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Private Sector Development

Roundtable Report - "Rebuilding for Resilience" - Transforming the

Business Climate in Sierra Leone

Bintumani Hotel

Aberdeen

Freetown

1st March 2016

Private Sector Development Roundtable Report - "Rebuilding for Resilience" - Transforming the Business Climate in Sierra Leone

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Table of Contents

Executive Summary ...................................................................................................................................... 3

Introduction .................................................................................................................................................. 4

Roundtable Rationale and Objectives ......................................................................................................... 5

Opening of the Roundtable.......................................................................................................................... 6

Call to Order .......................................................................................................................................... 6

Chairman's Opening Remarks ............................................................................................................... 7

Statements and Discussions ........................................................................................................................ 9

Policy Statements on the Post Ebola Economic Recovery Process ........................................................... 9

Questions and Answers and Discussions on Policy Statements ......................................................... 12

Private Sector and Development Partners Perspectives on the Post Ebola Economic Recovery Process

................................................................................................................................................................ 13

Questions and Answers and Discussions on Private Sector and Development Partner Perspectives 19

Breakout Sessions, Discussions and Closing .............................................................................................. 21

Breakout Sessions ............................................................................................................................... 21

Presentations from Breakout Sessions ............................................................................................... 21

Closing Remarks .................................................................................................................................. 23

Annexes ...................................................................................................................................................... 24

List of Participants ................................................................................................................................... 24

Photo Gallery .......................................................................................................................................... 29


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Executive Summary

On March 1, 2016, the Sierra Leone Business Forum (SLBF) and Sierra Leone Local Content Unit

(SLLCU), organized a one day Private Sector Development Roundtable with the theme,

“Rebuilding for Resilience” - Transforming the Business Climate in Sierra Leone (R4R) . The

objectives of the roundtable were to assess the progress in the implementation of

recommendations from the 2015 PSD Roundtable and facilitate an exchange of ideas and

experiences from the private and public sectors and Development Partners on the Post EVD

Recovery.

Key public sector policies and measures outlined that will support the Post EVD Recovery

Process included:

Establishment of Small and Medium Enterprises and Local Content Agencies to promote

growth of the private sector

Strong support by the Central Bank to stabilize exchange rates in the face of dwindling

exports

Legislative reforms proposed by the Central Bank to stimulate lending and protection of

depositors and banks

Availability of a wide range of tax and fiscal incentives to support private sector growth

To support the Post EVD Recovery Process, the Private Sector viewpoints were that

Government should create the enabling environment for the private sector to thrive in terms of

developing infrastructure, promotion of agribusiness as a growth sector and adoption of pro

growth policies.

Private Sector participants were concerned that the tax and fiscal incentives designed to

support the growth of the private sector 'appeared' to target only Corporate Businesses leaving

out the 'Missing Middle SMEs ' which made significant contributions to national GDP and job

creation. Concerns were also expressed about the difficulties and delays associated with

obtaining the tax and fiscal incentives from government agencies as well as abuse of the

incentives by the private sector causing huge financial losses to the Government.

During breakout sessions, participants made wide ranging recommendations for supporting

the Post EVD Growth and the key ones included:

1. Development of innovative financing for the SME and Manufacturing Sectors

2. Development of a skilled workforce

3. Capacity Building for SMEs

4. Promotion of Public Private Partnerships


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Introduction

In May 2014, Sierra Leone was hit by an outbreak of the Ebola Virus Disease (EVD). This

outbreak which lasted until November 2015 resulted in over 5000 deaths and a severe

disruption of all sectors of the economy.

Despite the adverse effect of the EVD on the economy, Sierra Leone made considerable efforts

to position herself to rebound, rebrand and regrow to its pre-EVD economic status. Concrete

steps were taken by Government, the Private Sector, Development Partners and NGOs to

identify priorities and design a road map for the drive towards national economic recovery

through several stakeholder engagements involving the Private Sector.

One of the engagements that brought the Private Sector, Government, Development Partners

and Civil Society together to contribute to the Post EVD economic recovery process was a

Private Sector Development Roundtable in February 2015 organised by the Ministry of Trade

and Industry(MTI), the Sierra Leone Business Forum (SLBF), the Sierra Leone Investment and

Export Promotion Agency(SLIEPA), the African Development Bank(AfDB) Group and the Mano

River Union at which His Excellency, the President of The Republic of Sierra Leone was Key Note

Speaker and pledged his support and willingness to partner with the Private Sector to ensure a

collaborative and concerted effort to battle the EVD and rebuild the economy.

Key action points for Government and the Private Sector from that Roundtable included:

A review of legal and regulatory frameworks to fast track trade, investments and facilitation of

exports in the Post Ebola Era.

Targeted incentives from Government to promote growth, trade and exports.

Provision of innovative financial products, grants and services to support recovery and growth of

the Private Sector.

Urgent review of Central Bank regulations on foreign currency lending as Commercial Banks and

the Private Sector could not benefit from special facilities provided by International Financial

Institutions to facilitate trade during and after the EVD.

Effective monitoring of regulations by the Central Bank of repatriation of foreign currency

earnings by business enterprises

Creation of a conducive environment for mining companies to operate in the country.

