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Agri Business
Sector Overview

Hon. Alie Badara Mansaray

Minister of Agriculture, Forestry and Food Security

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Agriculture is Pivotally Important to SL...

Ag. is Critical to SLs Economy
Agriculture as a % of National Total

Despite Underutilization of Arable Land

% of 2008 GDP

66% 45% 25%

100% 80% 60% 40% 20% 0%

25%
Non A.

Non A.

89%
Not Cultivated

Arable

75%

11%

Cultivated

GDP

Employment

Exports

Land

Arable Land

Agri-Business Is Growing Sharply

Agriculture GDP ($MMs)
$1,000 $750 $500 $250 $0 2002A 2004A 2006A 2008P

Livestock Forestry Fisheries

Crops

...and We Are Just Getting Started!

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Diverse Ecologies Support Ideal Growing Conditions for a Variety of Crops Western Area
Peninsula
Citrus, Mangoes, Livestock The site of Freetown is a region of thickly wooded mountains that run parallel to the sea for about 25 miles

The Interior Plains

Rice, Sugar, Oil Palm, Cassava, Cashew Comprised of seasonal floodplains (Bolilands) in the north, rolling wooded country in the south, and a variety of landforms ranging from savannacovered low plains to rocky scarp and hill country in the interior

The Coastal Plains

Rice, Ginger, Vegetables, Cassava Extending along the Atlantic for approx. 200 miles, is a flat and frequently flooded plain that is between 5 and 25 miles wide composed mainly of sands and clays 3

The Interior Plateau and Mountains

Rice, Cocoa, Coffee, Oil Palm Roughly the eastern half of the country, is composed mainly of granite with a thick iron-bearing crust, with the Loma and Tingi Mountains and numerous narrow inland valley swamps associated with the river systems

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Plentiful Rainfall and Irrigation Potential

Climate
Dry Season runs from mid-November to end April Wet (Rainy) Season from May to mid-November.
3000 2500 2000 1500

Average Rainfall (mm/yr)

Rainfall can be divided into three climatic belts:

Coast to 80km Inland >3,300mm (recorded high as 8,100 mm) 80km 190km 2,540 3,300mm 190km Border 1,900 2,500mm

1000 500 0 Sierra LeoneLiberia Guinea Ghana MalaysiaIndonesia Brazil

Priority Areas for Irrigation

Drainage & Irrigation Potential
Significant irrigation potential on more than M 1. 2. 3. 4. 5. Location Torma Bum Kumrabai Mamilla Rhombe Gbundapi Rolako Area (Ha) 51,300 35,500 14,700 41, 100 5,100 District Bonthe (South) Tonkolili (Central) Port Loko (NW) Pujehum (South) Bombali (North)

Ha due to high rainfall and groundwater sources

Dense drainage pattern, with 9 major rivers and a

series of minor coastal creeks and tidal streams

Over of the irrigable area is in the Southern

Region (especially in Bonthe and Pujehun Districts)

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(Arable) Land Available in Abundance

Land Suitability & Availability
4.8 m ha of uncultivated arable land available

4.8M ha of arable land available for

Cultivated

cultivation Western (capital) Area allows private ownership for any Sierra Leonean citizen The rest of Sierra Leone is communally owned, normally administered by the local Paramount Chief Investors can acquire long term leases throughout the country, with potential for multiple extensions Central Government prepared to help investors broker deals with local communities by taking a head lease from landowners and sub-leasing to foreign investors.

(1) Source: Addax Bio-energy

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Supported by a Focused, Motivated Government

The National Sustainable Agriculture Development Plan (NSADP) formulated as a result of CAADP provides a medium to long-term sector investment programmes (up to 30 years) that has four (4) subprogrammes:
Commodity commercialization targeting

rice, cassava, livestock, oil palm, cocoa, coffee, cashew, fisheries and forestry products using the agric. value chain Agric and agric-related infrastructure to promote the development/rehab of necessary infrastructure including feeder roads, irrigation, and post-harvesting facilities for processing, storage and marketing Private Sector promotion providing the enabling environment: regulatory review, incentivization, agribusiness financing Sector Governance ensuring an effective and efficient management of the sector, including 6 partner mutual accountability

Leading Investment Incentive Package 10 year tax holiday for tree crops, 5

years for cereals Import duty waiver for agricultural inputs such as agric-machinery and agro-chemicals Recent VAT reforms exempt agricultural inputs from sales tax on imports as well as consolidating seven other taxes into one to simplify business procedures

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Sharp Recovery in Exports

Key agricultural exports by value, 1967-2007
$60

$50

Historical Peak

Significant Growth Remains to Return to Historical Highs

$40 Millions $US

$30

Conflict

Tobacco and cigarettes Tapioca of Cassava Fibre crops Spices Kolanuts Palm products* Cocoa beans Green coffee

$20

$10

$0 1967 1972 1977 1982 1987 1992 1997 2002 2007

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Opportunities Exist in Numerous Sectors

Commodity Rice

Brief Description
Good growing conditions and much uncultivated land. Production has increased over last decade but significant potential remains to improve yields with use of irrigation and agro-chemicals. Currently very little fertilizers and no irrigation! Areas suitable for mechanical cultivation include Torma Bum rice fields (51,300ha) in Bonthe District, Gbondapi Rice fields (41,100ha) in Pujehun District and Kumrabai Mamilla (35,500 ha) in Tonkolili District More than 5,000 ha of oil palm exist in Bonthe District, Southern Province Opps for integrated production & refining of ethanol (sugar, Cassava) & biodiesel (oil palm) Production of Palm Kernel Oil (PKO) and other ancillary products including soap World Food Programme now buying local rice and planning to buy palm oil amongst other things for its social protection programmes in the region Excellent growing conditions Sierra Leone is part of the tropical sugarcane belt Opportunity to meet local consumption demand (currently 50% met through imports) as well as export to EU & West Africa Significant success being made in Cocoa which is Sierra Leones #1 agricultural export 75,000ha of coffee and 40,000ha of cocoa in the Southern and Eastern provinces Enormous potential for improvement and growth -- pre-war favourable weather & soil conditions afforded Sierra Leone a 10% premium on world prices. These conditions still exist Gola Forest offers significant potential for carbon credits. A proposal has been prepared to the effect. Another proposal has been made for the countrys protected forests Hardy crop requires limited nutrients, which can be processed into a variety of forms Grows throughout the country -- significant export and value addition potential

Biofuel plus

Sugar Cocoa & Coffee Processing Carbon Cassava Cashew

Investors already capitalizing on agricultural opportunities include Gold Tree, Sierra Fisheries, Bio United Organic Cocoa, Balmed Holdings, Millennium Growers Cooperative, Addax BioEnergy and Chinese Sugarcane

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Thank you