FTInsight Feb 2016

For Sierra Leone’s entrepreneurs, business
people, policy makers and investors
FEBRUARY 2016
Le 55,000 / $10
www.ftinsight.net
Professor Monty
Patrick Jones,
Minister of
Agriculture:
Agriculture is an
opportunity that we
must now leverage.
“
”
In This Issue:
JS Koroma – founder of UTB & patriotic
economics
Sierra Leone’s new Minister of Agriculture
on the future of agriculture
Rebecca Perlman of HSF looks at Sierra
Leone’s renewed opportunities
Four emerging investment opportunities in
Sierra Leone
plus
MOOCs – hope or hype?
Survey results on the Sierra Leonean SME
start-up experience
Unusual economic indicators

Editor’s Insight
Welcome to the second issue of Insight magazine and thank you for all your feedback, comments and support.
We have added a range of new pages to our website including a news section and of course, the change
makers page – so you can go directly to the people making a difference in Sierra Leone’s business and
investment sector. Our website is updated regularly with exclusive content, and I am delighted to say that
we regularly achieve over 2,000 visitors to the site and have almost 1000 subscribers for the digital version
of the magazine. Sign up at www.ftinsight.net.
In our February issue, we hear from Professor Monty Patrick Jones, Sierra Leone’s new Minister of
Agriculture, and his plans for a sustainable agricultural industry in Sierra Leone. We look at the MOOC
revolution in online education and ask if it could provide a solution to Sierra Leone’s tertiary education
slump. Survive and Succeed takes a different approach and we’ve devoted a whole section to the
challenges of Sierra Leone’s start up businesses – complete with a snapshot survey of our readers’
experiences and two case histories. Rebecca Perlman of Herbert Smith Freehills follows up the
successful launch of the firm’s investment guide with an expert’s look at Sierra Leone’s renewed
focus on being an investment friendly economy. Our change maker is James Sanpha Koroma,
the man who set up Sierra Leone’s only indigenously owned private bank 20 years ago and has
watched his audacious vision go from strength to strength.
FT
Insight
3
38 Spur Road, Freetown | Tel: +232 77 399399 | Website: www.swissspirithotels.com/freetown
Sierra Leone’s economy looks brighter this year. The Ebola epidemic has been declared over,
although sporadic flare ups can be expected. Fly Salone gives us the advantage once again
of direct flights to the country, which means travelers from the UK can be here in six hours;
and the collapse in iron ore prices has refocused the government’s attention on diversifying
the economy with agriculture as a priority. On 5 May we will be discussing Sierra Leone’s
economic opportunities at an investment forum in London hosted by Herbert Smith
Freehills. This is the second of what will become an annual series. Confirmed speakers
include Dr Kailfala Marah, Sierra Leone’s Minister of Finance, Professor Monty Patrick
Jones, Sierra Leone’s Minister of Agriculture and Dr Samura Kamara, Sierra Leone’s
Minister of Foreign Affairs.
38 Spur Road, Freetown | Tel: +232 77 399399 | www.swissspirithotels.com/freetown
Freetown Insight
+44 771 722 1023
memunaforna@ftinsight.net
Our April issue will also focus on investment – the opportunities, challenges, and
the pioneers. Sierra Leone’s business environment is testing, it’s not for the faint
hearted; and it can be a tight rope walk to find success, but the companies that
emerge intact are outstanding examples of entrepreneurship. Hearing your
opinions and views on the subject is important to us. We look forward to
your suggestions, comments, feedback and feature ideas. Our readers are
at the sharp end of business and investment and we always welcome your
contributions.
Editor:
Memuna Forna
Art Director:
Erika Perez-Leon
Contributors:
Professor Monty Patrick Jones,
Minister of Agriculture
Angela Betancourt
Unisa Dizo Conteh
Alinah Kallon
Rebecca Perlman
Advertising Enquiries:
memunaforna@ftinsight.net
+44 771 722 1023 / +232 79953382
www.ftinsight.net

Insightful
Sierra Leone and Somalia both more than doubled mobile
subscriptions between 2012 and 2013, with 4 million and
5.2 million subscriptions respectively.
The total telecom sector was worth $1.67 trillion in 2013,
growing by 1-2% per year, driven mainly by expansion in
China and emerging markets.
Globally 3.2 billion people
are using the Internet by end
2015, of which 2 billion are
from developing countries
In Sierra Leone there were
260,000 Internet users on Nov 15,
2015, 4.4% of the population.
www.internetworldstats.com
The global mobile subscriber base increased
by just over 5% in 2014. Developed markets
are growing more slowly as penetration
rates approach levels close to saturation.
For example, in Europe and North America,
unique subscriber growth was below 1% in
2014. At the other end of the spectrum, Sub-
Saharan Africa was still the world’s most
under-penetrated region with subscriber
growth at nearly 12%. www.gsmaintelligence.com
Nigeria has the highest amount of internet users on the continent, with over 92 million users,
which accounts for 51.1% of the country’s population. Second on the list is Egypt with over 48
million internet users, which accounts for over 54% of the country’s population having access to
the internet. Over 63% of the Kenyan population has access to the internet, and that amounts
to over 29 million users. 49% of the South African population has access to the internet, which
amounts to over 26 million people, as well as over 60% of the Moroccan population, which
amounts to over 20 million people. Other countries on the continent with significant internet
access include Algeria, Cote D’Ivoire, Ethiopia, Ghana, Libya, Rwanda, Senegal, Tanzania, Tunisia,
Uganda, Zambia, Botswana and Zimbabwe.
The mobile industry continues to scale rapidly, with a total of 3.6
billion unique mobile subscribers at the end of 2014. Half of the world’s
population now has a mobile subscription—up from just one in f ive 10
years ago. An additional one billion subscribers are predicted by 2020,
taking the global penetration rate to approximately 60%. There were
7.1 billion global SIM connections at the end of 2014, and a further 243
million machine-to-machine (M2M) connections. www.gsmaintelligence.com
The lowest levels of internet access are mostly found in
Sub-Saharan Africa, with Internet available to less than
2 percent of the populations in Guinea, Somalia, Burundi
and Eritrea.
McKinsey predicts that by 2025,
e-commerce will make up 10 per cent of
total retail sales in key African markets.
Smartphones now dominate mobile
broadband devices, and will continue to
for the foreseeable future. This means
that, for many consumers in developing
markets, their f irst experience of the
Internet will be via a smartphone.
Subscriptions for smartphones
are expected to exceed those for
‘basic’ phones in 2016.
Nigeria has Africa’s largest mobile market,
with more than 148 million subscribers and
a penetration of about 107%.
- See more at:
http://www.budde.com.au/Research Nigeria-Mobile-
Infrastructure- Operators-and-Broadband-Statisticsand-
Analyses.html#sthash.N6F7tspz.dpuf
A large body of evidence has now been amassed that
affordable and effective broadband connectivity is
a vital enabler of economic growth, social inclusion
and environmental protection.
(The State of Broadband 2015 http://www.broadbandcommission.
org/Documents/reports/bb-annualreport2015.pdf)
Digital Africa – a 2014 survey by Ovum
- reports that 46% of the the polls
respondents believe that e-commerce
will be the most important digital
service generating increased revenue
for African industry over the next f ive
years.
Share of population in sub-
Saharan Africa with access to:
Paved
Roads
Financial
Services
Sanitation
Electricity
Mobile
phone access
10
16
26
29
32
39
20 30 40 50
57% of the world’s people remain
off line according to the UN’s
report The State of Broadband.
In the world’s Least Developed
Countries (LDCs) over 90 percent
of people have no kind of
internet connectivity. The report
also highlights the continuing
stubbornness of the gender
digital divide.
FACEBOOK’S free
basics is now live in
30 countries with 34
operators.
There are 100 million
people coming to
Facebook every month
across the African
continent, with over
80% on mobile.
FT
Insight
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www.ftinsight.net

