By: Aminata Sesay
On Tuesday, July 22, 2025, the Parliament of Sierra Leone ratified two key economic agreements aimed at revitalizing the national economy, encouraging foreign investment, and supporting strategic industries. The agreements, presented by the Minister of Finance, Hon. Fantamadi Bangura, received broad bipartisan support in the House.
The first ratified agreement was an amended Debt-to-Equity Swap Agreement between the Government of Sierra Leone and Sierra Mineral Holdings Limited 1, a major bauxite mining company operating in the Moyamba and Bo Districts.
Through this deal, approximately $13 million in outstanding tax liabilities owed by the company will be converted into a 10% equity share for the government.
“This arrangement supports the company through current financial challenges linked to global economic crises and the impact of COVID-19,” said Minister Bangura. “At the same time, it gives the government long-term ownership benefits.”
As part of the agreement, Sierra Mineral Holdings will be granted a two-year tax exemption on certain taxes, including: import duties on mining equipment, withholding tax on interest payments.
However, key taxes such as Pay-As-You-Earn (PAYE) and environmental fees will remain unchanged.
Parliament also ratified Sierra Leone’s membership in the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a vital institution under the Islamic Development Bank (IsDB).
According to Minister Bangura, this membership will enhance Sierra Leone’s ability to attract private sector investments, reduce financial and political risks, and support the country’s trade and export growth.
“This is a strategic move to access risk mitigation tools that will boost trade and investment especially in sectors like energy, infrastructure, and manufacturing,” he added.
The ICIEC provides insurance and guarantees that protect investors and exporters against both commercial and political risks, thereby improving investor confidence.
Hon. Aaron Aruna Koroma (APC) called the debt-to-equity swap a “smart approach” to recovering government revenue and gaining long-term returns. However, he urged the government to provide greater transparency in how the 10% equity value was determined.
Meanwhile, Hon. Ibrahim Tawa Conteh (SLPP) praised the ICIEC membership, highlighting its role in safeguarding investments and building investor confidence.
“This is a step forward in protecting government investments and improving investor confidence in Sierra Leone,” Conteh stated.
After deliberations, Parliament unanimously ratified both agreements marking a significant step forward in Sierra Leone’s efforts to stimulate economic growth, attract foreign capital, and support struggling but strategic sectors like mining and exports.