Support the access of Capital Financing by mining companies from Government, Development

Partners and International Financing Institutions.

Review of incentives, existing and proposed taxes for mining companies.

Removal of bureaucratic delays by key MDAs in the country in the issuance of permits, licenses,

and waivers etc (Ports, NRA, Labour, Customs and Finance) as additional costs for businesses

were incurred.

Policy initiatives to ensure that suppliers of goods and services were promptly paid.


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Government engagement of development partners and international financing institutions to

raise more money for the post EVD activities.

Facilitation of Public Private Partnership arrangements to stimulate Post Ebola Private Sector

growth.

Strengthening of Sub-Regional Private Sector engagements and collaboration through the Mano

River Union.

Strengthening of the services sector of the economy by utilisation of the Local Content Policy to

ensure transfer of knowledge and appropriate skills to SMEs.

Building the capacity of the Private Sector.

Roundtable Rationale and Objectives Since the Private Sector Development Roundtable was held in February 2015, tremendous

strides were made towards eradicating the EVD and on 7th November 2015, the WHO declared

an end to the EVD outbreak in Sierra Leone and Government relaxed many of the measures

under the State of Public Health Emergency that restricted the movements of goods and

persons.

On March 1, 2016, the Sierra Leone Business Forum (SLBF) and Sierra Leone Local Content Unit

(SLLCU), both constituent organs of the Ministry of Trade and Industry organized another

Private Sector Development Roundtable with the theme, “Rebuilding for Resilience” -

Transforming the Business Climate in Sierra Leone (R4R) to:

1. Assess the progress made so far in implementing the recommendations from the 2015

PSD Roundtable.

2. Exchange ideas and experiences on the Post- EVD Recovery Process including steps to

be taken to rebuild and maintain a robust economic climate for the private sector to

thrive.

3. Strengthen networks and business linkages within the private sector.

4. Engage with key stakeholders to better understand the prevailing business climate in

Sierra Leone.

5. Examine the prevailing skills deficit and knowledge gap that exists in the country and

how they can be combated thereby creating a platform for Sierra Leoneans and

businesses to better leverage the existing opportunities.

6. Outline next steps as defined by the Roundtable discussions.


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The focus of the 2016 Roundtable was on sectors that were significantly affected by the EVD

outbreak and showed tremendous growth potential which were:

Agribusiness; Fisheries; Tourism; Services and Mining.

In the context of Private Sector Development, the Organisers viewed 'Resilience' as building the

ability of businesses and the private sector to adapt or adjust to change in order to assist in the

sustainable development of Sierra Leone. Furthermore, in today’s world of growing threats and

crises, building resilience is widely accepted as a development planning objective that needs to

be pursued in its entirety. And one strategy for restoring and strengthening trade and private

sector activities in the country post-Ebola is to facilitate the implementation of the Local

Content Policy so as to encourage local business ideas and the advancement of local investors

and entrepreneurs in the private sector environment.

The Roundtable was a one day event designed to highlight policy initiatives and private sector

perspectives relating to the Post EVD Recovery through presentations and dialogue

opportunities which offered a common foundation for discussion on thematic areas and three

breakout groups which addressed a spectrum of issues the private sector faced in the post-EVD

business environment. The three breakout groups addressed:

5. Human Capacity Development.

6. SMEs.

7. The Manufacturing Sector.

Representatives from each breakout group presented their analysis of issues and

recommendations for action.

Opening of the Roundtable

Call to Order

The call to order was made by the Executive Head of the Sierra Leone Business Forum, Mr.

Franklyn Williams preceded by Muslim prayers done by Mr. Hashim Bakarr and Christian

prayers delivered by Rev. Donald Bessman.

Mr. Williams welcomed participants and recounted the devastating impact of the EVD on the

economy since 2014 and the necessity for a structured Post Ebola Economic Recovery. He

recalled that several private sector stakeholder consultative processes to plan for a Post EVD

Recovery had been held which included two notables:


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A PSD Roundtable in February 2015 by SLBF and partners (which was attended by H.E.

the President of the Republic of Sierra Leone).

A Post EVD Recovery Conference in 2015 organised by the Sierra Leone Chamber of

Commerce.

Mr Williams suggested that the gains from the various Post EVD Consultative processes had not

been felt in the economy and that the

organisers looked forward to successful

outcomes from this Private Sector

Development Roundtable and a rejuvenated

Private Sector in Sierra Leone.

He introduced the Chairman for the occasion,

Mr Wilben Short whom he described as having

a strong private sector background at national

and international levels and over 30 years

Board Level experience.

Mr Franklyn Williams introducing the Chairman

Chairman's Opening Remarks

After the introduction by Mr Williams of the Sierra Leone Business Forum, the Chairman of the

Private Sector Roundtable, Mr Wilben Short expressed his appreciation to the organisers for

selecting him to chair the roundtable. He recounted the effect of the EVD on the economy, the

mining sector and businesses and the progress made in eradicating the disease emphasizing

that as at this same time last year , an average of 60 cases were being recorded daily.

Mr Short focused his remarks on the need for the country and its private sector to move away

from the setbacks and slowdown that characterized the economy and businesses during the

EVD Outbreak to developing economic resilience

since this was the way to achieve a sustainable

economic recovery process. He stressed that the

recovery process must be owned by the nation and

rooted in the firm belief that the economic recovery

will take place and we could make it happen.

