WT/TPR/S/303/Rev.2  
16 June 2017  
(17-3226) Page: 1/77 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
SIERRA LEONE 
Revision  
This report, prepared for the second  Trade Policy Review of Sierra Leone, has been drawn up by 
the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreem ent 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Sierra Leone on its trade 
policies and practices.  
 
Any technical questions arising from this report  may be addressed to J acques Degbelo 
(tel.: 022 739 5583) and Nelnan Koumtingué (tel.: 022 739 6252) . 
 
Document WT/TPR/G/303 /Rev.2  contains the policy statement submitted by Sierra  Leone.  
 
 
Note: This report was drafted in English.  WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  9 
1.1   Main Features of the Economy  ................................ ................................ ......................  9 
1.2   Recent Economic Developments  ................................ ................................ ................... 12 
1.3   Trade Performance  ................................ ................................ ................................ .....13 
1.4   Foreign Direct Investment  ................................ ................................ ........................... 16 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  17 
2.1   General Framework  ................................ ................................ ................................ ....17 
2.2   Trade Policy Objectives  ................................ ................................ ............................... 19 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 19 
2.3.1    World Trade Organization  ................................ ................................ ......................... 19 
2.3.2    Regional agreements  ................................ ................................ ................................ 20 
2.3.2.1    African Union  ................................ ................................ ................................ ........ 20 
2.3.2.2    Economic Community of West African States  ................................ ............................ 21 
2.3.2.3    Other arrangements  ................................ ................................ .............................. 21 
2.3.3    Preferenti al trade arrangements  ................................ ................................ ................ 22 
2.4   Investment Regime  ................................ ................................ ................................ ....22 
2.4.1    Legal framework for business  ................................ ................................ .................... 23 
2.4.2    Local content prescriptions  ................................ ................................ ........................ 24 
2.4.3    International investment agreements  ................................ ................................ ......... 25 
3   TRADE POLI CIES AND PRACTICES B Y MEASURE  ................................ ........................  26 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 26 
3.1.1    Customs procedures and requirements  ................................ ................................ .......26 
3.1.2    Customs valuation  ................................ ................................ ................................ ...27 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 28 
3.1.4    Tariffs ................................ ................................ ................................ .................... 28 
3.1.4.1    Applied MFN tariff  ................................ ................................ ................................ .28 
3.1.4.2    Other duties and charges  ................................ ................................ ....................... 32 
3.1.4.3    Internal taxes  ................................ ................................ ................................ .......33 
3.1.4.4    Tariff preferences  ................................ ................................ ................................ ..34 
3.1.5    Duty and tax concessions and exemptions  ................................ ................................ ..34 
3.1.6    Import prohibitions, restrictions, and licensing  ................................ ............................ 34 
3.1.7    Contingency measures  ................................ ................................ ............................. 35 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 35 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 35 
3.2.2    Export taxes, charges, and levies  ................................ ................................ ............... 35 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 35 
3.2.4    Export support, promotion, guarantee, and insurance  ................................ .................. 36 
3.2.5    Export processing zones  ................................ ................................ ........................... 37 WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  3.3   Measures Affecting Production and Trade  ................................ ................................ .......37 
3.3.1    Tax and incentives  ................................ ................................ ................................ ...37 
3.3.1.1    Tax ................................ ................................ ................................ ..................... 37 
3.3.1.2    Incentives  ................................ ................................ ................................ ............ 38 
3.3.2    Standards and other technical requirements  ................................ ............................... 39 
3.3.3    Marking, labelling, and packaging  ................................ ................................ .............. 41 
3.3.4    Sanitary and phytosanitary requirements  ................................ ................................ ....41 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 42 
3.3.6    Competition policy and price controls  ................................ ................................ ......... 43 
3.3.7    Government procurement  ................................ ................................ ......................... 43 
3.3.8    Intellectual proper ty rights  ................................ ................................ ........................ 45 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  48 
4.1   Agriculture  ................................ ................................ ................................ ................. 48 
4.1.1    Overview  ................................ ................................ ................................ ................ 48 
4.1.2    Agricultural policies  ................................ ................................ ................................ ..48 
4.1.3    Key subsectors  ................................ ................................ ................................ ........ 50 
4.1.3.1    Crops  ................................ ................................ ................................ .................. 50 
4.1.3.1.1    Cocoa  ................................ ................................ ................................ ............... 50 
4.1.3.1.2    Rice ................................ ................................ ................................ .................. 51 
4.1.3.2    Forestry  ................................ ................................ ................................ ............... 52 
4.1.3.3    Fisheries  ................................ ................................ ................................ .............. 53 
4.2   Energy  ................................ ................................ ................................ ...................... 54 
4.2.1    Overview  ................................ ................................ ................................ ................ 54 
4.2.2    Upstream petroleum and gas activities  ................................ ................................ .......55 
4.2.3    Downstream activities  ................................ ................................ .............................. 56 
4.2.4    Electricity  ................................ ................................ ................................ ............... 57 
4.3   Mining  ................................ ................................ ................................ ....................... 59 
4.3.1    Regulation  ................................ ................................ ................................ .............. 59 
4.3.2    Main products  ................................ ................................ ................................ ......... 61 
4.3.2.1    Diamonds  ................................ ................................ ................................ ............ 61 
4.3.2.2    Other minerals  ................................ ................................ ................................ .....62 
4.4   Manufacturing  ................................ ................................ ................................ ............ 62 
4.5   Services  ................................ ................................ ................................ .................... 63 
4.5.1    Overview  ................................ ................................ ................................ ................ 63 
4.5.2    Financial services  ................................ ................................ ................................ .....63 
4.5.2.1    Banking  ................................ ................................ ................................ ............... 63 
4.5.2.2    Insurance  ................................ ................................ ................................ ............ 65 
4.5.2.3    Other financial services  ................................ ................................ .......................... 66 
4.5.3    Information and communication services  ................................ ................................ ....67 
4.5.3.1    Telecommunications  ................................ ................................ .............................. 67 WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  4.5.3.2    Internet access  ................................ ................................ ................................ .....68 
4.5.3.3    Postal services  ................................ ................................ ................................ ......68 
4.5.4    Transport services  ................................ ................................ ................................ ...69 
4.5.4.1    Air transport  ................................ ................................ ................................ ......... 69 
4.5.4.2    Land transpo rt ................................ ................................ ................................ ......70 
4.5.4.3    Maritime transport  ................................ ................................ ................................ 70 
4.5.5    Tourism  ................................ ................................ ................................ .................. 71 
4.5.6    Professional and business services  ................................ ................................ ............. 72 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 73 
 
