Insight Magazine Issue 3 2017

The only magazine for those who do business in Sierra Leone
ISSUE 3 2017
“Addressing the challenges
in commercial law and
justice - and thereby
increasing the ease of doing
business in Sierra Leone -
is a Government priority.”
Joseph Fitzgerald Kamara,
Attorney General
Find out more about Insight at
www.insight.sl
Attorney General Joseph Fitzgerald Kamara on the changing landscape of commerical justice
Ambassador, Henry Macauley, Minister of Energy, on power, the Uber model and the ‘cost of darkness’
Foreign investment in post-Ebola Sierra Leone
PLUS
An interview with Joule Africa on Bumbuna II
The challenges facing Sierra Leone’s public infrastructure
Smart tips for smart business in Sierra Leone

EDITOR’S INSIGHT
Ours is an age of disruption. It’s been said so often, that it’s now become a cliché. Truth be told, our shifting political,
economic, social, and geopolitical landscapes are not unique. Our predecessors and their predecessors also lived in times
of change. Disruption comes in many guises, and mankind’s history is one of discovery, revolution, evolution, invention, and
innovation. How or if societies harness these forces, is what separates the leaders from the also-rans.
Like other nations, Sierra Leone experiences positive and negative change. On the plus side, we can point to peaceful
elections, improved infrastructure, regulatory reform, a growing economy and significantly increased influence on the
international stage. On the down side, we’ve experienced disease, an economic recession and natural disaster in quick
succession. In the process, It has become the thing to big up our society for its resiliance. No matter what fate throws our
way, we keep on going.
But admirable though all resilience is; it’s a truth universally acknowledged that some forms of resilience are more
productive than others. In Sierra Leone, the indomitable instinct to survive, which allows communities to absorb their
setbacks, recover and rebuild, also means that we often miss opportunities to innovate and improve in the process.
Fortitude is no substitute for transformation and we need to learn from our experiences, and adapt our processes, systems
and infrastructure in response to difficulty and disaster. When we rebuild or regroup, it should be bigger and better, more
efficient and more effective than before.
The very first subject of our change maker series was Dr Samura Kamara, Sierra Leone’s Foreign Minister, and now the
flagbearer for the ruling APC party. We interviewed him about Sierra Leone’s economic recovery post Ebola and post the
commodities slump. According to Dr Kamara, learning to accept and harness change has to be at the heart of development
in Sierra Leone: “We need to introduce a culture of accepting change in Sierra Leone. We need to build patriotism and
national pride and create attitudinal change throughout society,” he said.
This issue of Insight is all about change, and its challenges. The massive Bumbuna II project will make a significant
difference to our standards of living and to our economic prospects. Investors in developing economies need to have
confidence in the justice system and the Attorney General’s programme of regulatory reform is intended to provide that
reassurance. In an interview with Abu Kamara, Head of the PPP unit, we look at how PPP can support infrastructural
development. The role of foreign investment in our emerging economy is the subject of opinion pieces by the CDC’s Murray
Grant and consultant, Susanne Schroeder. And we are pleased to announce the launch of our ‘Smart Tools for Smart
Business’ supplement. This new Insight regular, is designed to provide practical information and business support for those
on the ground.
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As always we look forward to your feedback. Thank you for continuing to support Insight.
Insight
+44 771 7221023 / +232 78799999
info@ftinsight.net
Editor:
Memuna Forna
Art Director:
Erika Perez-Leon
Director of development:
Mohamed Wurie- mohamedlwurie@gmail.com
Director of corporate affairs:
Habiba Wurie - wurie.habiba@yahoo.com
Advertising Enquiries:
+232 78984202
Front cover image by Sullay Stephens
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CHANGE MAKER
Joseph Fitzgerald
Kamara – changing
the landscape of
commercial justice
As well as access to water, energy, roads, ICT and a
suitable workforce, investors in developing economies
need to have confidence in the justice system. Some of the
certainties they look for are protection for their property,
access to justice and protection for their employees.
They want assurance on contract enforcement and if any
dispute arises, they want a judicial system that will bring rapid and
efficient dispute solutions.
To encourage foreign investment, many governments are increasingly focusing their attention on specific investment
laws to provide this legal certainty. During the Invest Sierra Leone 2016 forum, whether Sierra Leone had or was
developing the necessary regulatory infrastructure to protect investors became a major talking point.
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Sierra Leone’s Attorney General and Minister of Justice - Joseph Fitzgerald Kamara, is all too aware that investors have
certain expectations of commercial justice.
When he delivered the keynote speech at Sierra Leone’s inaugural Commercial Law conference earlier this year, he
emphasised the Government’s commitment in this area: “Addressing the challenges in commercial law and justice - and
thereby increasing the ease of doing business in Sierra Leone - is a Government priority.”
He explains that guaranteeing security and redress makes investors more prepared to take other risks and that one
of the most important things for companies to hear is that there is a regulatory framework from which they can derive
protection for their investment. “A reliable regulatory and legal system is essential for investors, as it reduces the risks
they face when entering into commercial agreements. Potential investors arriving in Sierra Leone, will generally have
calculated their expected return on investment, but often seek further clarity around their security of investment. They
have a range of questions. Is my money secure? If I have a problem in my business, can I expect justice will be done?
Will I have fair and equal access to the court system? These questions are paramount to any investor who wants to
invest large amounts of money in Sierra Leone. Our job is to create a legal regulatory framework which protects both the
interests of the investor and those of Sierra Leone.”
A “massive improvement”, is how the Attorney General describes the relatively recent establishment of two fast track
commercial courts that have reduced the length of time to hear commercial cases from three to four years in some of
the worst cases, to “90 days on the outside”.
He is particularly keen to highlight the advances made on Sierra Leone’s accession to the New York Convention. The
Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the “New York Arbitration
Convention” or the “New York Convention”, is one of the key instruments in international arbitration. It applies to
the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration. More than half of
the states in Africa are party to it including Nigeria, Ghana, Cote d’Ivoire, Kenya, Tanzania, South Africa and crucially our
neighbours and fellow Mano River Union members – Guinea and Liberia.
We may be behind our neighbours, but there is no question that acceding to the New York Convention is a key national
priority – both in the Justice Sector Reform Strategy and Investment Plan III for Sierra Leone, and in the Judiciary’s
Strategic Plan 2016-2021, which stresses ADR as a pro-conflict resolution and court decongestion strategy. The Attorney
General confirms that the bill has now received cabinet approval and it is with the Government Printers, from where it
will go to Parliament for the final legislative stages.
Also on the Attorney General’s list is the land tenure system, which currently does not allow non-indigenous Sierra
Leoneans to own land in the provinces. The belief in the need for land reform, for reasons of economic development,
employment and ultimately peace and stability, is widespread.
The “underdevelopment of rural areas” was identified in the postwar truth commission process as one of the underlying
causes of the conflicts that devastated Sierra Leone. The problem remains – and the rural youth are still less likely to
remain in rural areas and provide much-needed agricultural labour while the land tenure system limits their economic
opportunities and status in rural communities. It also limits the industrialisation of agriculture. In 2011, the International
Growth Centre published a paper by Omotunde E. G. Johnson, Reforming the Customary Land Tenure System in Sierra
Leone: A Proposal. In it Johnson argued that reform of the customary land tenure system was “a major institutional
change that would help to unleash the vast economic growth potential of Sierra Leone in tourism, agriculture and
industry.”
Joseph Fitzgerald Kamara concurs: “Our land tenure system mitigates against industrialisation, and large scale farming
in the provinces. Reforming it would open up the market. Investors would find it easier to access the necessary finance –
what a company would be able to attract under a lease agreement is different from the finance they could be able attract
with the freehold.” He confirms that a new land policy has received cabinet endorsement and is expected to be enacted
into law in the near future.
www.insight.sl

