Sierra Leone: Trade Profile
Sierra Leone has an open economy in which trade accounts for around 88% of the country’s GDP (World Bank, latest data available). The country's trade policy is a part of the global strategy to reduce poverty and is in compliance with its commitment to ECOWAS (Economic Community of West African States). Customs duties are relatively high in Sierra Leone. Despite having few trade barriers, the country has very few bilateral investment agreements. A more restrictive trade regime was put in place with selective tariffs on imports and the launch of the "Made in Sierra Leone" (BAD) initiative. The factors favoring foreign trade are the rapid expansion of the telecommunications sector, unrestricted conversion or transfer of foreign investment funds, and the absence of legal restrictions on obtaining foreign exchange. Sierra Leone mainly exports minerals (titanium, iron, aluminum, etc.), precious stones (diamonds), wood, and cocoa. Imports are led by rice, followed by petroleum products, vaccines and medicaments, and cars (data OEC 2022).
According to OEC, in 2022, Sierra Leone’s main export partners were China (54.1%), Belgium (11.8%), United Arab Emirates (5.6%), Germany (4.1%), and the Netherlands (3.8%); whereas imports came chiefly from China (33.3%), India (11.7%), Turkey (9.1%), the United States (5.8%), and the United Arab Emirates (5.1%).
Sierra Leone’s trade balance is structurally in deficit and this trend is expected to continue considering the country’s fledgling industry and lack of agricultural productivity. In 2022, Sierra Leone exported USD 1.1 billion in goods (+61.2% y-o-y) and imported USD 1.9 billion (+9%). Concerning services, exports stood at USD 37 million vis-à-vis USD 331 million in imports (data WTO). In the same year, the trade deficit stood at 24.3% of GDP (World Bank). Although official figures for 2023 are not available yet, the World Bank recorded stronger iron ore exports and subdued import demand.
| Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 1,502 | 2,146 | 1,803 | 1,966 | 2,154 |
| Exports of Goods (million USD) | 635 | 423 | 697 | 1,124 | 1,270 |
| Imports of Services (million USD) | 430 | 165 | 238 | 331 | n/a |
| Exports of Services (million USD) | 75 | 53 | 68 | 37 | n/a |
| Imports of Goods and Services (Annual % Change) | -7 | 7 | 47 | n/a | n/a |
| Exports of Goods and Services (Annual % Change) | -2 | -10 | 2 | n/a | n/a |
| Trade Balance (million USD) | -830 | -612 | -585 | n/a | n/a |
| Foreign Trade (in % of GDP) | 56 | 52 | 58 | n/a | n/a |
| Imports of Goods and Services (in % of GDP) | 38 | 36 | 41 | n/a | n/a |
| Exports of Goods and Services (in % of GDP) | 18 | 15 | 17 | n/a | n/a |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
| Main Customers (% of Exports) |
2018 |
|---|---|
| China | 18.3% |
| South Korea | 14.0% |
| Netherlands | 13.5% |
| Somalia | 10.8% |
| Ghana | 8.0% |
| See More Countries | 35.4% |
| Main Suppliers (% of Imports) |
2018 |
|---|---|
| China | 20.1% |
| United Arab Emirates | 8.4% |
| Belgium | 7.5% |
| India | 7.2% |
| United States | 5.4% |
| See More Countries | 51.4% |
Source: Comtrade, Latest Available Data
To go further, check out our service Import-Export Flows
| 0.1 bn USD of services exported in 2021 | |
|---|---|
| 43.03% | |
| 33.51% | |
| Business travelBusiness travel | 28.97% |
| Personal travelPersonal travel | 4.54% |
| OtherOther | 53.63% |
| 12.86% | |
| 5.53% | |
| 5.08% | |
| 0.2 bn USD of services imported in 2021 | |
|---|---|
| 74.65% | |
| 13.08% | |
| 5.20% | |
| Business travelBusiness travel | 4.54% |
| Personal travelPersonal travel | 0.65% |
| OtherOther | 20.15% |
| 4.08% | |
| 2.41% | |
| 0.50% | |
| 0.08% | |
| n/a% | |
Source: United Nations Statistics Division, Latest Available Data
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Latest Update: May 2024