CHARTS  
 
Chart 1.1 Product composition of  merchandise trade, 200 5-2015 ................................ ............. 15 
Chart 1.2 Direction of exports (f.o.b.), including re -exports, 2005-2014 ................................ ...16 
Chart 3.1 Breakdown  of applied MFN tariffs, 2016  ................................ ................................ ..29 
Chart 3.2 MFN tariff escalation by manufacturing, ISIC 2 -digit, 2016  ................................ ........ 31 
Chart 3.3 Average MFN t ariff rates, by WTO product categories, 2016  ................................ ......32 
Chart 4.1 Rice production and imports, 2000 -16 ................................ ................................ ....51 
Chart 4.2 Import of petroleum products, 2000 -13 ................................ ................................ ..57 
Chart 4.3 Selected indicators in air transportation, 2005 -13 ................................ .................... 69 
Chart 4.4 Visitor arrivals by air, by purpo se and origin, 2012  ................................ .................. 71 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2005, 2010 -15 ................................ ................. 10 
Table 1.2  Balance of payments, 2005, 2010 -15 ................................ ................................ .....14 
Table 1.3 FDI inflows, 2010 -15 ................................ ................................ ............................ 16 
Table 2.1 Main trade and investment -related legislation  issued/amended/implemented 
since 2005  ................................ ................................ ................................ ........................ 18 
Table 2.2 Key policy prescriptions in the Local Content Policy  ................................ .................. 24 
Table 3.1 Structure of applied MFN tariffs, 2004 and 2016  ................................ ...................... 29 
Table 3.2 Comparative analysis of Sierra Leone's MFN tariff and the ECOWAS CET,  2016 ............ 30 
Table 3.3 Products subject to the excise tax, September 2016  ................................ ................. 33 
Table 3.4 Composition of Government domestic revenue, 2010 -15 ................................ .......... 37 
Table 3.5 Main investment incentives  ................................ ................................ ................... 38 
Table 3.6 Sierra Leone's technical regulations in force, September 2016  ................................ ...40 
Table 3.7 S tate involvement in enterprises  ................................ ................................ ............ 42 
Table 4.1 Structure of energy consumption, 2011  ................................ ................................ ..54 
Table 4.2 Petroleum rights, related fees, and conditions  ................................ ......................... 55 
Table 4.3 Electricity generation and consumption, 2009 -14 ................................ ..................... 57 
Table 4.4 Mineral production 2009 -14 ................................ ................................ .................. 59 WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  Table 4.5 Licensing requirements in the mining sector  ................................ ............................ 60 
Table 4.6 Fees related to mineral rights and permits  ................................ .............................. 61 
Table 4.7 Selected products in the manufacturing sector, 2009 -14 ................................ ........... 62 
Table 4.8 Commercial banks, September 2016  ................................ ................................ ......64 
Table 4.9 Premiums collected by insurance businesses, 2009 -14 ................................ ............. 65 
Table 4.10 Minimum reserve requirements for insurance companies, 2016  ................................ 66 
Table 4.11 Financial requirements for other financial institutions  ................................ .............. 67 
Table 4.12 Selected indicators of the telecommunications sector, 2009 -13 ................................ 67 
Table 4.13 Tourism basic indicators, 2006 and 2009 -12 ................................ .......................... 71 
Table 4.14 Other regulated professional services  ................................ ................................ ...72 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by product group, 2005 and 2010 -15 ................................ .....73 
Table A1.2 Merchandise imports by SITC Section, 2005 and 2010 -15 ................................ .......73 
Table A1.3 Merchandise exports by destination, 2005 and 2010 -14 ................................ .......... 74 
Table  A3.1 MFN tariff averages by HS2 -digit level, 2016  ................................ ......................... 75 
 WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  SUMMARY  
1. Sierra Leone is a least developed country (LDC) with a relatively young population: 42.4% 
of its 7.1 million inhabitants are aged less than 15 years. The countr y is in a fragile post -conflict 
and post -ebola virus d isease (EVD) situation. Agriculture is the backbone of the economy; its 
contribution to the GDP declined sharply in 2012 because of a boom in the mining sector, before 
bouncing back as minerals exports collapsed. Sierra Leone is rich in minerals such as gold, 
diamond, bauxite, rutile, and iron ore. The manufacturing sector is marginal and is limited to 
first-stage processing of local raw materials and to light industries . Like the other sectors of the 
economy, it is plagued by weak infrastructure, high production costs, unreliable supply of energy 
at high prices, and limited access to financing.  
2. Since its last Trade Policy Review (TPR) in 2005, Sierra Leone has pursued its reconstruction 
efforts, support ed by a substantial inflow of external aid. The business environment improved as a 
result of structural reforms and progress in governance and human development. Sierra Leone has 
expanded its mining sector through the production and export of iron ore, boo sting the real GDP 
growth to  20.7% in 2013. However, the outbreak of EVD , and the closing of the national borders 
to contain its spread , jeopardized the recovery process. This was further exacerbated by the 
decline in world prices of iron ore, which contri buted to the closure of the major mines. The 
economy contracted by 20.6% in 2015. A recovery started towards the end of 2015 as EVD 
receded. New investment in agriculture, the resumption of iron ore mining, and reforms in the 
energy sector are expected to support the economic recovery in the medium term.  
3. During the review period, Sierra Leone's exports diversified away from diamonds, and also 
consist of iron -ore, rutile, bauxite, and agricultural products (cocoa and coffee). In 2012, iron ore 
overtook diamo nds as the major export product, and accounted for 69.7% of total exports the 
following year. China is the main market for the country's iron ore. The share of exports to the 
European Union, a long -standing top market, declined from 87.4% in 2005 to 24.2% in 2013 
before bouncing back to 48.4% in 2014. Exports to the other ECOWAS partners are generally low.  
4. Sierra Leone is a founding member of the Economic Community of West African States 
(ECOWAS) and the Mano River union. It joined the Community of Sahel -Saharan States 
(CEN-SAD) in 2008. Sierra Leone is eligible for preferences granted by the EU under the 
Everything But Arms Initiative, and the United States under the African Growth and Opportunity 
Act. It also benefits from unilateral trade preferences gran ted by many other developed countries.  
5. Sierra Leone established a Mission to the WTO in 2005. It continues to face difficulties in 
fulfilling its notification obligations. Sierra Leone benefited from two projects (on trade information 
and tourism) under t he Enhanced Integrated Framework. Sierra Leone has not yet ratified the 
WTO Trade Facilitation Agreement, nor has it notified its list of category A commitments.  
6. In 2010, Sierra Leone replaced its manual customs clearance system with the Automated 
System for Customs Data (ASYCUDA), leading to a substantial decline in average processing and 
clearance times. However, the day -to-day operation of the system remains frequently affected by 
the unreliability of Internet connectivity and electricity supply.  
7. Sierra Leone gradually replaced its pre -shipment inspection with a destination inspection 
programme operated by two companies: Africa Link Inspection Company (for shipments arriving 
by sea) and Sierra Inspection Company (for shipments arriving by air or through  terrestrial 
borders). The inspection applies to all consignments and is subject to a fee of 1% of their f.o.b. 
value.  
8. New customs legislation was enacted in 2011, incorporating, inter alia, some provisions of 
the WTO Customs Valuation Agreement (CVA). Ho wever, the country is facing challenges in 
implementing the CVA provisions, one of the reasons for maintaining the inspection programme.  
9. The 2016 applied MFN tariff has six bands with rates varying between zero and 30%. Most 
products fall in the 5% or 20%  bands (86% of total tariff lines); the zero rate applies only to a few 
tariff lines (0.3%). The simple average rate is 12%  (down from 13.9% in 2004) . The tariff shows 
mixed escalation with semi -processed products subject to a lower average rate than raw m aterials, 
while fully processed products attract a higher average rate. As a member of the ECOWAS, WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  Sierra  Leone was to implement the new common external tariff (CET) as from 1 January 2015. The 
implementation of the CET by Sierra Leone has been delayed sev eral times, and is now expected 
for 1 January 2017.  
10. At the WTO, Sierra Leone bound all its tariffs lines at ceiling rates between 30% and 80%, 
with an average rate of 47.5%. Many of the bound rates are considerably higher than applied 
duties. Other duties  and charges (ODC) were bound on all tariff lines at rates varying between 
zero and 50%. In practice, Sierra Leone is collecting the ECOWAS Community Levy and a customs 
processing fee. These ODCs apply to all products, including those bound at zero.  
11. In 201 0, Sierra Leone reformed its internal taxation system by replacing a host of taxes with 
the goods and services tax (GST). The GST is levied at a standard rate of 15% and constitutes an 
important source of government revenue: it accounted for about a quarte r of government tax 
revenue in 2015, the bulk of which is levied on imports. Other import charges include the excise 
tax and the stamp duty.  
12. Various duty and tax concession programmes, including duty drawbacks, are in place. 
However, some of the incentives  are subject to local -content requirements. Sierra Leone has no 
legislative or institutional framework for anti -dumping, countervailing or safeguards measures, and 
has not taken any such actions.  
13. Sierra Leone collects a tax on its major exports. According  to the authorities, the purpose of 
the export tax is to encourage value addition and support the development of local communities. 
The tax is applied at 2.5% on agricultural products (cocoa, coffee, and palm oil), 3% on diamond, 
and 5% on gold (except gol d produced by artisanal miners which attracts 3%). In addition, some 
mineral exports are subject to the GST and a valuation fee.  
14. Export licensing applies mainly to diamonds and gold. A permit is required for the export of 
traditional commodities such as c ocoa, coffee, and rubber. Due to environmental regulations, a 
permit is required for the exportation of plants and charcoal. A ban on the exportation of raw logs 
has been in place since 2008.  
15. Sierra Leone has not notified any technical regulations, or its  national enquiry point under 
the WTO Agreement on Technical Barrier s to Trade (TBT). The Sierra Leone Bureau of Standards 
(SLBS) is the national statutory body in charge of technical regulations, standards, certification, 
and accreditation. It generally f ollows ISO and IEC directives in the development of national 
standards. There are currently 33 technical regulations in force, and 100 standards. At the 
borders, the SLBS inspects products for conformity and labelling requirements. It may perform 
field tes ts if needed. Substandard goods are, in principle, confiscated and destroyed.  
16. Sierra Leone has not notified the WTO of its sanitary and phytosanitary legislation. In 
general, a phytosanitary certificate is required for the international movement of any pl ant 
material or product. The authorities indicated that no SPS -related restrictions or prohibitions are 
currently in place.  
17. There is no domestic legislation on competition or anti -competitive practices. There are 
policies on competition and consumer protec tion, but related laws are yet to be enacted.  
18. Sierra Leone has not notified to the WTO any state -trading enterprise. In 2013, the Produce 
Marketing Board was replaced by the Sierra Leone Produce Marketing Company, established as the 
primary exporter of ag ricultural produce. However, it does not have a monopoly over the export of 
agricultural produce.  
19. New public procurement legislation was enacted in 2016. It requires the use of open bid 
proceedings for all public purchases, but provides for a price prefere nce for domestic contractors, 
suppliers, and domestically produced goods. National competitive bidding procedures are allowed 
under specified circumstances.  
20. Sierra Leone is a member of the African Regional Intellectual Property Organization, and has 
ratified the Harare Protocol on Patents and Industrial Designs. Since its last TPR, Sierra Leone has 
adopted new legislation on patents, industrial design, trademarks, and copyrights. Copyrights and WT/TPR/S/303/Rev. 2 • Sierra Leone  
 