Mr Short referred to the speech by UK Minister for

Africa, James Duddridge recently at the UK-Sierra

Chairman, Mr Wilben Short


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Leone Trade and Investment Forum in London on 25th February 2016 where he outlined the

British Government's optimism and commitment to a Post Ebola economic recovery in Sierra

Leone, maintaining that if foreigners had such confidence in an economic recovery for Sierra

Leone, the nation had no option but to develop a similar level of confidence.


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Statements and Discussions

Policy Statements on the Post Ebola Economic Recovery Process

Statements and presentations were made by representatives from the Public Sector, highlighting Government’s policy and courses of action on the Post Ebola Economic Recovery Process:

1. Mr Abdul Kamara, for the Acting Minister of Trade and Industry on " Status of Private Sector Post - Ebola Recovery Strategy"

2. Mr Momodu Kargbo, Governor Bank of Sierra Leone on "Initiatives taken by the Central Bank of Sierra Leone to Promote Private Sector Development-Post Ebola"

3. Mr Idrissa Kanu, Director of Tax and Revenue Policy, Ministry of Finance and Economic Development on "Incentives, fiscal and tax policies for companies and businesses to aid the post-Ebola Recovery Process"

L-R : Mr Abdul Kamara, Mr Momodu Kargbo and Mr Idrissa Kanu

Ministry of Trade and Industry (MTI)

The MTI had embarked on broad and specific initiatives targeting the Private Sector which

would support Post Ebola Economic recovery in the short and medium term.

Specific initiatives included:

Provision of finance (provided by DfID)to 29,400 Petty Traders nationwide through a

revolving loan scheme attracting an interest rate of 5% p.a. and implemented by a

consortium of four NGOs (World Vision International, Catholic Relief Services, World

Hope International and BRAC)

Facilitated the enactment of legislation for the establishment of a Small and Medium

Enterprises Development Agency which serves to promote SMEs operating in the private


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sector (non regulatory functions) and a Local Content Act which will enforce the

implementation of the Local Content Policy through which the private sector could build

the resilience needed to thrive and facilitate the Post Ebola Economic Recovery Process

Development of 12-36 Months Post Ebola Economic Recovery Strategy and substantial

inputs into the development of a MRU Post Ebola Strategy

Reopened periodic markets country wide(Lumas) to facilitate the trade of goods and

services by traders

Working with the World Bank on the implementation of the Trade Facilitation

Agreement and implementation of a Feeder Road Construction Programme that will

support Post Ebola Recovery.

Key Challenges experienced by MTI in Post EVD Economic Recovery Process

Weak Private Sector Institutions

Development Partners have varying interests

Early engagement with Development Partners necessary for the planning process

Central Bank Perspectives

The Central Bank Governor highlighted the dual effects of the EVD outbreak and the collapse of

the mining sector on both the economy and the private sector and the necessity need to ensure

a sustainable Post Ebola Economic Recovery Process to which the Central Bank was committed.

The Central Bank's focus will be on promoting a diversified export sector and the development

of a flourishing private sector to which end Private Sector Development was now a main

portfolio.

Governor Kargbo called for a multi stakeholder participation with the Ministry of Trade and

Industry in driving Private Sector Development in Sierra Leone and reported on the Central

Bank's recently organised study tours to Ghana and Nigeria to understand better, the key

institutions and policies driving SME Development in those countries. A key finding in both

countries was that their Governments imposed a levy on imports to support Private Sector and

SME Development.

The Governor assured participants that the Central Bank was building a resilient banking sector

that will provide finance for the Private Sector and urged it to work responsibly with the

banking sector and disprove the emerging culture of " not paying debt' evidenced by a Non

Performing Loan (NPL) average of 35% within the banking sector nationally .

Key initiatives and actions undertaken by the Central Bank to ensure a stable macroeconomic

environment and a sound financial system were:


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Provision of Foreign Exchange

At the height of the EVD, the sharp drop in export earnings against an increased demand

for imports of essential commodities like rice and fuel resulted in a drastic decline of the

exchange rate against major currencies. The Central Bank’s intervention to stabilize the

exchange rate included:

- Provision of US $ 82.9m in 2014 for the private sector

- Provision of US $ 111.6m in 2015 for the private sector

- Provision of US $ 11.0m as at February 2016 to cushion further depreciation of the

Leone against the US Dollar

Base Rate Model

In response to persistent complaints from the private sector about the effect of high

lending rates on accessing loans and on businesses, the Governor disclosed that, with

effect from 1st March 2016, the Central Bank will now require the Commercial Banks to

apply a Base Rate Model to lending. The Base Rate will serve as a reference rate to

allow banks to determine the lending rate for loans and advances subject to scrutiny.

Banks will be also be requested to publish base rates electronically and in the media and

will provide opportunities for customers to shop for the most competitive rates.

Collateral Registry

The Collateral Registry which was prescribed in the Borrowers and Lenders Act of 2014

will commence operations at the Central Bank shortly in 2016 to address the challenges

faced by businesses in obtaining loans from Financial Institutions by providing a record

of assets used as collaterals and verification of the status of the asset.

