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
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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
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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
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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
[email protected] 076144616
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
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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
[email protected] 088934080
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
[email protected] 076718984
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
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Alphonso Campbell
GIZ / EPP Private sector Dev. Advisor
[email protected] 079156432
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
[email protected] 078342843
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
President [email protected] 076730603
Abdul Akin Bangura
Association of Clearing and Forwarding Agencies
President [email protected] 076610061
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
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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
[email protected] 076756650
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
076123007
Zara Mahdi Sierra Leone Local Content Unit
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Photo Gallery
View of High Table Cross Section of Participants
Cross Section of Participants Cross Section of Participants