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  trademarks are more frequently subject to infringement. The aut horities view their limited capacity 
as the main challenge in this regard.  
21. The agriculture sector employs about 75% of the labour force. Over recent years, the 
production of major crops such as rice paddy, cassava, and cocoa has increased substantially, 
owing to the implementation of policies geared toward increasing productivity and extending 
cultivated areas. Cocoa and coffee, the two major cash crops, are a non -negligible source of 
foreign exchange earnings. Tariff protection in the sector is relatively  high, irrespective of the 
stage of processing. At 15.6% in 2016, the average applied MFN tariff for agricultural products 
(WTO categories) is more than 3 percentage points above the overall average.  
22. The mining and quarrying sector accounts for about 90% of Sierra Leone's annual export 
revenues. During the review period, the legal framework was amended to review royalty rates and 
various licensing fees. Sierra Leone endorsed the Extractive Industries Transparency Initiative 
(EITI) in 2006 and was granted E ITI compliant status in April 2014. With an average applied MFN 
rate of 5.4%, mineral products benefit from relatively lower tariff protection.  
23. Sierra Leone undertook few GATS commitments, and its actual regime on trade in services is 
relatively open. Dur ing the period under review, Sierra Leone strengthened its legal framework on 
the banking and insurance industries through higher capital and reserves requirements. In the 
telecommunication subsector, the state -owned operator still ha s a de jure monopoly o ver 
fixed-line communications. However, the international gateway was liberalized in 2015.  
 