CHANGE MAKER
Inside the fast track
commercial courts
image by: Sullay Stephens
Ambassador,
Henry Macauley,
Minister of Energy,
on power, the Uber
model and the
‘cost of darkness’
Interview by
Habiba Wurie
Power is one of the key drivers of economic growth. At the World
Economic Forum in January this year, it was calculated that Africa’s
economy could grow 30% by 2040 if the energy gap were to be closed.
A “massive improvement”, is how the
Attorney General describes the relatively
recent establishment of two fast track
commercial courts that have reduced the
length of time to hear commercial cases
from three to four years in some of the worst
cases, to “90 days on the outside”.
It is a critical situation and Ambassador Henry Macauley, the Minister of Energy is only too aware of the weight of his
responsibilities. As he says: “The cost of darkness is much higher than the cost of power”. With a targeted 1000 mw
capacity increase, he has embarked on an innovative strategic approach which is intended to supply cheaper tariffs
and address some of the repercussions of climate change. The dry season gap- during which electricity generation from
the hydro dams, falls from 50mw to 5 mw - is at the top of this list.
What challenges is your Ministry facing regarding increasing access to energy and what strategies are you taking in
order to overcome these?
Electricity is a business, and as with all businesses, time is money, yet our biggest challenge remains delays in
implementing projects that generate revenue due to public sector red tape and fiscal challenges on Government’s
balance sheet. To solve this, I propose the ‘Uber model’ as the way forward for the energy sector in Sierra Leone. This
would allow for a direct relationship between the customer and the generator/service provider thereby removing any red
tape plus red tape costs. It allows for a deserved focus on the customer with the overall benefit to economic growth and
development.
We are also looking at re-inventing energy agreements such that our contract to say install 30 MW would see the
government only guaranteeing a fraction of say 20MW or less. This reduces costs and manages our evacuation flexibility.
We also now insist on part payment in local currency to help reduce our foreign exchange obligations.
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Checks and balances which focus on local employment, skills development and ensuring that FDI does not crowd out
or take away market opportunities from domestic enterprises, are an important part of the process of creating a stable
environment for investors.
The Attorney General highlights the value of Sierra Leone’s local content regulations, as a strategy for the forging of
local economic links which support vertical business development. “Local content supports a peaceful coexistence with
investors, by ensuring that the local population also benefits from incoming investment, through jobs, skills development
and by boosting local economies.”
The infrastructure of investment is multi-faceted. In transition economies such as Sierra Leone’s - commercial law is
one of the main deficit areas. Reform facilitates economic integration, enables us to secure better terms in international
or bilateral trade agreements, and encourages investment by improving the overall business climate. It is quite simply
vital. Joseph Fitzgerald Kamara sums it up by saying: “Companies will not invest significantly in Sierra Leone if they lack
confidence in our regulatory environment. Giving them confidence while protecting the interests of Sierra Leone and
Sierra Leoneans is our job.”
What opportunities would you say there are for prospective investors in this region?
In 2016, the President, HE Ernest Bai Koroma launched the Energy Revolution and witnessed the signing of the Energy
Africa Compact, an agreement with the UK government that saw the Government of Sierra Leone committing to the
following steps to improve energy access in both the rural and urban areas of Sierra Leone:
• Supply basic power to all of Sierra Leone’s population within nine years (by 2025)
• Deliver “modern power” to one million people by 2020
• Introduce household solar to all 149 chiefdoms in the country within the next 18 months
• Eliminate import duties and VAT on qualified, internationally certified solar products
To achieve these commitments, we have taken some bold steps to accelerate the participation of private investment in
this sector. These steps will ensure that a thriving investment climate exists in the country, starting with the Renewable
Energy and Energy Efficiency Policies which make Sierra Leone a leader in renewable energy in the region. Practical
steps are also being pursued such as the installation of 54 solar mini grids around the country.
www.insight.sl

Henry Macauley,
Minister of Energy
The sector has come a long way since 2007
when our administration took over. To start
with we saw a leap in power production by
532% between 2007 and 2016. Household
connections also increased by 23% during
last year alone.
Top image: MOE in partnership UK AID is powering community health centres throughout the country
Bottom image: Household solar products. Image by Sullay Stephens
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What would you say have been your biggest achievements so far?
The sector has come a long way since 2007 when our administration took over. To start with we saw a leap in power
production by 532% between 2007 and 2016. Household connections also increased by 23% during last year alone.
We were also successful in establishing power generation in Magburaka, Lunsar and the district of Kono, areas that have
not had any on-grid electricity. Lumley Beach will soon enjoy Government electricity, which they have not done for over
30 years. We are working on deploying additional thermal plants all over the Country, in addition to hydro power with
Moyamba, Betmai, Bekongor and Bumbuna 2 hydro power plants. When added together, these will provide over 300MW
of hydro electricity, in addition to the current 50MW from Bumbuna 1.
What developments should we all look forward to in the energy sector?
I see great things for our country’s energy sector. With the right investment Sierra Leone could be the renewable energy
hub for West Africa and I anticipate that by 2019, 50% of energy generated in Sierra Leone will come from various
renewable energy sources such as hydro and solar along with the development of wind, thermal and bio mass energy.
The recent energy sector reform road map developed with the Millennium Challenge Corporation will ensure that more
will be done to make the policies and laws governing the sector more enabling. It will take a look at decentralising power
supply for better customer focus and service, to deliver improved delivery and encourage the manufacturing and mining
industries, creating jobs and growing our GDP
And finally, what do you consider to be your biggest legacy as the longest serving Energy Minister of Sierra Leone?
Without a doubt, the Energy Sector Reform Roadmap which is a transformational tool to put the Energy Sector on an
irreversible path of sustainable growth and delivery. This reform will in turn bring us one step closer to introducing the
‘uber model’ as a way of conducting the business of providing energy in Sierra Leone.
www.insight.sl

