fish and seafood. In mining there are known deposits of rutile, bauxite, ilmenite (titanic iron ore), diamonds, gold, chromite, platinum, lignite, clays, and base metals such as copper, nickel, molybdenum, lead, and zinc, though their full commercial potential is unclear.

Given Sierra Leone’s beautiful and underdeveloped beaches, historical sites, and attractive flora and fauna, tourism also offers considerable potential for investment. The National Tourism Board has identified several areas, activities, and cultural sites that offer potential for tourism. For example, Sierra Leone can offer high-end ecotourism experiences such as bird watching, sport fishing, mountaineer-ing, and hiking in nature preserves.

Location and attriButEsSierra Leone is in West Africa, situated on the Atlantic seacoast between Guinea and Liberia. The country’s total area is 71,740 square kilometers (27,699 square miles)—about the size of Ireland—and contains about 27,540 square kilometers (10,633 square miles) of forests and a 402 kilometer (250 mile) coastline dotted with sandy white beaches on the northern shores and marshlands in the south.

cLimatE and wEathEr

The country’s climate is tropical and humid, with a rainy season from May to November and a dry season from December to April. There is also the harmattan period between December and February, when dry winds arrive from the Sahara. Sierra Leone receives the most rainfall in West Africa, averaging more than 300 centimeters (118 inches) a year, and its nine major and three minor rivers have hardly been tapped for their irrigation potential.

naturaL wondErs and cuLturaL hEritagE

Few countries present such a variety of untouched wilderness, islands, waterfalls, wildlife, agreeable weather, rich cultural heritage, unspoiled beaches, and dramatic tropical and mountainous back-drops. Sierra Leone’s beaches stretch from Conakry Dee to Yeilboya to Lumley and Lakka. Though tourism is currently beach oriented, the country contains historic sites such as monuments linked to the slave trade, ecotourism such as bird watching in the Gola forests, and climbing of Loma Moun-tain—the highest peak in West Africa.

minEraLs and naturaL rEsourcEs Though Sierra Leone is well known for its diamond trade, this precious stone is not the country’s only mineral resource. Sierra Leone was once a prominent global exporter of rutile and bauxite, and recently revitalized mining of both minerals. Diamond exports, which had been banned due to illicitly

mined stones, are experiencing growth and new interest.


Location and attriButEsSierra Leone is in West Africa, situated on the Atlantic seacoast between Guinea and Liberia. The country’s total area is 71,740 square kilometers (27,699 square miles)—about the size of Ireland—and contains about 27,540 square kilometers (10,633 square miles) of forests and a 402 kilometer (250 mile) coastline dotted with sandy white beaches on the northern shores and marshlands in the south.

cLimatE and wEathEr

The country’s climate is tropical and humid, with a rainy season from May to November and a dry season from December to April. There is also the harmattan period between December and February, when dry winds arrive from the Sahara. Sierra Leone receives the most rainfall in West Africa, averaging more than 300 centimeters (118 inches) a year, and its nine major and three minor rivers have hardly been tapped for their irrigation potential.

naturaL wondErs and cuLturaL hEritagE

Few countries present such a variety of untouched wilderness, islands, waterfalls, wildlife, agreeable weather, rich cultural heritage, unspoiled beaches, and dramatic tropical and mountainous back-drops. Sierra Leone’s beaches stretch from Conakry Dee to Yeilboya to Lumley and Lakka. Though tourism is currently beach oriented, the country contains historic sites such as monuments linked to the slave trade, ecotourism such as bird watching in the Gola forests, and climbing of Loma Moun-tain—the highest peak in West Africa.

minEraLs and naturaL rEsourcEs Though Sierra Leone is well known for its diamond trade, this precious stone is not the country’s only mineral resource. Sierra Leone was once a prominent global exporter of rutile and bauxite, and recently revitalized mining of both minerals. Diamond exports, which had been banned due to illicitly

mined stones, are experiencing growth and new interest.


Measurements Metric system

Local time GMT year round

Business hours 8am–5pm

holidays New Years Day, January 1

Good Friday, varies

Easter Monday, varies

Independence Day, April 27

Prophet Mohammad’s Birthday, varies

End of Ramadan, varies

Tabaski, varies

Christmas Day, December 25

Boxing Day, December 26

Exchange rate (November 2008) US$ 1 = SLL (leone) 3,005

Euro 1 = SLL 3,806

BP 1 = SLL 4,448

Japanese Yen 1 = SLL 31

RSA Rand 1 = SLL 298

Nigerian Naira 1 = SLL 20

gEnEraL country information

Form of state & government Unitary republic with constitutional government based on English common law

head of state President Ernest Bai Koroma

population 6,294,774 (July 2008 est.)

GDp $1.9 billion (2008)

GDp growth rate 6.8 percent (2007 est.)

Market access ECOWAS, 220 million EU Cotonou Agreement, 456 million

U.S. AGOA, 300 million

Major cities Freetown (capital): 1,070,200

Bo: 472,919

Kenema: 254,539

Koidu Town: 123,800

Makeni: 115,900

Weather Hottest month, April, 29°C; coldest month, August, 26°C. Driest month, February; wettest month, July

Average annual rainfall 300cm

Language English

source: World Bank, World Development Indicators 2007; U.S. State Department 2007.

SIERRA LEONE: Basic Facts and Figures


history, PoLitics, and PEoPLE history and PEoPLE In early times Sierra Leone was ruled by traditional chiefs and kings whose systems of governance were influenced by migrant populations during the successive ancient West African empires of Ghana, Mali, and Songhay. Tribes migrating westward from northern and southern Africa settled in the virgin forest between the Mano River and Futa mountains, where they sought protec-tion from the highlands on one side and the sea and large rivers on the other. They were later joined by other migrating popula-tions who, at the time of contact with Europeans, totaled 14–17 ethnic groups.

European contacts with Sierra Leone first started in the economic sphere with the Portuguese, who in 1495 built a fort in Freetown, the country’s capital, to trade in gold, spices, ivory, and slaves. Several decades later the British came and set up a “crown colo-ny” in Freetown and established indirect rule through traditional rulers until 1961, when the country gained independence.

goVErnmEnt Sierra Leone became a republic in 1971. In the early 1990s a pro-tracted civil war began. The current President, Ernest Bai Koroma, was elected in 2007 through elections deemed fair by international observers. This was the first time in post–civil war Sierra Leone that power was peacefully handed over from the former ruling party, led by President Ahmad Tejan Kab-bah of the Sierra Leone People’s Party (SLPP). Sierra Leone has made significant progress in maintaining political and economic stability, implementing struc-tural and institutional reforms, and improving service delivery (Box 1).

Economic growth and forEign inVEstmEntEconomic growth Since the Lomé Peace Agreement was signed in 2001, Sierra Leone has seen promising GDP growth, estimated at 6.8 percent in 2007. Growth has largely been driven by agriculture, construction, mining, and services. Agricultural production is the most important contributor to GDP, accounting for 46 percent in 2005. Recent growth in agricul-

tural production is due to higher yields of rice, cassava, sweet potatoes, maize, groundnuts, and cocoa.

Box 1 Vision 2025

The decision to embark on Vision 2025 was based on a desire to create a better future for Sierra Leone based on a new, virtuous circle of peace, stability, and wealth creation. The program focuses on achieving extensive economic recovery for sustained growth and human development in a peaceful, stable environment.

Vision 2025 is intended to provide a sense of purpose and direction for all national actions. It was developed through consensus and summarizes the development principles that Sierra Leoneans agreed must guide development efforts for the foreseeable future. The strategic areas of focus chosen as the basis for plans and policies are to:

• Attaincompetitive,privatesector–ledeconomicdevelopmentwitheffectiveindigenousparticipation.

• Createahighqualityoflifeforallcitizens.

• Buildawell-educated,enlightenedsociety.

• Establishatolerant,stable,secure,well-managedsocietybasedondemocraticvalues.

• Ensuresustainableexploitationandeffectiveuseofnaturalresourceswhilemaintainingahealthyenvironment.

• Becomeanationdrivenbyscienceandtechnology.

These core strategic issues must guide the goals for all plans, policies, and programs that aim to contribute to Sierra Leone’s development.

source: Sierra Leone poverty Reduction Strategy paper 2005.

Mining is another major contributor to GDP. With the resump-tion in bauxite and rutile production, as well as an increase in gold production and diamond excavation, mining has contrib-uted significantly to foreign direct investment (FDI) earnings and GDP growth. Manufacturing is growing, and its contri-bution to GDP is average. But the government is developing incentives to spur growth in manufacturing for export as well as resource-based industries. Table 1 highlights the growth in Sierra Leone’s primary exports between 2004 and 2007.

forEign dirEct inVEstmEntThere is enormous potential for FDI in Sierra Leone. Dur-ing 2000–05 FDI averaged $18 million a year, but in 2007 it reached $81 million (Table 2). As a percentage of GDP, FDI in Sierra Leone has been strong relative to neighboring coun-tries, at 4.9 percent in 2005 and averaging 3.3 percent from 2000–05 (Table 3). Most FDI has gone to the extractive industry and telecommunications. Two companies mining rutile and bauxite are fully foreign owned, as are two diamond extraction companies. Though the mining firms are of European and U.S. origin, Chinese investors are a growing presence in manufac-turing and tourism.

marKEt accEss, siZE, and intErnationaL organiZationsmarKEt accEss Sierra Leone has preferential access to EU and U.S. markets. The European Union offers full preferential access through the Everything But Arms (EBA) initiative and the Cotonou Agree-ment, and access to the U.S. market is governed by the African Growth and Opportunity Act (AGOA), which offers duty-free access for a number of products until 2015 (Box 2). Sierra Leone joined the Economic Community of West African States (ECOWAS) in the interests of establishing a customs union and common market to promote the free movement of goods and people in West Africa.

marKEt siZE With a population of just over 6 million, Sierra Leone offers a modest domestic market, though there is growing demand for processed foods and other products. Companies based in Sierra Leone also enjoy relatively easy access, through regional trade agreements, to nearly 215 million regional consumers in countries such as Côte d’Ivoire (18.2 million), Guinea (9.4 mil-lion), and Liberia (3 million) by sea and land transportation.

ParticiPation in intErnationaL organiZations and trEatiEs Sierra Leone is a member of the Commonwealth, African Union, ECOWAS, African Development Bank (AfDB), Organiza-tion of the Islamic Conference (OIC), and Non-Aligned Move-ment (NAM). Along with Côte d’Ivoire, Guinea, and Liberia, Sierra Leone formed the Mano River Union (MRU), which is designed to implement development projects and promote regional economic integration between the four nations. Sierra Leone is also a member of the International Criminal Court.

taBLE 1 ExPorts from siErra LEonE, 2004-07

(Thousands of U.S. dollars, freight on board)

Type 2004 2005 2006 2007

Diamonds 126,330 142,202 125,041 142,048

Rutile 0 0 28,501 38,146

Bauxite 0 0 23,573 32,706

Cocoa 5,259 5,660 11,571 11,368

Coffee 53 504 1,093 1,855

Ilmenite 0 0 1,063 1,201

Gold 162 264 1,063 2,985

Fish and shrimp 24 76 97 444

Others 4,056 3,168 10,635 11,765

total 135,884 151,874 202,637 242,518

source: Bank of Sierra Leone/EIU 2007

taBLE 2 forEign dirEct inVEstmEnt in sELEctEd wEst african countriEs, 2004–07

(Millions of U.S. dollars)

country 2004 2005 2006 2007

Ghana 139 145 636 855

Burkina Faso 14 34 34 600

Guinea 98 105 108 111

sierra Leone 61 83 59 81

Senegal 77 45 220 78

Togo 59 77 77 69

Benin 64 53 53 48

Niger 20 30 51 27

source: UNCTAD, World Investment Report 2008

taBLE 3 forEign dirEct inVEstmEnt in sELEctEd wEst african countriEs, 2000–05

(percentage of GDp)

country 2000 2001 2002 2003 2004 2005 average

sierra Leone 6.15 1.22 1.11 0.87 5.71 4.91 3.33

Togo 3.15 4.79 3.62 1.92 2.78 0.12 2.73

Ghana 3.34 1.68 0.96 1.79 1.57 0.99 1.72

Guinea 0.32 0.06 0.94 2.17 2.42 3.10 1.50

Senegal 1.44 0.70 1.57 0.82 1.01 0.66 1.03

Niger 0.47 1.18 0.11 0.55 0.86 0.35 0.59

Burkina Faso 0.89 0.31 0.47 0.70 0.30 0.38 0.51

West Africa avg. 3.20 2.62 3.07 8.10 5.17 4.96 4.52

source: World Bank, World Development Indicators 2007.



safEty and sEcurityPetty theft and pick-pocketing are not uncommon in Sierra Leone. But overall crime levels are low, and foreigners can travel safely throughout the country to do their business.