 
 WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Sierra Leone is a least developed country (LDC) with a territory of 71,740 km2 and a 
population estimated at 7.1 million in 201 5 according to preliminary results from the 2015 
Population and Housing Census,  up from 5 million in 200 4.1 The population is relatively young, 
with 42.4% aged less than 15 years  in 2015 , and about 55% aged between 15  and 64  years.2  
1.2.  Agriculture remains the largest contributor to GDP, although its share has been declining over 
the years to reach 40.8% in 2014, due to a boom in the mining sector  (Table 1.1) . It bounced 
back to 53.7% in 2015 . Crop products, mainly rice and cassava accounted f or the bulk of 
agricultural production. The contribution of the forestry and fishery subsector s followed the same 
overall trend.   
1.3.  Sierra Leone is rich in minerals such as diamond, bauxite, rutile, and iron ore. In 2012, the 
country entered into its first f ull year of production of iron ore, boosting the contribution of the 
mining sector to GDP to 12.7% (from only 3. 7% the previous year) , and then  to 27.3% in 2014 ; 
this has  brought  the contribution of the agricultural sector to a historically low level . The 
manufacturing sector is marginal, in terms of contribution to both output and employment. It 
consists mainly of light manufacturing. The performance of the services sector was similar to that 
of agriculture:  the contribution of services to GDP declined to 29.3% in 2014 before bouncing back 
to 37.9% in 2015.  
1.4.  Sierra Leone is in a fragile post -conflict  and post -ebola virus d isease  situation . The last 
decade has been characterized by reconstruction efforts, supported by a substantial inflow of 
external aid. The  authorities introduced several reforms that have helped to improve the business 
environment (section 2.4). On the governance front, Sierra Leone has recorded an overall 
improvement on the Ibrahim Index of African Governance since 2011, and ranked 25th (out of 
54 countries) in 2015.3 It achieved  some improvements on the components  of the Index relating 
to sustainable economic opportunity and human development, but weak performance in the areas 
of safety and rule of law,  and "participation and human rights ". Indeed, p rogress in human 
development has been substantial4, even though the country ranked 18 1st out of 187 on the 201 5 
Human Development Index. Thanks to the implementation of various poverty -reduction strategies 
(section 1.2), the proportion of the pop ulation below the national poverty line declined from 66.4% 
in 2003 to  52.9% in 2011  (the latest year for which the data are available) .5 However, the 
outbreak of the ebola virus d isease in 2013 jeopardized the recovery process and exacerbated  the 
numerous  challenges to Sierra Leone's economic development . Youth unemployment remains a 
serious risk for social stability ; about 70% of the youth population (aged 15 -35) is unemployed or 
underemployed.6 The development of the private sector is hindered by major i mpediments such as 
a deficit in infrastructure, limited availability of skilled labour, unreliability of energy supply, and 
high transportation costs.  
1.5.  Monetary  policy is under the purview of the Bank of Sierra Leone (BSL) whose mission 
includes the manage ment of the national currency, the Leone  (Le); the formulation and 
implementation of the monetary policy ; and the regulation of the financial services sector. The 
primary objective of the monetary policy is to achieve and maintain price stability.7 The de jure 
                                                
1 Statistics Sierra Leone (2016), Sierra Leone 2015 Population and Housing Census – Provisional results.  
Freetown, March 2016. Viewed at: https://www. statistics.sl/wp -content/uploads/2016/06/2015 -Census -
Provisional -Result.pdf . 
2 World Bank, World Development Indicators. Viewed at:  http://data.worldbank.org/ . 
3 Mo Ibrahim Foundation (2016), 2015 Ibrahim Index o f African Governance. Country insights – Sierra 
Leone . Viewed at: 
http://static.moibrahimfoundation.org/u/2015/10/02201446/43_Si erra_Leone.pdf?_ga=1.257322764.6644762
8.1474528382  [22.09.2016].  
4 Since 2000, Sierra Leone's improvement in the human development score has been among the 
fastest, with improvement by 3.4% every year (UNDP, 2013).  
5 World Bank, World Development Indica tors. Viewed at:  http://data.worldbank.org/ . 
6 UNDP online information. Viewed at: 
http://www.sl.undp.org/content/sierraleone/en/h ome/countryinfo.html .  
7 Bank of Sierra Leone Act, 2011.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  exchange rate regime is classified as "floating"  by the IMF.8 The central bank 's interventions in the 
market are limited to weekly foreign exchange auctions aiming at allocating currency to importers, 
and smoothing excessive short -term exchange rate f luctuations. The exchange rate used for 
customs valuation purposes and other official transactions is calculated weekly as the weighted 
average of the auction rate, and the mid -rates of commercial banks and foreign exchange 
bureaus. The official buying and  selling rates are then set within a band of plus/minus 1% of the 
official mid -rate. Sierra Leone accepted IMF Article  VIII obligations with effect from  1995 and, 
according to the IMF, maintains an exchange system free of restrictions on the payments and 
transfers for current international transactions.  
1.6.  Sierra Leone is party to the agreement establishing the West African Monetary Zone (WAMZ), 
a monetary union with 5 of the 16 ECOWAS members ( the Gambia, Ghana, Guinea, Liberia, and 
Nigeria). The launch of a  single currency has been delayed many times. As part of the process for 
establishing the monetary union, members of the WAMZ have agreed convergence criteria 
comprising four primary targets: keeping the inflation rate at a single -digit level; maintaining the 
fiscal deficit below 4% of GDP; keeping the central bank 's financing of fiscal deficit below 10% of 
government tax revenue; and maintaining gross external reserves at a level equivalent to at least 
three months of imports. As of mid -2015, Sierra Leone satisfied three  of the four primary criteria .9 
Gross reserves were equ ivalent to 2.2 months of import  cover.  
Table 1.1 Selected macroeconomic indicators, 2005, 2010 -15 
  2005  2010  2011  2012  2013  2014  2015  
GDP at current prices (leones 
billion)  4,769.2  10,255.6  12,797.6  16,515.4  21,317.4  22,689.4  21,414.2  
GDP at current prices (US$ 
million)  1,650.5  2,578.0  2,942.5  3,801.9  4,920.3  5,015.2  4,214.8  
Population (in million)  5.1 5.8 5.9 6.0 6.2 6.3 6.5 
GDP per cap ita (US$)  325.5  446.3  498.0  629.1  796.3  794.1  653.1  
Inflation (CPI, % change)  12.1 16.6 16.2 12.9 10.3 7.3 8.0 
GDP by type of expenditure (%age change at constant 2006 prices)      
GDP 4.5 5.3 6.3 15.2 20.7 4.6 -20.6 
Final consumption  1.2 -12.9 31.7 7.9 27.0 -15.4 -0.8 
Private final consu mption 1.7 -15.0 36.2 7.3 30.1 -15.5 -2.8 
NPISHa -21.8 2.6 4.4 5.6 5.3 5.9 4.9 
       Government final 
consumption  3.9 4.4 1.3 14.9 0.3 -19.3 24.2 
Capital formation  22.8 229.3  41.7 -20.7 -20.7 -5.1 -15.0 
     Gross fixed capital f ormation  24.0 239.8  42.2 -26.0 -15.8 -5.3 -15.4 
Exports of goods and services  7.4 18.9 -1.3 157.3  37.3 60.5 -51.2 
     Goods  4.5 22.2 -1.6 185.8  39.0 62.8 -55.5 
     Services  15.7 3.9 0.4 7.5 13.2 20.0 48.6 
Imports of goods and services  0.4 22.6 101.1  9.9 19.9 -1.3 -17.9 
     Goods  3.3 23.5 87.1 9.5 6.5 -8.6 2.4 
     Services  -10.0 18.1 172.0  11.4 65.8 15.1 -53.7 
          