ENERGY
Bumbuna II -
it’s a power thing
Plans for the first phase of the Bumbuna hydropower project were
unveiled in 1975. Eighty-five percent of construction was complete by
May 1997, when it was halted because of civil war.
The project was restarted in 2005 and was completed in November 2009. Almost eight years later, in August 2017, Joule
Africa signed a 25-year Power Purchase Agreement (PPA) with the Government, for electricity from a 143-MW expansion
of the 50-MW Bumbuna station. It was an important milestone in the development of the project. Insight Magazine talked
to Joule Africa to find out more about Bumbuna II.
Tell us about Joule Africa, its experience in the energy sector and its objectives as a company.
Joule Africa was established in 2011 and is a developer, owner and operator of sustainable power projects in Africa.
Through the development and operation of sustainable energy assets, Joule Africa is committed to significantly
increasing access to energy for the African nations in which it is needed most, a fundamental factor in any country’s
ability to develop.
years later. Seli Hydropower will provide electricity to the Electricity Distribution and Supply Authority (EDSA) for the next
25 years at an agreed tariff.
This project has been a long time in the making, the structure of the company has changed (for example the buy-out of
Endeavour). What challenges have you encountered so far in this project and how have you managed them.
Hydropower projects require extensive detailed planning, due diligence, assessment, modelling and consultation and as
a result, tend to take a certain amount of time to get to the stage we are at today. We are proud that we are developing
Bumbuna II in line with international best practice.
It is unfortunate that during the last six years, Sierra Leone has also been confronted with the tragic Ebola crisis which
paralysed the country for a considerable amount of time.
Having been involved in the country since 2011, Joule Africa has a good understanding of how to do business in Sierra
Leone. We have a close working relationship with our local partner, ESCO, and have built up some important connections
with local businesses, government and the local communities over the past five years.
We have a first-class, international team who have spent considerable time assessing the social and environmental
considerations and are now in the process of finalising the respective action plans. We continue to be in dialogue with the
Paramount chiefs and their respective communities.
As regards the construction of Bumbuna II, we have been collaborating with the European Investment Bank to ensure
that the project will be constructed in line with international best practice. We are close to appointing an internationallyrecognised
contractor.
The senior team of Joule Africa has a wealth of experience in developing and operating power projects across emerging
markets, including overseeing the development of 10 GWh of power assets across Africa.
Bumbuna II is Joule’s most advanced project; its second project - Kpep, is a 485MW hydropower project in Cameroon,
which is currently embarking on the full feasibility stage.
Explain the roles of Seli Hydropower and Energy Services Company (ESCO).
Seli Hydropower is the registered project company in Sierra Leone, responsible for overseeing the successful
development and operation of Bumbuna II. Seli Hydropower has overall responsibility for ensuring that Bumbuna
II is developed safely and to a high standard, that the affected communities are well looked after and that affected
environments are preserved and maintained. Seli Hydropower will also be responsible for the continued operation of
Bumbuna I.
Energy Services Company (ESCO) is Joule Africa’s local partner in Sierra Leone. ESCO provides various important local
services, including supporting Seli Hydropower on its responsibilities towards the Government of Sierra Leone, the local
communities and the local environment, as well as additional advisory and logistics services.
How will Bumbuna II benefit Sierra Leone?
Bumbuna II is a renewable power project, which will be harnessing Sierra Leone’s natural resource, in the form of heavy.
seasonal rainfall. When operational, forecast to be in 2022, Bumbuna II will provide affordable, reliable, clean electricity
throughout the year. At its peak it will be able to produce 143MW of additional capacity with a guarantee of 80MW of
firm/guaranteed base power throughout the year.
Experience shows us that this much-needed additional capacity will provide the opportunity for businesses and industry
to grow, stimulating economic growth, while allowing households to become less dependent on existing dirtier, less
healthy fuel alternatives and enjoy a better standard of living.
As well as the provision of much-needed guaranteed electricity throughout the year, Bumbuna II also means significant
local employment
Joule Africa has signed a 25-year Power Purchase Agreement (PPA) with the Government. How does that work?
Under the conditions of the Power Purchase Agreement (PPA), Seli Hydropower will build an extension to the existing
50 MW hydro station, Bumbuna I, situated in the north east of the country, adding a further 143 MW of power capacity.
Construction on the extension, Bumbuna II, is anticipated to start by mid-2018 with operations forecast to start four
How is Bumbuna II financed and what factors were taken into account when financing this project?
In terms of financing Bumbuna II, we have made good progress in securing the funding which will mainly come from
organisations who are familiar and comfortable with investing in Africa and power projects.
It is being financed by a combination of debt and equity and is being secured in such a way that we are able to generate
electricity at an affordable tariff. The investors in Bumbuna II also share our long-term commitment to the project.
Sierra Leone is experiencing the effects of climate change. How will this affect Bumbuna and will Bumbuna have any
positive or negative impact on the effects of climate change in Sierra Leone (i.e. access to safe water)?
With Bumbuna II, the availability of water is not predicted to be a significant issue. Data from the Bumbuna II Climate
Change Resilience Assessment suggests that there is likely to be a general increase in precipitation across all seasons
with an increase in flooding and heavy rain in some seasons. However, the data also suggests that there may be a
decrease in the number of days with at least 1mm of rainfall, suggesting also that periods without rain may lengthen.
The Bumbuna II project includes the creation of the Yiben reservoir which will have 4 times the usable storage capacity
of the existing reservoir. This will make it more resilient to any decrease in days with at least 1mm of rainfall than the
current Bumbuna I Hydro Electric Project configuration. This will enable both the existing and new power plants to be
supplied with a more stable supply of water for power generation all year round. This will also result in a large increase
in the power that can be generated all year round.
What does the Bumbuna project contribute to Sierra Leone in terms of capacity building/skills transfer etc?
Aside from the direct skills transfer during the construction of Bumbuna II, there will be further capacity building
and training opportunities and initiatives, to be outlined in the Resettlement Action Plan (RAP) and the Community
Development Action Plan, which will benefit local communities. These are being devised in consultation with the local
communities.
Our aspiration is that a significant proportion of the operating staff for the new scheme will be Sierra Leonean citizens.
Where practical we will be recruiting local labour and sourcing local materials. As part of our agreement with the
contractor, appropriate training will be provided.
Explain the choice of construction and engineering firms.
In partnership with our engineering advisers, Lahmeyer, we have conducted a comprehensive and rigorous tender
process, resulting in a short-list of three internationally recognised bidders. The three bidders have extensive experience
in working on similar projects and in Africa and two have already worked in Sierra Leone.
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www.insight.sl