Sierra Leone’s police force has national headquarters in the capital, Freetown, and provincial headquarters in Bo (in the south), Kenema (east), and Makeni (north). The police also maintain a presence throughout the rest of the country. In addition, firms can hire private security firms.

gEnEraL hEaLth and traVEL adVicEhEaLth Visitors to Sierra Leone will find the climate hot and humid. Thus it is advisable to increase intake of nonalcoholic beverages such as water and juices. Foreigners are advised to drink bottled water. In addition, salt should be added to food to replace what the body loses in perspiration. Foreigners should also keep their diets light, since eating more generates more heat in digestion.

Foreigners visiting Sierra Leone should avoid excessive exposure to the sun unless they are accustomed to it. Sunscreen use is highly recommended. Care should be taken when consuming beverages and food, particularly water and uncooked vegetables.

Foreign visitors should also avoid swimming in freshwater streams and lagoons. The country’s beaches are relatively clean, though strong tides can sometimes make them dangerous. Pools at large hotels are filtered and cleaned regularly.

traVEL Entering Sierra Leone requires a valid passport of origin and international health certificate showing a current yellow fever immunization. Preventive medications and vaccinations for malaria and typhoid are strongly recom-mended. For malaria, treatment must begin before arrival and continue after departure.

Hiring cars in Freetown is not cheap. Rates run from $80–120 a day for city rentals and up to $300 a day for travel to provinces. Costs vary by the type of vehicle and amount of distance covered. These costs include fuel, and most rental vehicles come with a driver.

Because of the conditions of some roads in Sierra Leone, it is advisable to hire a 4x4 if possible—not just in the provinces but in Freetown as well. Charter taxis are a cheaper alternative, costing $3–5 an hour.

Box 2 how forEign BusinEssEs in siErra LEonE can BEnEfit from thE u.s. african growth and oPPortunity act

The African Growth and Opportunity Act (AGOA) provides trade preferences for quota- and duty-free entry into the United States for certain goods—notably textiles and apparel—expanding the benefits under the Generalized System of Preferences (GSP) for qualifying Sub-Saharan countries. Some AGOA countries have also started exporting new products to the United States, such as cut flowers, horticultural products, and steel.

Sierra Leone qualified for the AGOA in 2002 and can export textiles, apparel, and handicrafts free of quotas and tariffs to the United States. But Sierra Leone is not filling its quota, which provides an opportunity for investment. In 2006 exports to the United States under AGOA totaled $105,000—just 0.3 percent of Sierra Leone’s exports. For a complete list of products eligible for export to the United States and more information on AGOA, visit www.agoa.info


EMpLOyMENThuman rEsourcEsSierra Leone has abundant semiskilled and unskilled labor. Though the civil war shrank the workforce, including the number of man-agers and skilled workers, many such workers are returning to the country. Wages in Sierra Leone are lower than in most other West African countries across all labor categories. Figure 1 shows typical annual gross salaries in the food processing industry.

worK wEEK and PayThe work week in Sierra Leone is 40 hours, with two mandatory consecutive days off. Work beyond 40 hours is paid at 50 percent overtime and work required on rest days is paid at 100 percent overtime.

worKEr dismissaLCompanies can find employees redundant for commercial or financial reasons after trying and failing to find them alternative employment, in consultation with unions. Employers must dis-charge workers based on seniority, with junior workers dismissed first, and give two months’ notice and pay redundancy compen-sation based on years of service. For example, an employer must pay a worker with 14 years’ seniority more than 2 years’ salary as compensation, while an employer must pay a worker with 20 years’ seniority more than 3.5 years compensation.

Workers can be dismissed in a reasonably straightforward manner for incompetence, inefficiency, violation of rules, or serious of-fenses. After two written warnings, employees can be dismissed without compensation. There is an appeals process through employer-union consultations and possible intervention by the commissioner of labor. The Industrial Court hears dismissal cases and other disputes.

nationaL PEnsion PLanThe government pension fund and the National Social Security and Insurance Trust (NaSSIT) offer employment insurance. NaSSIT, the national pension plan created in 2001, is responsible for ad-ministering retirement and other benefits to meet the contingency needs of workers and their dependants. In June 2008 NaSSIT was responsible for providing insurance to about 141,500 public and private workers. Contributions to NaSSIT are mandatory: employers must pay 10 percent of each worker’s salary, and workers 5 percent.

figurE 1 aVEragE annuaL gross saLariEs in food ProcEssing

(Thousands of U.S. dollars)

managers

Mali

Senegal

Ghana

Liberia

Sierra Leone

0 5 10 15 20 25 30 35 40

technical workers

Mali

Senegal

Ghana

Liberia

Sierra Leone

0 5 10 15 20 25 30 35 40

skilled workers

Mali

Senegal

Ghana

Liberia

Sierra Leone

0 5 10 15 20 25 30 35 40

unskilled workers

Mali

Senegal

Ghana

Liberia

Sierra Leone

0 5 10 15 20 25 30 35 40

source: MIGA, Enterprise Benchmarking Study 2007.


INFRASTRUCTURE, UTILITIES, AND REAL ESTATEinfrastructurEELEctricity Sierra Leone is reasonably well endowed with energy resources, including hydroelectricity, biomass energy, and other renewable energy sources (such as solar). The National Power Authority (NPA) is responsible for electricity generation, transmission, and distribution. In 2008 the system’s installed capacity totaled 25 megawatts. Industri-al and commercial businesses in the country generally use their own generators or a combination of NPA-supplied power and backup generators (see Appendix 2 for a summary of the costs of doing business in Sierra Leone, and Appendix 3 for a list of current investors).

The government is implementing a number of power generation projects, including 22.6 megawatt and 10 megawatt (thermal) projects planned for completion soon. Also planned for completion is the Bumbuna hydro-electricity project (Box 3). China National Electric Equipment Corporation has completed the upgrade and expan-sion from 4 to 12 megawatts of the Goma hydroelectric project at Dodo. A feasibility study is under way for the 85 megawatt Bekongor project on the Sewa River in Kono.

Tariffs and services. Electricity supplied by the NPA costs an average of $0.41 per kilowatt-hour. To obtain a line from the power grid, an investor should set up a meeting with the NPA to discuss the possibility of connecting to the power network. The NPA will examine the site location and determine if it can be accessed through existing infrastructure and if there is sufficient capacity in the area. If the NPA’s response is positive, the investor must then write the NPA a formal letter. Once the site has been investigated, the appropriate infrastructure installed (paid for by the investor), and the installation inspected and approved by the NPA, the investor must pay the connec-tion fees and the site will be connected to the power network.

Today most investors use generators, and prices range from $1,167 for a 5 kilovolt ampere (kva; equivalent to 5 kilowatts) generator large enough to power an average office to $37,000 for a 250 kva generator big enough to power a hotel. In most cases investors buy one or more backup generators as well. A typical 5 kva generator uses 2 gallons of diesel in eight hours, while a 250 kva generator might burn 64 gallons in eight hours. With diesel currently costing $4.17 a gallon in Sierra Leone, that amounts to $8.34–266.88 for eight hours of fuel. Mainte-nance averages $150 a month but varies depending on the type needed.

watEr Sierra Leone has extensive freshwater resources, including surface and groundwater. But infrastructure improve-ments are needed to increase the supply of water to more of the country. Piped water for industrial use is avail-able from the Sierra Leone Water Company (serving the provinces) and the Guma Valley Water Company (serving Freetown and the Western Area). Most industrial and commercial businesses also buy trucked water.

Tariffs. The Sierra Leone Water Company (SALWACO) charges about $3.17 per cubic meter of water. Where municipal water and sewer pipes are not available or functional, water is supplied by truck at additional costs.

Box 3 BumBuna hydroELEctricity ProjEct

First conceived in the early 1970s along the Seli (also known as Rockel) river in the northern provincial district of Tonkolili, the Bumbuna hydroelectricity project has the potential to greatly increase the availability and lower the cost of electricity in Freetown and the Western Area. Preliminary work on the 88 meter rockfill dam began in the 1980s, with construction beginning in the early 1990s. Work had to be stopped in 1997 because of the escalation of civil conflict. At that time the dam was 85 percent complete.

With financial assistance from donors such as the African Development Bank, government of Italy, and OPEC Fund, and a partial risk guarantee from the World Bank, work has been slated for completion in 2009. The company constructing the dam, Salini Costruttori, predicts that the dam will have a capacity of 300 million cubic meters, providing 50 megawatts of electricity production. The project is seen as the first phase of a 270 megawatt Bumbuna-Yiben hydropower development scheme, with subsequent phases envisaged to include a dam 28 kilometers upstream and an extension of the Bumbuna powerhouse with two additional turbine units, raising its output to 100 megawatts.


tELEcommunicationsSierratel is the sole provider of fixed-line telecommunications in Sierra Leone. Five companies—Africel, Comium, Tigo (formerly Millicom), Zain (formerly Celtel), and a new entrant, Greennet, not yet in operation—offer a range of mobile telecommunications services, including GSM services in Freetown, Bo, Kenema, Makeni, Kono, Kabala, and other towns. SIM cards can be purchased for $1.66 to use with mobile phones. GSM services work on a prepaid basis, and prepaid cards can be purchased in cities and some provincial towns. In addition, the telecom companies offer postpaid service contracts for businesses and some individuals.

Sierratel also provides dialup, low-bandwidth Internet services. High-speed Internet and Voice over Internet Protocol (VoIP) services have been launched by Israel’s Sierra-Com through its IPTEL subsidiary. IPTEL has pledged to invest $3 million in broadband services and plans to establish a network using equipment imported from Israel. Telecenters and Internet cafes are also available through-out Freetown and in some provincial towns.

Tariffs and services. Telecommunications costs are competitive relative to those in other African countries. The connection charge for a fixed line is $54, and local calls cost $0.03 per three minutes. To obtain a fixed telephone line, an investor should complete an application at a Sierratel office. The investor’s site is then inspected to determine the capacity and available infrastructure.

A recent enterprise survey by the Multilateral Investment Guarantee Agency (MIGA) found that in Freetown a standard 256 kilobit per second (kbps) Internet line costs about $1,000 a year, while tariffs are $9,000 a year for digital lines.

roads Sierra Leone has 11,000 kilometers of public roads, with 8,000 classified as the National Roads System and the rest as local networks and unclassified roads. Within the National Roads System, 26 percent are primary roads, 23 percent secondary, and 51 percent tertiary. The government recognizes the importance of roads to the country’s economic and social well-being. Accordingly, a number of major road reconstruction projects are under way, including the Bo-Kenema and Bo-Masiaka roads in the south, Freetown-Bo road connecting the Western Area to the south, Pamalap-Rogbere junction, Makeni-Matotoka road in the north, and Masiaka-Makeni road in the north (now complete). In addition, the World Bank is assisting in the rehabilitation of feeder roads such as Kailahun (east), Kono (east), and Koinadugu (north).

Tariffs. A recent MIGA survey found that transport costs for a 10 ton truck average $4.67 a kilometer.

air transPortation Sierra Leone’s main airport is in Lungi, across the Sierra Leone River from Freetown. Freetown is accessed by helicopter, hovercraft, and ferry services. Feasibility studies are being conducted to assess the cost of building a bridge from the airport to Freetown or a new international airport closer to Freetown. Travelers flying out of the airport must pay a $40 departure fee. For information on obtaining a visa, visit www.embas-syofsierraleone.org or www.visitsierraleone.com. It takes about a week to obtain a visa after fulfilling the requirements; table 4 shows the associated fees.

