SIERRA LEONE EXPORT DEVELOPMENT AND

INVESTMENT CORPORATION (SLEDIC)

Tel: 227604 18/20 Walpole Street

Fax: 229097 P M B 6 - Freetown
E-mail: sledic@sierratel.sl
Website: www.sledic-sl.org

A SLEDIC PUBLICATION

SEPTEMBER 2004

1
 INVESTORS GUIDE TO SIERRA LEONE

CONTENTS
1. SLEDIC IN BRIEF

- Our Mission Statement

- The Functions of the Corporation

2. THE INVESTMENT PROMOTION ACT

3. IMPLEMENTING AGENCY

4. APPLICATION TO INVEST

5. THE STRATEGIC OPTIONS OF SLEDIC

6. SLEDIC’S EFFICIENCY

7. SLEDIC’S ADDED ADVANTAGE

8. SIERRA LEONE’S COMPETITIVE ADVANTAGE

9. INVESTMNET OPPROTUNITIES IN SIERRA LEONE

- Priority Sectors for Investment

10. PRIVATISATION POLICY

11. ENTITIES TO BE PRIVATISED

12. AREAS OF INVESTMENT

13. INCENTIVES FOR INVESTMENT IN SIERRA LEONE

14. TYPES OF BUSINESS ORGANISATIONS AND SCALE OF FEES PAYABLE

15. CURRENT PROCEDURE AND COST ASSOCIATED WITH SETTING UP OF

A BUSINESS ENTERPRISE (SOLE PROPRIETORSHIP, PARTNERSHIP

AND COMPANY)

16. IMPORTANT CONTACT POINTS

2
SLEDIC IN BRIEF:

OUR MISSION STATEMENT

To facilitate the process of stimulating productive activities by initiating and

implementing strategies geared towards expanding, diversifying and promoting of
exports, investments and small scale Enterprises.

The Sierra Leone Export Development and Investment Corporation (SLEDIC) was
established in 1993 by a decree, which was later adopted by Parliament in 1996 as the
SLEDIC Act. The Corporation has its Head quarters in Freetown and may have branch
offices in the Provinces and overseas. It has perpetual succession and a common seal with
power to acquire, hold and dispose of movable and immovable property and to enter into
Contracts. It can sue and be sued in its own name.

The functions of the corporations are to

(a) encourage, and promote the development of agricultural production and other
activities oriented towards export;
(b) encourage the diversification of export goods in order to strengthen the base of
the economy;
(c) encourage and promote investment opportunities in all sectors of Sierra Leone’s
economy for both National, Foreign and Private interest;
(d) identify potential investors with a view to encouraging them to invest in the
agricultural and other sectors of the economy;
(e) facilitate the export oriented operations of small scale producers and
manufactures;
(f) gather, collate and make available to exporters and investors information,
statistics and services on international export markets, export trends, and
investment opportunities in overseas or international markets;
(g) carry out research on investments, export and other related activities; and
(h) perform such other functions as are related to those mentioned above.
(i) implement the provisions of the Promotion of Investment Act
(j) facilitate and Investment in any sector
(k) to process all applications for the registration of businesses
(l) receive applications for registration of businesses, including the particulars of the
Investments, such as, the name of the enterprise, legal status, nationality,
particulars of the activity, place of operations, share capital, list of Board of
Directors, and Memorandum and Articles of Association and shall complete the
registration of the company within three working days after the receipt of the
application and submit the certificate of registration to the applicant.

There is a board of Directors comprising mainly of private sector representatives with the
Managing Director who is responsible for the day-to-day administration of the affairs of
the corporation.

3
THE INVESTMENT PROMOTION ACT

Being an Act to promote and attract private investment both domestic and foreign for the
development of production and value adding activities, to improve export and provide
employment opportunities; and generally to create and environment conducive to private
investment and to provide for other related matters.

It has been the government’s desire to re-activate economic activities in all sectors of the
economy. With its rich human and material resource potential, Sierra Leone provides
and attractive place for investment with protection and guarantees. This Act therefore,
provides the legal, economic and financial framework for investment and to provide
incentives for investors who contribute substantially to the realization of the major
objectives of the national development plan and programme.

It encourages domestic and foreign investors to invest in any legitimate form of business
enterprise.