FINANCING
FINANCING
The three P’s
of African
infrastructure
Driven by the need for long-term investment in public infrastructure
allied to tight government budgets and Margaret Thatcher’s free market
economics, the UK government began to explore avenues of co-production
of public services with the private sector in the early 1990s. PFI, as it
was called in the UK (Private Financing Initiative) spread quickly across
sectors and took various forms, depending on the exact role that each
project assigned to the private and public sectors.
Almost 30 years on, the concept of PPPs has become influential globally, as countries face tight budgets while still
needing long-term investment in public infrastructure.
In Africa, the lack of adequate and well maintained infrastructure remains a major constraint to economic growth.
According to the World Bank, the annual financial requirement for infrastructure in Sub-Saharan Africa (SSA) is about
US$93 billion a year for both capital expenditures and maintenance. To finance this, only US$45 billion is being
mobilised, two-thirds paid for by African governments and citizens, 8% by multilateral and bilateral donors and the rest
by the private sector in emerging economies. There is therefore an estimated funding gap of US$50 billion a year.
Unsurprisingly, increasing private investment is seen as a key strategy. As Clive Harris, Practice Manager in the Public
Private Partnerships Group of the World Bank says: “Strengthening private investment in infrastructure in the world’s
poorest countries is a priority for the World Bank Group. We are committed to working with development partners to
address and de-risk challenging environments, in order to attract more private sector investment in a broader range
of countries.”
The figures show that the strategy is yielding dividends. According to the annual report of the Private Participation in
Infrastructure Database, investments amounting to US$2.9 billion reached financial closure for 14 projects across seven
International Development Association (IDA) countries in 2016. These are mainly in economic (physical) infrastructure,
such as power, transport, telecommunications, and water and sanitation.
The figures show that the strategy is yielding
dividends. According to the annual report of the Private
Participation in Infrastructure Database, investments
amounting to US$2.9 billion reached financial closure
for 14 projects across seven International Development
Association (IDA) countries in 2016.
“There’s a fourth
‘P’ and it stands for
people”, says Abu
Kamara, Director of
the PPP Unit
The challenges facing Sierra Leone’s public infrastructure
are well documented. By some assessments, addressing
them will require a sustained expenditure of $258–
478 million per year (Sierra Leone’s Infrastructure: A
Continental Perspective, Nataliya Pushak and Vivien
Foster, 2011).
Based on that figure, we have an estimated annual funding gap of $58 to $278 million per year, most of it associated with
water, power transport and agriculture. To address this the Government has been actively pursuing greater partnership
with the private sector by strengthening the enabling environment for PPPs.
In 2010 the Government passed the PPP Act. The country’s PPP unit was initially set up in 2011 to collaborate and
provide technical support to Ministries, Departments, Agencies (MDAs) and local councils in engaging the private sector
to deliver public sector services.
Abu Kamara, took over the running of Sierra Leone’s PPP Unit in 2013 and shepherded the PPP Act through parliament
in September of 2014. This sets out the responsibilities of the contracting authority and provides for the resolution of
disputes, as well as covering the facilitation, conclusion and implementation of PPPs.
With the recent signing of the Bumbuna II HEP PPP deal, Insight Magazine felt it was time to catch up with Abu Kamara
to find out how PPPs are delivering infrastructural development in Sierra Leone, and what other projects are in the
pipeline.
He says that budgetary constraints, and an acknowledgement of private sector efficiencies and know-how are two of
the principal reasons for the PPP approach to funding infrastructural projects. “At their core PPPs bring a business-like
rigour and private sector efficiencies to big infrastructural projects. Around 70-80 percent of PPP financing comes from
debt finance – this means that an additional layer of scrutiny comes from the banks.
“Sierra Leone, like governments around the world, faces budgetary constraints. These impact on our ability to deliver
new infrastructural projects. PPPs help to reduce the burden on direct government debt liabilities, which in turn frees
up public capital to spend on other government services. They create access to other forms of finance, and because the
private partner takes on the risk of financing, designing, constructing and maintaining the project, the Government’s
exposure to risk is also reduced.
“The downside is that PPP arrangements inevitably take longer to put in place than standard procurement procedures.
A mega project can run from 300 million to a billion dollars and for that amount of capex, the private partner will want to
ensure the rigour of their analysis and feasibility studies. This can cause tension in an environment like ours with urgent
infrastructural needs, which is impatient for results.”
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www.insight.sl