Numerous airlines have flights to and from Sierra Leone, including Brussels Air-lines (Belgium), British Midland, Kenya Airways, Slok Airlines (Gambia), Gambia International Airlines, Royal Air Maroc, Bellview Airlines (Nigeria), and Elysian Air-lines (Cameroon). Appendix 1 lists contact information for airlines, ferry services to Freetown, and airport authorities.

taBLE 4 six-month Visa fEEs for air Visitors

(U.S. dollars)

citizenship single entry multiple entries

Canadian 72 144

U.K. 95 162

U.S. 100 200

Other 40 80

source: Government of Sierra Leone 2008.


Lungi Airport can accommodate all classes of wide-body aircrafts, has a 3,200 meter runway, and offers a 747

freighter dock, bonded warehouse, transit zone, mechanical handling, health offices, very large or heavy cargo facilities, terminal handling, and clearing and forwarding facilities.

Tariffs and services. Air transport costs for goods from Lungi Airport to selected international destinations are shown in Table 5. The airport is operated by the Sierra Leone Airports Authority.

sEa transPortation The government-owned Sierra Leone Ports Authority (SLPA) is responsible for operations at the country’s ports. In addition to the Freetown Port, the SLPA operates the Nitty Port on the Sherbro River, which is mainly used for rutile exports. The third main commercial port, the Port of Pepel, is currently nonoperational—though it is likely to become operational in the near future. With World Bank support, some of the damage suffered by the country’s ports during the civil war has been repaired, and more improvements are ongoing, including restoring 31,000 square meters of warehousing space. With a focus on privatizing port operations and making the SLPA more ef-ficient, the government has signaled a strong commitment to improving ports.

Tariffs and services. Sea transport costs to selected destinations are shown in Table 6. Customs offices—run by a department in the National Revenue Authority—are located at major entry and exit points within the country.

radio, tELEVision, and nEws agEnciEs Sierra Leone has at least 56 radio stations with large audiences, and many local and regional radio stations have niche audiences in communities (Table 7). Radio is used extensively for advertising, with local singers and artists often used to publicize products. Television is provided by the state-run Sierra Leone Broadcasting Service and the privately owned ABC Television. To inquire about television services, an investor should contact the Sierra Le-one Investment and Export Promotion Agency (SLIEPA), Independent Media Commission, or Ministry of Informa-tion and Communications. Contact information is available in Appendix 1.

Sierra Leone also has about 40 newspapers. Most news agencies are privately owned, and news is perceived as being open and free. Though not all news is entirely factual, the quality of reporting is improving.

taBLE 5 air transPort costs from frEEtown to sELEctEd dEstinations

(U.S. dollars per kilogram)

destination cost

Amsterdam 4.71

Los Angeles 7.82

New York 10.25

Singapore 9.08

Tokyo 9.08

source: DhL 2007.

taBLE 6 sEa transPort costs from frEEtown to sELEctEd dEstinations

(U.S. dollars per 40 foot container)

destination cost

Long Beach 7,131

New York 7,101

Rotterdam 3,733

Singapore 616

Yokohama 543

source: Freight forwarding companies.


rEaL EstatE and industriaL LandMany companies lease existing industrial facilities or factory shells in industrial estates rather than buy property and build facilities.

Tariffs and services. Table 8 shows real estate costs that companies may incur when investing in Sierra Leone. These data are from company surveys conducted by MIGA in 2007, and prices may vary. For firms that built their own facilities, engineering and construction costs for a factory shell or warehouse averaged $502 per square meter.

taBLE 8 rEaL EstatE and construction costs in siErra LEonE

(U.S. dollars per square meter)

type of activity cost

Annual lease for Grade A office facility 51

Annual lease for standard factory building shell 54

Purchase price for industrial land 4.96

Construction costs for industrial units 502

Construction costs for warehouse or industrial facility 502

source: MIGA 2007.

To register property, an investor must take the steps listed in Table 9. The Ministry of Lands, Housing, and Country Planning, Office of the Administrator and Registrar-General, and National Revenue Authority are the contacts; contact information for these can be found in Appendix 1.

taBLE 9 Land rEgistration ProcEdurEs for a mEdium-siZE BusinEss

step Procedure time to complete cost to complete (approximate)

1 Buyer authenticates at the notary the abstract 3–5 days $1 of the title provided by the seller

2 Buyer verifies the seller’s title to the property 5 days $17 at the Property Registry

3 A licensed surveyor visits the property and 20 days $507 prepares a survey plan

4 Buyer files for a survey plan of the property 1 day No cost at the Ministry of Land and Housing

5 Buyer returns to the Ministry of Lands, Housing, About 180 days No cost and Country Planning and obtains the signed survey plan

6 Hired lawyer prepares and executes the sale- 1–2 days 10% of purchase price purchase agreement

7 Buyer obtains a tax clearance certificate from 2 days No cost the National Revenue Authority

8 Office of the Administrator and Registrar- 21 days $15 registration fee + $27 property fee General registers the transfer of title + $34 per acre of land (local taxes) + stamp duty based on property value

source: World Bank, Doing Business 2007.

taBLE 7 sELEctEd radio stations in siErra LEonE

Frequency Station

am radio

1206 50/10kW SLBC—Freetown SL

fm radio

89.9 RFI 1 Afrique / RFI 2, Freetown—French/English 24 hours

93.0 Believers Broadcasting Network, Freetown—news/Christian

94.0 Aberdeen SL

94.3 BBC World Service, Freetown—news in English

96.2 Voice of the Handicapped, Freetown

98.1 Radio Democracy, Freetown—in Krio

99.9 SLB Service, Freetown

104.4 Kiss FM, Bo—variety, in Krio and Mende

106.0 Sky FM, Freetown

107.3 Radio Mount Aureol CTN


BANkING AND BUSINESS SERVICEScommErciaL BanKsSierra Leone is home to 13 commercial banks, including 10 foreign banks (6 Nigerian, 1 British, 1 German, 1 Malaysian, and 1 from Togo, along with 2 state-owned banks and 1 domestic private bank).These banks are well capitalized and looking for innovative ways to serve the market with new products and services.

The two state-owned commercial banks—Rokel Commercial Bank (51 percent state-owned) and Sierra Le-one Commercial Bank—and the National Insurance Company and National Development Bank are slated for privatization. Standard Chartered Bank is the third largest bank after Rokel Commercial Bank and Sierra Leone Commercial Bank. Other financial services include insurance companies, brokerages, two government-run development banks (National Development Bank and National Development Cooperatives Bank), the virtually illiquid Postal Savings Bank, six community banks, one capital discount house, three housing finance companies, nearly 50 microfinance institutions run by various nongovernmental organizations (NGOs), and 68 foreign ex-change bureaus. Banking accounts for 95 percent of the financial sector’s assets. Additional banks have received licenses and should commence operations soon.

Banks are based in Freetown and have branches in rural areas. Accounts can be opened in both domestic and foreign currencies. Automated teller machines (ATMs) are available for domestic accounts, linking banks’ head offices with branches elsewhere, but there is no international ATM access. Credit cards can be used at major banks such as Rokel Commercial Bank.

insurancESierra Leone has a well-developed insurance sector, with most of its funds invested in real estate. The Sierra Leone Insurance Commission monitors and regulates the operations of insurance companies. Eight insurance companies provide competitive services (life, fire, automotive, and marine insurance): Aureol Insurance Compa-ny, National Insurance Company, Reliance Insurance Trust Corporation, International Insurance Company, Tran-sworld Insurance Company, Medical and General Insurance Company, Marine and General Insurance Company, and Sierra Leone Insurance Company.

caPitaL marKEtThe stock market is limited to trading in a few stocks involving over-the-counter transactions. The money mar-ket is dominated by government securities, mainly treasury bills and treasury bearer bonds.

The government plans to strengthen financial intermediation by establishing a Stock Exchange Market and a Venture Capital Fund. This effort is being spearheaded by the Stock Exchange Technical Committee, formed under the auspices of the Bank of Sierra Leone and consisting of representatives of the government and the private sector. The government is creating an Interim Stock Trading Facility to provide a regulatory framework for share transactions consistent with international financial practices and create a structure for more wide-spread trading of shares. Today there is one venture capital (private equity) fund, but ways to develop this industry are being explored. For more information about the Stock Exchange Market, contact the Interim Stock Trading Facility.


TAxES, TARIFFS, AND INCENTIVEStaxEs and tariffsFirms, domestic and foreign, are subject to a corporate tax rate of 30 percent (except for mining companies, which pay 35 percent; Table 10). Citizens are subject to taxes of 20–30 percent, depending on their income. The Common External Tariff adopted by the Economic Community of West African States (ECOWAS) in 2005 set four tariff bands of 0, 5, 10, and 20 percent, with a mean of about 13 percent. There is a diamond export tax of 5 percent and royalty taxes for artisanal license holders, which are 5 percent for precious stones, 4 percent for precious metals, and 3 percent for other minerals.

taBLE 10 aVEragE taxEs for a mEdium-siZE comPany in siErra LEonE

tax/mandatory contribution statutory tax rate (percent unless otherwise stated) tax base

Sales tax 15 Cost of goods sold

Social security contribution 15 Gross salary

Vehicle tax Varies Cubic capacity

Tax on interest 15 Interest income

Fuel tax SLL 307.38 ($0.103) Per liter

Tax clearance certificate SLL 2,000 ($666.6) Per certificate

Corporate income tax 30 (35 for mining companies) Taxable profits

source: World Bank, Doing Business 2008.

All taxes are collected by the National Revenue Authority, which has three branches: the Income Tax Department, Customs and Excise Department, and Gold and Diamond Office. In addition, a non-tax revenue department collects fines, penalties, and royalties, and has officers in government ministries, departments, and agencies. Income-related taxes are collected by the Income Tax Department, whose tasks includes tax assessment and collection, implementation of tax laws, and research. All taxes are collected at the national level, with four district-level income tax offices and a head office in Freetown. The Income Tax Department conducts its functions under the framework of the Income Tax Act.

imPort tariffs Sierra Leone subscribes to the Customs Cooperation Council Nomenclature, and tariffs are based on a single-col-umn tariff schedule. Imports from other Mano River Union (MRU) members enter duty free. Duties on non-MRU goods are levied on the cost, insurance, and freight (c.i.f.) value of the goods. Duties range from 0–30 percent on luxury goods, with most averaging about 20 percent. Duty-free items include textbooks, medical equipment, ag-ricultural inputs, and machinery. In addition to the customs tariff, all imports are subject to a 15 percent sales tax. Alcohol and tobacco are subject to a 20 percent import duty, 15 percent sales tax, and 30 percent excise duty.

incEntiVEs and sPEciaL ZonEs As incentives to foreign investors, Sierra Leone offers accelerated depreciation of 40 percent for plants and equipment the first year and 10–15 percent for most other items. It also offers a loss carry-forward of 50 percent of the previous tax year’s taxable income.

Investors in the mining sector receive a 100 percent deduction for prospecting and exploration, a 40 percent deduction for the first year of production costs, 10 percent depreciation for research and development, and 10 percent amortization of startup costs. In addition, individuals can deduct 50 percent of qualifying investments, up to $150,000, from their personal taxes.


To encourage investment in rice and timber, a 10-year corporate tax holiday is granted to qualified investors. Tourism investment may qualify for a five-year tax holiday, and expatriate tourism salaries may be exempted from the pay-as-you-earn tax for three years.

In keeping with plans to promote export diversification and competitiveness, the government of Sierra Leone plans to establish export processing zones and agroprocessing units in suitable locations as well as an industrial and economic zone in Freetown.

fiscaL and financiaL incEntiVEsSierra Leone also provides other incentives for investors, especially in sectors such as tourism, fisheries, mining, and minerals, as well as for banks, nonbank financial institutions, and other business activities. These incentives include:

• Export licenses are not required for locally produced goods (except gold, diamonds, and a few other goods designated by the government).

• Investors in the tourism sector pay a 15 percent corporate tax for the first five years of a new investment, unlike the 30 percent rate charged to most corporations. Some investors may also qualify for tax holidays. In addition, tourism enterprises with up to six employees are exempt from the pay-as- you-earn tax for skills and expertise not readily available in Sierra Leone for the first three years of employment.