Memo:  GDP excluding iron ore  4.5 5.3 6.1 5.4 5.6 0.9 1.9 
Percentages of co ntributions to GDP by sector  (at con stant 2006 prices)      
Agriculture, forestry and f ishing  52.1 55.6 54.9 49.3 42.4 40.8 53.7 
     Crops  33.2 38.8 38.6 34.8 30.1 29.0 38.2 
     Livestock  2.6 2.3 2.3 2.1 1.8 1.7 2.2 
     Forestry  6.9 6.4 6.2 5.5 4.7 4.5 5.9 
     Fishery  9.4 8.2 7.9 6.9 5.9 5.7 7.4 
Industry  10.7 8.6 8.9 17.6 28.5 30.9 9.8 
      Mining and q uarrying  5.7 3.9 3.7 12.7 24.5 27.3 5.1 
          Diamond  5.1 2.6 2.1 2.4 2.4 2.3 2.4 
          Iron ore  0.0 0.0 0.2 9.1 21.0 23.9 1.2 
                                                
8 IMF (2016), 2016 Article IV Consultation and Fifth Review under the Extended Credit Facility and 
Financing Assurance Review , and Request for an E xtension of the Extended Credit Facility . IMF Count ry Report 
No. 16/236. Viewed at: https://www.imf.org/external/pubs/ft/scr/2016/cr16236.pdf . 
9 West Africa n Monetary Institute (2016), Report of the 38th Meeting of the Technical Comm ittee of the 
West African Monetary Zone held in Accra, Ghana.  January 2016. Viewed at:  http://www.wami -
imao.org/?q=convergence -en. WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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    2005  2010  2011  2012  2013  2014  2015  
       Manufacturing and 
handicrafts  2.5 2.3 2.5 2.3 1.9 1.7 2.2 
       Electricity and water s upply  0.5 0.6 0.6 0.6 0.4 0.4 0.5 
Services  38.6 37.2 37.6 34.4 30.1 29.3 37.9 
     Trade and tourism  9.5 8.8 9.3 8.4 7.6 6.9 8.6 
            Wholesale and retail  9.0 8.4 8.8 8.0 7.2 6.6 8.2 
            Hotels and restaurants  0.5 0.4 0.4 0.4 0.4 0.3 0.3 
Transport, storage and             
communication  7.0 8.3 8.3 7.6 6.5 6.1 7.7 
             Transport  4.3 4.7 4.7 4.3 3.7 3.3 3.9 
             Communication  2.7 3.7 3.6 3.2 2.8 2.8 3.7 
Finance, insur ance and real 
estate   6.0 4.7 4.6 4.1 3.5 3.4 4.4 
Administration of Public 
Services  4.4 3.9 4.3 4.3 3.8 4.2 5.7 
      Other Services  4.4 3.8 3.6 3.2 2.8 2.8 3.7 
      Education  2.5 3.2 3.2 2.9 2.6 2.5 3.3 
      Health  3.3 3.0 2.9 2.6 2.2 2.2 3.0 
      NPISHa 1.5 1.4 1.4 1.3 1.1 1.1 1.5 
minus FISIMb 1.4 1.4 1.4 1.3 1.1 1.1 1.4 
Public finance (% of GDP)          
Total revenue and g rants 16.1 14.5 17.0 15.2 13.3 14.0 16.3 
     Domestic revenue  8.7 9.6 11.4 11.3 10.7 9.8 10.9 
          Income taxes  2.4 2.3 3.7 4.7 4.4 3.9 4.2 
          Goods and services tax  0.0 2.4 2.7 2.5 2.1 2.0 2.8 
        Customs and excise 
department  4.9 3.4 2.7 2.1 2.3 2.2 2.5 
          of which: import d uties 3.6 2.0 2.2 1.4 1.3 1.3 1.5 
          Mines department  0.2 0.3 1.6 1.3 1.1 0.8 0.4 
          Other department  0.7 0.6 0.5 0.5 0.5 0.4 0.5 
Road user charges and 
vehicle licences  0.5 0.6 0.2 0.2 0.4 0.4 0.4 
     Grants  7.4 4.9 5.5 3.8 2.6 4.2 5.4 
Total expenditure & net l ending  17.4 18.1 21.5 20.3 14.8 17.3 20.6 
     Recurrent expenditure  13.0 11.9 12.5 12.7 10.3 12.0 13.1 
          Wages & s alaries  4.8 5.0 5.3 5.7 5.0 6.4 7.4 
          Non-salary, non -interest 
recurrent expenditure  5.6 5.4 5.2 5.3 3.9 4.6 4.9 
          Total interest payments  2.6 1.5 2.0 1.8 1.4 1.0 0.8 
Development expenditure & 
net lending  4.4 6.3 9.0 7.6 4.6 5.4 7.5 
          Development expenditure  4.3 6.3 9.0 7.6 5.4 5.3 7.5 
          Net lending  0.1 0.0 0.0 0.0 -0.8 0.1 0.0 
Overall b alance          
      Balance on commitment 
basis includ ing grants  -1.3 -3.7 -4.5 -5.2 -1.6 -3.3 -4.3 
Balance on commitment basis 
excluding grants  -8.6 -8.5 -10.1 -9.0 -4.1 -7.5 -9.8 
     Contingency expenditure  0.0 0.0 0.0 0.0 0.0 -0.4 -0.3 
     Change in arrears  -0.1 -0.9 -0.5 -0.5 -0.1 -0.2 -0.2 
Balance on cash basis 
including grants  -1.4 -4.6 -5.1 -5.7 -1.7 -3.9 -4.8 
Annual growth of domestic 
revenue (%)  16.5 31.7 48.0 28.1 21.7 -2.4 4.7 
Government debt (% of GDP)  [..] 46.8 44.9 36.9 30.8 35.9 46.1 
External sector          
Leones /US$ (annual average)  2,889.6  3,978.1  4,349.2  4,344.0  4,332.5  4,524.2  5,080.7  
Nominal exchange rate 
(2010=100)c 144.4  100.0  87.8 92.4 93.2 90.3 91.4 
Real effective exchange rate 
(2010=100)c 91.7 100.0  100.6  117.3  126.9  130.7  142.4  
Current account balance (US$ 
million)  -42.8 -316.6  -1,353.5  -944.5  -886.2  -650.9  -742.6  
     % of GDP  -2.6 -12.3 -46.0 -24.8 -18.0 -13.0 -17.6 
Trade balance (% of GDP)  -7.8 -18.4 -47.1 -27.6 -14.9 -21.9 -26.3 
     Goods  -7.0 -12.6 -38.0 -18.4 -0.5 -1.5 -18.2 
          Exports (f.o.b.)  11.2 14.0 13.2 27.9 31.5 26.1 13.8 WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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    2005  2010  2011  2012  2013  2014  2015  
          Imports (f.o.b.)  -18.2 -26.6 -51.2 -46.2 -31.9 -27.6 -32.0 
     Services  -0.8 -5.8 -9.1 -9.2 -14.4 -20.4 -8.1 
          Exports  4.7 2.3 5.4 4.8 4.7 4.2 4.2 
          Imports  -5.5 -8.1 -14.5 -14.0 -19.0 -24.5 -12.3 
          