INVESTMENT
Abu Kamara highlights the local content requirements
of every PPP deal, which are structured to encourage
the maximum use of local content and technology
transfer. “As much as possible, we encourage linkages
with local industries and the private sector and
promote Sierra Leonean participation in private sector
consortia,” he says. “After all, the end goal of all this
is to grow our economy and develop the skills and
capacity of Sierra Leoneans.”
Making the PPP process in Sierra Leone more responsive to these needs is a priority of Abu Kamara’s. A team which
includes the development arm of the Ministry of Finance and Economic Development and the Public Investment Unit as
well as the PPP Unit, evaluates projects from the various Government ministries, departments and agencies (MDAs),
with the aim of developing a long term infrastructural development plan and identifying projects with PPP potential. “The
intention is that we can take the initiative, package PPP deals, and go out to market with them on a competitive basis”.
Social as well as economic benefits are an important indicator of success says Kamara. He quotes a colleague who
says that PPPs should come with a fourth ‘P’ - which stands for people. “Look for example at a project for a deep sea
transhipment container port that we are currently working on. It will be able to berth 150 cargo vessels and will create
over 20,000-30,000 jobs. The Bumbuna II hydro project will create 2,500 jobs in the construction phase. These big
projects are transformational– they stimulate manufacturing, create jobs and improve livelihoods,” he explains.
The Unit also encourages community PPPs. Kamara points to a DFID funded waste and recycling service in Bo and
Makeni, which is providing jobs, keeping the cities clean and promoting recycling. “We hope to replicate the scheme in
Kono and Kenema,” he says.
Where the risks of a project are higher than returns, development partners can step in, if the project is delivering vital
services. Kamara points to work that the Unit is currently doing on setting up diagnostic centres. “The capital required to
set up well-equipped diagnostic centres and run them as commercial enterprises, would put their services beyond
the reach of average Sierra Leoneans. Under these circumstances, bringing a development partner in with a grant for
the initial capex, and then charging fees for opex makes their services more affordable,” he explains.
Foreign investment
in post-Ebola
Sierra Leone
Murray Grant,
CDC Group Plc
The Ebola crisis had a major impact on businesses in Sierra Leone. The
World Bank estimates that Gross Domestic Output fell by as much as 22
per cent during 2014-2015 - as a result of the crisis, and the dramatic dip
in the price of iron ore. This economic contraction could have been worse
had it not been for the necessary mobilisation of international aid and
non-governmental organisations boosting demand for goods/services and
injecting much needed foreign currency into the economy.
While GDP growth has picked up since then – to just over 4 per cent in 2016 – the long term economic outlook
remains a key question in a post-Ebola environment, where the private sector is significantly weaker and inflows from
aforementioned international workers all but gone. Working alongside local teams, foreign investment can play a crucial
role in reducing some of the constraints businesses face in order to drive economic performance.
One of the main constraints is the lack of capital available to small and medium-sized businesses. During the crisis,
many of the few remaining capital providers, mostly banks, had a temporary financing moratorium leaving businesses
even more susceptible to the economic downturn at the time. In order to help, CDC partnered with Standard Chartered to
develop a $50 million loan facility for local firms.
The loans enabled borrowers to continue operating and to keep providing jobs. The CEO of Benco Trading, one of the
beneficiaries of the loans, said: “It allowed us to actually maintain our workforce. Because we were at a time where
we were going to have to lose half of our staff.” Last year, CDC provided a second loan facility and many of the same
companies, including Benco Trading, borrowed again to drive growth now the economy had started to recover. The
company has since created 50 new jobs and is still hiring. What Benco Trading shows is that successful businesses
create jobs. This is particularly important in post-Ebola Sierra Leone, where youth unemployment is around 70 per
cent. If local businesses can access capital, they can grow and provide employment to the many young Sierra Leoneans
looking for work.
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There is a full pipeline of PPP projects, dominated by the energy sector. “Energy is a powerful driver of economic
growth,” he says, “and it has taken close to 55-60 percent of my working time.”. As well as Bumbuna II, he has the TCQ
Freetown Heavy Fuel Oil project almost at completion stage. Together these two will bring in an additional 200+ MW.
Smaller solar projects, which should be completed mid next-year are intended to add another 50 MW to the grid.
Transport is another key area with the aforementioned transhipment port on the horizon, and phase two of the Bolloré
concession already underway. The unit is also working closely with agriculture “to see how best we can develop largescale
commercial farms that can take care of our domestic consumption,” he says. Under this sector, the Unit is in the
final stages of concluding a PPP deal for an extensive oil palm plantation in Mattru.
Abu Kamara highlights the local content requirements of every PPP deal, which are structured to encourage the
maximum use of local content and technology transfer. “As much as possible, we encourage linkages with local
industries and the private sector and promote Sierra Leonean participation in private sector consortia,” he says. “After
all, the end goal of all this is to grow our economy and develop the skills and capacity of Sierra Leoneans.”
www.insight.sl

In a country like Sierra Leone, with many vibrant smaller businesses but where larger firms are scarce, having a partner
with an on-the-ground presence like Standard Chartered is invaluable. Without them, the loan facility simply wouldn’t
have reached the same amount of companies. But businesses need more than just money if they are to succeed in Sierra
Leone – they need support in developing the right strategy. Like every country in Africa, Sierra Leone comes with its own
unique set of circumstances and as such investors must tailor their approach to the nuances of the investment climate.
This is the approach CDC took in our most recent investment in the country – $20m into Solon Capital Partners, an
investment holding company based in Freetown, to grow its existing businesses and invest in new opportunities in Sierra
Leone. Solon’s structure and investment strategy takes a creative approach to solving market problems.
By using a company structure, as opposed to the private equity (PE) fund model, Solon can offer greater flexibility to the
businesses it invests in. Solon investee, Flash Vehicles, a vehicle hire and leasing firm, is an example where this model
has allowed the Manager to start-up and invest in the business over a much longer period of time than it could have in a
standard PE model. The business has scaled up significantly delivering international service standards in a space where
supply had been informal and fragmented.
SMART TOOLS
FOR SMART
BUSINESS
Flash’s success and a commitment to reinvestment has enabled Solon to set up Rising Academies, a network of
affordable schools in Sierra Leone and Liberia, aimed at improving access to education. Rising is already having an
impact. In Liberia, a study was recently carried out to compare schools run by various providers. The study found that,
pupils at Rising Academies schools made two to three times as much progress in reading and mathematics as children
in some of the other groups.
Investment in social infrastructure like education is essential for sustainable development in Sierra Leone. The Ebola
crisis meant schools were shut for eight months and parents lost jobs (which paid for tuition fees) disrupting the
education of thousands of school-aged children. Organisations which provide teaching at an affordable cost will be vital
as the country continues to re-build in the long term. An educated and skilled management and labour workforce is
essential to foreign investment as it requires local human resources at each stage of the investment cycle. From the
availability of companies and projects in which to invest, to local input in an investor’s evaluation, to managing these
businesses and projects.
13
Investing in affordable education is one example of how private sector investments can provide much needed affordable
social and public infrastructure. This needs to be replicated in other sectors including affordable healthcare, housing and
power. As foreign investors, we are now asking ourselves - and other similar organisations - how can we have a similarly
high impact in these other sectors?
Essential to the answer is partnering with teams who have a detailed understanding of doing business in Sierra Leone.
More investors working closely with more local teams will help establish successful businesses which create quality
jobs, build career paths so young people will be encouraged to stay in the country and contribute to government tax
receipts, while helping Sierra Leone secure a stable future post-Ebola.
Murray Grant is Managing Director, Intermediated Equity, at CDC Group Plc – the UK’s development finance institution.
Here he writes about the themes in the Sierra Leonean economy that foreign investment can help overcome and what
else is needed to help it flourish.
www.insight.sl