Poll
Results
Mamamah Mia! Should
we build Freetown’s
new airport or not?
The poll results are in!
THE NOT-AT-ALL VIEW:
66%
23%
9%
no not now yes
To put it into perspective,
it is $52 (or Le 300,000) for
each citizen.
Simply too much!
Only the misguided need
f i ll in the poll.
HOSPITAL SCHOOLS
HOSPITAL SCHOOLS.
Not at all!!!! There are more
pressing issues. Hospitals, schools
etc Absolutely no new airport, not
a priority. Better management will
suffice for now. Electricity, water,
basic infrastructure. New airport,
how ridiculous is that? Would be
interesting, if it went ahead to see
how much of the $315 million is
spent of the project and how much
goes missing?
A bridge linking the old airport to Freetown will do a whole
lot better if the money is to be spent on some vanity project.
FT
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We asked you to take a poll on our website www
ftinsight.net. Should we build the new airport or
not? The poll results are in, and its fairly clear that
there’s very little enthusiasm for the project.
68% of respondents said no; 23% said ‘not now’ and
only 9% said yes. Hospitals, schools, power, water, basic
infrastructure – and a fear that a large chunk of the $315
million budget would be channeled elsewhere were just
some of the arguments against. We’ve summarised the
comments on the following page:
THE NOT-NOW VIEW:
I think a proper hospital and medical staff is much more needed at this stage!!!
THE SHORT-TERM-PAIN-FOR-
LONG-TERM-GAIN VIEW
Developing Sierra Leone’s
potential as a first-class
tourist destination and
attracting investors means
we need first class facilities.
It’s a tough call. With the better airport
comes more accessibility to global
travellers and investors, better business
opportunities. Higher GDP.... more
money and more schools and hospitals.
Sustainable growth. It’s the long term/
short term question. If you were ever going
to move it and if the land is available, now
would be the time. If you want to build a f
irst class tourist industry, you need f irst
class facilities ... SL has the potential to be
the BEST destination in Africa.
www.ftinsight.net

Change Maker
Audacious visionary
and patriotic
economist -
James Sanpha Koroma
By Memuna Forna
James Sanpha Koroma, founder and CEO of Union Trust Bank (UTB) – Sierra Leone’s first and only indigenous
private bank, is very frank about his inability to suffer fools. “If you want something done correctly, call me. If
you don’t want it done correctly then don’t call me,” he says. His frankness and uncompromising approach to
professional efficiency have served him extremely well in business but less well in politics, and there is a sense
that successive regimes have struggled to capitalise on his undoubted intellectual value.
Founded by JS Koroma in 1995, UTB is the result of one man’s
audacious vision. At the time of its inception, Koroma’s dream
was greeted with some scepticism. Two private banks in Sierra
Leone had already folded – the Bank of Credit and Commerce
and the International Bank for Trade and Industry; a third –
Meridian was in its f inal throes. “No one believed me. Everyone
said I was crazy,” he remembers. To say that he has proved his
detractors wrong is something of an understatement. UTB
has been in operation for 20 years. It is headquartered on the
largest single piece of real estate in central Freetown, and a
new eight storey headquarters, with underground parking,
will be completed later this year.
He is an economist by training – he studied at Fourah Bay College, followed by a stint at Syracuse in the US and
Birmingham University in the UK. On his return to Sierra Leone, he was quickly identified as one of the country’s
brightest minds and co-opted into the Ministry of Finance, where he served for 12 years. From there he went
on to become the Managing Director of the National Development Bank, developing it into a strong commercial
entity. It is a pattern of private sector success and a strong sense of public duty that has been repeated
throughout his career.
Conflict with the then President Momoh brought his tenure at NDB to an abrupt end when the hastily introduced
Economic Sabotage Act was used against him. A warrant was issued for his arrest, and on the advice of the late
Terence Terry who warned him that his life was in danger, he left Sierra Leone. It is a period he describes as “his
time in exile” and despite well-regarded posts with the African Development Bank and as a financial advisor to
the Nigerian Development Bank, he was focused on returning home. “This is my country,” he states. “I will never
be forced to leave again.”
The opportunity to return came in the form of a consultancy contract to research the feasibility of setting up
Ecobank in Sierra Leone. More consultancy work followed – he negotiated the sale of Shell to Safecon, and was
instrumental in setting up the Road Transport Authority. It was 1994 and Sierra Leone was in the midst of its
period of sustained civil unrest. It was an unlikely time to start a new business, nevertheless Sanpha Koroma
began to look for opportunities.
The political and economic climate certainly did not appear to favour a new bank. Ecobank had decided the
country’s political instability made setting up in Sierra Leone too risky, and Meridian bank was in the process
of folding up. Koroma believed otherwise. His feasibility study for Ecobank had proved the opportunity was
there. He had the necessary experience, understood the culture and had some savings. “I believed I knew the
economy enough to know that a bank was viable,” he says.
The complex and expensive process of setting up a private bank began. Registering the company, applying
for a license to the Bank of Sierra Leone; providing the minimum paid up capital which at the time was Le 2.5
billion equivalent to $45,000; a five-year business plan giving detailed financial projections, target market and
investment strategies and the proposed risk management strategy. There was also the need for a suitable
premises, computerisation, organisational structure and hiring staff. Koroma completed the initial steps and set
out to raise investment. “To actually establish the bank as a going concern, I needed five times the amount
I’d deposited with the Bank of Sierra Leone. I approached my contacts at the Golf Club and at the Aqua Club.
Through the sale of Shell, I had learned who in the country had money to invest. I approached them. People
were sceptical - some said ‘this na Salone man business, leh we wait and see’, but I carried on with those who
trusted me.”
The initial years were, he admits, a struggle made no easier when he was offered the position of the Governor
of the Central Bank during the turbulent war years under President Kabbah. It was the second of his forays
into public service and he found wearing two hats – as regulator and banking sector investor - a tricky juggling
act. But he believes his tenure was a success. “I came into the role in 1999. The bank was in a mess. Both the
headquarters and the Kenema branch had been looted; most of the senior staff had fled. I had the unforgiving
responsibility of getting our monetary system back on track, as well as taking on the task of the physical repairs
on both branches.” He took on and completed the 16 storey Sam Bangura building, which had remained in
limbo since Sam Bangura’s death, which perhaps says more than anything about his period at the Bank of Sierra
Leone.
The end of his governorship was followed by three years of investigation by the Anti- Corruption Committee and
the Serious Fraud Office for queries over his salary and expenses. It was another difficult period for his family,
and could have been ruinous for his business. But he, his family and his business survived. “Most people have
known me for long enough not to associate me with corruption.” The enquiry found nothing. Koroma sued the
ACC and won, giving the damages to charity. President Kabbah’s apologies when they came were very public.
FT
Insight
9
www.ftinsight.net