National Switch

The launch of the National Switch, an electronic platform that will facilitate national and

international transactions through the use of internet banking, credit cards, point of

sale devices and mobile money by December 2016,. The National Switch will facilitate

the growth of business nationally and internationally by allowing customers to access

funds electronically and facilitate payments for a wide range of business services.

Legal and Legislative Reforms

To address the legislative and structural inadequacies affecting the financial sector, the

Central Bank will undertake a series of reforms in 2016 which include new legislation:

- The Credit and Debt Recovery Act which seeks to promote sound and risk free credit

while safeguarding banks and depositors.

- The Securities Act which will facilitate the establishment of the Securities and Exchange

Commission to license, oversee and regulate participants in the Stock Exchange and

trading of securities.

The Bank will also undertake revisions to the following legislative instruments:

- Bank of Sierra Leone Act, The Banking Act and The Other Financial Services Act


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The Credit Reference Bureau will also be strengthened to allow commercial banks to

exchange information on customers to reduce the incidence of nonperforming loans,

high interest rates on loans and eventually stimulate private sector credit flows.

Ministry of Finance Perspectives

The Ministry of Finance representative described Government's commitment to the private

sector and stressed the need to forge strong and effective partnerships. He rationalised the

need for Government to mobilise revenue to support its growth drive and discredited a

commonly held view that Government did not offer tax and fiscal incentives to the private

sector and new investments in the country. He highlighted various incentives to the private

sector which were rooted in several Finance Acts (2010,2011, 2012) passed by Parliament over

the years and were granted by the Ministry of Finance and Economic Development upon

meeting the relevant criteria. Two types of Incentives were described:

Specific Sector Incentives

Agriculture ( no tax or GST on inputs and machinery), Tourism, Health and Mining

Sectors.

General Incentives

- Capital Items

- Buildings used to house industrial manufacturing

- Customs Duties (applied to investment levels of $ 5.0 m and above and covering plant,

machinery, equipment)

- Raw materials

Key incentives outlined in 2015 and 2016 to promote a Post EVD growth are:

Reduction of excise duty to 5% for manufacturing industries using 80% local materials

Reduction of excise duty from 30% to 20% for the beverage and flour industries using

locally produced sorghum and cassava for inputs

Reduction of duty on all packaging material used in manufacturing to 5%

Tax incentives for organisations:

- employing physically challenged people

- undertaking training and development

- gender based promotion to management levels

Reduction of duty on solar equipment

Questions and Answers and Discussions on Policy Statements

The Chairman reiterated the following key points from the policy statements:


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Several SME activities promoting the Post EVD recovery process

The passage of legislation establishing a SME Agency to coordinate development in the

SME sector

Collaboration between the MRU and MTI on a MRU Post EVD Recovery Strategy

Legislative reforms proposed by the Central Bank aimed at stimulating financial growth

in the economy

Strong support by the Central Bank to increase domestic production and export

diversification, and adoption of import substitution policies

Availability of a wide range of tax and fiscal incentives to support private sector growth,

promotion of local content and Post EVD Recovery

Roundtable Participants raised the following issues:

Feeder Roads Development appeared to be short-medium term. There was a need for a

longer term policy on Feeder Roads Development (Christo Forster, Vice President

SLCCIA)

Fiscal and Tax Incentives appeared to target Large Companies with Investments of $ 5.0

m. and above. The 'Missing Middle Companies' which also contributed to GDP growth

and job creation were not catered for. (Dr Zed Bahsoon, Bennimix Food Company)

The Post EVD Recovery Strategy did not address issues of Skills Force Development.

(Fulamusu Conteh, HR Consultant)

Tangible benefits accrued to the private sector from the MTI initiatives outlined

including Access to Finance which was critical to the Post EVD Recovery process.

(Gladys Strasser-King, President SLCCIA)

Private Sector and Development Partners Perspectives on the Post Ebola

Economic Recovery Process

1. Mr Idrissa Kamara, Managing Director, Standard Chartered Bank on " Corporate Perspectives on what has been achieved so far and obstacles impeding progress "

2. Mr Aaron Boima, National Secretary General, Sierra Leone Traders Union " SME Perspectives on what has been achieved so far and obstacles impeding progress"

3. Mr Simeon Moribah, Deputy Secretary General, Mano River Union (MRU) on " MRU’s Perspectives "

4. Mr Raymond Gbekie and Victor Bangura (SLIEPA), Presentation on the " Private Sector Investors Guide: Potentials and Opportunities in key Growth Sectors "

5. Mr Jamal Zayid, Country Economist, African Development Bank (AfDB) on " Development Partners’ Perspective "


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Corporate Perspectives:

Contribution to Post Ebola Recovery

Plan

Delivering on a Post Ebola Recovery

plan aimed at enhancing productivity

and stimulating growth to pre-Ebola

levels required sustained corporate

engagement with Government and

other stakeholders and the formation of

strategic alliances to avoid reinventing

the wheel. Mr Idrissa Kamara, M.D. Standard Chartered Bank

Financial Sector contribution to economic growth

The challenges of Access to Finance on private sector growth were further compounded as

businesses experienced significant liquidity squeeze brought about by the collapse of the

mining sector and the EVD. The Commercial Banks kept businesses afloat by providing

innovative financing solutions and restructuring of existing exposures. In February 2015, the

CDC Group plc, a UK Development Finance Institution and Standard Chartered Bank

announced a risk participation agreement directed at supporting new working capital

lending of up to US$50 million to businesses in Sierra Leone to cushion working capital

needs and provision of forex liquidity in the market. Discussions are currently underway for

a second phase implementation of the programme.