RESEARCH
Insight’s inaugural
annual survey of
working hours in
Sierra Leone finds
that respondents
enjoy their work
despite the long
hours
Survey results
DO YOU OWN YOUR OWN BUSINESS OR ARE YOU AN EMPLOYEE?
Employee
Business owner
Both
Other
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
HOW MANY HOURS A WEEK DO YOU WORK?
0-10
Insight’s newly launched annual survey of
working hours in Sierra Leone aims to find
out more about Sierra Leone’s work culture.
“This is the first of an annual series of surveys which will measure
working hours in Sierra Leone,” says the editor of Insight magazine.
“Over time the results will build into a knowledge base that will help us
track trends, and also look at the relationships between working hours
and productivity, workplace stress, workplace satisfaction, health,
income and professional success.”
Measuring working hours is also an important economic indicator.
Historically at the beginning of a recession, companies adjust working
hours down, before making redundancies. As the economy picks up,
employers increase hours before hiring more staff.
This year’s survey is focused on the relationship between working hours and job satisfaction and compares the working
hours of business owners with those of employees.
Business owners made up the majority of respondents (31.6%), a further 26.3% of respondents were both business
owners and employees. Twenty-six percent were employees and 16% categorised themselves as ‘other’.
11-20
21-30
31-40
41-50
51-60
60+
No impact
Little impact
Heavy impact
Don’t know/
not sure
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
WHAT IMPACT DO YOUR WORKING HOURS HAVE ON
YOUR PERSONAL LIFE?
19
Over half (56%) say they work 51 hours or more a week. A third (33.3%) work between 41 and 50 hours a week. The
majority (70%) of those who owned their own business worked over 51 hours a week. One particularly driven individual
reported that he/she worked over 80 hours a week.
10% 20% 30% 40% 50% 60% 70%
DO YOU ENJOY YOUR WORK?
80%
90%
100%
The majority (53%) of respondents said that their working hours had little or no impact on their personal lives. Fortyseven
percent however said that their working hours had a substantial impact on their personal lives.
Yes
No
Despite this 95% of respondents said that they enjoyed their work.
Future surveys will measure working hours across demographic groups, by sector, by gender and even by season. In
time, they will also be able to look at the influence of technological innovation and policy changes.
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
www.insight.sl

SMART BUSINESS
Smart tips for
smart business
in Sierra Leone
Location, location, location: A drive that takes 20 minutes without traffic, becomes a
drive that takes an hour and a half in the mornings and evenings, particularly during
the school term.
Ensure reliable transport options: The AA and RAC have yet to reach this part of the world.
Wardrobe malfunctions: Have
a change of clothes on hand
at all times. Sierra Leone is
sometimes wet and muddy,
sometimes hot and sweaty, and
frequently both.
Wardrobe malfunctions 2:
Government offices operate a
strict dress code, so don’t be
tempted to dress down.
Phone chargers, laptop chargers, in-car
chargers, spare chargers, power packs,
extensions and adaptors – you cannot
have enough of these.
These boots were made for walking:
Familiarise yourself with all the walking
routes (i.e. paved sidewalks) downtown.
The city centre is small enough for you to
be able to run all your errands or make
all your meetings on foot, just make sure
you’re wearing comfortable shoes.
Always stay connected:
Invest in a Mifi. For when the wifi
bandwidth in your work space isn’t
enough for the number of users. For
when the power goes out. For those long
hours stuck in traffic. For staying clear of
high data rates.
Having an office/home on the same road
as high ranking state officials does not
hurt.
Enjoy the sunrise: prime uploading
and downloading time is between the
hours of 1am and 4am, when the rest of
mankind has had enough of their social
media accounts.
Go to hot spots: Have several go-to spots
with reliable internet access. One should
be a busy restaurant so you can multitask
by networking as well. The second
should be a quiet corner for the times
you have a deadline and don’t want to be
distracted. Identify the various Limezone
hotspots dotted around the city.
Image by Freetown Street 366
The rains: Have several umbrellas,
wellington boots, and a spare outfit.
Baby wipes and hand sanitiser.
Need we say more
Modes of communication are different. Expect to use your
mobile phone to call, text and WhatsApp a lot. In a recent
survey of Insight readers, 80% of respondents used WhatsApp
for business purposes.
Smart phoning. Have two mobile phones – one which uses the Airtel network, with the other
on the Africell network. Calls across networks are expensive. When one network is down,
you still have access to the other. Different networks are better in different parts of Sierra
Leone.
21
Carry cash!! In an Insight survey – the top three forms of payment for retail transactions
were cash, cheque and mobile payment – with cash coming out at a whopping 90%.
A backpack containing all the above will be
extremely heavy – learn to live with it.
Top up, top up. Prepaid mobile services are more
usual than post paid. Don’t be caught short.
www.ftinsight.net

SURVEY RESULTS
We surveyed
more than 100
businesses and
these are the
results…
TYPES OF BUSINESS STORIES: Interesting business stories
Editorial Calendar
2018
March Issue
Theme: Incorporating the corporate image
In this issue we will be covering the top 10% industrial firms in the counry and learn from them on how
their corporate structure enables a culture of effectiveness and efficiency. Firms with multiple base
operations in Sierra Leone will be featured.
Print Ad Deadline: 15th February 2018
Publication Date: 1st March
Investment opportunities 52.8%
Business coverage on specific sectors
Feature articles about succesful
people or businesses
Tips on doing business in SL
Short news pieces
Opinion pieces from business people
and influencers
27.4%
24.5%
20.8%
20.8%
19.8%
June Issue
Theme: The case for diversification
In this issue we will look at sectors with the most potential for diversification and identify both the
barriers and opportunities in investment in these sectors.
Print Ad Deadline: 15th May 2018
Publicate Date: 1st June
27
Business trends and research
Articles explaining a particular
business process in SL
17.9%
13.2%
September Issue
Theme: Infrastructure- what holds it all together
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
BUSINESSES THAT ADVERTISE: Advertising in SL media
9%
49%
In this issue which will be published a year after the first toll road in Sierra Leone was operationalised
we will be looking at the direct and indirect impacts of infrastructural investment- from roads to fibre
optic networks to air travel- to both the country and the investors.
Print Ad Deadline: 15th August 2018
Publication Date: 1st September
42%
REASONS FOR NOT ADVERTISING
I don’t need to advertise
25.9%
Yes
No
I want to but I need guidance
December Issue
Theme: Digging for ideas
In this issue we will explore the institutions behind economic growth in the country and discuss
their effects on the country’s growth. We will feature think tanks, tech innovation labs, business
development firms, etc.
Print Ad Deadline: 15th November 2018
Publication Date: 1st December
Advertising is too expensive
I don’t think I will see results
I don’t know where to advertise
Other
25.9%
18.5%
18.5%
13%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
www.insight.sl