• The import duty for raw materials, plants, and machinery is 5 percent, and malaria and HIV drugs are exempted. The import duty for intermediate products is 10 percent, while it is 5 percent for vehicles up to 4 years old, 20 percent for those 4–10 years old, and 30 percent for those older than 10 years. Tourism enterprises are exempted from import duties for new construction, extension, or renovation, applicable to building materials, machinery, and equipment not easily acquired in Sierra Leone.

• The sales tax is zero for plants and machinery, while others are 15 percent at entry and production.


OppORTUNITIES FOR INVESTORSSierra Leone offers many significant investment opportunities in agriculture, fisheries, mining, infrastructure, and telecommunications. Organizations such as the Multilateral Investment Guarantee Agency (MIGA) and Overseas Private Investment Corporation (OPIC) can provide investors with risk guarantees that insure investors against political and noncommercial risks.

agriBusinEss Agriculture has traditionally been Sierra Leone’s main source of subsistence and household employment. In the Eastern Region 79 percent of citizens are engaged in agriculture—46 percent primarily in rice farming. The country has a diverse climate, plentiful rainfall, good soil, and abundant land conducive to cultivation, and its topography is suited to a variety of upland and lowland farming.

As recently as 2003, only 15 percent of Sierra Leone’s 5.4 million hectares of available cultivatable land was being farmed. Yet growing seasons in most parts of the country exceed 260 days a year. Average annual rainfall is 300 centimeters (118 inches), and the country’s nine major and three minor rivers have scarcely been tapped for their irrigation potential. In recent years production has rebounded for several commodities, including ginger, palm oil, cocoa, coffee, and rice. Other products that may offer potential, based on previous commercial and export suc-cess, include palm kernel processing, kola nuts, mangos, peanuts, cassava, piassava, and livestock.

ProVEn ExPort PotEntiaL The success of recent efforts to restore prewar exports of certain commodities demonstrates Sierra Leone’s capac-ity to regain lucrative export markets. The country’s climate is well suited to producing high-value export crops such as ginger, cocoa, and coffee.

Having been reduced to largely small-scale production during the war, new investment is required to restore and ultimately exceed prewar production levels, including rehabilitation of government-owned and private planta-tions. Some crops produced in Sierra Leone are in high demand interna-tionally. Ginger, cassava, and piassava, for example, have export potential in West Africa and beyond. The quality and scale of Sierra Leone’s cashew and palm oil output could also be competitive in domestic and regional markets. Investment should be encouraged in small-scale mills for process-ing.

The latest estimates by the Bank of Sierra Leone highlight the production volumes of Sierra Leone’s agricultural commodities in 2007 (Table 11). Among these, coffee and cocoa were entirely exported, with cocoa exports much higher than in 2005.

taBLE 11 siErra LEonE’s Production of LEading agricuLturaL Products, 2007

Product Production volume

Cocoa 13,722 metric tons

Cassava 3,865,030 metric tons

Coffee 2,483 metric tons

Rice 1,432,800 metric tons

Sweet potato 176,564 metric tons

Peanuts 126,723 metric tons

Maize 54,944 metric tons

Beer and stout 780,110 cartons (cases)

Maltina 172,760 cartons

Confections 3,140,940 pounds

Soft drinks 2,431,700 crates (cases)

Flour 13,550 metric tons

source: Bank of Sierra Leone.


Box 4 ricE and othEr oPtions for imPort suBstitution

Given Sierra Leone’s growing population, steady economic growth, gradually rising incomes, and government efforts to ensure food security, investments in imported agricultural goods may be highly profitable in the near term. For example, the country’s per capita consumption of rice is among the highest in Africa. Yet despite comparative advantage in rice production, the country imported $56 million of rice in 2006—about 40 percent of domestic demand. Increasing rice production and cultivation yields would serve a ready market. Similarly, imports of animal products and vegetable oils accounted for $3.3 million in imports in 2006, and beverages and tobacco for $9.1 million—all of which are locally produced and have potential for increased production. According to the Bank of Sierra Leone, other food items accounted for 17 percent of the country’s import bill.

high LocaL dEmandFood security remains a concern for the government and donors, and producers that can meet the growing de-mand are likely to gain support from both. Domestic production of rice and palm oil falls short of local demand (box 4). Although vegetable and fruit production have started to recover, local demand for plantains, citrus fruits, coconuts, pineapples, spinach, and mangos outstrips supply—creating opportunities for investments in these crops.

oPPortunitiEs for organic foodsOrganic foods—processed and unprocessed—are one of the world’s fastest-growing sectors in the food and beverage industries. Sierra Leone’s reliance on traditional methods of agriculture may be an asset as producers seek to identify and develop organic niche products for export.

scoPE for imProVing LocaL LinKsSeveral potentially large-scale consumers of agricultural goods, including Freetown hoteliers and manufacturers, have expressed a desire to source more agricultural products domestically.

faVoraBLE tradE arrangEmEntsSierra Leone is eligible for trade preferences with the United States under the African Growth and Opportunity Act (AGOA). It can also take advantage of favorable terms of trade with the European Union under the Cotonou Agreement for African, Caribbean, and Pacific countries and within the Economic Community for West African States (ECOWAS).

unmEt nEEd for agricuLturaL goods and sErVicEsOpportunities exist for investors willing to invest in agricultural inputs, including fertilizer, seeds and other planting materials, tools, animal feed, agrochemicals, cold storage, packaging materials and services, and road and maritime transport. The U.K. Department for International Development (DFID) estimates that in 2003 the country’s demand for fertilizer outpaced imports by 139,700 metric tons. A significant limitation on the value added of Sierra Leone’s agriculture is the lack of cold storage, including at ports and airports, and an efficient export distribution system. Most packaging materials are imported and must pay duties, making local production of quality materials potentially viable.

BiofuEL ProductionSierra Leone has an ideal climate and available land for significant production of foods such as sugar and palm oil that may also have potential for biofuel production. Biomass (mostly wood and charcoal) already accounts for 90 percent of the country’s energy consumption, and there is plentiful wood and non-wood biomass that can be used for fuel.


Box 5 inVEstmEnt in shiP rEPair and sErVicing

Sierra Leone Fishing and the Sierra Leone Ports Authority are the only two entities that offer ship repair and maintenance services. Sierra Leone Fishing has a 400 ton Synchrolift, while the ports authority has a slipway that can accommodate ships up to 550 gross registered tons. But both operations can serve only about 60 ships a year and need to be refurbished and expanded. For major repairs, ships must travel to Dakar (Senegal) or Las Palmas (Canary Islands, Spain). Freetown, which has the world’s third largest natural harbor, has considerable potential to become a major shipping center, including for fish processing, transshipment, and maritime services. As fisheries rebound, the lack of services offers opportunities for new investment in ship repair and maintenance to serve both domestic and foreign markets.

fishing Sierra Leone’s fishing sector is split into two markets: industrial fishing in the Economic Exclusive Zone and small-scale fishing. Both markets provide opportunities for investment. Industrial fishing was limited through 2003, enabling local fish populations to recover in large numbers. Since the end of the war, an EU ban on fish imports—due to uncontrolled illicit fishing—has also reduced industrial fishing in Sierra Leone. The DFID has found that vessels operating in Sierra Leonean waters range in size from 71–336 gross registered tons. Most estimates suggest that small-scale fishing, which is mainly conducted by local fishermen using basic technology and supplying the domestic market, is at sustainable levels.

rich PotEntiaL for industriaL fishingData from the European Commission and DFID indicate that Sierra Leone’s fisheries are well-stocked with export-quality species. The country has 402 kilometers of coastline and a continental shelf of 25,600 square kilometers that contains commercially viable stocks of pelagic fish (surface-dwelling species including tuna, barracuda, and herring-like species such as cuttlefish and octopus), demer-sal fish (bottom-dwelling species including snapper, catfish, and grouper), shrimp, octopus, squid, lobster, and crab. Among the high-value exportable fish and cephalopods in Sierra Leonean waters are snapper, grouper, catfish, barracuda, tuna, shrimp, lobster, cuttlefish, herring, and sea bream. Recent assessments suggest that legal, direct exports of fishery products, valued at $97,200 in 2006, are well below their potential.

dEVELoPing fish nursEriEsThe country’s rivers, estuaries, and tributaries, with their extensive mangrove vegetation, provide favorable conditions for sheltering and nursing penaeid shrimp and fish such as bonga and croakers, as well as oysters. The government estimates that the shrimp catch could reach 200,000 metric tons a year and suggests that its cephalopods are highly desirable.

ProcEssing frEshwatEr fishLittle reliable data exist on Sierra Leone’s inland fishing stocks, but the aquatic diversity—16 families of freshwater fish have been identified, comprising an estimated 100 species—suggests that investment in inland fishing may have an annual sustainable yield of 44 metric tons. Sierra Leone also supports an unknown quantity of oysters that, with proper cold storage and supply chain investments, of-fers export potential (Box 5).

PotEntiaL to suPPLy rEgionaL and domEstic dEmandSmall-scale fishing focuses on local consumption, was worth $14–18 million in 2003, and comprises some 660 motorized boats and 8,149 nonmotorized vessels employing 30,500 fishermen. Herring, croakers, bonga, and oysters are popular in the domestic market. The DFID estimates that the small-scale and commercial catch is about half its annual potential of 16,000–40,000 metric tons of freshwater fish, 55,000 metric tons of pelagic fish, and 85,000–100,000 metric tons of demersal fish. Though exports to the European Union are currently banned, the European Commission is financing sanitary improvements in the fisheries sector so that Sierra Leone can legally export to the European Union.


mining Geophysical research indicates that mining in Sierra Leone has potential for growth and increased value added. Before the war, mining accounted for 20 percent of GDP, 90 percent of registered exports, and 14 percent of the workforce, directly or indirectly. During the 1960s and 1970s minerals exports accounted for more than 70 per-cent of the country’s foreign exchange earnings. There are known deposits of diamonds, rutile, bauxite, ilmenite, gold, chromite, platinum, lignite, clays, and base metals such as copper, nickel, molybdenum, lead, and zinc. Sierra Leone was producing 25 percent of the world’s rutile when its major mines closed in 1995. Government estimates suggest that by 2010, exports could reach $160 million for diamonds, $119 million for rutile, $50 mil-

lion for bauxite, and $6 million for ilmenite.

diamond mining and finishingThe diamond industry, which in the past accounted for the bulk of Sierra Leone’s foreign exchange earnings, has undergone considerable regulatory change in re-sponse to implementation of the Kimberley Process—designed to ensure that illicitly mined diamonds do not reach export markets. There are official concerns about continued smuggling of diamonds out of Sierra Leone, but an international ban on the country’s diamond exports has been lifted. Some analysts suggest that the current level of exploitation is near its peak potential. Estimates of alluvial diamond production range from 250,000–400,000 carats a year for the next 5–10 years, significantly lower than in 2007 (table 12). Although Sierra Leone lacks the expertise to cut and polish diamonds,

finishing is a potential value added investment opportunity.

BuiLding matEriaLs to suPPort construction BoomA postwar construction boom has fueled investment in product manufacturing involving domestic minerals, including the 2006 establishment of the $5.4 million Sierra Block Factory, a joint venture between Sierra Leone and a private investor from Ghana to make cement products. This investment expands capacity for cement

production, replacing a factory that operated before the war.

