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Sierra Leone: Africa’s New Investment Destination. Sierra Leone is a nation. With a great tradition of religious tolerance, education and achievement Where peace and stability are fully restored Where democracy is alive and thriving Where economic stability has been achieved

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Sierra Leone: Africa’s New Investment Destination

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Sierra leone africa s new investment destination

  • Sierra Leone:

  • Africa’s New Investment Destination


Sierra leone africa s new investment destination

Sierra Leone is a nation...

  • With a great tradition of religious tolerance, education and achievement

  • Where peace and stability are fully restored

  • Where democracy is alive and thriving

  • Where economic stability has been achieved

  • Where corruption is being tackled

  • Where the investment climate is being transformed

  • Where opportunities for investment and export are significant


Sierra leone africa s new investment destination

Blessed with significant natural assets

  • Only 11% of arable land is cultivated

  • Amongst highest levels of rainfall on earth (2500 mm/yr)

  • Solar power and bio-fuels expanding rapidly

  • West Africa’s premier tourism assets

  • Wealth of minerals, metals and hydrocarbons


Sierra leone africa s new investment destination

With strategic access to markets

  • Natural deepwater harbour at nexus of global trade routes

  • Closest African country to Latin America

  • Transit hub: proximity to EU, North and Latin Americas

  • Duty-free & preferred access to:

    • ECOWAS – 225 million people

    • EU via EBA

    • USA via AGOA

2hrs

4hrs

6hrs

8hrs

Flight duration (hours)


Sierra leone africa s new investment destination

Since forum in London in 2009, investment pipeline surged to over $10 bn

  • Key objectives of the 2009 London forum:

    • Change perceptions/myths about Sierra Leone

    • Increase the scale and quality of the investments

  • I am happy to report very strong results on both fronts.


Sierra leone africa s new investment destination

Post Nov 2009, large investments landed in agri-business, hotels, construction,

Agri - business

Hotels and construction


Sierra leone africa s new investment destination

…with similar scale in Mining and Infrastructure….

Mining

Insfrastru-cture


Sierra leone africa s new investment destination

  • All the above companies have chosen Sierra Leone for a

  • reason…

  • With no signs of relent on investment pipeline…


Sierra leone africa s new investment destination

And these results are due to constructive steps being

taken by Gov’t…..

Overseeing a stable, growing economy

  • GDP projected to grow at twice the African average, according to the IMF

Due to operations of the Mining sector and thriving private sector Growth is Projected at ~60% in 2012

GDP in USD Billion – IMF estimates

12% CAGR

10% CAGR


Sierra leone africa s new investment destination

  • Leading reformer

  • Starting a business

  • Trade across boarders – Assycuda

  • Land Digitalization project

  • New company’s Act

  • Streamlining construction permits

  • Fast track commercial courts

  • Credit reference bureau

  • Attractive Fiscal Incentives


Sierra leone africa s new investment destination

Leading reformer of the private sector

Top reformer in Africa for providing

Sustainable Economic Opportunity

Improved 25 places in the

Doing Business Rankings in 4 years

Mo Ibrahim Africa Governance Index:

Sustainable economic opportunity indicator

Change in Rank ‘06 – ‘09

World Bank Doing Business Rankings

Overall rank position Sierra Leone

Regional Peers

Top 3 reformers in Africa for this indicator

  • 2011 Index results highlights

  • Ranked 14/53 in Personal Safety

  • Ranked 29th/53 in Business environment

  • Moved from 33rd to 30th overall ranking between 2009 and 2010


Sierra leone africa s new investment destination

Continually updating policy environment

Done

Approved by Cabinet

In Progress

  • Streamlined Business Registration Process

  • Mortgage Finance Act

  • Goods & Services Tax

  • Anti-corruption Act

  • Companies Act

  • Bankruptcy Bill

  • Payment Systems Act

  • Minerals Act 2009

  • Model Bilateral Investment Treaty

  • Investor Incentives Policy

  • Energy Policy

  • ICT Policy

  • Public Private Partnership Policy

  • Intellectual Property Rights Legislation

  • Credit Reporting Legislation

  • Whole and retail act

  • SME fund

  • Competition law

  • Financial Sector Reforms

  • Leasing Finance Framework

  • Collateral Registry

  • SEZ Policy

  • Double Taxation Treaties

  • Local content policy

  • Industrial policy


Sierra leone africa s new investment destination

Offering incentives to investments

Capital items and inputs duty free

  • All Plant, Machinery and Equipment (PME) would be eligible for duty free imports for five years of operations. Companies would be allowed to elect the five years when they would be eligible for the duty free importation

  • All agricultural inputs imported at duty free rates

Promotion of exports

  • Expenses which are aimed at promoting exports and the supply of goods overseas will be eligible for 100% deduction from profits and up to the extent of profits.