Country rebranding and image building

The negative image of the EVD Outbreak had resulted in a need for a country rebranding in

partnership with the private sector. Collaboration between Standard Chartered Bank,

Herbert Smith Freehills and Prudential resulted in the publication and launch of an Investor

Guide “A Private Sector Perspective on the Investment Landscape in Sierra Leone, at the

Ebola Conference in New York in September 2015.

Corporate Citizenship

At the height of the EVD outbreak, many corporate institutions in the country demonstrated

strong corporate citizenship by continuing their operations despite the difficult operating

environment and high costs. This gesture contributed significantly to domestic resource

mobilization, kept people in jobs and the economy afloat.

Mr Kamara emphasised the need for economic diversification after the shocks arising from the

EVD outbreak and collapse of the mining sector and outlined several measures to mitigate

obstacles impeding diversification and growth of the economy.


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1. Continued Government support to the private sector by creating the conditions for it to

grow ( good infrastructure, a conducive business environment, developing our energy

infrastructure, promotion of public-private partnerships and establishing a sustainable

industrial base )

2. Enhancing the quality of the human capital to support the demand workforce by

addressing skill gaps and curriculum relevance to development.

3. Building the capacity of the private sector to develop “bankable” projects with structured

cash flows to ease the difficulties in accessing FDIs and other funding.

4. Effective utilisation of the country's national endowments like its natural harbour (the third

largest in the world) which has the potential to become a transshipment port to the MRU and

ECOWAS States.

5. Promotion of agribusinesses as a growth sector.

6. Continuation of government policies aimed at deregulation, economic liberalisation,

restructuring of public enterprises and public sector reforms

7. Implementation of fiscal and non fiscal incentives designed to promote trade and growth

of the private sector.

Perspectives of the SME Sector

70% of the SMEs in Sierra Leone were found in the informal economy and comprised mostly

market women and traders.

Impact of EVD on SMEs

Travel restrictions within and outside the

country during the Ebola crisis adversely

affected many traders and businesses.

The closure of borders disrupted cross-

border trading activities which was a

major source of income for many SME

owners and their households.

SME owners, (usually family heads)

became overburdened with additional Aaron Boima, Sierra Leone Traders Union

domestic responsibilities in the midst of difficult operating conditions.

Many SMEs lost their ‘seed money’ or were unable to repay loans taken from banks and

other financial institutions.


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Some SMEs showed remarkable resilience to stay in business by diversifying their line of

business to goods in high demand (clothing, foodstuffs or building materials).

Achievements

The enactment of the SME Development Agency Act which seeks to create a platform to

champion the interests of SMEs in the country.

Petty Traders whose businesses were affected by the EVD have been able to access

loans and grants from funding provided by Government and DfID.

Cordaid, a Dutch NGO was providing low interest loans to some SMEs after

entrepreneurship training and coaching.

Introduction of the NASSIT scheme for the informal economy was in progress.

Challenges (Obstacles impeding progress)

Lack of a comprehensive database of SMEs.

Lack of basic information about the benefits for SMEs to formalize their businesses.

Limited basic skills in enterprise management and development.

Inadequate storage facilities, market structures, lack of access to finance at affordable

rates, to conduct their businesses especially in Freetown (resulting in street trading).

Harassment, seizure of goods and detention of informal economy workers by the law

enforcement authorities.

Recommendations

Delivery of effective training and information to SMEs on the benefits of formalizing

their businesses by Trade Support Organisations.

Need to fast-track the construction of the modern market by NASSIT at Sewa Grounds

as well as the rehabilitation of other markets to reduce the over congestion in the

streets.

Provision of grants and loans by donors to medium-sized businesses at low interest rate

and reasonable grace period.

Intensification of nationwide sensitization to attract more SMEs in the informal

economy to the NASSIT Scheme.

MRU Perspectives

In the light of the ebola crisis affecting the 3 MRU states and its impact on the private sector,


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the MRU secretariat organized, national and sub regional meetings and a Private Sector Forum

in Monrovia under the leadership of the Chambers of Commerce to map the way forward for a

private sector engagement in the overall development of the sub region Post EVD. The

consultations recognised the natural endowments in the MRU countries and proposed the

establishment of Growth Triangles in each member state around which sustained development

will be focused. The consultations also made major recommendations for action to support a

Post EVD Growth which include:

1. Promotion of Public-Private-partnerships

2. The need for access to financial resources

3. The need for database on the private sector as well as on overall development issues;

4. Information sharing

5. Trade Fairs and holding of Investment Fora

6. The need for studies to explore opportunities for investment

7. Provision of incentives for value addition

8. Fully implementation of local content policies

9. Removal of Trade Barriers

10. Harmonization of Tax Regimes

SLIEPA Presentation on the Private Sector Investors Guide:

To plug the investor information gap existing before the EVD Outbreak and worsened by the

outbreak, Herbert Smith Freehills (HSF), Standard Chartered Bank, and Prudential Plc

developed and published pro bono, the Sierra Leone Investor’s Guide for SLIEPA and the

Government of Sierra Leone. The Guide is an independent private sector view on the current

investment climate in Sierra Leone and provides a context of the investment climate in Sierra

Leone to potential investors and helps address investor “aversion behaviour” by presenting a

private sector voice on the opportunities for investment in Sierra Leone.