LargE-scaLE miningThe commercial potential for a range of minerals in Sierra Leone offers several options to potential investors. Mining can be labor-intensive and significantly contribute to government revenue. Moreover, mining operations can be large and lucrative enough that a major company may find investing in countries with poor infrastructure worthwhile and create considerable spillovers for goods and services in the local economy. As with Arcelor-Mittal Steel’s recent investment in Liberia, in some cases companies find it cost-effective to rebuild a lot of destroyed

infrastructure, including railway and port facilities.

taBLE 12 siErra LEonE’s Production of LEading LEading minEraLs, 2007

mineral Production volume

Diamonds 603,700 carats

Bauxite 1,169,040 metric tons

Rutile 82,810 metric tons

Ilmenite 15,750 metric tons

Gold 6,820 ounces

source: Bank of Sierra Leone.


tourism Given Sierra Leone’s beautiful and underdeveloped beaches, historical sites (including a slave trade fortress), and attractive plants and animals, tourism holds considerable potential for investor interest. The National Tourism Board has identified several areas, activities, and cultural sites with potential for tourism. The board serves as both the promotional agency for tourism in Sierra Leone and the national regulator of hotels, guest houses, casinos, restaurants, travel agencies, and related service providers (tourist transport, tour agencies, and so on). Primary among the National Tourism Board’s accounting of Sierra Leone’s tourism assets are 360 kilometers of prime beaches, including Sulima, Turner’s Peninsula, Sherbro Island, Shenge, Turtle, Freetown Peninsula, Lungi,

and Scarcies estuary.

grEat PotEntiaL for high-End EcotourismSierra Leone offers high-end ecotourism experiences, including bird watching, sport fishing, mountaineering, and hiking in nature preserves such as the Outamba-Kilimi National Park, Lake Sonfon, Bumbuna and Bathurst-Charlotte waterfalls, Loma and Bintumani mountains, Gola forest, and Maumunta and Tiwai island sanctuaries. Cultural heritage sites include the slave fort on Bunce Island, some old churches, and colonial era buildings. The National Tourism Board has identified Bunce Island, the Freetown Peninsula, Tiwai Island, and Outamba-Kilimi as

priority sites for immediate preservation and restoration and eventual tourism development.

targEting nichE marKEtsSierra Leone can position itself to target certain niche markets for tourists, notably the Sierra Leonean diaspora, African Americans and others interested in the history of the slave trade, and Europeans looking for winter beach holidays. Golfing, water sports, and adventure travel are also on the list of tourist activities. Over time, tourism offers considerable potential for job creation, foreign exchange earnings, and economic benefits through tourist spending on local goods and services.

The government reports that 356 tourist establishments had been initiated by the end of 2006, including hotels and guest houses (with a total of 2,642 beds), casinos, restaurants, travel agencies, and related service provid-ers. Tourism in Sierra Leone was not a major market before the war. Most hotels are geared toward serving professionals—mainly United Nations and NGO personnel engaged in reconstruction and development activi-ties. Ongoing tourism initiatives include rehabilitation of resorts and heritage sites, protected tourism sites, and

potential tourist attractions.


infrastructurEairPort sErVicEsSome of Sierra Leone’s infrastructure weaknesses also represent investment opportunities. A local investor re-cently bought a high-speed hovercraft and is servicing the Freetown airport. Safe, quick, reliable maritime trans-port services would offer an alternative to driving to some of Sierra Leone’s tourism sites, including peninsular

beaches and nature reserves.

sanitation sErVicEs Rapid urban growth has led to a shortage of public sanitation services, offering investors opportunities in gar-

bage collection, disposal, and recycling.

tELEcommunicationsExPanding thE digitaL nEtworK and adding VaLuE to thE sEctorTelecommunications services are becoming increasingly mobile in Sierra Leone, creating many opportunities for investment. Indeed, in many post-conflict countries telecommunications services—along with transport logistics and security—are among the first areas to which foreign direct investment (FDI) is committed, typically without any organized government investment promotion campaign. Four mobile phone companies—Africel, Comium, Tigo (formerly Millicom), and Zain (formerly Celtel)—offer a range of services, and the startup capital invested by these companies is estimated to exceed $125 million.

Over time there is potential for increased value added in telecommunications pending international agreements, such as connecting Sierra Leone to the West African fiber optic cable system, and increased investment in activi-ties like data storage, wireless broadband (using WiMAX), and Voice over Internet Protocol (VoIP) services. In addition, anecdotal evidence suggests that the Sierra Leonean diaspora contains individuals skilled in information

technology.


PriVatiZationPrivatization is a priority for Sierra Leone, both to achieve macroeconomic stability and to facilitate private sector development. The Public Enterprise Reform Act of 1993 was repealed in 2002 because of the instability caused by the civil war, and replaced by the National Commission for Privatization Act. The commission is to:

• Set policies and make decisions about the divestiture and reform of public enterprises.

• Assume management of all public enterprises.

• Remove interference in the management of public enterprises from line ministries, thereby ensuring transparency and good corporate governance, and avoiding conflicts of interest in the affairs of public enterprises.

Seventeen public enterprises were to be divested in the first schedule of the act (Table 13). These enterprises fall into seven categories: utilities, financial institutions, transport, shipping, agriculture, manufacturing, and housing. By privatizing these enterprises, the government will disengage from commercial and industrial activities and concentrate on providing basic services and infrastructure facilities that complement rather than compete with the private sector.

The privatization program has three components:

• Loss-making enterprises engaged in producing or trading services and that operate in competitive markets should be privatized immediately.

• In the short term, large public enterprises—such as utilities—should be made more efficient because outright sales may not be financially or politically feasible. In the medium term, management contracts, performance contracts, joint ventures, and leases should be offered while restructuring begins for final sales.

• Employee ownership and local participation are to be high priorities in the sales process, to mobilize domestic support for the program.

For the enterprises being privatized, the government is seeking investors—especially foreign investors—who will

bring significant capital and technical skills to improve company performance.

taBLE 13 EntErPrisEs schEduLEd for diVEstiturE, january 2009

1. Sierra Leone Housing Corporation

2. Sierra Leone Produce Marketing Board

3. Mining and General Services Limited

4. Sierra Leone Road Transport Corporation

5. Sierra Leone Telecommunications Company

Limited

6. Sierra Leone Airport Authority

7. National Power Authority

8. Sierra Leone Ports Authority

9. Guma Valley Water Company

10. Sierra National Shipping Company Limited

11. Sierra Leone State Lottery Company Limited

12. National Insurance Company

13. National Development Bank Limited

14. Sierra Leone Commercial Bank Limited

15. Rokel Commercial Bank Limited

16. Sierra Leone Roads Authority

17. National Development Bank Limited


LEGAL AND REGULATORy ENVIRONMENTSierra Leone has a liberal trade policy, and the government encourages foreign investment. The main laws affecting foreign investors are the Companies Act, Sale of Goods Act, Business Registration Act, and Sierra Leone Investment and Export Promotion Act. There are no major laws or rules undermining foreign investment through mergers, acquisi-tions, or takeovers. In addition, there is no discriminatory economic or industrial strategy against foreign investors, and

no limit is imposed on foreign ownership or control. All laws are available at www.sierra-leone.org/laws.html.

LEgaL and judiciaL systEmSierra Leone’s legal system is based on the English law tradition. Many laws and the structure and administration of the judicial system reflect what existed in England many years ago and have not changed over the years. Thus the government has made legal and regulatory modernization a top priority.

comPaniEs actThe Companies Act, established in 1929, is the main law affecting the operations of businesses in Sierra Leone. The law is currently at the top of the list of legislation under review. According to the Companies Act, the following type of businesses can be established in Sierra Leone:

• Limited liability company—one where the liability of its members is limited to the amount, if any, unpaid on the shares they hold.

• Company limited by guarantee—one where the liability of its members is limited to the amount they contributed to the assets of the company in the event of it being liquidated.

• Unlimited company—a company with no limits on the liability of its members.

The government also encourages joint ventures, and full foreign ownership is allowed. One of the tasks of the Sierra

Leone Investment and Export Promotion Agency (SLIEPA) is to help investors find local business partners.

anti-monEy LaundEring actThe Anti-Money Laundering Act of 2005 created measures to combat money laundering and a supervisory committee

to oversee breaches of the act. A main reason for its implementation is to combat efforts to destabilize the country or

meddle in politics or political party affairs. The law allows the importation of $10,000 in cash. Any amount beyond that

must be transferred through the banking system to ensure transparency and a paper trail.

BanKruPtcy LawThere is no law on bankruptcy in Sierra Leone—only the provisions of the Companies Act dealing with failing and

failed companies. The government introduced a bill on bankruptcy in 2008; it now awaits parliamentary approval.

rEgistration of BusinEss actIn 2007 Parliament passed a new Registration of Business Act that trims company registration procedures to four

steps. The act eliminates the requirement that firms hire a lawyer to prepare the memorandum and articles of associa-

tion to register, because an investor or another knowledgeable person can compile the details of the company without

a lawyer.

inVEstmEnt Promotion act A new Investment promotion Act went into effect in 2004 to provide more protection for companies investing in

Sierra Leone and promote production and value added activities.

Issues covered by the act include:

• No distinction is made between foreign and domestic investors when it comes to investment procedures.

• The government and its development partners will provide investors with incentives such as business training, microfinance, technical assistance, business incubator programs, prequalification programs for access to credit, a credit registry, and registry of local enterprises for joint ventures.


• In addition to other business assistance, SLIEPA shall seek the cooperation of relevant authorities to facilitate registration of businesses, including in obtaining needed permits, licenses, certificates, and clearances within seven working days.

• Foreign investors are guaranteed the right to remit profits, and private firms—domestic or foreign—are protected from expropriation of property.

• Export licenses are not needed to export locally produced goods except diamonds, gold, and a few

other goods.

disPutE rEsoLutionDispute resolution is defined by the Investment Promotion Act. Under the act, when a dispute arises between an investor and the government over an investment in an enterprise or about an investment obstructed or delayed by the government, the parties will make their best efforts to settle the dispute amicably. If a dispute is not settled amicably, it may be submitted for arbitration at the option of the aggrieved party, as follows:

• In accordance with the arbitration procedures defined by the United Nations Commission on International Trade Law (UNCITRAL).

• In the case of a foreign investor, under the framework of any bilateral or multilateral agreement on investment protection to which Sierra Leone and the country of which the investor is a national are parties.

• In accordance with any other national or international mechanisms for settling investment disputes, as agreed to by the parties.

If a dispute between an investor and a nongovernmental body over an enterprise is not settled amicably, and no recourse is available through arbitration or previously established contracts or other legal instruments, the matter shall be referred to the relevant legal authority in Sierra Leone for settlement, in accordance with the law covering

such transactions (Investment Promotion Act 2004, p. 30).

ownErshiP and ProPErtyThere are no restrictions on the amount of equity a foreign firm may own in a domestic business. In addition, there are no requirements that nationals own shares, that the share of foreign equity fall over time, or that tech-

nology be transferred under certain terms. There are also no “offset” requirements.

intELLEctuaL ProPErty rights Sierra Leone has signed all the major treaties of the World Intellectual Property Organization, World Trade Orga-nization, and African Regional Intellectual Property Organization. In addition, the Ministry of Trade and Industry has been working with donors to improve compliance with the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). The government is also updating colonial legislation on

intellectual property rights and working to establish a coherent structure for administering intellectual property.

PErformancE and rEQuirEmEntsLocaL contEnt rEQuirEmEntsThere are no performance requirements for foreign investors proscribing export amounts, domestic inputs, invest-ment levels (initially and over time), or transfers of technology or proprietary knowledge, or limiting access to foreign exchange.

The annex to the Investment Promotion Act defines investment incentives in various sectors. Key areas for incen-tives include agroprocessing and value added activity in fisheries, both of which offer considerable potential for

Sierra Leone.


EnVironmEntaL rEQuirEmEntsUnder the Environmental Protection Act of 2000, enterprises engaged in activities involving potential environmen-tal harm (defined in sections 14 and 15 of the act) must apply for a license from the director of the Department of the Environment. The director, with input from the department’s board, is then responsible for issuing the license.

tEchnoLogy transfEr Though there are no requirements that foreign firms in Sierra Leone transfer technology, the government encour-ages imports of machinery and new technology. Technology transfer and training programs are one of the main focus areas of the Investment Promotion Act. The act raises the possibility of firms receiving assistance in building capacity, including for training.

ExPatriatE EmPLoyEEs Expatriates are allowed to work in Sierra Leone. A business seeking to hire an expatriate must submit an applica-tion to the Ministry of Employment, Labor, and Social Security for consideration in line with labor rules. It takes six weeks to four months to obtain a work permit or self-employment permit. Permits must be renewed every year. To facilitate relocation of expatriates, Sierra Leone offers customs duty exemptions for expatriates issued work

permits and their immediate families. Joint work and residence permits can also be obtained.

Exchanging and rEmitting funds Expatriates with work permits can make foreign remittances through their commercial banks, subject to the withholding obligations in the Income Tax Act of 2000, if applicable. After-tax profits earned by a foreign investor

from a business can be remitted without restriction, with payments transferred abroad.