Sierra Leone Export Development and Investment Corporation (SLEDIC) has the
responsibility of facilitating investment and receipt of request from persons seeking
assistance to invest in the country, including assistance for the registration of businesses
in accordance with the laws of Sierra Leone.

It further provides for investment incentives and guarantees as well as miscellaneous

matter such as expatriate, labour requirements, expatriate first arrival duty waiver, access
by investors to land, settlement of investment disputes and the repeal of the non-citizens
trade and business act 1969.

IMPLEMENTING AGENCY

For the purpose of facilitating an investment in any business enterprise, SLEDIC shall be
responsible for implementing the provisions of this Act.

For the purposes of this Act, it shall be the function of SLEDIC.

(a) To facilitate the registration of business enterprise;

(b) To assist investors in obtaining permit, licenses, certificate or clearance, as the
case may be, needed for the commencement of business.
(c) To provide information to potential investors on matters relating to investment.
(d) To assist potential investors in identifying joint venture partners in Sierra Leone.
(e) To provide such other assistance as may be needed by an investor for the
realization of his investment; and
(f) To do all such other things as may be necessary or incidental to the discharge of
the functions conferred by this Act.

4
APPLICATION TO INVEST

Any person who wishes to invest in the business enterprise in Sierra Leone, shall, on
request, be assisted by SLEDIC to obtain the following: -

(a) Business name registration certificate

(b) Certificate of incorporation
(c) Business registration certificate;
(d) Business License certificate

SLEDIC shall seek the cooperation of the relevant authorities to facilitate the
documentation within seven working days.

SLEDIC shall also facilitate the process for the renewal of any certificate, if so requested.

THE STRATEGIC OPTIONS OF SLEDIC

Market Penetration - Selling more of SAME products to EXISTING markets

Market Development - Selling EXISTING range pf products to NEW market
Product Development - Development of NEW products for EXPORT markets.
Product and Market development - Development of NEW products for NEW markets.

SLEDIC’S EFFICIENCY IS DUE TO THE EXISTENCE OF GENERAL BASIC

CONDITIONS, SUCH AS

i) High level staff commitment and participation

ii) Autonomy to carry out programs
iii) Close Public – Private Sector Partnership
iv) Development of strategic collaborations with other ministries/ agencies
v) Support from the Ministry of Trade and Industry.

SLEDIC’S ADDED ADVANTAGE

1. SLEDIC’s Services are free

2. Institutional and Legislative arrangement exists for timely processing of business
documents, etc. with:
a) The Bank of Sierra Leone
b) The Administrator and Registrar-General’s Department
c) The National Revenue Authority
d) Relevant authorities

3. One Stop-Shop Services

4. Capacity building support
a) Business training;
b) Micro-finance (including support for bulk-buying);
c) Technical assistance

5
 d) Business incubator programmes
e) Pre-qualification programmes for access to credit
f) Credit registry; and
g) Registry of local enterprises for joint ventures

5. Information Sharing

SIERRA LEONE’S COMPETITIVE ADVANTAGE

A friendly population of approximately 5 million people

Abundant variety of natural resources including arable land, rich fishing grounds,
A trainable, resourceful and relatively cheap Labour
Natural harbor in Freetown
Hub of ECOWAS market – 215 million people
Abundant rainfall
Political Stability

INVESTMENT OPPORTUNITIES IN SIERRA LEONE

A. PRIORITY SECTORS FOR INVESTMENT

(i) Agriculture

a. Cultivation
Rice and tree crop cultivation

b. Agro-processing

- Food and beverages processing e.g. Cassava, potato, yam

- Cocoa and coffee beans processing

- Fruit processing/canning

- Commercial cotton processing

- Fertilizer production

- Palm oil and other edible oils processing

(ii) Infrastructure

- Provision of markets and other common community facilities

6
 - Rural water supply

- Construction of industrial parks, EPZs, etc.

- Sewage / Refuse Collection and / or Transformation

(iii) Communication and Transportation

- Rail construction, operation and maintenance

- New investment in Marine transport (both inland and sub- regional)
- Information Communication Technology (ICT) manufacturing
and assembly

(iv) Cotton and Textiles sector

- Clothing and Apparel Industries exclusively for export

- Textiles manufacture

(v) Education Sector

- Computer assembly and Maintenance

(vi) Energy Sector

- Accelerating electrification to meet the growing demand nationwide

- Development of mini hydro power, gas, solar photo voltaic systems

and biomass

- Promotion and development of new and renewable energy

resource.