The Guide highlights Sierra Leone's huge potentials despite the effects of the Ebola crisis and

encourages investors to look beyond the short-term difficulties and consider the long-term

potential of the country, particularly in under-invested sectors such as energy, petroleum and

infrastructure.


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The guide was launched at the United Nations Conference on Ebola in July 2015 and can be downloaded

at www.sliepa.org

Development Partners Perspective

The AfDB Representative recalled the Private Sector Roundtable event last year where His

Excellency, The President encouraged private sector actors to show resilience and innovation in

the midst of the ebola outbreak and for Development Partners to support the revival of private

sector activity in the country.

He highlighted the AfDB and other Development Partners involvement in the preparation of the

Government's Post Ebola Recovery Strategy and reviving the economy especially the Pillar

relating to Private Sector Development.

One of the of the resolutions of the 2015 Private Sector Roundtable was that such regular

consultations should be held on a regular basis and Development Partners were pleased that

the Ministry of Trade and Industry and the SLBF were implementing the recommendations.


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Their expectations for this roundtable were that stakeholders will have the opportunity to:

share individual experiences on the effects of the EVD on their businesses

discuss Post Ebola Recovery Initiatives

harmonize ideas and perspectives for revitalizing the economy

discuss adequate and sustainable financing for SMEs

discuss the dire need for appropriate business regulatory reforms to stimulate trade and

investments

He outlined three strategic areas hit by the EVD Outbreak and fundamental to recovery of the

private sector and business revitalization process:

1. Streamlining of ports operations to facilitate the clearance of goods and reduce

transaction costs and times.

The AfDB was financing a comprehensive Ports Master Plan to achieve this goal

2. The agriculture sector was hardest hit by the EVD outbreak and was prioritized by

Government in the Post EVD Recovery Programme particularly support to smallholders

with inputs to double production for food and cash crops.

The World Bank was providing additional financing for the sector targeting feeder roads,

agribusiness and value chain promotion.

3. Provision of sustainable and long term access to finance for SMEs. Macro economic

imbalances caused by the collapse of the mining sector and EVD outbreak had stifled

long term finance, pushed up interest rates making finance unaffordable and

unsustainable for SMEs.

Development Partners were committed to supporting Government’s efforts in reviving

this area and will continue to engage Government on strengthening financial sector

regulation through deeper financial reforms and prudent banking supervision.

In conclusion, Mr Jamal Zayid stressed the need for collective and concerted actions by

Government, Development Partners, domestic and foreign private sector actors to create a

thriving business enabling environment that will attract more foreign investments and foster

regional integration.

Questions and Answers and Discussions on Private Sector and Development Partner

Perspectives

1. Amara Kuyateh, Deputy Director General NASSIT

Expectations from NASSIT for investments in all sectors was high. Cautioned that

NASSIT was not an Investment Agency but invested workers contributions in certain


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sectors that had the potential to yield high returns and had moderate risks. He cited

investments in the Hospitality Sector (Radisson Blu and Hilton Hotel under construction)

2. Brinsley Johnson, Partner, BDO Accounting Firm

There was a need for the MRU to utilise its experiences in the civil conflict and EVD

Outbreak to promote Sub regional integration and collaboration

3. Abu Whyte Fofanah, Secretary General, Sierra Leone Importers Association

There was a need for political will to improve on energy supply and value addition to

primary products.

4. Trade and Business Incentives (Duty Waivers, Tax Concessions etc)

The Ministry of Finance representative informed the Roundtable that Government was

losing significant amounts of revenue by providing incentives to businesses but the

effect of these incentives on the growth of the businesses could not be felt and there

was a considerable level of abuse in the request and application of the incentives. There

was a strong dissenting view by the Executive Secretary, Sierra Leone Chamber of

Agribusiness Development (SLeCAD), Ahmed Nanoh who was of the opinion that

agribusinesses were not growing because of cumbersome procedures involved in the

award of the incentives and concessions and there was a need for reform of the

processes involved. There was strong support for the views of Mr Nanoh from

participants. The MoFED Representative explained that the processes involved were

simple but were not properly followed by agribusinesses or they were unaware that

they existed.

The Chairperson of the Parliamentary Committee on Trade, Hon Veronica Kadi Sesay in

her comments informed the roundtable that stakeholders had a right to engage the

Parliamentary

Committee on Trade on

the frequent problems

relating to the awarding

of incentives and

concessions to

deserving businesses.

Hon Veronica Kadi Sesay, Chairman Parliamentary Committee on Trade


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Breakout Sessions, Discussions and Closing

Breakout Sessions

Following discussions between the Roundtable Organizers and the Chairman, the following

three breakout groups were agreed upon based on sector relevance to the Post EVD Agenda.