Any investor may freely repatriate proceeds from the liquidation of an enterprise and awards resulting from settle-ments of disputes related to such enterprises. There are no restrictions on repayments of principal and interest on an arm’s-length, third party loan contracted outside Sierra Leone and registered with the Bank of Sierra Leone,

but interest payments on such loans may be subject to the withholding obligations in the 2000 Income Tax Act.

INVESTMENT pROCEDURESsLiEPa: a nEw agEncy to hELP with forEign inVEstmEnts and ExPortsThe Sierra Leone Investment and Export Promotion Agency (SLIEPA) Act, passed in 2007, created a new agency responsible for promoting foreign investments in and exports from Sierra Leone. The agency is responsible for, among others, the following tasks:

• Promoting agricultural production, investment opportunities, and other export-oriented activities.

• Facilitating export-oriented operations of small-scale producers and manufacturers.

• Serving as the focal point for raising awareness about the importance of exports and developing export strategies.

• Providing exporters with marketing advisory services and helping them develop marketing plans for entering or expanding their business in foreign markets.

• Playing an advocacy role for exporting firms in their relations with the government and other organizations.

• Helping exporting firms identify opportunities to receive technical assistance from regional and international organizations.

• Identifying potential foreign investors, with a view to encouraging them to invest in agriculture and other sectors of the economy.

• Promoting—domestically and internationally—investment opportunities in Sierra Leone.

• Collecting, analyzing, and disseminating user friendly, accessible information about investment opportunities in the economy and priority sectors in Sierra Leone.

• Facilitating coordination and cooperation between the public and private sectors on matters related to foreign investments.

• Conducting research on foreign investments, exports, and related activities.

• Supporting the development of sector associations.

The Investment Promotion Act of 2004 also makes SLIEPA responsible for offering business services such as facilitating business name registrations and securing incorporation certificates, registration certificates, and license certificates.

SLIEPA’s board of directors consists of a chairman appointed by the country’s president (based on a recommenda-tion from the minister of trade and industry and approved by parliament), along with nine directors. Four of the directors come from the private sector, with one each from the Sierra Leone Chamber of Commerce, Industry, and Agriculture, Sierra Leone Manufacturers Association, and Sierra Leone Bankers Association; the fourth is the chairman, who is a distinguished, experienced industrialist or businessperson. The other five directors are the permanent secretaries from the Ministry of Trade and Industry, Finance and Economic Development, Fisheries and Marine Resources, Tourism and Cultural Affairs, and Agriculture, Forestry, and Food Security. A chief executive officer is responsible for day-to-day management of the agency and is appointed by the board and approved by the Ministry of Trade and Industry.

investors interested in starting a business in sierra Leone should first contact sLiEPa at:Sierra Leone Investment and Export Promotion Agency O.A.U. DriveTower HillFreetown, Sierra LeoneTel: Switchboard: +232 22 220788 Chief Executive Officer: +232 22 221869 Director of Investment Promotion: +232 22 226155 Director of Export Development: +232 22 224976Fax: +232 22 221037Email: [email protected]: www.sliepa.org


INVESTMENT pROCEDURESsLiEPa: a nEw agEncy to hELP with forEign inVEstmEnts and ExPortsThe Sierra Leone Investment and Export Promotion Agency (SLIEPA) Act, passed in 2007, created a new agency responsible for promoting foreign investments in and exports from Sierra Leone. The agency is responsible for, among others, the following tasks:

• Promoting agricultural production, investment opportunities, and other export-oriented activities.

• Facilitating export-oriented operations of small-scale producers and manufacturers.

• Serving as the focal point for raising awareness about the importance of exports and developing export strategies.

• Providing exporters with marketing advisory services and helping them develop marketing plans for entering or expanding their business in foreign markets.

• Playing an advocacy role for exporting firms in their relations with the government and other organizations.

• Helping exporting firms identify opportunities to receive technical assistance from regional and international organizations.

• Identifying potential foreign investors, with a view to encouraging them to invest in agriculture and other sectors of the economy.

• Promoting—domestically and internationally—investment opportunities in Sierra Leone.

• Collecting, analyzing, and disseminating user friendly, accessible information about investment opportunities in the economy and priority sectors in Sierra Leone.

• Facilitating coordination and cooperation between the public and private sectors on matters related to foreign investments.

• Conducting research on foreign investments, exports, and related activities.

• Supporting the development of sector associations.

The Investment Promotion Act of 2004 also makes SLIEPA responsible for offering business services such as facilitating business name registrations and securing incorporation certificates, registration certificates, and license certificates.

SLIEPA’s board of directors consists of a chairman appointed by the country’s president (based on a recommenda-tion from the minister of trade and industry and approved by parliament), along with nine directors. Four of the directors come from the private sector, with one each from the Sierra Leone Chamber of Commerce, Industry, and Agriculture, Sierra Leone Manufacturers Association, and Sierra Leone Bankers Association; the fourth is the chairman, who is a distinguished, experienced industrialist or businessperson. The other five directors are the permanent secretaries from the Ministry of Trade and Industry, Finance and Economic Development, Fisheries and Marine Resources, Tourism and Cultural Affairs, and Agriculture, Forestry, and Food Security. A chief executive officer is responsible for day-to-day management of the agency and is appointed by the board and approved by the Ministry of Trade and Industry.

investors interested in starting a business in sierra Leone should first contact sLiEPa at:Sierra Leone Investment and Export Promotion Agency O.A.U. DriveTower HillFreetown, Sierra LeoneTel: Switchboard: +232 22 220788 Chief Executive Officer: +232 22 221869 Director of Investment Promotion: +232 22 226155 Director of Export Development: +232 22 224976Fax: +232 22 221037Email: [email protected]: www.sliepa.org


BusinEss rEgistration and LicEnsEsInvestors must take four steps to register their businesses.

rEgistEr thE namE of thE comPany. Every business must register its name to fulfill the legal requirements set in the Business Names Registra-tion Ordinance of 1954. This registration certificate reserves the name for a maximum of one year and takes about two days to obtain.

PrEParE mEmorandum and articLEs of association. Every company needs to have a memorandum and articles of association containing basic information about the entity being formed. As noted, the new system no longer requires that prospective firms hire a lawyer to prepare these documents, since the investor or another knowledgeable person can compile the details of the company. This provision does not preclude companies from using a lawyer, but doing so may increase the cost of business registration.

incorPoratE thE comPany and rEgistEr thE mEmorandum. To incorporate a new company, a business operator must submit the following documents to the Of-fice of the Administrator and Registrar General (OARG): an application letter, list of initial subscribers, company address, name of the company secretary, business name certificate, and affidavit of compliance from a lawyer. It takes two days to receive the incorporation certificate from OARG. If a company is al-ready incorporated outside the country, it can simply apply to be registered to conduct business in Sierra Leone, without the need to incorporate a new company.

oBtain tax cLEarancE cErtificatE from thE nationaL rEVEnuE authority. The National Revenue Authority (NRA) must issue a tax clearance certificate stating the company’s tax position (Table 14). Firms must apply to the Large Taxpayers Unit of the NRA’s Income Tax Department in Freetown. In addition, the OARG issues a business registration certificate that is valid for one year and renewable. The renewal is done by the NRA.

taBLE 14 comPany cLassifications, initiaL caPitaL rEQuirEmEnts, and rEgistration fEEs undEr thE tax systEm

(U.S. dollars)

class of company initial capital registration fee

A 340 90

B 1,700 127

C More than 3,400 220

SLIEPA should be the primary contact for information and questions about the above services and pro-cedures. It should be able to help investors facilitate the registration of businesses and obtain whatever permits, licenses, certificates, or clearances are needed for the commencement of business (Box 6).

Box 6 doing BusinEss in siErra LEonE

Sierra Leone has made key regulatory reforms that make it easier to do business, according to Doing Business 2009, the sixth in an annual series of reports pub-lished by the International Finance Corporation, part of the World Bank Group. Sierra Leone’s efforts to reform requirements for doing business started in 2005. The 2009 report finds that the country has improved its overall ranking, climbing 4 spots to 156 since the last annual survey, which ranks 181 economies on the ease of doing business. Sierra Leone ranks ahead of its neighbors in the Mano River Basin: Liberia (157), Côte d’Ivoire (161), and Guinea (171). In terms of starting a business—one of the ten indicators in the Doing Business index—Sierra Leone is the top performer in West Africa.

Doing Business 2009 identifies Sierra Leone as having made reforms in four key areas: starting a business, dealing with construction permits, registering property, and trading across borders. Government authorities drastically cut costs and expedited the process for starting a business by making use of a lawyer optional and abolishing other registration formalities, including requirements to pay taxes upfront and obtain permission for registration to start a business. Sierra Leone has also improved the building approval process and reinstated phased inspections, cutting 24 procedures previously required to obtain a construction permit. In addi-tion, the country shortened property registration from 235 days to 86 by no longer requiring that the cadastral map be authenticated before each transfer. Finally, it facilitated trade by eliminating the requirement for an export license.

Sierra Leone was named one of Sub-Saharan Africa’s most active reformers of business regulation. The region recorded a record year, with 28 countries complet-ing 58 reforms and producing three of the world’s top ten reformers: Senegal, Burkina Faso, and Botswana.

sEctor-sPEcific BusinEss LicEnsEs. Business licenses in some sectors—such as mining, tourism, and fisheries—can be obtained from sector ministries with SLIEPA playing a facilitating role. For mining, fees vary by activity and citizenship (Table 15). Investors can find detailed information at www.slmineralresources.org. Conditions, fees, and taxes for mining and other investments can be negotiated with the relevant minister with the help of SLIEPA.

taBLE 15 LicEnsing and cErtificatE fEEs associatEd with mining

(U.S. dollars)

type of license fee

Alluvial diamond exporter license 40,000 a year (25,000 a half-year)

Alluvial diamond exporter agent’s certificate 5,000 a year (3,000 a half-year)

Alluvial diamond dealer license (non-citizen) 5,000 a year (3,000 a half-year)

Gold exporter license 3,000 a year

Gold exporter agent’s certificate 1,000 a year

Gold dealer license (non-citizen) 1,000 a year

Gold mining company manager certificate (non-citizen) 167 a year

source: Ministry of Mineral Resources and SLIEpA.

In fisheries, all vessels must be registered with the Sierra Leone Maritime Administration and fishing licenses obtained from the Ministry of Marine Resources and Fisheries (Table 16). Regulations for the fishing industry require that operators obtain an offshore account in Sierra Leone and employ 45 percent Sierra Leoneans as crew members.

taBLE 16 VEssEL fEEs associatEd with fishEriEs

(U.S. dollars)

type of vessel annual fee royalties per vessel

Shrimp vessel over 250 tons 60,000 18,000

Fish trawler over 250 tons 40,000 15,000

Tuna purse seiner 18,000

Tuna long liners pay 12,000

Small pelagic purse seiner 15,000

Fish processing ship 20,000

source: U.S. Commercial Services.

Entry rEQuirEmEnts Sierra Leone generally has no entry requirements for foreign investors (Table 17).

taBLE 17 EQuity and sEctor rEQuirEmEnts for forEign inVEstmEnt in siErra LEonE

type of requirement requirement

Minimum capital None

Restricted sectors Cement block manufacturing, granite and sand stone excavation, and manufacturing of certain consumer durable goods

Prohibited sectors Arms and ammunition; military, police, and prison guards’ apparel and accoutrements

Restrictions on equity None

cLosing a BusinEss Investors in Sierra Leone can readily close their businesses or dispose of their interests in enterprises. But investors may experience difficulties, such as high costs for closing businesses and low recovery rates for claims on insolvent firms.


accEssing LandThe government realizes that access to land is crucial to the development and growth of various investments and takes steps to facilitate access to land. Today there are two types of land tenure, inherited from colonial times. Colonial land is a freehold system in Freetown and the Western Area. Customary land is a leasehold system that prevails in the rest of the country. There is no land titling system to validate property rights. Further-more, foreigners cannot own land under either system, but they can lease it for up to 99 years.

Citizens can acquire private land in Freetown and the Western Area through the State Lands Committee and the Ministry of Lands. Under the customary land system an investor can lease land by entering into a “joint venture” with the local paramount chief who controls the land in his district.