OPINION
Together we can
achieve more
Susanne Schröder
“Shaping an interconnected world”. That is the motto of Germany’s G20
Presidency which runs from 1 December 2016 to 30 November 2017.
In her speech at the G20 summit in Hamburg in July 2017, the German
Chancellor reaffirmed this spirit of collaborative working saying: “What
was true back then is still true today: we can achieve more if we act
together than we could alone.”
With these words she laid the foundation for a new cooperation between Europe, the G20 states and Africa during the
coming years, giving Germany a leading role in intensifying the relationship between Europe and Africa.
Reflecting Germany’s sense of urgency in this area, is the Federal Ministry of Economic Cooperation and Development’s
new process: The Marshall plan with Africa.
Launching the Marshall Plan, the German Development Minister Gerd Mueller said: “We need a paradigm shift; we have
to realize that Africa is not the continent of cheap commodities but that the people of Africa need infrastructure and a
future.”
This analysis captured a new and ambitious aim - to support the development of infrastructure and therefore a future,
especially for young people in Africa with a particular emphasis on encouraging private investment on the continent. It
also signaled a new depth to African-German relations, and a commitment to closer collaboration.
One of the programmes established by The Federal Ministry for Economic Cooperation and Development in cooperation
with GIZ (Deutsche Gesellschaft für International Zusammenarbeit GMbH) is the Public Private Partnership (PPP) - Fund
for Mano River Union countries. The aim is to strengthen the cooperation between these countries and the private sector
globally, so as to create new jobs and provide sustainable access to income-generating activities and social services.
Image by Freetown Street 366
Challenges to this strengthened partnership with the private sector include the lack of infrastructure e.g. unreliable
electricity and water supplies, an insufficient number of skilled workers, weaknesses in the rule of law and a lack of
capacity in the public sector. Nevertheless, there is a huge potential for private partnerships to play an important role in
developing the economy and future of the countries.
The mutual advantages are clear: the private investor derives benefit from a growing market in the entire region (one
office or production centre can supply not only Sierra Leone but also Guinea and Liberia) and the host countries have
opportunities to improve their economic and social situation.
Another programme to increase private investment in countries like Sierra Leone is the develoPPP.de programme . The
objective of this programme is to overlap private enterprises and actors involved in development cooperation to provide
training for local employees, promote the use of climate-friendly technologies or improve social standards at production
facilities. It helps drive innovative projects forward in developing countries and emerging markets, while at the same
time generating long-term benefits for the local population. Its website says: “develoPPP.de was set up by the German
Federal Ministry for Economic Cooperation and Development (BMZ) to foster the involvement of the private sector at the
point where business opportunities and development policy initiatives intersect.”
As mentioned before there are challenges for companies looking to invest in countries like Sierra Leone. However,
developing countries and emerging economies are the markets of tomorrow and through programmes like Public
Private Partnership Fund for Mano River Union countries and develoPPP.de, financial risk can be reduced.
Since Independence in 1961 Germany has stood with Sierra Leone side by side, assisting with the country’s socio
economic development. Sierra Leone’s record of conflicts and crises mean that investment too often comes in the shape
of humanitarian and development aid, but private investment can and should offer a more economically sustainable and
mutually beneficial option.
We can achieve more together than by acting alone. Although I would prefer to say: Only together can we achieve more
than by acting alone!
25
Since Independence in 1961 Germany has stood with
Sierra Leone side by side, assisting with the country’s
socio economic development. Sierra Leone’s record
of conflicts and crises mean that investment too often
comes in the shape of humanitarian and development
aid, but private investment can and should offer a more
economically sustainable and mutually beneficial option.
Susanne Schröder is a consultant for sustainable development cooperation Sierra Leone/Germany
www.insight.sl

FINANCE
Sierra Leone:
Medium-term
Economic
Prospects
(2018 – 2020)
Contributed by the Ministry of Finance and Economic Development
The key macroeconomic objectives over the medium term are to
i) safeguard macroeconomic stability by reducing inflation, improving our foreign reserves position and
maintaining debt sustainability
ii) promote sustainable and inclusive growth by diversifying the economy through investments in
agriculture, tourism and fisheries and scaling up investment infrastructure (roads, energy and water
supply)
iii) increase social spending including on social safety nets to promote human development
iv) enhance domestic revenue mobilisation to provide the fiscal space for enhanced spending on
infrastructure and social protection
v) advance structural reforms to promote private sector participation in the economy
Gross Domestic Product
Growth in the medium term will continue on the path of strong recovery. Real GDP growth is projected to increase from
6.1 percent in 2018 to an average of 6.8 percent during 2019 and 2020.
Excluding iron ore, growth will increase from 5.1 percent to 6.6 percent during the same period.
Economic growth will be driven by
i) ramping up of iron ore production to pre-Ebola levels by Shandong Iron and Steel and the re-opening of
the Marampa Iron Ore Mines under new ownership
ii) investments in non-iron ore mining (rutile, bauxite and diamonds) to expand production capacities and
the award of new mining licenses which is expected to increase production levels in this sector
iii) the recent foreign investments in the agriculture and agribusiness sectors, in particular palm oil, will
reach production stage
iv) enhanced spending on infrastructure and the social sectors which will boost domestic demand to
support the Ebola recovery as well as enhance supply response over the medium-term
v) structural reforms to improve the business environment and reduce the cost of doing business in the
country.
On the basis of the assumptions made in the foregoing paragraphs, agricultural growth is projected to remain robust at
an average of 5.1 percent during 2018-2020, of which, crop production will average 5.7 percent; livestock 4.3 percent;
forestry 3.3 percent and fishery 3.7 percent.
The resumption of iron ore production, is expected to drive an average growth of 15.5 percent in industry over the
medium term. Mining and quarrying growth is projected to average 20.7 percent, of which iron ore will grow by an
average of 26.1 percent and other minerals by 12.5 percent.
Manufacturing growth is forecast to average 6.0 percent as electricity supply improves; electricity and water is expected
to grow by 5.5 percent and construction, 5.3 percent. The strong recovery of the services sector is expected to continue,
averaging 5.8 percent over the review period. Of this, trade and tourism is projected to grow by 5.3 percent, transport,
storage and communications, 5.3 percent; finance, insurance and real estate, 5.3 percent; Government services, 7.8
percent and other services, 5.3 percent.
On the demand side, domestic demand including private and Government consumption as well as capital formation
(private and public investments) will continue to account for the greater proportion of our Gross Domestic Product. Net
exports (exports minus imports) are negative over the projection period as imports are projected to continue to exceed
exports in the medium term.
Inflation
Inflationary pressures are projected to be moderate over the medium term. The year on year inflation is expected to fall
to 9.5 percent by end 2018 and 8.5 percent by 2020. The stabilisation of the exchange rate will contribute to dampening
inflationary pressures. The proactive stance of monetary policy complemented by fiscal consolidation is also expected
to contain inflation. The projected increase in agricultural production, especially food crops will also lower consumer
prices.
Exchange rate
The exchange rate will continue to be determined by market forces. Interventions by the Bank of Sierra Leone (BSL) in
the foreign exchange market will be limited to contain temporary excessive volatility. BSL will aim to become a net buyer
of foreign exchange in coming years, in order to increase reserve coverage.
Exports
The growth in exports is projected to average 14.3 percent over the medium term, moderating from 19.8 percent in 2018
to 7.2 percent by 2020 as iron ore production reaches the maximum capacity. Exports are projected to continue to be
dominated by minerals. Iron ore exports are conservatively projected to increase from 12 million metric tons in 2018 to
15 million in 2020, relative to 6.1 million metric tons during 2016.
The second iron mining company, (formerly) Timis Mining Corporation is also expected to commence operations
during the period. Diamond production will average around 540,000 carats per annum over the medium term, of which
Koidu Holdings will export an average of 300,000 carats, with alluvial diamonds responsible for the remaining 240,000
carats per annum. Bauxite output will average 2.1 million metric tons; rutile, 183,000 metric tons; and ilmenite, 43,000
metric tons. Exports will also be boosted by the production of palm oil and other export crops such as cocoa as recent
investments in this sub-sector reach production stage.
Imports
Imports are projected to grow in an increasing trend by 7.0 percent in 2018, 8.1 percent in 2019 and 9.0 percent in 2020 in
line with the expansion in economic activities.
Current Account
The current account deficit will narrow down slightly - initially to 18.6 percent of GDP in 2019 from 19.1 percent of GDP in
2018, before increasing to 19.0 percent of GDP in 2020 in line with the movements in the trade balance.
Balance of Payments
The overall Balance of Payments position is projected to turn into a surplus of US$ 22 million (0.4 percent of GDP) in
2018 and remain positive throughout the medium-term - from a negative position of US$59 million (1.6 percent of GDP)
in 2017.
Gross foreign reserves are projected to increase from US$573 million (2.9 months of imports) in 2018 to US$695 million
(3.0 months) of imports in 2020.
27
www.insight.sl