Change Maker
continued
Freetown Insight
Contributor
And in recognition of his role and contribution towards the development of the Finance and Banking Industry in
the country, he was honoured with the National Award of the Grand Commander of the Order of the Rokel in
2007.
In the period that followed he focused on expanding the bank. There are now 12 branches around the country
and several agencies. But his sense of public duty intervened once again when President Ernest Koroma
approached him to be Presidential Secretary with Cabinet rank. Unsurprisingly, given his previous experiences,
his wife was opposed to his decision to accept the position. “I felt I had to oblige President Koroma, but I found
the politics too difficult to handle. I’m not a politician he says. I carry no party card. I come from Tonkolili – we’re
known for being troublesome and I’m always blunt – what you see is what you get,” he says with a half-smile.
His commercial persona is in stark contrast to his political one. He admits that he is considered to be aloof in
political spheres, but he is clearly a man who commands great loyalty. Many colleagues at UTB have worked
with him since the bank’s inception, and the bank’s board is composed of very able, very successful and
longstanding colleagues. I ask what his staff call him. “The boss,” he replies. He is only half-joking.
He has passed his financial aptitude to all three of his sons, which I suggest indicates that economics is in his
DNA. He doesn’t dispute this. He is a man who pursues the logical and most efficient solution to the problem.
The problem that is currently vexing him is the country’s private sector culture: “Sierra Leoneans are risk averse.
We don’t invest. We want everything today and don’t take the time to invest in building institutions. You cannot
build a viable economy if you don’t invest.”
Investor, sometime public servant, banker, f inancier, trail
blazer – Koroma comfortably wears a number of hats, but the
one that best f its is perhaps that of patriotic economist. People
regularly describe him as a mentor and he has personally
invested in Aureol Insurance, Rokel Bank, Standard Bank and set
up a discount trading house. “This is my country,” he explains.
“All I have is here. My ambition is to create an institution that
is sustainable and contributes to the improvement of lives of
Sierra Leoneans. I want to create jobs and opportunities in my
discipline. I want to leave a business legacy.”
Improving self-suff iciency
in Sierra Leone through
agriculture
By Professor
Monty Patrick Jones,
Minster of Agriculture
The Ministry of Agriculture’s overarching objective is to create policies for selfsufficiency
that will decrease the importation of food into Sierra Leone that we
can produce ourselves. We presently import a wide range of foods that we can
produce locally such as rice, cassava, sweet potatoes, onions, tomatoes and chicken.
For example, we import chicken wings from Brazil and cattle from Guinea. Our
immediate priority is to increase production and productivity, focusing on rice and
cassava and cash crops such as cocoa and oil palm. Rice imports have accounted for
between 15-45 % of consumption in recent years, for a crop that we can produce
locally.
Agriculture employs 70% of Sierra Leone’s workforce, primarily
women, the majority of whom are subsistence farmers. We can
increase production and labour productivity by introducing
machinery into the system, particularly small scale machinery such
as power tillers and weeders that can be incorporated into the
smallholdings that represent the majority of our farms.
We also aim to improve the productivity of our soil by ensuring that fertilisers and other chemicals reach the
farm gates. In order for that to happen, our Agribusiness Centres (ABCs) have to become more effective. There
are approximately 400 around the country; if we can get 52 to be fully functional, they will serve as hubs for
fertilisers and machinery. They can also support farmers to become better organised by helping them form
cooperatives and encourage them to open bank accounts. Some of the challenges our agriculture sector faces,
are also to do with the organisation of the Ministry of Agriculture. There is a clear need to streamline our
projects and programmes, and reduce duplication and fragmentation.
FT
Insight
11
Encouraging investors in the commercial agriculture sector to work with us will be key to developing our
agriculture sector, and I have already welcomed delegations from several countries on this subject. We have
enough land, our weather is conducive and we have a readily available source of water through rainfall and
rivers. I envisage large scale commercial farms, strategically placed, surrounded by smallholders who can serve
as out growers, benefitting from the technical support and easily available market provided by the commercial
agricultural operation.
It is important that we begin to adopt and understand the importance of our local agricultural processing. Within
Sierra Leone, we can and should be able to add value to rice and fruits, cocoa, coffee, oil palm, ginger and
cashew nuts for example, creating products that will command a higher price, improve incomes and reduce the
poverty of our country. We live in a world of ever diminishing resources and Africa is well poised to emerge as its
future breadbasket. In Sierra Leone, we are still effectively a blank canvas and this gives us a greater advantage
in the adoption of sustainable and green technologies. It is an opportunity that we must now leverage.
Professor Monty Patrick Jones – Honourable Minister – Ministry of Agriculture, Forestry and Food Security is co-winner of the prestigious
2004 World Food Prize based on his discovery of the genetic process to create the New Rice for Africa (NERICA). He has spent 26 years of his
career life in Africa working in international agricultural research for development institutions. He returned to Sierra Leone in July 2013 to work
for the Government as Special Adviser to the President. Professor Jones has received several national and international awards including the
Niigata International Food Award in 2010. He received honorary doctorate degrees (Honoris Causa) from Universities in the UK, Belgium, Sierra
Leone and South Africa. In 2007 he was named as one of the 100 most influential persons of the World by Time Magazine.
www.ftinsight.net

“
Freetown
Insight
by numbers
You are always breaking new grounds on the private sector
front. Freetown Insight sounds & feels great.
”
Francis Ato Brown,
World Bank Country Manager for Sierra Leone (2012-2015)
New and returning visitors to Freetown Insight’s website www.ftinsight.net
Tech Talk
Vendtech brings
a new prepaid
electricity solution
to Sierra Leone
With Vendtech, Sierra Leonean entrepreneur Victor Blell has
brought a new way of buying electricity credits to the country,
using mobile point of sale machines. The venture took several years
to set up, but is already nationwide and is fast becoming a popular
option with consumers.
34%
66%
Returning Visitor
New Visitor
Victor Blell’s IT background meant he was familiar with the technology; he is the country representative for the
firm African Innovators, who are behind the technology and uses their rugged point of sale machines to sell
National Lottery tickets. He also has personal experience with prepaid electricity in the UK and US, and spotted
a gap in Sierra Leone’s market. “Prepaid electricity is already sold via Airtel money and Splash, but these require
mobile phones, phone credit and a charged phone. The Vendtech option allows consumers without access to a
mobile phone to buy prepaid electricity from our vendors,” he explains.
FT
Insight
13
The company plans to employ around 150 vendors within the coming year, as it rolls out its service. The
machines are simple to use, mobile and because they print out a receipt, customers experience a high level of
confidence in the system.
2,000 +
Number of visitors to www.ftinsight.net each week
1000
Number of named decision makers on our database
773
Number of page views to www.ftinsight.net on Jan 16
6
Number of times a year Freetown Insight is published
www.ftinsight.net