To register a parcel of land, an investor must complete an application and provide the Office of the Administra-tor and Registrar General (OARG) with two signed copies of the legal land conveyance and two signed copies of the land survey. The registration process is simple and takes no more than five business days to complete. The registration process costs $10; investors must also pay land taxes (which are determined by the location and size of the site) and the stamp duty.

imPort and ExPort ProcEdurEs and fEEsSierra Leone has seven customs tariffs for imports: 0, 5, 10, 15, 20, 25, and 30 percent, with an average effec-tive most favored nation (MFN) rate of 14.9 percent (which includes a 30 percent excise tax on certain imports and a 0.5 percent levy imposed by the Economic Community of West African States on imports from third countries). Except for a few health and safety requirements, there are no nontariff barriers—consistent with World Trade Organization commitments and international best practices.

imPort PErmits Import permits are not required except for certain sensitive goods—such as agricultural and pharmaceutical products—subject to preapproval by the relevant line ministry. The main documentation required for import shipments are:

• A clear report of findings and an import duty report issued by Intertek International, a U.K. company, after inspection in the country or port of origin.

• A bill of entry issued by the Customs and Excise Department.• A commercial invoice.• A phytosanitary or fumigation certificate.• A certificate of origin.• A combined certificate of value and origin, and import declaration.• A packing list.• A special certificate for goods such as pharmaceuticals and certain agricultural imports, and an insurance certificate.


PrE-shiPmEnt insPEctionAll imports—including secondhand merchandise—with a freight on board (f.o.b.) value (in the country of origin) of $2,000 or more are subject to pre-shipment inspection. As noted, pre-shipment inspection services are con-ducted by Intertek, which charges importers 1.1 percent of the f.o.b. value, with a minimum fee of $225. A few products and end users are exempt from pre-shipment inspection.

customs cLEarancE for imPorts Imports must be cleared by an approved customs clearing agent unless the National Revenue Authority (NRA) has authorized the importer to self-clear. Large companies can register for self¬-clearance by submitting to the NRA the resumes of employees to be in charge of customs clearance. Companies without self-clearing status must engage an agent licensed by the Clearing Agent Licensing Committee, an independent body comprising representatives of private bodies, including the Sierra Leone Chamber of Commerce, Industry, and Agriculture and the Clearing Agents Association. Customs clearance procedures are summarized in Appendix 4.

It take an average of 14 days for imports to clear customs in Sierra Leone, though it tends to be somewhat less for nonfood items; food inspection takes at least 2–3 days. In addition to the clearance procedures outlined in Appendix 4, the Customs and Excise Department conducts certain post-clearance activities, mainly involving audits and data entry.

ExPort ProcEdurEs The Chamber of Commerce, Industry, and Agriculture issues certificates of origin for about $17 a shipment.


AppENDIx 1 Useful Contact Information

As a courtesy to investors, the Sierra Leone Investment and Export Promotion Agency

(SLIEPA) provided the following list of local banks and business service providers. SLIEPA

does not endorse these providers or make any claims about the quality of their services.

The banks, individuals, and firms listed below have told SLIEPA that they want to be listed

in this guide. An updated list can be obtained from SLIEPA.

a1.1 sLiEPa: an investor’s first stop in sierra Leone

sierra Leone investment and Export Promotion agency (sLiEPa)O.A.U. DriveTower HillFreetown, Sierra LeoneTel: Switchboard: +232 22 220788Chief Executive Officer: +232 22 221869Director of Investment Promotion: +232 22 226155Director of Exports: +232 22 224976Fax: +232 22 221037Email: [email protected] Website: www.sliepa.org

a1.2 important ministries for business needsministry of agriculture, forestry and food security1st and 2nd FloorYouyi Building, BrookfieldsFreetown, Sierra Leone Tel: +232 22 242136/241170/236122

ministry of Employment, Labor, and social securityNew England VilleFreetown, Sierra LeoneTel: +232 22 240854

national social security and insurance trust (nassit) P.O. Box 29, 35a Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 225365Fax: +232 22 220362Email: [email protected]: www.nassitsl.org

ministry of Energy and Power4th Floor, Electricity House, 36 Siaka Stevens StreetFreetown, Sierra LeoneTelephone: +232 22 226 566/225054

ministry of finance and Economic developmentMinisterial Building, George Street Freetown, Sierra LeoneTel: +232 22 225612/228181/226631/225862


a1.2 important ministries for business needs ministry of fisheries and marine resourcesBrookfields Hotel ComplexJomo Kenyatta Road Freetown, Sierra LeoneTel: +232 22 240642/240828Fax: +232 22 235135

ministry of information and communications8th Floor, Youyi BuildingFreetown, Sierra LeoneTel: +232 22 240911/235019

ministry of Lands, housing, and country Planning3rd Floor, Youyi Building, Brookfields Freetown, Sierra LeoneTel: +232 22 225141Fax: +232 22 235055

ministry of mineral resources 5th Floor, Youyi Building, Brookfields Freetown, Sierra Leone Tel: +232 22 235234 Website: www.slmineralresources.org

ministry of tourism and cultural affairs1st Floor, National Stadium HostelsFreetown, Sierra LeoneTel: +232 22 235468/235428

sierra Leone national tourist Board Room 100, Cape Sierra Hotel, AberdeenP.O. Box 1435 Freetown, Sierra Leone Tel: +232 22 272 520 Fax: +232 22 272 197 Email: [email protected]: www.welcometosierraleone.org

ministry of trade and industry 6th Floor, Youyi Building, Brookfields Freetown, Sierra Leone Tel: +232 22 222 706/222755 Fax: +232 22 235 129/224761/235575Website: www.mtisl.org

a1.3 Business associations and organizationssierra Leone chamber of commerce, industry, and agriculture (sLccia)5th Floor, Guma Building, Lamina Sankoh StreetP.O. Box 502Freetown, Sierra LeoneTel: +232 22 226305/220904Fax: +232 22 228005Email: [email protected]: www.cocsl.com


independent media commision (imc)3rd Floor, Kissy House54 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 221835

sierra Leone indigenous Business association (sLiBa)Ebenezer Millennium Building, Circular RoadFreetown, Sierra LeoneTel: +232 22 223835Fax: +232 22 224479Email:[email protected]

national commission for Privatization (ncP)5th Floor, Lotto HouseO.A.U. Drive, Tower HillP.O. Box 56Freetown, Sierra LeoneTel: +232 22 227759/290447/290448Email: [email protected]

national revenue authority (nra)Modesty House, 7 Bathurst StreetFreetown, Sierra LeoneWebsite: www.nationalrevenueauthority.org Office of the Administrator and Registrar General (OARG)Roxy BuildingWalpole Street Freetown, Sierra Leone Tel: +232 22 222294

sierra Leone Business forum2nd Floor, Bishop House, Lamina Sankoh StreetTel: +232 22 224460/76 395268Email: [email protected] Leone Exporters Association c/o Frandia Company Ltd., 14a Lightfoot Boston Street Freetown, Sierra Leone Tel: +232 22 228796 Fax: +232 22 220828

sierra Leone intellectual Property organization (sLiPo)Department of Information and Communications8th Floor, Youyi Building, BrookfieldsFreetown, Sierra LeoneTel: +232 22 240267

a1.4 to report corruptionsierra Leone anti-corruption commission3 Gloucester StreetFreetown, Sierra LeoneTel: +232 22 223645/229984/227100/221701Fax: +232-22 221900Hotline: +232 22 77 985985/77 986986Email: [email protected], [email protected]: www.anticorruptionsl.org/anonymous.html www.anticorruptionsl.org

a1.5 Banking servicesaccess Bank (sL) Ltd.30 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 236616/234430Fax: +232 22 236646Email: [email protected]

Bank of sierra LeoneSiaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 226501 Fax: +232 22 224764

Ecobank sierra Leone Ltd. 7 Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 230348/221704 Fax: +232 50 510165Email: [email protected] Website: www.ecobanksl.com

first international Bank (sL) Ltd.2 Charlotte StreetFreetown, Sierra LeoneTel: +232 22 292201/292202Fax: +232 22 221970Email: [email protected]

guaranty trust Bank (sL) Ltd.Sparta Building, 12 Wilberforce StreetP.O. Box 1168Freetown, Sierra LeoneTel: +232 22 228493/220245/220248Fax: +232 22 228318Email: [email protected]

international commercial Bank (sL) Ltd.22 Rawdon StreetFreetown, Sierra LeoneTel: +232 22 222877/222273Fax: +232 22 290002Email: [email protected]

Kabala community BankOld Makeni Road, KabalaKoinadugu District, Sierra LeoneTel: +232 76 557029/834614/77 481276

mattru community Bank2 Bo Road, Mattru JongBonthe District, Sierra LeoneTel: +232 76 654389/644712


marampa community BankSiaka Steven Street, LunsarPort Loko District, Sierra LeoneTel: +232 76 920764/920670

Procredit Bank (sL) Ltd.11 Rawdon StreetFreetown, Sierra LeoneTel: +232 76 957376Email: [email protected] Website: www.procredit-holding.com

rokel commercial BankP.O. Box 1225–27 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 222501 Fax: +232 22 222563Email: [email protected]

segbwema community Bank5 Sefadu Road, SegbwemaKailahun District, Sierra Leone Tel: +232 77 850613/76 219120

sierra Leone commercial Bank Ltd.29–31 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 225264/222265/222266 Fax: +232 22 225292Email: [email protected]

skye Bank (sL) Ltd.31 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 226481Fax: +232 22 221773Website: www.skyebanking.com

standard chartered Bank (sL) Ltd.9–12 Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 229294/225021/225022 Fax: +232 22 225760/227329Email: [email protected]: www.standardchartered.com

union trust Bank (sL) Ltd.Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 222792/226954/229738Fax: +232 22 226214Email: [email protected]

Appendix 1 Useful Contact InformationContinued...


marampa community BankSiaka Steven Street, LunsarPort Loko District, Sierra LeoneTel: +232 76 920764/920670

Procredit Bank (sL) Ltd.11 Rawdon StreetFreetown, Sierra LeoneTel: +232 76 957376Email: [email protected] Website: www.procredit-holding.com

rokel commercial BankP.O. Box 1225–27 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 222501 Fax: +232 22 222563Email: [email protected]

segbwema community Bank5 Sefadu Road, SegbwemaKailahun District, Sierra Leone Tel: +232 77 850613/76 219120

sierra Leone commercial Bank Ltd.29–31 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 225264/222265/222266 Fax: +232 22 225292Email: [email protected]

skye Bank (sL) Ltd.31 Siaka Stevens StreetFreetown, Sierra LeoneTel: +232 22 226481Fax: +232 22 221773Website: www.skyebanking.com

standard chartered Bank (sL) Ltd.9–12 Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 229294/225021/225022 Fax: +232 22 225760/227329Email: [email protected]: www.standardchartered.com

union trust Bank (sL) Ltd.Lightfoot Boston StreetFreetown, Sierra LeoneTel: +232 22 222792/226954/229738Fax: +232 22 226214Email: [email protected]

united Bank for africa (sL) Ltd.15 Charlotte StreetFreetown, Sierra LeoneTel: +232 276 308111Email: [email protected]: www.ubagroup.com

yoni community BankMain Motor Road, Mile 91Tonkolili District, Sierra LeoneTel: +232 76 6078984

Zenith Bank (sL) Ltd.18-20 Rawdon StreetFreetown, Sierra LeoneTel: +232 22 225400/225666/227667/225070Mob: +232 76 270214Website: www.zenithbank.com.sl

Zimmi community BankSulima Road, PujehunPujehun District, Sierra LeoneTel: +232 30 167288

a1.6 Lodging

hotELs in thE frEEtown arEacountry Lodge complexHS-51 Hill StationFreetown, Sierra LeoneTel: +232 22 235589/235629/76 691000Fax: +232 22 235688Restaurants, conference facilities, Internet access, satellite TV, gym, overlooks Freetown; nightly rates from $135Email: [email protected]

cabenda holdings hotel14 Signal Hill Road, Congo CrossRestaurant, conference facilities, Internet access, satellite TV; nightly rates from $86Tel: +232 22 230411/76 746996/601084Fax: +232 22 230611Email: [email protected]: www.hotelcabenda.com

hill Valley hotel34 Signal Hill Road, off Congo CrossFreetown, Sierra LeoneTel: +232 22 235870/76 601439/33 407986Fax: +232 22 234552Email:[email protected],[email protected]

hotel BarmoiCape Road, AberdeenFreetown, Sierra LeoneTel: +232 22 234933/236709/76 602999Fax: +232 22 236702Email: [email protected]: www @hotelbarmoi.com

hotel mariamOff of Beach Road, AberdeenFreetown, Sierra LeoneTel: +232 22 234932/229713/76 696364/629156Email: [email protected]

Kimbima hotelMan of War Bay, AberdeenFreetown, Sierra LeoneRestaurant, conference facilities, Internet access, satellite TV, casino, sea fishing and golf nearby; nightly rates from $110Tel: +232 22 234658/236506/76 610695/33 408784Fax: +232 22 236681Email: [email protected]: www.hotelkimbima.com

sierra Light house hotel5 Man of War Bay, AberdeenFreetown, Sierra LeoneRestaurant, conference facilities, satellite TV, sea fishing and golf nearby; nightly rates from $85Tel: +232 22 236674/236676/76 818888/76 613290Email: [email protected], [email protected]

solar hotel66 Man of War Bay, AberdeenFreetown, Sierra LeoneRestaurant, conference facilities, satellite TV, car hire, sea fishing and golf nearbyTel: +232 76 738583/76 625348

a1.7 useful websitesVisit Sierra Leone: www.visitsierraleone.org SLIEPA: www.sliepa.org


Appendix 2 Costs of Doing Business In Sierra Leone(all amounts in U.S. dollars)

internet services (per year)

type cost256 kilobit per second (kbps) Internet 1,000

source: MIGA 2007.

