By: Dauda A. Kuyateh(PhD)
Head Private Sector Development & Investment Unit
& Part-time Lecturer, University of Makeni
Sierra Leone took part in IATF 2023, held at the Egypt International Exhibition Centre and Al Manara International Conference Centre in Cairo, Egypt from November 9th to 15th, 2023. The event concluded on November 16th, providing Sierra Leone with a fresh sense of hope and renewed determination to utilize the lessons learned during the mission. The information gathered on accessing markets, information and finance during the IATF 2023 can serve as a starting point for forging new partnerships, facilitating trade, and securing investment deals. The country is committed to turning the significant gains made during the event into concrete results.
During the presentation, the delegation made a strong case for Sierra Leone’s trade and industrial policies, investment opportunities, and trade facilitation. They discussed the Government’s policy priorities, which included initiatives such as “feeding the nation” and job creation. The delegation also highlighted the business and investment opportunities available in the country, including Sierra Leone’s journey toward economic diversification and industrialization. They emphasized the importance of building strong business relationships and partnerships and the need for commitments with multilateral stakeholders to improve the business environment and framework. This, in turn, would accelerate trade, finance, SME lending, and investment, ultimately creating wealth and jobs.
Despite facing a challenging business and economic environment in Africa, including global geopolitical tensions, economic downturns, disruption of supply chains, food insecurity, climate change, energy concerns, high inflation, and interest rates, it is evident that the Government of Sierra Leone is dedicated to creating a favorable business environment that encourages foreign direct investment. The Medium-term National Development Plan (2019-2023) aims to support the private sector, establish business partnerships and investment relationships, and implement new industrial policies to attract investment flows and power the country’s development aspirations and transformation agenda through trade and investment.
To achieve these goals, the government is working towards stabilizing the economy by improving the business climate and fostering optimal collaboration with healthy business practices. The importance of IATF 2023 was also highlighted, as it offers a platform to promote trade and investment opportunities in key sectors such as agriculture, infrastructure, energy, tourism, health, and mining in Sierra Leone. The private sector plays a critical role, and Minister Sesay stressed the importance of promoting commercial and strategic partnerships and improving the investment climate to facilitate increased trade and investment.
The IATF 2023 marked a significant step forward in Sierra Leone’s quest to support private sector growth in manufacturing, industrialization, agriculture, tourism, mining, energy, and research & and development through entrepreneurial and industrial policies. This will accelerate job creation, tackle rising unemployment, and reduce poverty in the country, which is critical for sustainable human capital development, business development, and national development for shared prosperity for all Sierra Leoneans.
COMPOSITION OF THE SIERRA LEONE DELEGATION.
The Sierra Leone delegation was led by the Minister of Trade and Industry, Hon. Alpha Ibrahim Sesay. The delegation also included Hon. Bockarie Kalokoh, the Deputy Minister of Finance II, Mr Kondeh, the Permanent Secretary of the Ministry of Trade and Industry, Mark Sahr Nyuma, the Deputy Director of Foreign and Regional Trade at the Ministry of Trade and Industry, Dr. Dauda A. Kuyateh, the Head of the Private Sector Development and Investment Unit at the Ministry of Finance, and Mr. Abdulai Bakarr Jalloh, the Deputy Head. Prominent attendees from the financial sector and representatives from the private sector included Mr. Abdul Yusuf Sillah, the Managing Director of Sierra Leone Commercial Bank and Rokel Commercial Bank, Mr. Walter Gilpin, the Managing Director of Rokel Commercial Bank, and Mr. Rashid Conteh, who is a popular businessman in the Garie value chain as well as the Secretary-General of the Sierra Leone Importers and Exporters Association.
THE STRIDES MADE BY MINISTRY OF TRADE TO IMPROVE TRADE FACILITATION AND INDUSTRIAL POLICY FRAMEWORK TO DRIVE SUSTAINABLE AND INCLUSIVE DEVELOPMENT
The government’s unrelenting push and commitment to forge trade cooperation, business partnerships, and investment opportunities in Sierra Leone are against the backdrop of spurring inclusive growth, creating jobs, reducing poverty, and attracting foreign direct investment. The country has implemented trade policies, tax reforms, investment incentives, and business regulations to take advantage of its huge natural resources and mineral wealth, as well as boost government tax revenue.
