1. What are the key sectors for investment in Sierra Leone?
Answer:
Agriculture: The government encourages investments in the agribusiness sector with a keen interest in rice production as is the flagship program of the government for the next five years, cocoa, coffee, and oil palm. Opportunities exist in irrigation systems, modern farming technologies, and processing facilities for value addition.
Mining: Sierra Leone has natural resources like diamonds, gold, bauxite, rutile, and iron ore. Investment opportunities include exploration, mining services, mineral processing, and value-addition
Energy: There is untapped potential in renewable energy, particularly solar and hydro-power. The government supports independent power producers (IPPs) with tax incentives.
Tourism: With its pristine beaches, biodiversity, and heritage sites, Sierra Leone is ideal for Eco-tourism and resort development. Opportunities also exist in the construction or brand management of hotels and conference centers.
Fisheries: Opportunities include fish farming, seafood processing, and cold storage facilities for exports.
Infrastructure: Investments are needed in roads, bridges, ports, housing, and special economic zones.
2. What incentives does the government provide for investors?
The government provides incentives through the Investment Promotion Act 2004 and sector-specific policies:
Tax Holidays: Investors in agriculture, energy, tourism, and manufacturing enjoy 3-10 years of tax exemptions.
Customs Duty Waivers: Importation of machinery, equipment, and raw materials for production purposes may be exempted from customs duties.
Export Incentives: Companies exporting goods qualify for duty-free benefits under the ECOWAS Trade Liberalization Scheme (ETLS).
Public-Private Partnerships (PPP): Collaborative opportunities with the government in infrastructure and service delivery.
Special Economic Zones (SEZs): Investors in SEZs benefit from reduced taxation and streamlined regulatory requirements.
3. What is the process of registering a business in Sierra Leone?
Steps include:
1.Name Reservation: Submit a request to the National Investment Board (Directorate of Business Registration and Facilitation) to confirm name availability.
2.Company Registration: Complete forms (e.g., Articles of Association) and pay the registration fee.
oFees depend on the company type (sole proprietorship, partnership, or limited liability).
3.Tax Identification Number (TIN): Obtain a TIN from the National Revenue Authority (NRA) for tax compliance.
4.NASSIT Registration: Register employees with the National Social Security and Insurance Trust (NASSIT).
5.Sector Licenses: Acquire necessary licenses (e.g., mining licenses, export permits) for your business activities.
4. Are there restrictions on foreign ownership of businesses?
Sierra Leone allows 100% foreign ownership in most sectors. However, land ownership is restricted to Sierra Leonean citizens; foreigners can lease land. Leases for customary lands require agreements with local chiefs and communities.
5. What is the corporate tax rate in Sierra Leone?
The standard corporate tax rate is 30%, while mining companies are taxed at 25%-30% depending on agreements. Mining companies are subject to 25%-30%, depending on their agreements with the government. Small businesses may qualify for reduced tax rates or exemptions under special programs.
6. How is the labour market in Sierra Leone?
The labour market is youthful and abundant. However, there is a gap in technical and managerial skills, which offers opportunities for training and capacity-building investments.

7. What are the main sources of power in Sierra Leone?
Power is primarily generated from:
Bumbuna Hydroelectric Dam
CARPOWER and other Thermal plants.
Solar Renewable energy projects.
8. How does Sierra Leone handle foreign exchange?
The local currency is the Leone (NLE). Investors can freely repatriate profits, dividends, and capital, subject to compliance with foreign exchange regulations set by the Bank of Sierra Leone. Foreign exchange transactions are conducted through licensed commercial banks and forex bureaus.
9. Are there any ongoing initiatives to attract foreign direct investment (FDI)?
Yes, initiatives include:
The National Investment Board (NIB) offering Investor Aftercare services.
Tax incentives for priority sectors.
Improved infrastructure projects such as port upgrades and special economic zones.
Digital registration systems for ease of doing business.
10. What role does ECOWAS play in Sierra Leone’s investment climate?
Trade Liberalization: Sierra Leone benefits from duty-free and quota-free access to other ECOWAS markets for goods meeting local content requirements.
Market Access: Access to a market of over 400 million consumers within ECOWAS.
Mobility: ECOWAS protocols allow free movement of people, making it easier for skilled labor to travel and work across member states.
11. What types of land are available for investment?
State Land: Land owned by the government and managed under statutory laws.
Customary Land: Land held and governed by local communities under traditional laws and practices.
Private Land: Land that is privately owned, typically within urban or peri-urban areas.
12. What is the main regulatory framework for investment?
The key laws include:
The Investment Promotion Act, 2004.
The Companies Act, 2009.
The National Investment Board Act, 2021
Sector-specific regulations for mining, agriculture, and energy.
13. What are the costs of importing machinery and raw materials?
Duty and taxes depend on the nature of the goods. Incentives exist for certain categories, especially under investment incentive programs.
General Import Duties: Varies by product, typically 5%-20% of the value.
Exemptions: Machinery and raw materials for production purposes may qualify for duty exemptions under investment incentives.
ECOWAS Preferences: Imports from ECOWAS countries may enjoy reduced or zero tariffs under trade agreements.
14. Sierra Leone’s agricultural sector is a vital contributor to its economy, providing livelihoods for the majority of the population. The country exports a range of agricultural products, which include cash crops, food crops, and processed goods.
Key Export Crops
Cocoa: One of Sierra Leone’s top export crops, valued for its quality in the global market. Smallholder farmers dominate its production.
Coffee: Another major export crop, though production levels have fluctuated over the years due to market dynamics and farming challenges.
Palm Oil: Widely produced and exported, palm oil has a strong domestic and international demand.
Ginger and Cassava Products: These are gaining traction in the export market, with processed derivatives like starch and flour being sought after.
Emerging Opportunities
Fruits: Mangoes, pineapples, and bananas have potential in both raw and processed forms (e.g., juices and dried fruit) for export.
Cashews: A growing sector with significant investment opportunities, particularly in nut processing for value addition.
Processed Goods: There’s an increasing focus on exporting value-added products like chocolate (from cocoa) and bottled juices.

How To Set Up a Business in Sierra Leone
It’s easier than ever to start a business in Sierra Leone.
Once you have completed these steps, you will be ready to do business and take advantage of Sierra Leone’s growing market opportunities.