Gross international reserves 
(US$ million)  169.6  343.3  380.6  420.6  474.8  554.4  580.7  
     In months of imports  5.2 4.6 2.4 2.2 2.3 2.5 3.7 
External debt stocks (% of GDP)  107.6  36.1 35.7 29.6 28.4 24.7 .. 
External debt stocks (% of 
exports of goods, services and 
primary income)  664.9  218.3  191.8  83.4 63.1 .. .. 
.. Not available  
a NPISH stands for Non -Profit Institutions Serving Household.  
b FISIM stands for Financial Intermediation Services Indirectly.  
c An increase indicates appreciation.  
Source: Sierra Leone Statistics online information.  Viewed at: https://www.statistics.sl/gdp/ ; Statistical 
information provided by the authorities of Sierra Leone; IMF, Regional Economic Outlook, Sub -
Saharan Afr ica, April 2016; World Bank's World Development Indicator database. Viewed at 
http://data.worldbank.org/data -catalog/world -development -indicators  (September 2016).  
1.2  Recent Economic Developments  
1.7.  During the period 2005 (Sierra Leone's last TPR) to 2013,  Sierra Leone implemented 
reconstruction reforms through its Poverty Reduction Strategy10 (aimed at laying down the 
foundation for broad -based economic growth), and expanded its mining sector. The Strategy 
provided for substantial investments targeted at building infrastructure, developing the private 
sector, and expanding access to social services. Between 2008 and 2013, several major transport, 
agriculture, and energy  projects w ere completed . 
1.8.  In 2013 , the authorities launched  the Agenda for Prosperity, setting the pathway to 
middle -income status by 2035.11 The Agenda for Prosperity pursued the efforts of promoting the 
private sector with a view to its further contribution to  inclusive growth ; addressing the 
infrastructure deficit ; and improving governance and transparency in public service delivery. The 
programme includes major investment projects such as the construction of a new airport on the 
mainland, the construction of hydroe lectric dams, and the extension of agricultural irrigation 
projects.    
1.9.  As a result of these reforms, economic growth peaked at 8 .1% in 2007, and was at 5.4% 
in 2008, while the world economy was battling with surges in global food and fuel prices.12 The 
growth moderated in 2009, as demand for Sierra Leone 's exports weakened essentially because of 
the global downturn , but accelerated again in 2011 as the country began exporting iron ore from 
the newly completed Tonkolili mining project. In the first full year of production , 2012, the 
economy grew by 15.2%. The non -iron-ore economy, driven by the agriculture, manufacturing, 
construction , and services sectors , also played its part . Per capita nominal GDP increased from 
US$325.5 in 2005 to US$796.3  in 201 3 (Table 1.1). 
1.10.   The outbreak of the ebola virus d isease in May 2014 , the closing of the national borders to 
contain the spread of the disease and the resultant delays in/interruption of implementation of 
projects , combined with the decline in world prices of iron or e in 2014 and 2015,  jeopardized  the 
reconstruction efforts. The upward trend in e conomic growth  recorded since 2010  halted at 20.7% 
in 2013 . Subsequently, real GDP growth declined to 4 .6% in 2014 and to an estimated rate of 
                                                
10 Government of Sierra Leone (2005), Poverty Reduction Strategy Pa per – A national Programme for 
Food Security, Job Creation and Good Governance (2005 -2007) , Freetown, February. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2005/cr05191.pdf ; and Government of Sierra Leone (2008), An 
Agenda for Change, Second Poverty Reduction Strategy (PRSP II), 2008 -2012.  Freetown. Viewed at: 
http://unipsil.unmissions.org/portals/unipsil/media/publications/agenda_for_change.pdf . 
11 Government of Sierra Leone (20 13), Letter of Intent, Memorandum of Economic and Financial 
Policies, and Technical Memorandum of Understanding.  Viewed at: http:// www.imf.org/External/NP/LOI/ 
2013/SLE/100113.pdf .  
12 Information provided by Statistics Sierra Leone.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  -20.6% in 2015.  Most economic se ctors, including construction, trade, tourism, transport and 
manufacturing, were affected. However, a recovery, mainly in the non -iron economy, started 
towards the end of 2015 as the ebola virus d isease receded.   New investment (more than 
US$500  million between 2016 and 2018) in agriculture, resumption of iron ore mining  by 
Shandong Iron and Steel Group  in early 2016 , and ongoing energy reforms are expected to 
support economic recovery in the medium term.  
1.11.   Between 2005 and 2009, Sierra Leone managed to maint ain its fiscal deficit well below the 
WAMZ 's target of 4% of GDP, except in 2008. However, t he deficit widened to 3.7% of GDP  in 
2010,  4.5% in 2011 and 5. 2% in 2012, reflecting expenditure overruns and the construction of 
public infrastructure , as well as a decline in total public revenue . In response, the Government , 
inter alia , scal ed down public investment projects and delay ed the payment of some bills ; the 
percentage of non -performing loans increased, partly due to the high level of government unpaid 
bills to the private sector. In 2013, the deficit narrow ed to 1.6% of GDP , thanks to the peak in 
economic growth , stronger revenue performance, as well as further reduction in public 
expenditure. However, the public deficit increased again to 3. 3% of GDP in 2014 and to 4. 3% in 
2015 due to stagnation of total public revenue and despite a slight increase in grants  (Table 1 .1). 
1.12.   Sierra Leone is highly dependent on foreign aid ; between 2005 and 2013, net official 
development assistance received per capita fluctuat ed between US$67 and US$102, and reached a 
peak of US$144.2 in 2014.13 The stock of external debt as a percentage of GDP was 31.6% in 
2015 (compared to 36.1% in 2010) , and the risk of debt distress is assessed by the IMF as 
moderate .14 In 2015, m ultilateral debt represented 45.6% of total external debt , and the debt 
service amounted to US$46 million, representing 6 % of total exports  of goods and services .15 
1.13.   Until 2011, the Bank of Sierra Leone had conducted its monetary policy mainly through 
open market operat ions that had  affect ed money supply to the economy and interest rates. In 
2011, the Monetary Policy Committee introduced the Monetary Policy Rate (MPR) as an anchor for 
inflation expectations and a benchmark for other market rates. The leone's real effecti ve exchange 
rate depreciated  by 42.4% between 2010 and 2015 (Table 1.1), as a result of its large nominal 
depreciation. With the collapse in iron ore exports and the decline in e bola-related aid, the 
exchange rate has been facing significant depreciation p ressures . Between mid -2015 and 
end-March 2016, the Leone further depreciated , by 18% against the US dollar .16 In response, the 
Monetary Policy Committee decided to raise the MPR to 10.5% in September 2016 (from 9.5% in 
March 2016).17 
1.3  Trade Performance  
1.14.   Sierra  Leone's exports are largely dominated by mineral products , but their composition has 
changed during the review period (Chart 1.1) . Between 2005 and 2013, exports increased nearly 
tenfold to US$1.5 billion , driven mainly by iron ore  (Table A1. 1). Its expor ts have diversified away 
from diamonds and also consist of rutile bauxite , iron ore and agricultural products  (mainly cocoa ). 
Indeed, Sierra Leone started exporting iron ore in 2011. In 2012, iron ore overtook diamonds as 
the major export product, as the T onkolili and the Marampa mines completed their first year of 
full-scale production. In 2013, iron ore accounted for 69.7% of total exports while the share of 
diamond s declined to 12.2%. With the decline in the global price for iron ore, exports declined in  
2014 and dropped to US$ 536.2 million in 2015 as a further decline in prices led to the closure of 
the two iron ore mines. China is the main market for Sierra Leone 's iron ore. The share of exports 
to the European Union, a long -standing top market , declin ed to 26.1% in 2013, at the height of 
the boom in the iron ore subsector. It jumped back to  50% in 2015  with the collapse of iron ore 
exports  (Table A1.3) . Exports to the other ECOWAS partners are generally low, peak ing in 2010 
owing to rice exports ( Chart  1.2). 
                                                