Sierra Leone’s participation in IATF 2023 is crucial for the country’s political and economic stability, as it will attract trade, investments, and business opportunities in various sectors such as agriculture, agro-processing, energy, infrastructure, manufacturing, education, finance, health, pharmaceuticals, ICT, tourism, transport, start-ups, and SMEs. By creating a healthy and friendly business environment, we can generate employment, reduce poverty, and attract FDI and export readiness, thus enhancing competitiveness. Therefore, it is essential to develop a solid plan to increase trade and investment, accompanied by infrastructure projects and policies that support industrial growth and manufacturing development in Sierra Leone. This will aid sustainable economic development and boost economic growth.
In the past few years, the Ministry of Trade and Industry has worked tirelessly to launch the nation’s industrial, special economic zones, and national cooperative development policies, which is a crucial step to stimulate economic growth. This year’s participation of the Sierra Leone delegation was a massive success, and they started on 13th November 2023 with a bilateral engagement to bolster potential investment opportunities and business partnerships that will attract investment in manufacturing, mining, agriculture, tourism, energy, and ICT.
SIERRA LEONE DELEGATION PARTICIPATED IN VARIOUS BILATERAL MEETINGS.
In line with the Government’s determination and commitment to achieve the broader economic policy of supporting private sector growth, improving agricultural production, access to energy, leveraging on industrial growth, job creation, and strengthening human capital development, trade, and investment have become pivotal in the engagements on economic diplomacy given the role of the private sector in national development. Private sector growth is key to the Government of Sierra Leone and an enabling environment must be created to attract more investors, including the need to build key institutions.
Sierra Leone’s bilateral meetings and engagements held with strategic partners in the recently concluded Intra-African Trade Fair 2023 in Cairo, Egypt set the context for African countries to showcase their trade potential, seizing seas of opportunities and unlocking business and investment potentials to the world and promoting continental trade as well as serving as a catalyst to stimulate commerce and enhance industrial growth.
The overarching narrative is one of promising strides towards increased trade and investment amongst African countries which is less than 20%.
- BILATERAL MEETING WITH THE TECHNICAL ADVISOR TO THE DIRECTOR-GENERAL OF BADEA, MR TSHEPELUYI KABATA, & AND MOHAMMED ISHMAIL, RELATIONSHIP MANAGER, OF BADEA.
During the meeting, the Minister of Trade & Industry, Hon. Alpha Ibrahim Sesay, and Deputy Minister of Finance II, Hon. Bockarie Kalokoh held discussions with Mr Tshepeluyi Kabata, the Technical Advisor to the Director-General of BADEA, and Mr Mohammed Ishmail Alzain Abdullai, the Relationship Manager of BADEA on a wide spectrum of issues bordering around project development and execution, trade financing, value chain, SMEs capacity, institutional support, multi-stakeholder engagements. The technical advisor noted the importance of capacity development for human, physical, and economic development. He acknowledged the excellent bilateral ties and cooperation between BADEA and the Government of Sierra Leone over the years. He reaffirmed his bank’s continuous support and commitment to helping achieve the national development aspirations and agendas. He disclosed that BADEA is a multilateral financial institution that provides grants and loans to countries to enhance trade finance and development projects and programs. The technical advisor further explained the various trade lines, windows, and access to finance opportunities in oil and gas, fertilizer, and manufacturing. He concluded that they have a strategy to cut middlemen in these sectors.
The Deputy Minister of Finance Hon Bockarie Kalokoh expressed his appreciation on behalf of the leadership to BADEA for their continued support, cooperation, and interventions in critical sectors. He spoke about the role of the Ministry in facilitating development funds with the Multilateral Project Division in the Ministry of Finance coordinating the funding facilities in the the areas of road infrastructure, agriculture, education, health, and trade. Mr Kalokoh threw light on the current fiscal challenge faced as a country drawing from the declining global economic environment. Despite these challenges, the Government is ready to give comfort and committed to looking for partnerships with the private sector to boost trade and value chain in agriculture citing the US$800 million for agriculture –Feed Salone Initiative which is the flagship agenda of the President of the Republic in his second term to increase food production and yields in rice, cassava, poultry and maize. He called for more windows for trade finance, capacity building, building of existing institutions and youth schemes, and more importantly encouraging the private sector to boost employment opportunities.
The Minister of Trade and Industry highlighted the global economic challenge and how that has adversely affected the development trajectory and transformational growth and agendas of the government as a country. He narrated the Government’s foreign exchange challenges and the need to provide credits to the MUNAFA fund and technical support to the Sierra Leone Producing Marketing Company to support the agriculture value chain, provide strategic commodities, and boost food security.
