Sierra Leone: Invertir

FDI in Figures

According to UNCTAD's 2022 World Investment Report, in 2021 FDI flows to Sierra Leone increased to an estimated USD 218 million, from USD 135 million in 2020, in the context of the recovery from the global economic and health crisis. FDI stock was estimated at USD 2.438 billion in 2021. In 2022, global FDI momentum weakened in the context of the war in Ukraine, rising food and energy prices, financial turmoil and debt pressures (UNCTAD’s Investment Trends Monitor). Traditionally, Sierra Leone's main investors were Nigeria, Sweden, Mauritius, Belgium, Germany and the United States, but China has become a major investor. Foreign investors are engaged in energy (including renewable energy), infrastructure, agriculture, fisheries, tourism and natural resources.

When the country emerged out of the Ebola scourge in 2015, the government turned to FDI to boost economic growth (U.S. Department of State). 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 labour, 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. Despite these impediments, Sierra Leone attracts many investors, including China that has become increasingly present in the country. The projects financed by China comprise a hospital, a hydroelectric dam, a rubber production project spanning several thousand hectares (worth USD 1.3 billion, financed by China Hainan Rubber Group), rice cultivation (135,000 hectares), stadiums, roads, bridges, electrical projects, a fishing harbour project, and mining projects (Kingho Group, involved in a USD 6 billion project, operates the Tonkolili mine). UK firm Winch Energy is engaged in the construction of mini solar plants, American SL Mining (Gerald Group) in the exploitation of the Marampa iron mine, and Israeli company Agrotop jointly with South African Integrated Solutions Africa (ISA) Group in the construction of a large-scale poultry birds farming for commercial egg production (USD 60 million project). The settlement of disputes with Kingho and Gerald Group in 2021 are expected to improve the country's image (Coface).

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Latest Update: November 2023