(vii) Fish farming and processing sector

- Production of value-added fish products for export

- Manufacture of fishing gear/equipment

(viii) Forestry Sector

- Soft/hard wood processing with value added for export

7
 - Promotion of Eco-Tourism and agro-forestry

(ix) Health Sector

- Establishment of special hospitals or clinics to provide HIV/AIDS

health care
- Provision of private psychiatry hospital and facilities
- Manufacturing of drugs/medical equipment/disposables etc.
- Cultivation and processing of herbal medicine
- Cosmetics and beauty products manufacture

(x) Livestock Sector

- Vaccine development, research and production

- Dairy production / processing

(xi) Metal and Metal Products Sector

- Manufacture of products from ores

- Manufacture of Agricultural, Mining, quarrying and construction

machinery

- Manufacture of electric motors, generators, compressors and transformers

- Manufacture or assembly of automobile and spare parts

(xii) Tourism Sector

- Development of specialized eco-tourism

- Provision of quality hotels, recreational, entertainment and

restaurant facilities that meet international standards

- Provision of travel business

Set up of training for the Tourism Industry

8
PRIVATISATION POLICY

The government policy is geared towards the following objectives:

• To send clear message to the International Community that a new Sierra Leone is
now open for business
• To restructure and rationalize the public sector
• To change the orientation of all public sector enterprises
• Raise funds for financing socially oriented programmes such as health, education
and infrastructure
• To ensure positive return on public sector investment
• To create jobs and acquire new knowledge

ENTITIES TO BE PRIVATISED

1. Sierra Leone Housing Corporation

2. Sierra Leone Produce Marketing Board
3. Mining and General Services Limited
4. Sierra Leone Road Transport Corporation
5. Sierra Leone Postal Services Limited
6. Sierra Leone Airlines
7. Sierra Leone Telecommunication Company Limited
8. Sierra Leone Airport Authority
9. National Power Authority
10. Sierra Leone Port Authority
11. Guma Valley Water Company
12. Sierra Leone National Shipping Company Limited
13. Forest Industries Corporation
14. National Insurance Company
15. Sierra Leone State Lottery Company Limited
16. Sierra Leone Commercial Bank Limited
17. National Development Bank Limited
18. Sierra Leone Roads Authority
19. Rokel Commercial Bank
20. Seaboard West Africa
21. Sierra Leone Daily Mail
22. National Workshop
23. Government Printing Department
24. Sierra Leone Broadcasting Service

AREAS OF INVESTMENT

The Investment promotion Act does not apply to investment in the production of arms
and ammunition, Military, Police, and Prison Officers’ apparel and accoutrement.

9
The Present focus is on: -
o Job creation and adequate training for Sierra Leoneans e.g.
textiles, industry, components assembly and data processing,
etc.
o Women Entrepreneurial development with emphasis on the
development of women’s businesses in the rural areas
o Achievements of net foreign exchange earnings
o Generation of substantial domestic value added
o Maximum utilization of natural resources and services of
Sierra Leoneans
o Formation of a national productive capital base
o Spatial decentralization of development projects
o Technology transfer
o Rural development

INCENTIVES FOR INVESTMENT IN SIERRA LEONE

There are other enactments providing specially for investment in business enterprises
concerned with Tourism, Fisheries, Mines and Minerals, Banks, Non-banks financial
institutions and other business activities, including such matters as the incentives for any
such investment.

Any Investor, local or foreign, can invest in any legitimate form of business and shall be
entitled to the incentives contained in the applicable law including as the case may be
those listed below.

a. Export license not required

No export license is required for the export of locally produced goods except
Gold, Diamond and such other goods or materials as may be prescribed from time
to time.
b. Expatriate Labour requirements
A business enterprise, which requires expatriate labour, shall apply to the
Ministry of Labour, Social Security and Industrial Relations for consideration in
accordance with any enactment relating to labour matters.
c. Expatriate first Arrival Duty Waiver
The personal effects of an expatriate issued with a work permit and his/her
immediate family shall be exempted from customs duty under the first arrival
concessions in force.
d. Foreign Exchange Remittance
The expatriate personnel with work permits shall be permitted to make
remittances abroad through their commercial banks, subject to such withholding
tax obligations as are contained in the Income Tax Act 2000, if applicable.
e. Remittance of Profits