1. Small and Medium Enterprises (SMEs)

2. Manufacturing

3. Human Capacity Development

Each group was requested to do the following tasks:

1. Discuss opportunities within the sector

2. Identify key challenges facing the sector

3. Make recommendations for transforming the sector, Post EVD

L-R : Human Capacity, Manufacturing and SME Breakout Sessions

Presentations from Breakout Sessions

The following opportunities, challenges and recommendations emerged from each break out

group as shown in Table 1.


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Table 1 Group Presentations

Sector SMEs Manufacturing Human Capacity Development

Challenges 1. Access to finance(High interest rates, Heavy collateral, Short term lending, Bureaucracy, Lack of access to information)

2. Access to market(small market size, poor road network, Poor standards, Poor data/info, Poor storage, Poor packaging and labeling, Value addition, Weak regulatory policies )

3. Unfavorable business environment (High utility bills / overheads, zero incentives for local actors / operators, high tax burden, corruption, weak networking among SMEs, poor sector coordination, human capital, cumbersome business processes and procedures

1. Imports competition 2. Infrastructure- high cost

of production, human capital, financing

3. Limited local market 4. Standards –

domestic/imports 5. Access to finance

1. Education curriculum not sufficiently aligned to private sector requirements

2. Weak public information on access to the labor markets

3. Wrong work and social attitudes

Opportunities 1. Available and cheap labor 2. SMEs Agency Act 3. Land access 4. Strong donor commitment 5. Global SME urge

1. Development of vocational skills 2. Improve on work ethics and attitude to work(time management, punctuality) 3. Youthful population for skills training enhancement

Recommendations 1. Creation of innovative access to finance like a Development Bank

2. Leveraging of local and international markets

3. Streamlining and development of pro-SME policies;

4. Development of courses for SMEs at tertiary institutions

1. Institute protective measures on imports

2. Develop wide range of policies for local markets

3. Promotion of coordination of Industry Association

4. Create framework of standards to address every area of the manufacturing sector

5. Develop innovative financing for manufacturers(SME Fund, Development Financing)

1. Education reviewed / aligned with job market 2. Improve and increase vocational skills development (3% budget) – Rebranding 3. Public / private partnership 4. Soft skills grooming / from primary school 5. Public information sharing centers


23 | P a g e

Closing Remarks

The Chairman made the following observations:

1. Communications on progress made towards implementation of the recommendations

made at the last Private Sector Roundtable was weak and at the end of the current

private sector roundtable session, the level of progress made was still unclear.

2. The majority of issues raised at this current session of the Private Sector Roundtable had

been previously raised over the years at different fora.

3. There was need for the private sector to show a stronger, unitary voice, hold robust

discussions within itself and develop coherent solutions to the issues affecting it.

In closing, the Chairman reminded participants that, "In the midst of challenges, there are

opportunities to be seized "and encouraged the private sector to grab emerging opportunities

in the Post EVD era.

Mr Emmanuel Konjoh of the Local Content Unit outlined that a novel feature of this roundtable

session was that two quite different strands of the private sector, the Corporates and the SMEs

had been brought together and it emerged that they were facing similar challenges. He

encouraged the private sector to think outside the box and work with the SLBF to continuously

engage the Ministry of Trade and Industry.

_____________________________________________________________________________

Roundtable Rapporteur: S. Shiaka Kawa, Director of Export Development, SLIEPA


24 | P a g e

Annexes

List of Participants

NAME ORGANIZATION DESIGNATION EMAIL TEL NO.

Adikali S. Kamara

Petroleum Directorate

Exec-Assistant [email protected] 076693093

Willy Ngana Sierra Leone Brewery Ltd

Managing Director [email protected] 076313888

Kelleh Mansaray

UNIDO OIC [email protected] 078476527

Saidu Bah AWOKO Reporter [email protected] 076790012

Emmanuel Gbosso

SLBC TV Camera Operator [email protected] 078334221

Gladys Strasser-King

Sierra Leone Chamber of Commerce, Industry and Agriculture (SLCCIA)

President [email protected] 076611826

Aminata Lamin SLBC TV Journalist [email protected] 076334221

Alusine Timbo National Minerals Agency (NMA)

Manager [email protected] 079252448

Ibrahim S. Koroma

National Revenue Authority (NRA)

Commissioner [email protected] 076619073

Mohamed Kallon

Total-SL LTD Finance Manager [email protected]

076603722

Lucy Foh Koidu Holdings Ltd

Admin Manager [email protected] 099222005

Ola Ogunfeyitmi

Vitafoam-SL ltd CEO [email protected] 079819946

Momodu Kargbo

Bank of Sierra Leone

Governor [email protected] 030309250

J. Bahsoon Bennimix Food Company Ltd

CEO [email protected] 076318359

B.I.B. Kargbo NASSIT Director of Investment

[email protected] 078782920

mailto:[email protected]