Corporate tax

  • Corporate tax exemptions for certain types of investments

  • All new investments shall also benefit from investment allowance of 20%

Investment allowance


Sierra leone africa s new investment destination

Opportunities for investment


Sierra leone africa s new investment destination

Opportunities across sectors

&

  • Agri-Business

  • Vast Amount of Cultivable Land

  • Available

  • Fisheries

  • Regional Demand to Capture

  • Tourism

  • Step Change Growth to

  • Peer Markets

  • Infrastructure

  • Building a Billion $ Market

  • Mining

  • Reformed, Re-Opened

  • Energy

  • Power to Meet Unmet Demand

&

  • Oil

  • Oil discovery

&


Sierra leone africa s new investment destination

Agri-business

Under-utilization of Arable Land

%

  • Most of 5.4 million hectares of cultivable land is undeveloped

  • Top priority for Government

  • Ideal growing conditions for a wide range of staple and cash crops including Cocoa and Coffee

  • Significant opportunity to grow sugar

  • (~$200m investment by Addax) , oil palm (~$2 bn investment by Siva Group), rice, pineapple and other agricultural products for both food and fuel supply

Not Culti-vated

Non A.

Arable

Cultivated

Agri-business Is Growing Sharply

Agriculture GDP ($MMs)

Livestock

CAGR 22%

Forestry

Fisheries

Crops


Sierra leone africa s new investment destination

Fisheries

  • Significant regional demand for fish, estimated at ~$800 million

  • Amongst the most productive oceans in West Africa

  • Access to EU market with hygiene standards being upgraded

  • Government currently modernizing legal framework to prevent illegal fishing and work with US coast guards

  • Fish landing sites built at Bonthe, Shenge, Tombo and Goderich

  • Opening of a Marine Training school underway

  • Fishing revenues tripled between 2007 and 2010

  • Unmet Regional Demand for Fish

  • Est. Current Domestic Supply of Fish ($MM)

$705

$785mm Opportunity: $80mm undersupply in domestic market + $705mm of regional demand.


Sierra leone africa s new investment destination

Oil and mining Industries

  • Plentiful resource base and potential that remains underexploredand underdeveloped

  • Iron ore exploited by African Minerals (who is investing $1.3bn) and London Mining (who raised hundreds of millions of USD on LSE) will be responsible for more than 40 points growth of GDP in 2012

  • Significant amounts of land recently made available via license expirations and scheduled relinquishments

  • Offshore oil discovery, and a new petroleum Act enacted in July 2011

  • Relinquishments Driving Access to Resources

  • Area Available for License (km2)

38% Growth

Proven reserves of:

  • Iron ore

  • Diamonds

  • Rutile

  • Bauxite

  • Ilmenite

  • Gold

  • Chromite

  • Platinum

  • Lignite

  • Clays


Sierra leone africa s new investment destination

Oil and mining (cont’d)

Diamonds: Flattish Prod., Price Returning

  • Historical and Projected Diamond Exports ($MM)

Bauxite: Prod. Restarting on Price Rebound

  • Historical and Projected Bauxite Exports ($MM)

-13% CAGR

18% CAGR

-44% CAGR

45% CAGR

Rutile: Flattish Prod., Price Returning

  • Historical and Projected Rutile Exports ($MM)

Gold: New Mine Expected Onstream in 2012

  • Historical and Projected Gold Exports ($MM)

12% CAGR

5% CAGR

165% CAGR

41% CAGR


Sierra leone africa s new investment destination

Infrastructure

  • Value of Road Construction Projects ($MM)

  • $2 bn+ infrastructure construction and management market

  • Privatization of Freetown port has been completed on one of the world’s largest natural harbors

  • Highway to connect major cities (Makeni, Bo, Kenema, Conakry) have been rehabilitated

  • Upgrade of Freetown international airport under way

  • Construction of a new airport on the mainland

$913

$499


Sierra leone africa s new investment destination

Energy

  • Significant domestic and regional demand for power

  • 400mwHydo-power Bumbuna project under way

  • 16.5mw thermal plant built up at Blackhall road, 6mw plant built in Makeni

  • The government just signed a 1000 mw thermal BOT project to be built over the next 5 years

  • Unmet Existing Domestic Demand for Power

  • Installed Power and Estimated Demand (MW)


Sierra leone africa s new investment destination

Tourism

  • Underdeveloped vs. Peer Destinations

  • Annual Tourist Arrivals

  • One of Lonely Planet’s Top 10 Worldwide Destinations in 2009

  • West Africa’s most stunning and undeveloped beaches

  • Wealth of eco-tourism sites across 31 protected areas

  • Heritage sites linked to rich cultural past

  • Easily accessed by European and West African tourists – International Hub.

  • T he Cape Sierra Hotel will be refurbished into a 5-star hotel under a partnership with the Hilton Hotel Group


Sierra leone africa s new investment destination

Investment forum in Sierra Leone

Sierra Leone: Africa’s New Investment Destination

Details

16th- 17th November

Freetown

  • Sectors

  • Agri-Business &Fisheries

  • Tourism

  • Oil & Mining

  • Energy & Infrastructure

Under the patronage of

His Excellency The President

Dr. Ernest Koroma

  • Programme

  • 16th Nov : conference

  • 17th Nov: investment site visits

Organised by


Sierra leone africa s new investment destination

Thank you


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