10
 The remittance of profits, after taxes, earned by a foreign investor from a business
enterprise, is guaranteed as constituting current international transactions in
respect of which payments transferred abroad shall be allowed without restriction.
f. Guarantee of Capital Repatriation and of loan remittance
Any investor may freely repatriate proceeds received from the liquidation of a
business enterprise and awards resulting from any settlements of disputes in
respect of such business enterprise.
There shall be no restriction on the transfer of repayments of principal and interest
on an arms length third party loan contracted outside Sierra Leone and registered
with the Bank of Sierra Leone but interest payments due on such loans may be
subject to the withholding tax obligations in the Income Tax Act, 2000, if
applicable.
g. Guarantee against Expropriation or Nationalization.
No private investment, whether domestic or foreign, shall be expropriated or
nationalize in a direct or indirect manner, except in the special cases specified by
Section 21 of the Constitution which, among other things stipulates that the
investment or other property be reasonably required for public purposes and that
prompt and adequate compensation shall be paid in the event of any expropriation
or nationalization.

f. Access to land
The government acknowledges that access to land is vital to the operations of a
business enterprise and will take necessary steps to facilitate an investor’s access
to land.
i. Settlement of disputes
Where a dispute arises between an investor and the government in respect of an
investment in a business enterprise or in respect of an investment obstructed or
delayed by government, the parties will use their best efforts to settle such dispute
amicably.
Where any dispute between the investor and the government in respect of a
business enterprise is not settled amicable, it may be submitted at the option of the
aggrieved party to arbitration as follows:
i in accordance with the rules of procedure for arbitration of the United
Nations Commission of International Trade Law (UNCITRAL).
ii in the case of a foreign investor within the frame work of any bilateral or
multi-lateral agreement on investment protection to which the government
and the country of which the investor is a national are parties; or
iii in accordance with any other national or international machinery for the
settlements of investment disputes as the parties may agree.

Where any dispute between an investor and a non-governmental body in respect

of an enterprise is not settled amicably, and were no recourse is available through
arbitration or previously established contracts or other legal instruments, then the
matter shall be referred to the relevant legal authority within Sierra Leone for
settlements, in accordance with the law binding such transaction.

11
 k. Corporate Tax
Generally, corporate tax for all Businesses currently stands at 35% except
mining which is 30%.
l. Tax Holidays
Enterprises engaged in rice cultivation and tree crop farming are exempted
from corporate tax for the first 10 years. Those in the Tourism sector shall pay
15% corporate tax for the first 5 years of a new investment. A Tourism
enterprise is exempted from Pay-As-You-Earn Tax (PAYE) for non-available
skills for the first 3 years of employment for up to 6 employees.
m. Import Duty
Import duty for raw materials, plant and machinery is 5%; whiles malaria and
HIV drugs are exempted. Import duty for intermediate products is 20%.
Import duty for vehicles up to 4 years old is 5%, over 4 years to 10 years is
20% and those above 10 years is 30%. A Tourism enterprise is exempted from
import duty for new construction, extension or renovation of an existing one,
applicable to building materials, machinery or equipment that is not easily
available in Sierra Leone for the period of construction or rehabilitation.
n. Sales tax
Sales tax on plant and machinery is zero-rated and others are 17.5% at entry
and production.

TYPES OF BUSINESS ORGANIZATIONS AND SCALE OF FEES PAYABLE

(a) Business Registration & License Renewal fees

Companies
Class A Le100, 000.00 Le50, 000.00
Class B Le150, 000.00 Le75, 000.00
Class C Le240, 000.00 Le120, 000.00

Partnership
Class A Le100, 000.00 Le50, 000.00
Class B Le150, 000.00 Le75, 000.00
Class C Le240, 000.00 Le120, 000.00

Sole Proprietorship
Class A Le40,000.00 Le20,000.00
Class B Le80,000.00 Le40,000.00
Class C Le120,000.00 Le60,000.00

(b) Fees payable in respect of One quarter of the

any branch of business fees payable for
registration.
(c) Business Names Registration Le30,000.00
Certificate

12
The following thresholds apply depending on the turnover for all types of business:
Class A - Le1.00 to Le250,000.00
Class B - Le 250,000.00 – Le500,000.00
Class C - Above Le500, 000.00

CURRENT PROCEDURE AND COSTS ASSOCIATED WITH SETTING UP

OF A BUSINESS ENTERPRISE (SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY)

PROVISIONS APPLICABLE TO ALL BUSINESS ENTERPRISES

1. Application for and completion of a Business Names registration Form
– Le 1,000/ =

2. Complete Form with the proposed name of the company-

- Names with national connotation e.g. Sierra Leone Investment Company, etc
require clearance from the Ministry of Trade and Industry.