Opinion
Back to Growth:
Sierra Leone Has
Re-opened for
Business
By Rebecca Perlman
For the first time since Ebola struck, the slogan “Sierra Leone is open for
business” appears to be more than just an uplifting soundbite. With two major
trade delegation visits in the past six months, several high profile international
investment forums on the Mano River Union and a Post-Ebola Recovery Strategy
that prioritises private sector-led growth, the signs are certainly encouraging.
Ten years on from the end of its civil war, Sierra Leone was one of the fastest
growing economies in the world. And it is easy to see why. The country’s shores
are lined by white sand beaches rivalling the Seychelles, mining opportunities
extend well beyond the country’s famous diamond reserves, and the huge
potential in renewable and non-renewable energy was beginning to be realised. Taken together with largely
untapped potential in agriculture and fisheries, one need not look far for investment opportunities.
As levels of inward investment grew following the end of the war, the Government increasingly found itself
faced with what President Koroma has referred to as “a phalanx of lawyers and accountants on one side of
the [negotiating] table, outnumbering our own side ten to one.” The impact of this imbalance between the
Government and international investors has stretched beyond the boardroom to the very heart of Sierra Leone’s
development agenda. Foreign investment, and the increased prosperity that comes with it, can help Sierra Leone
reclaim the levels of growth enjoyed before the Ebola crisis. In the longer term however the Government’s focus
on getting “a fair deal” in negotiations with international investors will be critical to translating wealth creation
into sustainable, inclusive growth for the country as a whole. This was the case before the Ebola outbreak and it
is all the more important as the country moves from crisis to recovery.
The role of commercial contract negotiation in advancing Sierra Leone’s development lies at the heart of
international law firm Herbert Smith Freehills (HSF)’s Fair Deal Sierra Leone free legal assistance programme.
Set up in 2010, the programme seeks to help redress the imbalance at the negotiating table and support the
Government of Sierra Leone with increasing levels of inward investment. Over the past six years, HSF has
provided more than £2million worth of free legal advice to the Government on commercial contracts, disputes,
legislation and policy. During the Ebola crisis, this included pro bono assistance on force majeure and material
adverse change issues as well as holistic advice on investor relations and crisis management. More recently, HSF
produced Sierra Leone: An Investor’s Guide together with Standard Chartered Bank and Prudential plc. The Guide
provides an independent, private sector perspective on Sierra Leone’s investment landscape with the aim of
rebuilding confidence in the country as an investment destination.
We have seen that the right sorts of deals with the right kind of investors can support development outcomes
from water supply to education and skills development. For instance, agricultural investments with smallholder
programmes can both focus on skills and development training, and provide markets for smallholders,
stimulating further production and helping commercial businesses reach more scale more quickly. One example
is Carmanor Ltd, a UK firm which has invested in African Lion Agriculture with Sierra Rutile. Carmanor has
installed a palm oil mill to mill fruits it purchases from smallholders that currently lack access to market and is
developing a 13,000 hectare estate with port facilities over the next 10 years.
The post-Ebola recovery effort has emphasised the need for a strong private sector in Sierra Leone and
the importance of the Government’s relationship with it. The Government’s renewed focus on improving
infrastructure, broadening the tax base and creating jobs for the people of Sierra Leone reveals a desire to reflect
on what could have been done differently in the period leading up to the crisis and to reclaim the country’s pre
crisis growth. In order to achieve this, Sierra Leone will need to rebuild investor confidence abroad and at home.
Promotion of the country’s investment opportunities is a good starting point. Recent examples include an
investment forum hosted by the Dutch Ministry of Foreign Affairs in November last year and the Sierra Leone
Investment and Export Promotion Agency (SLIEPA)’s new “Sierra Leone Back to Growth” investment promotion
video. However investors will want more than an overview of the many opportunities within Sierra Leone. The
investment framework and the perceived and actual ease of doing business in the country will be critical to
increasing levels of inward investment and to reclaiming the trajectory set by the Agenda for Prosperity.
There does currently appear to be greater political will for reform in Sierra Leone. As one minister recently
stated, “we should never waste a good crisis”. The Government seems determined not to do that. In particular,
SLIEPA is looking to centralise the country’s fiscal and non-fiscal regimes into one easy-to-access investment
code. The Government is also considering specific reforms to the agribusiness investment framework. Another
key focus is on the standardisation of processes across different Government Ministries, Departments and
Agencies, including the development of model form documents for use in tenders and deal negotiations.
Sierra Leone now stands on the threshold of the next chapter
in its history. Effective long-term investment will be critical
to securing the country’s future and preventing history from
repeating itself. International supporters stand ready to assist
as the Government capitalises on the increased political will
for change so that the private sector can come into its own
in the long-term recovery effort, identifying and driving the
opportunities that Sierra Leoneans and leading businesses stand
ready to grasp.
Rebecca Perlman is a lawyer at leading global law firm Herbert Smith Freehills (HSF). In 2014, Rebecca was seconded to the Office of the President
of Sierra Leone through HSF’s awardwinning Fair Deal Sierra Leone pro bono programme. Rebecca represents HSF on the UK’s City Ebola Taskforce,
which was formed following a private sector briefing by the UK Foreign and Commonwealth Office (FCO) on its actions to support the Government
of Sierra Leone during the Ebola crisis.
The Taskforce has produced a new Investor Guide for Sierra Leone, in collaboration with the FCO, UK Department for International Development
(DFID) and the GoSL. The Guide was drafted by a team of Herbert Smith Freehills lawyers, together with Standard Chartered Bank and Prudential
plc, and was launched by President Koroma of Sierra Leone at the United Nations International Ebola Recovery Conference in July 2015. The Guide is
available for download at http://www.herbertsmithfreehills.com/insights/guides/sierra-leone-an-investors-guide.
FT
Insight
15
www.ftinsight.net

Early Years in Business
Special Segment
Surviving the early
years in business
It’s often said that the f irst few years in business are a real test
of survival, and the f igures bandied about for the failure rates
of new businesses can be alarming. Studies indicate that
signif icant numbers fail before or by their f irst year of
operation, and that nearly half will go under within f ive years.
Early years in business in
Sierra Leone
Our readers participated in a short
anonymous snapshot survey on the
challenges of their early years in
business in Sierra Leone. Seventy-five
percent of respondents had set up or
run an SME in Sierra Leone.
The greatest challenge our readers
faced was the skills’ gap – untrained/
unskilled staff was a problem for 75%
of respondents. Unreliable access to
power came in second, with 54% of
respondents citing it as a problem. Tied
with the power problem, was disruption
caused by disease or epidemic –
unsurprising because of our recent
Ebola epidemic. Access to finance came
in at third place. A surprising number
of respondents also struggled with
insufficient business or management
experience. Most were able to weather
legislative changes, and finding suitable
premises did not pose too much of a
problem either.
Yes
No
Access to
Finance
Untrained/
Unskilled Staff
Inadequate
business
Suitable
premises
Unreliable access
to power
Insufficient
demand for
Disruption
caused by
Disruption
caused by
Unexpected
legistlation
Social
disruption
Insufficient
business /man
None of
the above
10%
10%
20%
20%
30%
30%
40%
40%
50%
50%
60%
60%
70%
70%
80%
80%
90%
90%
100%
100%
“Corruption. Most Govt. ministries unwilling to co-operate unless paid a bribe.”
“Please note that this was a start up business and part of the challenge was
obtaining trained staff. Also, the main investors had to lower the budget as
we were attempting to expand the project and this did make it a challenging
experience, along with the Ebola Virus breakout.”
“Employee inf idelity and theft.”
Our readers proved to be a robust lot
and followed a range of strategies to
transcend their start up challenges.
An encouraging 48% invested in staff
training. The same percentage looked
for alternative forms of finance. Almost
22% diversified their services or markets.
Thirteen percent exited from old markets
and/or business activities. We did not
ask whether they went on to pursue
alternative forms of entrepreneurship.
Making changes to the supply chain or
forming a new business was a relatively
popular solution at just over 17%. Almost
9% reduced their range of goods and
services.
ANSWER CHOICES
Diversified
into new ...
Made changes
to our suppl...
Reduced the
number of ...
Invested in
staff training
Exited from
old markets
Changed how
our business ...
Reduced our
range of ...
Moved to a
more suitable ...
No significant
changes
RESPONSES
• Diversified into new markets . . 21.74%
and/or business activities
• Made changes to our supply. . 17.39%
chain or forned new business
• Reduced the number of . . . . 43.48%
permanent staff
• Invested in staff training . . . . 47.83%
• Exited from old markets . . . . 13.04%
and/or business activities
10%
20%
30%
40%
50%
60%
70%
80%
90%
RESPONSES
• Changed how our business . . . 47.83%
is financed
• Reduced our range of . . . . . . 8.70%
products and services
• Moved to a more suitable . . . 13.04%
location
• No significant changes . . . . . 17.39%
100%
FT
Insight
17
RESPONSES
RESPONSES
“One of the businesses had to be closed down because of f inancial constraints.”
ANSWER CHOICES
• Access to finance . . . . . . . . . . 50%
• Untrained/unskilled staff. . . . . . 75%
• Inadequate business . . . . . . 16.67%
advice/support
• Suitable premises . . . . . . . . 8.33%
• Unreliable access to power . . . 54.17%
• Insufficient demand for . . . . . 20.83%
product or services
• Disruption caused by . . . . . . 12.50%
extreme weather
• Disruption caused by . . . . . . 54.17%
disease/epidemic
• Unexpected legislation. . . . . . 8.33%
• Social disruption (riots etc) . . . 12.50%
• Insufficient business/. . . . . . 41.67%
management experience
• None of the above . . . . . . . . 12.5%
“Placed business largely on a care & maintenance basis.”
“Changed the business strategy and invested more in expansion and market
share acquisition.”
“Invested in insurance.”
www.ftinsight.net