The Economy
TEN YEARS OF TRANSFORMATION -
2007-2017
Contributed by the Ministry of Finance and Economic Development
• Economic growth was robust during the period rising from single digits in 2007 to 20.7 percent during
2013. Despite the twin shocks of the Ebola and collapse of commodity prices, the Government was able to
implement sound macroeconomic policies to revive the economy and put it on a high growth trajectory once
again. Economic growth recovered by 6.1 percent in 2016 and projected to grow by 6.0 in 2017. Growth was
driven by increased investments in mining, agriculture, manufacturing, construction and services.
• Domestic revenue collected increased from a low level of Le 536 billion (8.9 percent of GDP) in 2007 to 2.89
trillion (12.2 percent of GDP) in 2016 and projected at Le 3.5 trillion (13.0 percent of GDP) in 2017.
• The growth in revenue has necessitated considerable investments in roads, energy, water supply, and other
infrastructure projects. Total capital expenditures increased from Le 177 billion in 2007 to Le 2.04 trillion
during 2017, a clear indication of the Government’s commitment to transform the infrastructure landscape
of the country.
• Overall, Government expenditures increased from Le 835.5 billion (16.8 percent of GDP in 2007) in 2007 to
Le 5.52 trillion (23.4 percent of GDP) in 2016 to fund largely priority spending including education, health,
social safety, youth empowerment and economic diversification activities in agriculture, fisheries, and
tourism. Government expenditures are projected at Le 6.5 trillion (22 percent of GDP) in 2017.
• Transfers to Local Councils to carry out devolved functions increased from Le 13.4 billion during 2007 to Le
96.7 billion during 2016.
• Exports amounted to US$300 million during 2007. Government has been proactive in ensuring an expanded
export base during the past ten years. Exports increased fivefold to US$ 1.5 billion in 2013 prior to the
external shock and US$ 1.3 billion in 2014 at the beginning of the external shock.
• At the same time, imports, including essential inputs to increase productive capacity of the economy,
increased from around US$ 400 million in 2007 to US$ 1.6 billion in 2015.
• Gross foreign exchange reserves of the Bank of Sierra Leone were only US$ 215.5 million in 2007. Gross
foreign exchange reserves increased to US$580 million in 2015 and declined slightly to US$500 million in
2016 reflecting sound external sector policies.
• To strengthen financial inclusion and broaden access to financial services, the Bank of Sierra Leone sought
to improve the credit environment, notably by: i) preparing a development strategy for small-and medium
sized enterprises; ii) launching the automated payments system to support deepening intermediation; iii)
expanding the existing credit reference database to assess credit concentration; iv) establishing a collateral
registry to support execution of collateral on bad loans and improve the credit culture; and v) establishing
community banks in various parts of the country.
• The Government inherited a difficult relationship with development partners including the IMF in 2007.
Thanks to the prudent and professional management of the economy, Government overcame these
difficulties and successfully completed the sixth and final review of the Poverty Reduction and Growth
Facility in 2010.
• Since then the Extended Credit Facility (ECF) programme approved in 2013 was successfully concluded,
with all six reviews successfully completed by the Executive Board of the IMF. US$ 95.5 million was agreed
under that ECF, but the IMF provided over $219 million in financial assistance during 2014–15 to alleviate
the impact of the twin shocks by giving the budget greater resources at a time when social spending,
especially for health and education, was critical.
• Another ECF was approved in June 2017, with US$ 224.2 million support to Government.
• Government implemented various measures to promote responsible financial management including the
following:
• A new PFM Act was passed in 2016 aimed at increasing transparency and accountability in the
management and reporting on the use of public resources;
• Formation of a Cash Management Committee to take decisions on cash ceilings, short-term
borrowing requirements, and placement of temporary cash. The Cash Management Unit provides
monthly cash flow projections to serve as input for decisions of the cash management committee;
• A Medium-Term Debt Management Strategy was completed by the Ministry of Finance and
Economic Development. This was aimed at enhancing debt management capacity and borrowing
policies;
• Internal audit units have been established in key ministries, departments and agencies through
the Ministry of Finance and Economic Development. These units are under the direct control of
the chief internal auditor of the Ministry of Finance and Economic Development;
• Government also promoted transparency by supporting the work of an independent external
auditor, Audit Service Sierra Leone.
3
www.insight.sl

What our readers say
“
I have enjoyed reading your
magazine, especially the recent
blog on Olusegun Jaji. It’s been
interesting reading up on the
new investors, business and
entrepreneurs in Sierra Leone.
THE MAGAZINE FOR THOSE
IN CHARGE OF CHANGE IN
SIERRA LEONE
3
”
Ernestine Blanco
Senior Advisor at AARP
Des Moines, Iowa area
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