25 | P a g e

Femi Coker Petroleum Directorate

Snr. Economist [email protected] 076422399

Linda R. Williams

EU Project Officer [email protected] 076629928

Abdul H. Bangura

Sierra Leone Commercial Bank

Asst. Manager [email protected] 076637860

Simeon Moribah

Mano River Union

Deputy Secretary General

077564657

Sharon Kelliher CORDAID Country Director [email protected] 078218301

Vidal Decker KPMG Managing Partner [email protected] 076601595

Haja Rabieu Conteh

MWA-SL National Sec-Gen [email protected] 078531823

Ama Gborie Public Private Partnership

Project Specialist [email protected] 078777089

Haja Isatu Kabba

Produce Monitoring Board

Ag. Exec. Secretary [email protected]

076391900

Sally Sulaiman- Gassama

SLIEPA Exp. Dev. Officer [email protected] 079729809

Amara Kuyateh NASSIT Deputy Director General


Victor Bangura SLIEPA OIC-DIP [email protected] 078322563

Emmanuel M. Sandi

MTI Assistant Secretary [email protected] 076209010

Augustine Bengeh

Premier News Reporter [email protected] 079656339

Mustapha Sesay

Standard Times Editor 078540108

Moses Gbondo SLIBA Head of Admin 076649464

Joseph B. Dauda

NPPA Finance Manager [email protected] 076911292

Ahmed Nanoh SLeCAD Executive Director [email protected] 076642563

Jamal Zayid AfDB Group [email protected] 030592727

Shiaka Kawa SLIEPA Rapporteur [email protected] 076603665

















26 | P a g e

Sheka Forna REGROW Consultant [email protected] 076877018

Alari Mahdi World Bank JPA [email protected] 078544459

Morlai Bangura BSL Asst. Director [email protected] 076611170

Mohamed Foday

NRA Asst. Director [email protected] 078384099

Albert Coker MTI Senior Assistant Secretary


Ibrahim A. Bangura

AfDB Senior Economist [email protected] 088043925

Florence Foray Office of the Chief of Staff

Trade Coordinator [email protected] 076358919

Aaron A. Boima Sierra Leone Traders Union

National Secretary General


Ikoboleje Nicol GT bank Manager [email protected] 030088040

Komba James SLIEPA IPO [email protected] 079524550

Silas Gbandia Awoko Newspaper

Reporter [email protected] 078677290

Desmond Gabiddon

SLPMC Director of Finance [email protected] 076708626

Esther Johnson BSL Asst. Director [email protected] 076604591

Abu Junisa NPPA M&E Officer [email protected] 076636328

Alimamy B. Silla UTB Manager [email protected] 030211605

Brinsley K. Johnson

BDO Partner [email protected] 076771660

Alice Onomake Reliance Insurance Company Ltd

Managing Director 076706019

Wilben Short Cape Sierra Hotel Company Ltd

Managing Director [email protected] 076475506

Raymond Gbekie

SLIEPA CEO [email protected] 078233712

Franklyn Williams

Sierra Leone Business Forum

Executive Head [email protected] 076600830



















27 | P a g e

Alphonso Campbell

GIZ / EPP Private sector Dev. Advisor


Binta Akibo-Betts

SPU /OCOS Policy Analyst [email protected] 076628349

Idrissa Kamara Standard Chartered Bank

MD [email protected] 076630226

099630226

Hilton Jarrett BSL Asst. Director [email protected] 078863600

Abdul Karim Bangura

Produce Monitoring Board

Marketing Officer [email protected] 076818325

Abdul Kamara M.T.I Coordinator [email protected] 076962680

Reynold Johnson

Mantrac S.L Team Leader [email protected] 076322876

Abu Whyte Fofanah

Sierra Leone Importers Association

Exec. Secretary [email protected] 076666890

Abdul Malik Bangura

Awareness Times

Journalist [email protected] 077227804

Idrissa Kanu MOFED Director of Tax and Revenue Policy


Mohamed A. Salisu

MOFED Economist [email protected] 076784057

Fatima Sesay Radio Democracy

Presenter [email protected] 076207040

Antoine Huss AGI Adviser [email protected] 099901706

Alpha Tanue Jalloh

Sierra Leone Importers Association


Abdul Akin Bangura

Association of Clearing and Forwarding Agencies


Capt F. Kokoun Bollore M.D 079330011

Pierre Bide E.U (based in Swaziland)

PSD Consultant

Donald Smart Mountain LION Agric.

CEO [email protected] 076615601

















28 | P a g e

Donald Bessman

Living Word Director [email protected] 077607170

Fullah Musu Conteh

CLAS Consult Senior Consultant [email protected] 078121161

Xie Yangfan Chinese Embassy

Secretary [email protected] 076848636

Veronica K. Sesay (Hon)

Parliament Chairperson, Parliamentary Committee on Trade


Hashim Bakarr MTI Executive Officer [email protected] 076809852

Christo Forster SL Chamber of Commerce

Vice President [email protected] 076655811

Wang Yong Jin CRIG (CBA) VP [email protected] 099168168

Emmanuel Konjoh

Sierra Leone Local Content Unit

Director [email protected]

Zenobia Maddy Sierra Leone Local Content Unit

Procurement & Supplier Development Officer

[email protected]

076123007

Zara Mahdi Sierra Leone Local Content Unit

[email protected]







29 | P a g e

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