Electricity(average cost per kilowatt-hour)

type costOffice power 5.18

Industrial power 36.72

source: MIGA 2007.

air transport from freetown to selected destinations(per kilogram)

destination costAmsterdam 4.71

Los Angeles 7.82

New York 10.25

Singapore 9.08

Tokyo 9.08


sea transport from freetown to selected destinations(per 40 foot container)

destination costLong Beach 7,131

New York 7,101

Rotterdam 3,733

Singapore 616

Yokohama 543


Labor for call centers(per year)

Position costManager 9,198

Coordinator or supervisor 5,700

Senior agent 3,600

Agent 1,398

source: MIGA 2007.

Labor for food processing plants(per year)

Position costPlant manager 5,000

Engineer 2,700

Processing and warehouse workers 1,400

Administrative assistant 1,400

source: MIGA 2007.

real estate and construction(U.S. dollars per square meter)

type of activity costAnnual lease for Grade A office facility 51





source: MIGA 2007.

Appendix 3 Foreign Firms Currently Investing in Sierra Leone

company sector country of originAccess Bank Banking Nigeria

Africell Telecommunications Lebanon

Celtel (Zain) Telecommunications Kuwait

Comium Telecommunications Lebanon

Ecobank Banking Côte d’Ivoire

Heineken Beverage Netherlands

Koidu (Holdings) Mining South Africa

Leocem Cement Production Norway and Germany

London Mining Mining United Kingdom

Regimanuel-Grey Construction Ghana

Sierra Rutile Mining USA/EU

Standard Chartered Bank Banking United Kingdom

Tigo Telecommunications China

UBA Banking Nigeria

Zenith Banking Nigeria

Appendix 4 Customs Clearance procedurescustoms cLEarancE ProcEssEs and ProcEdurEs for imPorts through thE Quay

commErciaL imPorts VaLuE ≥ $2000 f.o.B

1. BEforE shiPmEnt

• Apply to the pre-shipping inspection (PSI) or destination inspection (DI) company for inspection, either overseas or at Intertek’s Freetown office.

• Pay appropriate inspection fee and obtain a document from Intertek for customs purposes.

• Failure to compliance with PSI or DI requirements leads to a 30 percent penalty on the c.i.f. value of the goods.

2. aftEr shiPmEnt

• Engage the services of a registered clearing and forwarding (C&F) agency to assist in the clearing process.

• Submit all import and shipping documents to the C&F agency.

• The C&F agency will prepare the customs declaration form and attach all the relevant documents required by the Customs and Excise Department.

3. goods ExEmPt from insPEction

• Goods with a freight on board (f.o.b.) value below $2,000 or its equivalent.

• Arms and ammunition—parts and accessories imported by the government and intended for military or paramilitary use (Tariff Chapter Heading 93).

• Explosives and pyrotechnical products.

• Live animals, fruits, vegetables, eggs, and fresh, chilled, or frozen fish and meat (Tariff Chapter Headings 1, 2, 3, 04.07, 7, and 8).

• Precious metals and precious and semiprecious stones (Tariff Chapter Headings 71.01–12).

• Newspapers and periodicals (Tariff Chapter Heading 49.02).

• Works of art, collectors’ pieces, and antiques (Tariff Chapter Heading 97).

• Goods delivered by courier or parcel post.

• Personal and household effects.

• United Nations, diplomatic, and consular goods imported specifically for their use.

• Electricity.

• Goods belonging to nongovernmental organizations (NGOs).

• Radioactive and nuclear substances.


Labor for food processing plants(per year)

Position costPlant manager 5,000

Engineer 2,700

Processing and warehouse workers 1,400

Administrative assistant 1,400

source: MIGA 2007.

real estate and construction(U.S. dollars per square meter)

type of activity costAnnual lease for Grade A office facility 51





source: MIGA 2007.


note: It is mandatory to engage the services of a C&F agency for any commercial imports.

4. at thE customs housE

• The C&F agency submits the customs declaration at the Ingate Section.

• The ingate officer vets the declaration to ensure full compliance with laws and procedures.

• A progress number is assigned to the declaration and communicated to the importer or C&F agency as a reference number.

• The declaration is forwarded to the Valuation Branch.

• The valuation officer verifies the value based on the highest amount on the invoice submitted by the importer, advice from Intertek, and the Customs Valuation Database.

• If the value is raised by the valuation officer based on the above evidence, the declaration is returned to the C&F agency for appropriate amendment.

• On acceptance of the value, the declaration is checked and an assessment notice is issued to the C&F agency for the attention of the importer to make its payment at Ecobank Sierra Leone Ltd. and submit a banker’s draft to the Customs and Excise Department ’s Cash Office.

• The cashier at the Cash Office issues a receipt to the C&F agency and the declaration is forwarded to the Computer Unit for data entry.

• The declaration is forwarded to the striking officer, who will require the C&F agency to produce a delivery order from the shipping agency to record the transaction in the manifest.

• Once the above processes are completed, the importer or its C&F agency is required to proceed to the port and go through the processes there (below).

5. at thE Port

• Scanning—a list of documents is required before containers are scanned, including the packing list, delivery order, and a payment receipt issued by the shipping agency on behalf of Intertek.

• The scanning report is forwarded to the Outdoor Section at the quay to conduct a physical examination of the consignment and compare information with the documents. The consignment is released if there is no discrepancy.

• If there is a discrepancy, the scanning report is forwarded to the Customs and Excise Department’s Preventive Services and Special Duties (PSSD) Unit for investigation, and appropriate action is taken before the goods are released.

6. suPPorting documEnts rEQuirEd By customs

gEnEraL

• A signed original commercial invoice.

• An import duty report (IDR) or destination inspection (DI) letter from Intertek.

• A copy of the original bill of lading.

• Packing list.

• Local insurance certificate.

sPEcific rEQuirEmEnts for thE foLLowing

• Frozen, chilled, dried, or salted meat or fish—health certificate from the Ministry of Health.

• Onions, potatoes, or garlic—phytosanitary certificate from the Ministry of Health.

• Used clothing, shoes, bags, or toys—fumigation certificate from the Ministry of Agriculture.

• Pharmaceuticals or cosmetics—permit from the Pharmacy Board of Sierra Leone.

• Corrosive substances (such as caustic soda)—permit from Sierra Leone Police.

• Common salt—permit from the Ministry of Trade and Industry.

Appendix 4 Customs Clearance proceduresContinued...


7. cost inVoLVEd in cLEaring ProcEdurEs The costs involved in import clearing procedures vary and largely depend on the value, quantity, freight cost, nature, and insurance value of the imported goods, as well as the fees charged by a C&F agency for its services.

8. shiPPing agEncy chargEs (to oBtain dELiVEry ordEr)

for VEhicLEs (a) Jeeps, cars, or vans: $100 or equivalent in leones. (b) Heavy-duty vehicles: $200 or equivalent in leones.

for containErs (a) 40-foot container: $800 or equivalent in leones. note: A refund of $400 is received after the container is returned.

(b) 20-foot container: $400 or equivalent in leones. note: A refund of $200 is received after the container is returned.

9. Port chargEs

for VEhicLEs (a) Jeeps, cars, or vans: $33 or equivalent in leones. (b) Heavy-duty vehicles: $8.33 a ton or equivalent in leones.

for containErs (a) 40-foot container: $150 or equivalent in leones (with a vehicle inside the container). (b) 40-foot container: $133.3 or equivalent in leones (without a vehicle inside the container). (c) 20-foot container: $116 or equivalent in leones (with a vehicle inside the container). (d) 20-foot container: $100 or equivalent in leones (without a vehicle inside the container). 10. duty ExEmPtions

• Duty exemptions are normally approved by the Ministry of Finance and Economic Development and communicated to the National Revenue Authority through the Commissioner-General, who in turn communicates to the Commissioner of the Customs and Excise Department

• General exemptions from import duties are found in the Customs and Excise Department’s second schedule on external tariffs. Goods admitted in compliance with the provisions of this schedule are exempt from payment of duties. The privilege of exemption from duties is contingent on compliance with regulations promulgated by the Ministry of Finance and Economic Development.

• Exemptions from the payment of duties are granted for any goods imported:

• By or for the account of the President.

• By or on behalf of representatives of foreign governments or public international organizations certified as such by the Ministry of Foreign Affairs and approved by the Ministry Of Finance and Economic Development.

• For general use by educational and philanthropic institutions certified as such by the Minister of Finance and Economic Development, excluding goods for the personal use of the members and employees of such institutions and organizations.

• As samples of negligible value when accepted as such by the relevant customs authority.

• As reasonably used household and personal effects in reasonable quantities when accepted as such by the relevant customs authority.

• In special circumstances with the President’s approval subject to such terms and conditions as he may impose.

customs cLEarancE ProcEssEs and ProcEdurEs for ExPorts through thE Q.E.ii Quay

• The exporter must submit an application to the Commissioner requesting permission to export.

• The exporter must engage the services of a C&F agency to prepare its documents and process them through the Customs and Excise Department.

• The C&F agency should submit to the Customs and Excise Department the appropriate customs export declaration form, along with all supporting documents and the application letter, for the Commissioner’s approval.

• The export declaration is processed by the Customs House in the same way as the import declaration even though no duties are collected on most exports.

• The declaration is then forwarded to the Outdoor Section at the quay.

• On request, the officer in charge will release empty containers for loading.

• Once loaded containers arrive at the quay, the exporter will inform the collector at the quay, who will authorize the Scanning Unit to scan the containers for a fee of $100 for 40 foot containers and $50 for 20 foot containers.

• On receipt of the scanning report, the collector will authorize the release of containers to the Sierra Leone Port Authority (SLPA) for export.

• The SLPA will release containers for export only after receiving a customs declaration form signed by a customs officer.

note: Since the introduction of the Container Scanning Facility at the port customs officials no longer witness the loading of containers. Customs now relies on the scanning report to verify the contents of containers.

Appendix 4 Customs Clearance proceduresContinued...


photo CreditsEtienne KechichianArne HoelJulian HaarmanIvan FordSierra Leone Encylopedia 2008World Bank Picture LibraryiStockRob Huibers, Panos Pictures (page 20)

design: Corporate Visions, Inc.Printing:

O.A.U. DriveTower HillFreetown, Sierra Leonetel: +232 - 33 - 745584fax: +232 - 76 - 761757

More information is available [email protected]

Logo Option 1

Documents

Sierra Leone Investment and Export Promotion Agency brochure