Early Years in Business
Special Segment
Radisson Blu Mammy Yoko -
surviving an epidemic
When Radisson Blu Mammy Yoko opened its doors to guests in April 2014, the hotel expected a
number of challenges to their five-star standards. The Ebola epidemic was never one of them.
The launch of Radisson Blu Mammy Yoko in Sierra Leone was economically significant for several reasons. It
represented a huge investment of time and money. It had taken five years and $25 million to raise Freetown’s
faded OAU flagship to a standard that would allow it to legitimately integrate into the Radisson Blu chain. Locally
the hotel would create jobs, generate income and offer opportunities for skills development. It would provide
quality business infrastructure and a venue for international conferences; and strategically, Radisson Blu’s choice
of Sierra Leone as its launch pad for entry into the West African market spoke volumes about the potential of
the country’s business and tourism sectors, sending a positive signal to other foreign investors.
The hotel’s business objectives for the first year were straightforward enough. Daniel Sekoni, the hotel’s
marketing manager explains: “We wanted to be known in the market as the place to be, and to create a
signature of international quality, adding a profit margin that should grow gradually year by year. We expected to
achieve this using destination marketing as the main strategy.”
The EVD effect changed that and when international airlines began to stop flights into the country and several
businesses were forced to shut, the team at Radisson Blu Mammy Yoko rapidly revised their business strategy.
Their West African/African feeder market target was massively affected and room occupancy rate had dropped
from a predicted 60% to a 5% low. Added to which the ´no public gathering rule cut off any revenue stream
from events and conferences. “This was an epidemic that was unprecedented in its ferocity, and which initially
almost ground the business to a halt,” explains Sekoni. “However from a business perspective it eventually
created an awareness in certain sectors and markets around the world, particularly the medical, media, and
international organisations.”
The hotel’s new business strategy included drastically reduced room rates. Payroll was secured by cutting hours
by 50% with an equivalent saving in pay. This option was better for employees, who kept their jobs; and for the
business, which did not lose their valuable investment in staff training. Keeping the hotel open and maintaining
morale became everyone’s responsibility. Regular training and talks conducted by the Center for Disease Control
(CDC) and other medical organisations provided information, alleviated fears and restored confidence.
A rigorous protocol to keep the hotel Ebola-free included
chlorine solution at hotel guest and staff entrances and exits,
chlorine solution fumigation and house cleaning, compulsory
use of disposable gloves, temperature screening at all entrances,
hand sanitisers in all off ices and outlets, no outside sales calls
activities, and strictly enforcing the no handshake, no hugs, no
burial attendance rules.
Early years in the
early years’ business
Ariana Oluwule set up Freetown based Narnia Daycare in June 2013. Narnia is daycare plus. It
combines daycare with an early learning centre for babies and toddlers from three months to three
years. The concept was born out of Ariana’s natural aff inity with children, her longing to spend
more time with her baby son and an inability to f ind childcare for him that she really wanted while
she pursued a corporate career.
“The nature of my job meant I was spending less and less time with my baby and apart from my mother who
was retired, I could not find childcare that corresponded with my ideals. I wanted a space that was lively, homely,
safe and clean, where my baby would be be looked after in a happy, learning environment.”
Realising that her experiences were mirrored by other parents, she
took a leap of faith, quit her job and started Narnia. “My mama
is an educator with over 30 years of national and international
experience and of course, I had my f irst client - my son who had just
turned one. In effect I had all that I needed.”
Ariana’s savings with some financial support from her husband, provided the initial capital. In common with
most SMEs, finance has remained a challenge. A Brookings Institute report on the subject noted that more than
25 percent of firms in Africa rate the availability and cost of finance as their most important operating obstacle,
almost twice as many as outside Africa.
“Our operating expenses are high - cleaning supplies, healthy meals, ensuring toys and learning materials are
always available,” Ariana explains. There was also significant capital expenditure on constructing their own
premises, because a suitable alternative wasn’t available. This was financed through private loans. “The bank
rates are unimaginable,” she says.
Trained and reliable staff has been an additional challenge which most Sierra Leonean business owners will
be familiar with. Narnia’s staff now take distance learning courses with the US based Care Courses School.
Continuous professional development is also a priority of Ariana’s. Her background is in Biological Sciences.
Post graduate administrative skills and management experience help her run the business effectively. To
these she has added a number of long-distance caregiving courses and is aiming for Certification in Child Care
Development and an equivalent in Education.
FT
Insight
19
Despite the challenges the hotel successfully maintained full operations throughout, an achievement which has
been widely acknowledged. It became the hotel of choice for many of the international organisations involved
in the Ebola response and was recognised by the CDC for its on-going and tremendous support during the Ebola
outbreak. It was awarded the Adversity Award by its parent company Carlson Rezidor and nominated for the PR
world’s EU Excellence awards 2015 in the Crisis Communication category. As Sekoni observes: “It was baptism by
fire, but we are still here, team members still have their jobs and I feel that we represent a sign of the country’s
economic rebuilding.”
www.ftinsight.net

