Sierra Leone: Invertir

FDI in Figures

According to UNCTAD's World Investment Report 2023, in 2022, FDI flows to Sierra Leone increased to an estimated USD 250 million, from USD 212 million one year earlier. At the end of the same period, the FDI stock was estimated at USD 2.688 billion, representing around 68.2% of the country’s GDP. Traditionally, Sierra Leone's main investors were Nigeria, Sweden, Mauritius, Belgium, Germany, and the United States, but China has become a major investor. At the beginning of 2024, Chinese President Xi Jinping pledged to incentivize Chinese companies to invest in Sierra Leone, a country abundant in minerals yet facing economic challenges. This commitment is part of Beijing's overarching strategy to strengthen economic and political relations with Africa over the long term. According to data from the American Enterprise Institute think tank, Chinese firms have invested USD 6.4 billion in Sierra Leone since 2010, primarily focusing on metals. In December 2023, Sierra Leone inked an agreement with China Road and Bridge Corporation to construct an 8-km (5-mile) bridge spanning the river that divides the capital Freetown from the country's primary airport. The project is estimated to cost USD 1.5 billion. Foreign investors are engaged in energy (including renewable energy), infrastructure, agriculture, fisheries, tourism, and natural resources.

Sierra Leone presents considerable investment opportunities across various sectors. The nation boasts abundant mineral reserves and natural resources, benefiting from a tropical climate and fertile soil ideal for agriculture. Additionally, its extensive continental shelf offers diverse fishery resources, while the natural environment holds potential for tourism. Sierra Leone possesses vast mineral resources, including iron ore, diamonds, gold, rutile, ilmenite, and bauxite. Opportunities also abound in energy, water, telecommunications, and other infrastructure sectors. Sierra Leone is trying to attract investments through public-private partnerships (PPPs) to undertake major infrastructural projects, particularly in power, water, roads, ports, and telecommunications, etc. The country’s substantial mining wealth, the absence of any arbitrary discrimination against foreign companies and restrictions on the repatriation of profits, as well as the sale of assets (guaranteed by the new investment code) make Sierra Leone attractive for FDI. However, the shortage in skilled labor, the lack of infrastructure, the slow legal system, the high level of corruption, political violence, and serious social disorder due to socio-economic disparities are major obstacles to FDI. Both foreign and domestic private entities have the freedom to establish and own business enterprises and engage in profitable activities. Foreigners are permitted to establish, acquire, and divest interests in business ventures. However, there are restrictions on foreign investment in specific sectors such as arms and ammunition, cement block manufacturing, granite and sandstone excavation, certain consumer durable goods manufacturing, and military, police, and correctional officers’ attire and equipment. Moreover, there are regulations on land ownership by foreign entities and individuals, with limitations contingent on the location of the land being utilized. Sierra Leone ranks 108th among the 180 economies on the 2023 Corruption Perception Index and 163rd out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: May 2024