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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

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Sierra Leone: Africa’s New Investment Destination

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  1. Sierra Leone: • Africa’s New Investment Destination

  2. 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

  3. 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

  4. 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)

  5. 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.

  6. Post Nov 2009, large investments landed in agri-business, hotels, construction, Agri - business Hotels and construction

  7. …with similar scale in Mining and Infrastructure…. Mining Insfrastru-cture

  8. All the above companies have chosen Sierra Leone for a • reason… • With no signs of relent on investment pipeline…

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. Opportunities for investment

  15. 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 &

  16. 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

  17. 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.

  18. 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

  19. 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

  20. 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

  21. 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)

  22. 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

  23. 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

  24. Thank you

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