Early Years in Business
Special Segment
Breaking boundaries
in the cassava market
By Alinah Kallon
Rhoda Akinola’s business is all about cassava and its by-products. She started the Green Diamond
Cassava Farmers Initiative (GDFCI) after attending a conference in Nigeria in 2006, where she was
intrigued to learn about the huge potential of cassava.
“I gained a wealth of knowledge about cassava and how valuable it can be to a range of industries including
the textile, pharmaceutical and food sectors,” Rhoda says. “I also learned how cassava can be used to create
sustainable wealth for myself and my community.” Rhoda went on to translate this knowledge into reality by
setting up a Sierra Leonean based company which processes and markets cassava products including cassava
flour, odorless foo foo, composite flour and gari. By applying innovative methods, such as providing mobile
cassava processing machines in strategic locations across Sierra Leone and training farmers in their use, the firm
has significantly improved productivity for farmers and the quality of their products.
GDFCI’s business model has attracted widespread support. For example, the First Lady of Sierra Leone, Sia
Nyama Koroma, donated 50 acres of land in Kono, Sierra Leone’s diamond-district. The African Foundation
for Development Sierra Leone (AFFORD-SL), through its Business Bomba Competition, provided Le 25 million
(approximately US$5000) of prize money to GDFCI. Business Bomba is a national business competition supported
by the Ministry of Trade and Industry.
The recent Ebola outbreak created an unusual expansion in the business, allowing it to create 150 jobs. During
the outbreak, rice, Sierra Leone’s staple food, rose in price by about 20%. This led to increased consumption of
Sierra Leone’s second staple food, cassava. The majority of the jobs created are for farmers based in the South
of Sierra Leone - Moyamba and Pujehun. In addition to receiving a stable income, the farmers also benefit from
training to improve efficiency and productivity, particularly in gari processing.
According to Rhoda, these jobs provided the farmers with flexible working hours while bringing in a steady
stream of income at a time when job and income losses were widespread across the country, due to the Ebola
crisis. “The farmers have a contract that is more beneficial to them than ever before,” Rhoda says. “In the past,
these cassava farmers faced huge post-harvest losses because there was no proper system in place to organise
interrelated activities from the moment of harvest through to cassava processing and getting the products to
the consumers.”
Kadie Sesay was among GDCFI’s contracted farmers; she has also received training as a gari processor. “The
training I received from GDCFI has been very useful for me,” Kadi says. “Before, I was just a basic cassava farmer
and local gari processor. Now I have relevant skills to process quality gari and transform the cassava into many
other products that will help the future expansion of my business.”
GDCFI’s growth strategy includes market diversification, which will soon see it enter the export market. The
company has already established trade links in the Gambia where it will export gari and cassava flour. It is
also planning to construct a cassava processing factory at Waterloo, on the outskirts of Freetown, for cassava
processing and the training of processors and marketers through a partnership with World Vision, Sierra Leone
Chamber for Agribusiness and International Institute of Tropical Agriculture. As part of its longer term growth
strategy, GDFCI intends to establish links with the pharmaceutical and textile industries that use cassava in their
production.
The Democratic Republic of Congo is the largest consumer of cassava in SSA, followed by Nigeria.
Nineteen million hectares of cassava were planted worldwide in 2007, with about 63% in Africa.
Apart from food, cassava is very versatile and its derivatives and starch are applicable in many types
of products such as foods, confectionery, sweeteners, glues, plywood, textiles, paper, biodegradable
products, monosodium glutamate, and drugs. Cassava chips and pellets are used in animal feed and
alcohol production.
According to the FAO, cassava has the potential to replace 400 000 metric tonnes of wheaten f lour in
CARICOM countries; substitute up to 30% of the corn in poultry rations as well as a portion of other
animal feeds and contribute to a reduction of the Food Import Bill by approximately 5%.
Nigeria is currently the largest producer of cassava in the world with an annual output of over 34
million tonnes of tuberous roots. Cassava production has been increasing for the past 20 or more years
in area cultivated and in yield per hectare.
Cassava and its place in the World
Cassava is produced mostly by smallholders on marginal or submarginal lands of the humid and subhumid
tropics. Such smallholder agricultural systems as well as other aspects of its production and use often create
problems, including: unreliability of supply, uneven quality of products, low producer prices, and an often
costly marketing structure. The smallholder production system also implies that producers cannot bear much
of the risk associated with development of new products and markets. Thus the challenge is to create a
strategy that affects production, processing and marketing in such a way that it provides an array of high
quality products at reasonable prices for the consumer, while still returning a good profit for the producers
without requiring them to assume the largest part of the development risk.
Strengths of cassava
Cassava can grow and produce dependable yields in places where cereals and other crops will not grow or
produce well. It can tolerate drought and can be grown on soils with low nutrient capacity, but responds well
to irrigation or higher rainfall conditions, and to use of fertilizers. Cassava is highly flexible in its management
requirements, and has the potential of high-energy production per unit area of land. Once thought to be
resistant to pests and diseases, the crop can be improved genetically to increase its resistance to damage
from serious pests and diseases. Cassava yields can be quite high, as high as 25 to 40 t/ha, although national
yields are often well below these levels. World average is about 10 t/ha.
The crop has long been used as a famine reserve and food security crop. Because cassava has no definite
maturation point, harvest may be delayed until market, processing or other conditions are more favourable;
this flexibility means cassava may be field stored for several months or more.
Although it was long considered a smallholder subsistence crop, cassava can be grown in large plantations
or in more favourable conditions to produce raw materials for industrial processing. Cassava starch has some
unique characteristics that favour its use in specialised market niches. In general, cassava has an ability to
enter diverse markets.
The Global Cassava Development Strategy and Implementation Plan (FAO/IFAD, 2001)
FT
Insight
21
As in the case with numerous businesses seeking expansion in Sierra Leone, access to finance is a major
constraint. Cassava processing is labour intensive and if the company is to meet the demands of the local and
international markets and succeed in the face of stiff competition, it needs the right machinery for processing
and production. “There is wealth in cassava and if we explore it, it will be able to enhance food security in the
nation and will create employment for thousands of people,” Rhoda says.
www.ftinsight.net

Early Years in Business
Special Segment
In: digest
Made in Sierra Leone
Morvigor (Sierra Leone) Ltd
eyes overseas expansion
By Unisa Dizo-Conteh
Although well known for its raw materials, it is not often you hear about manufactured products
made in Sierra Leone. Morvigor tea is an exception. It is manufactured in Sierra Leone, and
almost all the raw materials including the Moringa Oleifera plant, are sourced there too. This year
the company has its eye on export, with plans to break into the UK market.
Dr Eva Roberts specialises in anaesthesia and is currently head of the intensive care unit at Connaught Hospital in
Freetown, Sierra Leone. Five years ago, she established Morvigor (SL) Ltd to produce Morvigor tea, a herbal tea
rich in nutrients such as vitamins A and C. Since then the company has become one of the most successful small
and medium-sized enterprises (SMEs) in Sierra Leone, initially creating six jobs, a figure which has increased by
over 150% in the past two years.
Orange agrees to buy Airtel’s
operations in Burkina Faso and
Sierra Leone.
The Corporate Affairs
Commission Sierra Leone
reveals there are 12,476
registered companies in
Sierra Leone.
Sierra Leone’s last known Ebola
patient was released from hospital.
Morvigor’s journey started when Eva Roberts won the African Foundation for Development’s (AFFORD SL)
Business Bomba Competition - Sierra Leone’s version of Dragon’s Den. The company received a business grant
of Le 75 million (approximately $15,000). In 2012 Morvigor also received $265,000 equity funding from West
African Venture Funds, enabling it to scale up production and introduce four new varieties of tea. By mid-2014,
the company’s turnover had increased by 20% compared to the same period in the previous year. Although this
dropped during the Ebola crisis, the company has now returned to its previous growth pattern.
The quirks and obstacles of Sierra Leone’s business environment
presented signif icant challenges for the start-up business.
Lack of reliable electricity drove up running costs and trained
manpower was in short supply. “It wasn’t easy and it continues to
be a challenging environment,” Dr Roberts says. “Finance, which
most people focus on, wasn’t a major diff iculty for me. The main
one was actually navigating all the hurdles in the environment
including the off icials you have to see.”
The Bolloré Group announces plans
to spend $120 million to octuple
the annual capacity of its container
terminal in the port of Freetown,
Sierra Leone, to 750,000 twentyfoot
equivalents after volume rose
30 percent over the last four years.
The newly reconstructed and
upgraded Kenema Pendembu
road was off icially handed
over to the Sierra Leone Roads
Authority by the ISU Engineering
and Construction Company.
FT
Insight
Like most Sierra Leonean businesses, Morvigor’s bottom line was hit by the country’s recent Ebola outbreak.
Emergency measures imposed by the government to restrict the movement of people and prevent the
spread of the virus, inevitably curtailed business hours, and a deal with a potential foreign investor fell through
as a direct consequence of the Ebola outbreak. As part of her mitigation strategy Dr Roberts reviewed and
transformed key operational aspects of her business. She reduced working hours and successfully negotiated
with her employees to accept pay cuts to ensure business continuity.
The Sierra Leone Chinese Chamber
of Commerce (SLCCC) launched
at the Bintumani hotel to help
strengthen Chinese business
entrepreneurs and coordinate
potential investors.
So what’s the direction of travel for this young company? Morvigor SL Ltd is presently pursuing a strategy of
market diversification, with the UK as its first target. Dr Roberts initially identified ECOWAS as a potential market
but has struggled to find suitable partners. The early years are tough for most start-ups, but Dr Roberts believes
in her business and is convinced of the private sector’s importance to Sierra Leone’s economy: “Micro businesses
are looking to SMEs to lead the way,” she says. “Equally, SMEs, like Morvigor, are looking to strategic partners to
help develop their growth potential and drive healthy economic growth and wealth creation in Sierra Leone.”
Unisa Dizo-Conteh is ABC UK co-ordinator. Tel: 0203 326 3750. Email: abc@afford-uk.org Twitter: @pacdizo
In Q4 2015, Sierra Rutile
records the highest quarter
of rutile production and the
highest annual production
since the operation was
restarted in 2006.
www.ftinsight.net