- BILATERAL MEETING AND ENGAGEMENT WITH THE OAKWOOD GREEN AND AFREXIMBANK
The Deputy Minister of Finance II, Bockarie Kalokoh, had a productive meeting with Mr Gabriel Edgar, Chairman/CEO of Oakwood Green, and the Afreximbank team. They discussed a proposed financial deal between Afreximbank and the Ministry of Finance. The Deputy Minister updated them on the progress of the $30 million foreign exchange swap agreement between the government and the bank. The foreign exchange swap aims to improve liquidity and forex challenges in Sierra Leone. If secured, this facility will improve trade financing for SMEs, importers, and exporters to import vital commodities. Given the country’s tight fiscal space and liquidity challenges, this type of foreign exchange swap he said is crucial. Once finalized and approved by parliament, it would address liquidity and forex challenges in the short to medium term. The Deputy Minister emphasized the importance of such a partnership in promoting trade finance.
- BILATERAL MEETING WITH AMBASSADOR ALBERT MUCHANGA, AFRICA UNION COMMISSIONERS FOR ECONOMIC DEVELOPMENT, TRADE, TOURISM, INDUSTRY AND MINERALS
During discussions on various issues, The AU commissioner observed that Africa presents a massive unparalleled market, products, and investment opportunities with AfCFTA becoming the enabler. AfCFTA was created to add value. He furthered that countries like Sierra Leone should take advantage of its vast natural resources and mineral wealth by optimizing trade corridors to facilitate the free movement of its goods to bigger markets. He encourages countries to establish agro-parks for agriculture inputs, fertilizers, storage, and marketing to support and promote agricultural production and development.
Despite the challenges that exist, the Intra-Africa Trade Fair (IATF) offers a critical platform to bridge the gap by providing access to finance, support for human and technical capacity building, and training he added,.
Recent opportunities for Sierra Leone are expected to include:
– Invitation extended to the Hon Minister of Trade to attend a trade and investment meeting in Congo next year.
Mapping of regional value chains in sectors such as automobile, pharmaceuticals, and textiles.
– The “Made in Africa” concept, which is set to be fully harmonized at the national level by July next year. This initiative aims to make African product standards readily available.
– The Pan-African Manufacturing Association, which can be utilized as a platform for collaboration, partnerships, and improving research, development, and coordination.
Minister of Trade and Industry, Hon. Alpha Sesay acknowledged the numerous challenges of trade barriers, custom borders, tariffs, and infrastructure as bottlenecks hampering trade in the continent. He therefore called for technical support to build the capacities of existing institutions in Sierra Leone.
Going forward, Ambassador Albert Muchanga urged nations to leverage the African Continental Free Trade Area (AfCFTA) and the Intra-Africa Trade Fair to forge partnerships and relationships.
- BILATERAL MEETING AND ENGAGEMENT WITH THE SECRETARY GENERAL OF THE AFRICAN CONTINENTAL FREE TRADE AREA.
During a bilateral meeting with Wakele Mene, the Secretary-General of the African Continental Free Trade Area (AFCFTA), several issues were discussed. Mene highlighted the progress of the 47 countries that have ratified the agreement with Liberia and Benin not yet ratified. He commented on the ongoing implementation process, new developments, programs, and the political support and promising momentum from member states citing the protocols on digital, women and youths, trade finance, and the NEW GUIDING TRADE INITIATIVES. This initiative aims to identify export potentials, readiness, and markets and sellers as the case may be. However, for Sierra Leone to benefit from this initiative, The SG has proposed for a team from AfCFTA in Ghana to visit Sierra Leone to identify private and public sector players.
On the challenges facing the free trade agreement, he mentioned the infrastructure trade deficit as a serious problem. He emphasized that infrastructure is key to supporting trade and that a lot has to be done to develop protocols to improve soft infrastructure and customs facilitation. Mene also discussed good examples of trade corridors in Niger, Togo, Benin, and Burkina Faso, where reducing trade barriers with infrastructure facilitated the free movement of goods, capital, and services, which is critical for trade corridors. He concluded that an increased trade corridor can foster investment via its sure effect on intra-African trade. Moreover, he stressed the importance of spurring intra-African trade and integrating it with the global trading system.
In sharing his insights, the Minister of Trade &Industry Mr. Alpha Sesay explained his Ministry’s tremendous strides and efforts to bolster the ongoing awareness, general training, trade facilitation, and further discussions on strengthening existing institutions for export capability, readiness, and competitiveness to meet global standards. He emphasized the importance and requirement of standards and the need for technical support and capacity training.
He however expressed optimism for accelerating the full operationalization and implementation of the free trade area, given that AfCFTA stakeholders from the public and private sectors should find sustainable solutions in creating one African Market to promote regional economic integration.