13 IMF (2016), 2016 Article IV Consultation and Fifth Review under the Extended Credit Facility and 
Financing Assurance Review and Request for an E xtension of the Extended Credit Facility . IMF Country Repo rt 
No. 16/236. Viewed at: https://www.imf.org/external/pubs/ft/scr/2016/cr16236.pdf . 
14 IMF (2016), 2016 Article IV Consultation and Fifth Review under the Extended Credit Facility an d 
Financing Assurance Review and Request for an E xtension of the Extended Credit Facility . IMF Country Report 
No. 16/236. Viewed at: https://www.imf.org/external/pubs/ft/scr/2016/cr16 236.pdf .  
15 World Bank, World Development Indicators. Viewed at:  http://data.worldbank.org/ . 
16 World Bank, World Development Indicators. Viewed at:  http://data.worldbank. org/. 
17 Bank of Sierra Leone (2016), Monetary policy statement, September 2016.  Viewed at: 
https://www.bsl.gov.sl/pdf/MPC_Statement_September%202016.pdf .  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  1.15.   Since 2011, Sierra Leone's merchandise imports have fluctuated between US$1.5 billion and 
US$1.8 billion, compared to US$ 770 million in 2010, and US$341 million in 2005 (Table A1. 2). In 
2011, imports surged by 122%, reflecting the purchase of machi nery and transport equipment 
related to mining and oil investment projects. The share of machinery and transport equipment  in 
total imports reached a peak of 44.1% in 2011 before declining as the development phase of the 
iron ore project came to an end.  In 2015, the share of food products in total imports increased to 
34.5% (compared to 21.5% in 2014), while that of mineral fuel and lubricants declined from 
31.2% to 18.2%, as a result of  lower global oil prices.  
1.16.   The overall trade deficit (on goods and servi ces) neared US$1.4 billion in 2011 (Table 1.2), 
due to imports for reconstruction, including under related major investment projects.  Between 
2005 and 2015, the overall current account  deficit was driven to a large extent by a merchandise 
trade deficit unt il 2012, and the deficit in the services account. Indeed, from a modest amount of 
US$13 million in 2005, the deficit of trade in services increased to US$1.022 billion in 2014 before 
declining to US$341 million in 2015 (provisional figures) . Other business  services (mainly 
operational leasing services, miscellaneous professional and technical services) are the main 
contributors to this deficit. Sierra Leone is a net importer of services: it is a net exporter of 
communication services, and a net importer of transportation services.   
Table 1.2 Balance of payments, 200 5, 2010 -15  
(Net flows, US$ million)  
  2005  2010  2011  2012  2013  2014  2015a 
Current account b alance  -43 -317 -1,353  -945 -886 -651 -743 
Balance on Goods and Services  -129 -474 -1,385  -1,048  -732 -1,098  -1,107  
     Goods b alance  -116 -325 -1,118  -698 -24 -76 -766 
          Goods exports  184 361 389 1,059  1,548  1,306  582 
          of which:          
               Diamonds (official)  142 113 129 162 186 208 154 
               Diamonds (unrecorded)  14 14 24 12 7 6 5 
               Rutile  0 41 39 176 130 96 92 
               Iron o re 0 0 15 357 1,065  743 77 
               Bauxite  0 31 39 17 14 39 43 
               Cocoa  5 37 44 23 9 26 19 
          Goods imports (f.o.b. ) -300 -686 -1,506  -1,758  -1,571  -1,382  -1,348  
          Goods imports (c.i.f. ) -341 -780 -1,712  -1,997  -1,786  -1,571  -1,531  
          of which:          
               Food -53 -104 -245 -306 -358 -337 -528 
Machin ery & tran sport e quipment  -72 -248 -754 -486 -401 -332 -335 
               Petroleum p roducts  -116 -171 -275 -347 -416 -491 -278 
     Services b alance  -13 -150 -268 -349 -708 -1,022  -341 
          Services credit  78 60 159 182 229 209 176 
          of which:          
          Travel  64 26 44 47 63 35 27 
          Transportation  12 24 30 21 26 33 20 
          Communication services  0 1 77 102 125 127 109 
          Services debit  -91 -210 -427 -532 -937 -1,231  -517 
          of which:          
          Transportation  -43 -109 -197 -249 -191 -197 -167 
          Insurance services  -8 -7 -17 -22 -36 -36 -32 
          Communication services  0 -10 -4 -14 -17 -16 -15 
          Travel  -32 -13 -14 -15 -18 -19 -9 
          Other business services  -2 -60 -183 -222 -663 -935 -283 
     Income balance  -51 -48 -217 -133 -357 -382 -112 
          Credit  5 10 9 10 11 7 9 
          Debit  -56 -58 -227 -144 -369 -389 -122 
     Current transfers balance  137 206 249 236 203 828 476 
          Credit  139 219 271 259 229 841 498 
               Official transfers  87 160 114 96 37 429 351 
               Other sector (private)  52 59 158 163 192 412 147 
          Debit  -2 -13 -22 -23 -26 -12 -22 WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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    2005  2010  2011  2012  2013  2014  2015a 
               Official transfers  -1 -1 -1 -2 -1 -3 -1 
               Other se ctor (private)  -1 -12 -21 -20 -25 -9 -21 
Capital and financial account balance  122 663 1,432  619 637 709 497 
     Capital account balance  68 149 157 151 164 78 135 
     Financial account balance  54 513 1,275  468 473 631 363 
Errors and omissions  -225 -671 -55 357 296 -23 140 
Overall b alance  -146 -325 24 31 48 36 -105 
a  Provisional figures.  
Note:  IMF IFS exchange rate (annual average) is applied.  
Source:  Information provided by the authorities of Sierra Leone.  
Chart 1.1 Product composition of merchandise trade, 2005 -2015  
 