Freetown Insight
Contributor
Sierra Leone:
The Land of Opportunity
Four emerging investment
opportunities for businesses/
investors to embrace in 2016
Solar & Renewable energy (small & large scale)
Yvonne has shared that improved energy, among other sectors like water management, would make running
her business easier.
Energy is a major challenge in the country. There are currently only a handful of small, renewable energy
companies in Sierra Leone. The Government of Sierra Leone and the Ministry of Energy have prioritised
renewable energy investment for post-Ebola Sierra Leone. Many donors are coming to the table in support and
large investments, both in terms of major infrastructure projects as well as smaller households and business
needs, are expected. The government has expressed that it will provide special incentives for those who
improve efficiencies in the sector.
Yvonne Hamilton never closed her bakery during Ebola. Salvonne Bakery and Catering Services on Percival St in
Freetown had been open since 2003 and she had no intention of shutting it down at the outbreak of Ebola in
2014.
“I stayed open because I wanted to help the community. People had to take care of their families,” said Yvonne.
“Some businesses shut down and those that stayed open had very slow sales”.
The city was almost completely devoid of any activity, liveliness or energy. Ebola quarantine measures not
only brought a halt to social gatherings, they also forced many small businesses and small farmers to close
down shop.
Everyone wanted change. As Ebola began to dwindle down and quarantine measures were lifted around the
country, things gradually began improving. Sales have recently started picking up again at the bakery. Most of
the people who left the country are starting to return, businesses are starting to reopen, hotels are full, and
there is an almost tangible new energy and optimism amongst the people.
Despite the devastating effect on the economy, the outbreak lowered two barriers of entry to the Sierra
Leonean Market:
1. Now…Addressing Infrastructure Constraints
Poor road and port networks infrastructure with high costs of distribution and power became the
most apparent constraint in the country when Ebola Response teams operated. The outbreak highlighted
the constraints that were already present but that had been ignored throughout the years. Improvements
currently underway in infrastructure will no-doubt lower costs locally and increase economic and business
opportunities internationally.
2. International Visibility and Economic Momentum from the donor community, international agencies,
corporates and investors based on the post-Ebola accelerated economic growth forecast.
Ebola prompted a deeper look at the systematic, structural, and
social functioning of the country. It exacerbated existing issues
and created an entire new set of challenges. These very issues and
challenges include major structural inadequacies that need to be
addressed. But if embraced, they present tremendous private sector
business and investment opportunities that can also bring about
real positive change in post-Ebola Sierra Leone.
New Generation Power International, an American independent renewable-based power generation company,
recently announced its plan to break ground on a solar project that will be installed in increments and completed
by 2018.
According to The Sierra Leone Investment and Export Promotion Agency (SLIEPA), in addition to solar power,
there are ripe opportunities in both hydro and biomass energy. “Current biomass and municipal waste is
estimated at 656,000 MT per year with a total annual energy potential of 2,700 GWH or 308MW”.
Food Processing
A robust food processing sector can create food security, improve livelihoods, and support economic growth
Products made from nuts, fruits, rice and vegetables can all be processed and packaged in the country. Since
there are hardly any food processing activities in the country, this presents both local entrepreneurs and
investors with a good opportunity. Additionally, there is a large supply of the raw materials available. Mountain
Lion, a major rice processing company, saw a big gap in the market.
“Rice is our staple food and a huge portion of it is imported. Most of this imported rice is very low in nutritional
value. We want to meet the food needs and the health needs of the people that depend on rice,” shared Donald
Smart, CEO at Mountain Lion Agriculture.
Agriculture
Agriculture is currently one of the leading economic drivers. It accounts for more than 45% of GDP and employs
nearly two thirds of the population. Arable land, favourable climate, and adaptable topography are just some of
the factors that make this sector attractive. The government has also created several incentives to attract
private investments. Within this sector, opportunities exist in seed multiplication, oil palm, rice, and
cassava, which is one of the most consumed crops in the country.
For example, the seed industry in the country is an early stage market with little competition. Thus compared to
other African countries, Sierra Leone offers an opportunity for higher margins.
Currently, nearly all “improved” varieties of seeds in Sierra Leone are imported. Large commercial farmers import
seeds as do the seed supply companies that service institutional and non-profit buyers. These seeds are often
low in quality and not necessarily appropriate for the country. This presents an opportunity for investors
interested in the agricultural sector to step in and service this gap. It is also a high-potential publicprivate
partnership opportunity.
Commercial seed multiplication to address poor seed quality and the importation of higher quality seeds are
more specific examples of opportunities waiting for the right investor.
FT
Insight
25
Opportunities in Sierra Leone fall across many sectors. The following four emerging markets are
examples of what entrepreneurs and investors can embrace for 2016.
www.ftinsight.net

Training
Part & Repair Services
Donaldson Nicols is the foreman and mechanic at Amtech, a manufacturing company on Ascension Town Road
that makes wooden furniture. When something breaks on one of the machines Donaldson usually has to import
parts to fix it. Spare parts are not readily available or accessible and almost always have to be shipped in. So
there is a major need for parts and repair services in Sierra Leone.
“It would be nice to have that type of business here. It’s a good investment,” said Donaldson.
With large investments in solar technology expected, the opportunity also extends to solar parts/
components, repair and installations.
Entrepreneurs and investors who are interested in these markets do not have to go at it alone. The
government of Sierra Leone and various organisations, such as the Sierra Leone Investment and Export
Promotion Agency (SLIEPA), are doing their part to support businesses, investors and the private sector.
“It is very important to create the right policies, infrastructure and regulatory environment for Small and Medium
Enterprises to be successful,” said Dylan Sogie-Thomas, the Private Sector Advisor to the President. “That is
why we are giving premium attention to SMEs in our investment climate, investment promotion and skills
development that will create sustainable and inclusive growth.”
The Sierra Leone Local Content Unit, which seeks to enhance and strengthen the local economy through the
creation of sufficient linkages between Foreign Direct Investment and Sierra Leonean businesses, is working to
support the private sector through capacity development and participation.
“A strong local domestic economy built on a highly skilled workforce (TVET Coalition) and strong supportive
industries; market linkages and local supplier development, is a game changer for private sector investment in
Sierra Leone; further promoting foreign direct investment and ease of doing business,” said Emmanuel Konjoh
Head of the Sierra Leone Local Content Unit.
In addition to these four emerging markets, it is beneficial to note that the country is also a part of the Mano
River Union, an intergovernmental institution comprising of Sierra Leone, Guinea, Liberia, and Cote D’Ivoire.
It’s also a member of the Economic Community of West African States (ECOWAS). Together these two groups
provide additional access to a market of hundreds of millions of people.
It’s never been a better time for entrepreneurs/businesses and investors to embrace these opportunities.
Parminder Brar, World Bank Group Country Manager - Sierra Leone, says it best:
“In the Doing Business 2016 rankings, Sierra Leone was rated above
the average for Sub Saharan Africa, and above Senegal, Liberia and
Guinea. Ebola is over – Sierra Leone is open for business once again.
Agriculture and Agribusinesses, Fisheries, Mining, Energy and
Tourism offer attractive returns to investors.”
Could the MOOC
movement be Africa’s
tertiary education lifeline?
“Higher and tertiary education has an important role to play in fuelling and sustaining economic growth,
international competitiveness, social development and poverty reduction in Sierra Leone, and as such much more
attention needs to be directed at the sector to ensure quality and equitable provision,” says a World Bank Report
from 2013.
While we wait for FBC and Njala to get the attention
they deserve, a steady revolution in university
education throughout the world, means that with a
smart phone, good WiFi and a comfy chair, anyone can
take a course from Harvard, Princeton, MIT and a good
number of other top universities thanks to the MOOC
revolution.
MOOCs or Massive Online Open Courses are made
up of course content from mainstream universities
offered entirely online. Most are similar to traditional
online higher education courses where students watch
lectures, read assigned material, participate in online
discussions and forums, and complete quizzes and tests
on the course material. The wonderful thing about
MOOCs though is that they are very often free or if not,
they are certainly thousands of dollars cheaper.
For the Sierra Leonean learner, where obstacles to
learning in-country or abroad, include cost, quality,
visas, foreign exchange, entry requirements, family
responsibilities or career/business obligations – the
MOOC movement could be our saving grace.
Critics argue that MOOCs won’t work in Africa because
we’re plagued by intermittent power, unreliable
internet, and most students need substantial learning
support. But Kepler (http://www.kepler.org), a MOOC
model pioneered in Rwanda, proves otherwise. Initiated
by a small nonprofit called Generation Rwanda, Kepler’s
goal is to use MOOCs to deliver a top-tier education to
young Rwandans. The Kepler team say: “Our students
get the best of online learning paired with in-person
seminars — all while students work toward a US
accredited degree and a great job after graduation.”
Richest
Rich
Middle
Poor
Poorest
Urban
Rural
Female
Male
The participation rate in higher
education in Sierra Leone is lower than
for countries in sub-Saharan Africa.
Figure 1.4 Gross Tertiary
Participation Rate for
different sub-populations, (%)
1
1.1
0.4
4.6
4.5
4.8
6.1
5
9.9
10
13.4
15
FT
Insight
27
Kepler’s results are encouraging. Eighty-one percent of
third year Kepler students have been offered a full-time
job. The organisation’s goal is to create a global network
of universities, that deliver the skills that emerging
economies need at a price that all talented students can
afford. For now Kepler is exclusive to Rwanda. For Sierra
Leone, it could be a model to aspire to.
Source: Sierra Leone Integrated
Household Survey, 2011
Note: Gross Tertiary Participation Rate
is the number of students enrolled in
tertiary education as a percentage of
total 18-25 year olds in the population.
www.ftinsight.net