- Other names are cleared with the administrator and Registrar-General after
payment of a search fee of Le 5, 000/

3. Obtain business name registration certificate - Le30,000/ =

4. Purchase and complete Business Registration and License form – Le2, 000/ =

5. Forward the business license and registration form to the Commissioner of

Income Tax for tax assessment (interview, written statement and income tax
amount established)

Fee for Income Tax Clearance - Le2000/=

6. Submit written statement, income tax clearance and endorsed business

registration and license forms to the Administrator and Registrar General.

7. Fees for the business registration and license certificate - Le240,000/=

8. Open a business account in any of the Commercial Banks.

Minimum deposit - Le500,000/=
Foreign Currency minimum deposit - US$1,000

For incorporation of a Company the following provisions applies

A. Prepare Memorandum and Articles of Association

Solicitors Fees - 5% of Capital (this varies also)

B. Apply for foreign exchange control permission through Company

13
 Secretary/ Solicitor from the Bank of Sierra Leone, International Finance
Department
No fees payable

C. Solicitor / Secretary of company to prepare and forward Memorandum and Articles

of Association for foreign exchange control permission together with the following to
the Administrator and Registrar-General:-

a) Statement of Share capital of company

b) Notice of Registered office
c) Notice of first Secretary
d) Notice of first Directors
e) Statutory Declaration by Solicitor

D. Fee for Standard Assessment tax - Le945,000.00

( New Company)

E. Fee for the Incorporation of a Company Certificate - Le540, 000.00

F. Collect the following Certificates from the Administrator and Registrar-General’s

Department:

- The Business Names Registration Certificates

- The Certificate of Incorporation
- The Business Registration Certificate
- The Business License Certificate

IMPORTANT CONTACT POINTS

TRADE PROMOTION ORGANISATIONS

i. The Sierra Leone Export Development and Investment corporation (SLEDIC)

18/20 Walpole Street
PMB 6
Freetown, Sierra Leone
Contact Person– Managing Director
Tel: 232 22 229 760/227604 / 229216
Fax: 232 22 2297097
e-mail: sledic@sieratel.sl
Website: www.sledic-sl.org

ii. The Sierra Leone Chamber of Commerce, Industry and Agriculture

(SLCCIA)
5TH floor – Guma Building
PO Box 502
Freetown, Sierra Leone

14
 Contact Personnel:– Executive Secretary
Tel: 232 22 226305
Fax: 232 22 228005
e-mail: cocsl@sierratel.sl

iii. Local Commerce, Industry and Trade

Ministry of Trade and Industry
6th Floor – Youyi Building
Freetown – Sierra Leone
Contact Person: The Permanent Secretary
Tel: 232 22 222706/228488

iii. Other Ministries

Ministry of Finance,
Ministerial Building, George Street, Freetown – Sierra Leone
Tel: 222211/225826

Ministry of Marine Resources

Marine House, 11 Old Railway Line, Brookfields, Freetown -
Sierra Leone Tel: 242117

Ministry of Agriculture, Forestry and Food Security

Youyi Building, Brookfields, Freetown
Tel: 222907

The Sierra Leone Exporters Association

C/o Frandia Company Limited
14a Lightfoot Boston Street, Freetown – Sierra Leone
Contact Person: – Secretary General
Tel: 232 22 228796
Fax: 232 22 220828

The Sierra Leone Indigenous Business Association (SLIBA)

3 Lamina Sankoh Street, Freetown – Sierra Leone
Contract Person– National Chairman
Tel: 232 22 223835
Fax: 232 22 224479

The National Privatization Commission (NCP)

Modesty House,
7 Bathurst Street
Freetown.

The National Revenue Authority (NRA)

Modesty House
7 Bathurst Street, Freetown

15