The Secretary General of AfCFA concluded that the future is promising for the continent in terms of increased trade and investment but everyone must come on board.
THE SIERRA LEONE DELEGATION TOUR THE ARISE IIP BOOTH FOR SIERRA LEONE TO ATTRACT FOREIGN INVESTMENTS AT IATF 2023
The Hon. Minister of Trade and Industry, Mr. Alpha Ibrahim Sesay, along with Hon. Bockarie Kalokoh, Deputy Minister of Finance, and the Managing Directors of Sierra Leone Commercial Bank and Rokel Commercial Bank, Mr. Abdul Yussuf Sillah and Walter Gilpin respectively, met with the Chief Marketing Officer at the Sierra Leone booth to discuss possible partnerships with the two government-owned banks. The meeting aimed to explore the financial innovation, branch network, profit, deposit base, and balance sheet size of these banks.
Arise Integrated Industrial Platforms (Arise IIP) has won the award for the best booth for doing business. Now, they are here in Sierra Leone with a mission to catalyze industrialization and improve the manufacturing base. Arise IIP is a Pan-African developer and operator of world-class industrial ecosystems that identifies opportunities in commercial and industrial value chains. They finance, build, and operate the necessary infrastructure, playing a catalytic role in countries’ transition to an industrial economy. Arise IIP designs tailor-made solutions to enable the sustainable and local transformation of raw materials, boost exports, and promote trade.
The establishment of the Sierra Leone Industrial Zones-Koya is a significant step towards stimulating job creation and positioning Sierra Leone as a leading investment hub. Koya is strategically located to attract domestic and international investors in the value chains of manufacturing, commercialization, and export. It boasts a unique vertically integrated special economic zone with world-class infrastructure.
THE NEED FOR MORE COLLABORATION AND INTERAGENCY COORDINATION
Collaboration and coordination among various agencies are becoming increasingly necessary to drive trade and investment in Sierra Leone. The power of collective efforts, shared goals, and collaboration was demonstrated at the IATF 2023 held in Cairo, Egypt. The event was an exceptional opportunity for businesses to explore new frontiers, forge strategic partnerships, and tap into the immense potential of the African market. Sierra Leone was able to participate and engage with multilateral finance institutions in meaningful discussions, exchange ideas, and lay the foundation for long-lasting collaborations that will drive prosperity and create a brighter future in Africa.
The IATF 2023 event provided a unique opportunity for countries, businesses, and the private sector to showcase their potential, seek investments, forge agreements, and promote international cooperation across 55 countries. It is important to note that the fair’s unrivaled opportunity can be leveraged through business-to-business and business-to-government. Buyers can meet sellers, explore business opportunities, and attract investors and trade organizations from all over the world.
However, the absence of significant institutions such as the Local Content Agency, Sierra Leone Chamber of Commerce, Sierra Leone Export and Investment Promotion Agency, National Tourist Board, National Investment Board, and key private sector players indicates a lack of coordination in participating in this year’s trade fair, resulting in a poor display. Despite this, the intervention of two government banks (SLCB and RCB) and Mr. Rashid Conteh’s Garie Products, a private sector partner, helped save the situation.
To position Sierra Leone as an attractive investment destination, we need to improve interagency collaboration. The Ministry of Trade and Industry should lead in establishing a coordinating unit and task force for IATF 2025 in Algeria.
THE WAY FORWARD
As we look forward to the Algiers IATF event in 2025, Sierra Leone is committed to forging strong partnerships and trade relationships with private investors and multilateral finance institutions. We are inspired by the spirit of cooperation, innovation, and renewed commitment demonstrated by the IATF partners, organizers, sponsors, ambassadors, visitors, governments, exhibitors, and the private sector. With this collaborative effort, we hope that our various engagements will become feasible opportunities for Sierra Leone businesses to make and sign deals at the 4th Edition, planned to take place in Algiers during IATF 2025.
CONCLUSION
The 7-day trade fair was a remarkable success, providing a platform for countries, sponsors, start-ups, SMEs, exhibitors, and private sectors to showcase the immense potential of the continent’s investment and business opportunities. The event witnessed incredible partnerships being formed, deals being signed, and innovative products being showcased through business-to-business, government-to-business, and business-to-government channels. The spirit of collaboration and partnership was evident throughout.
We hope that the Algiers IATF event in 2025 will build on the lessons learned and deepen strategic partnerships with the private sector to harness the huge business and investment opportunities. We are optimistic that the fruitful bilateral engagements and emerging issues discussed, along with their outcomes, will be pursued with follow-up actions.