Training
continued
MOOCs –
Hope or Hype?
Critics protest that MOOCs will mean the end of higher education as
we know it. Supporters hail MOOCs as the saviour of higher education
in the future. Bringing the world’s best college courses to some of the
world’s most disadvantaged people is certainly the hope—and some
would say the hype—of the MOOC movement.
HOPE
“That is why I like to say that online learning is like a rising tide that lifts all boats — it’ll increase
access for those who don’t have access, and will improve learning for those who do.” Anant Agarwal,
chief executive officer of edX
Africa’s Internet penetration of 15.6 percent is growing steadily, thanks to investments in broadband
and the proliferation of smartphones. The McKinsey Global Institute projects that by 2025, Internet
penetration will rise to 50 percent (600 million users) and smartphones will increase six-fold.
For young, ambitious women seeking to better themselves or their opportunities, MOOCs offer a low
cost, neutral and safe learning environment.
Both the demand and the costs of higher and tertiary education are increasing, MOOCs enable access
to affordable education.
They enhance the existing educational system and supplement student learning for the developed
world.
Potential learners gain access to learning opportunities that they didn’t otherwise have, for reasons of
geography, disability, gender, illness or cost.
Harvard, Princeton, MIT, Duke, Yale for free
Coursera partners with top universities and organisations worldwide, to offer courses online for anyone to take.
https://www.coursera.org
Open2Study is backed by Open Universities Australia (OUA), an Australian leader in accredited online education.
https://www.open2study.com
EdX is a non-profit online initiative created by founding partners Harvard and MIT.
https://www.class-central.com/provider/edx
FutureLearn benefits from the Open University’s 40 plus years of experience in distance learning and online
education.
https://www.futurelearn.com
The Massachusetts Institute of Technology (MIT) goes a step further, allowing students to take free online
coursework that counts as credit toward a degree.
http://ocw.mit.edu/index.htm
Udacity offers nanodegree programmes and credentials, designed for future Web Developers, Data Analysts,
Mobile Developers, etc.
https://www.udacity.com
South Africa based MOOC SA aims to increase the sharing of knowledge and promote (free) learning through
massive open online courses.
http://moocs.org.za
FT
Insight
29
HYPE
The market value of the certificate of completion offered on completion of a MOOC course remains to
be determined.
Poorer countries have a weaker digital infrastructure to support the bandwidth needed to even view
MOOCs, exacerbated by inadequate electricity in rural areas.
MOOCs enrolment could undermine the potential for investment in local education.
MOOCs also have the potential to consolidate inequalities by replacing face-to-face education for the
poor by that of online education, while the elite retains access to the real experience of quality
education.
African students still retain a great deal of respect for the graduation ceremony, the mortar board and
gown and the degree certificate.
A number of students in Africa are unfamiliar with computers including basic skills such as launching a
programme, typing and closing a programme.
MOOCs don’t work for everyone, especially for at-risk students with lower grades and coming from
disadvantaged backgrounds requiring substantial teacher inputs.
MOOCs require skills and motivation possessed by only the very top students.
What students really need is the kind of services instructors provide. How to study, where to find
information, critical analysis, learning to have original ideas in what you do, discussion and high-level
thinking. All have to be supported and developed by interaction with teachers.
Students need to see a clear continuum between taking a course, getting a certificate for the course
and having employers recognise that certificate.
www.ftinsight.net

At the Sharp End
Unusual economic indicators
If you wanted to get a good idea of the current economic picture in Sierra
Leone, you could look at government data such as the Consumer Price Index,
unemployment f igures and Gross Domestic Product. Some economists, however
measure the economic health of the nation through quirkier indicators. In the
West, the sales of men’s underwear, lipstick, hem lengths and champagne are just
a few of them. In Sub Saharan Africa, these may not apply. Nevertheless, we have
our own share of unusual indicators, we look at just a few below that we can use
to gauge the state of our economy.
COCA COLA SALES
When sales of Coca Cola go down,
the nation’s economy is in the
doldrums. When sales go up, the
economy is looking bright.
LONG DISTANCE RELATIONSHIPS
AND DIVORCE
During recessions it is harder to
find work, so more people move
away for jobs. Recessions are
good for lowering divorce figures
though. Divorce costs money and
when times are tight, people
are loath to spend their money
getting unhitched.
THE SPEED CONTRACTORS
RETURN CALLS
The quicker a contractor returns
your calls, the worse the economy
is doing. If the economy is
booming, getting someone to do
your house refurbishment can
be tricky because they are more
likely to be in demand.
Twitter
Barclays Skyscraper Index
Freetown’s skyline is going upwards,
which may not be that great for
the economy. There is an “unhealthy
correlation” between the building of
skyscrapers and subsequent f inancial
crashes, according to Barclays Capital.
Examples include the Empire State
building, built as the Great Depression
was under way, and the Burj Khalifa,
built just before Dubai almost went
bust. China is currently the biggest
builder of skyscrapers, the bank said.
“Often the world’s tallest buildings
are simply the edif ice of a broader
skyscraper building boom, ref lecting a
widespread misallocation of capital and
an impending economic correction.”
GARI AND THE
RECESSION DIET
Cheaper than rice – it makes sense to argue that the
more gari we eat, the less cash we have to spend on
more expensive foodstuffs.
Some researchers use Twitter as a potential indicator, with the
more tweets mentioning #recession, the greater the chance of
a recession.
BEX SINGLETON
&
ERIKA PEREZ-LEON
photo
graphy
video
design
bex@bexsingleton.com
erikaperezleon@gmail.com