Sierra Leone: Investing

FDI in Figures

Following a steady growth until 2012, foreign direct investment (FDI) was severely impacted by the Ebola outbreak in Sierra Leone. According to UNCTAD's 2021 World Investment Report,, FDI flows declined again in 2020 to USD 349 million from USD 368 million in 2019, mainly due to the global economic and health crisis triggered by the Covid-19 pandemic. FDI stocks increased significantly to USD 2.4 billion in 2019. In 2021, global FDI flows rebounded strongly, but FDI flows to African countries (excluding South Africa) rose only moderately (UNCTAD’ 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.

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. Sierra Leone ranked 163rd out of 190 countries in the World Bank’s last available Doing Business report, at the same rank as in the previous year classification. The business climate of Sierra Leone has been severely affected by the Ebola virus. China has become increasingly present in Sierra Leone. The country is currently financing a hospital, a hydroelectric dam, a rubber production project spanning several thousand hectares (worth USD 1.3 billion, financed by China Hainan Rubber Group), as well as rice cultivation (135,000 hectares), stadiums, roads, bridges, electrical project, a fishing harbour project, and is involved in mining (Kingho Group is involved in a USD 6 billion mining project complex). A subsidiary of the French Bolloré Group will build a new dock for USD 120 million in Freetown and various surrounding infrastructure for USD 87 million. UK firm Winch Energy in engaged in the construction of mini solar plants, American SL Mining will start exploiting the Marampa iron mine and Israeli company Agrotop jointly with South African Integrated Solutions Africa (ISA) Group will construct 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: February 2023