Source:  Customs and Excise Department, Government Gold and Diamond Office , oil importing c ompanies  and 
statistics Sierra Leone.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  Chart 1.2 Direction of exports (f.o.b.), including re -exports, 2005 -2014  
0%20%40%60%80%100%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EU-27 United States Japan Switzlerand ECOWAS OtherChart 1.2
Direction of exports (f.o.b.), including re -exports , 2005 -2014
Customs and Excise Department, Government Gold and Diamond Office and Oil Importing Companies,  
Statistics Seirra Leone.Source:  
 
Source:  Customs and Excise Department, Government Gold and Diamond Office, oil importing companies and 
statistics Sierra Leone.  
1.4  Foreign Direct Investment  
1.17.   Sierra Leone 's business environment h as improved greatly thanks to various reforms 
undertaken as part of post -conflict reconstruction efforts. Total FDI inflows reached  high levels in 
2011 and 2012 (T able 1.3), reflecting investments in the energy and mining industries.   
Table 1.3 FDI inflows, 20 10-15 
(US$ million and %)  
 2010  2011  2012  2013  2014  2015  
Inward  FDI 238 950 722 430 404 519 
Inward  FDI (% of GDP)  9.2 32.3 19.0 8.7 8.1 12.3 
Inward  FDI stock  482 .. .. .. .. 1848 
Cross -border mergers a nd acquisitions  
(net sales ) 13 52 0 0 0 0 
Greenfield FDI  projects   
(from the rest of the world)  230 218 110 611 0 463 
.. Not available.  
Note:  Estimates.  
Source:  UNCTAD (2016) , World In vestment Report 2016. Investor Nationality: P olicy Challenges.  Viewed  at: 
http://unctad.org/en/PublicationsLibrary/wir2016_en.pdf . 
1.18.   China, Belgium, Germany and the United States are among Sierra Leone's main investors . 
The ebola v irus disease outbreak h as contributed to reducing FDI inflows, and a number of 
investment projects were suspended. To support the recovery, t he authorities are giving priority to 
the agriculture, mining and infrastructure sectors  in their investment promotion programmes . WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  2  TRADE AND INVESTMENT REGIM ES 
2.1  General Framework  
2.1.  Sierra Leone is a constitutional republic with a unicameral parliament. The Constitution of 
Sierra Leone, 1991 has been amended three times since 2005.1 Major changes include provisions 
relating to the anti -corrupti on legislation , and the use of the existing register of voters for 
by-elections (even if the register has not been revised or reviewed as prescribed). The President is 
the Head of State and the supreme executive authority. He is elected by direct universal  suffrage 
for a term of five years, renewable once. The President is assisted by a Vice -President (elected 
jointly with the President). The President is advised by a Cabinet of Ministers.  The current 
President was elected for a second term in November 2012 . The next presidential elections 
(together with the parliamentary elections) are scheduled for 2017.  
2.2.  Sierra Leone is divided into four administrative regions: the Eastern Province, Northern 
Province, Southern Province, and Western Area (where Freetown, th e capital, is located). The 
provinces are divided into 12 districts where the central government is represented by district 
councils,  and 149 chiefdoms . The chiefdoms are headed by  traditional leaders (paramount chiefs) 
elected for life by tribal authoriti es, and are in charge of the day -to-day administration of their 
localities.  
2.3.  Legislative power is vested in the Parliament. The Parliament consists of 124 members 
elected for a five -year term: 112 are elected directly through the "district block" represent ation 
system, and 12 indirectly to represent provincial districts. The last legislative elections were held 
on 17  November 2012. In general, a bill passed by the Parliament becomes law once signed by the 
President. A law cannot enter into force until it ha s been published in the Gazette . The body of law 
consists of the Constitution, laws, ordinances, orders, regulations, and customary law. Treaties 
and international agreements, once ratified and published in the Gazette,  take precedence over 
domestic laws.  
2.4.  Headed by the Chief Justice, the Judiciary is independent from the executive and legislative 
authorities, and consists of the Supreme Court, the Court of Appeal, and the High Court of Justice. 
The Supreme Court is the final court of appeals and has supervi sory jurisdiction over all other 
courts in Sierra Leone. The High Court of Justice has jurisdiction over civil and criminal matters. 
Appeals are brought, in first instance, to the Court of Appeals, and in final instance, to the 
Supreme Court. Judges, inclu ding the Chief Justice, are appointed by the President, subject to 
parliamentary approval.  
2.5.  In 2010, the Government launched a Fast Track Comm ercial Court and introduced an 
alternative dispute r esolution mechanism to reduce delays and the costs of commercia l disputes 
and litigations. These have contributed to reducing the backlog of commercial cases and the time it 
takes from filing to judgement to an average of 2 months (compared to 2 to 6 years previously).2 
However, the effectiveness of the court is limited by resource constraints.  
2.6.  The Ministry of Trade and Industry (MTI) is responsible for trade policy. It collaborates with 
relevant ministries and agencies, including: the Ministry of Finance and the National Revenue 
Authority, on tariffs and customs issue s; the Ministry of Justice and the Law Reform Commission, 
on legal and judicial matters and reforms; the Ministry of Foreign Affairs, on trade negotiation and 
representation; the Bank of Sierra Leone, on financial services issues and various technical 
ministries responsible for areas such as agriculture, fisheries, mining, labour, lands, and tourism.  
2.7.  The MTI also collaborates with private sector institutions such as the Chamber of 
Commerce, Industry and Agriculture;  the Chamber of Mines; and other trade, p roducer, and 
consumer associations. There is no formal consultation with the private sector on trade policy 
formulation and/or implementation. Established in 2007, t he Sierra Leone Business For um is 
the main consultative mechanism between the public and pr ivate sector. Before the outbreak 
                                                
1 The Constitution of Sierra Leone, Act No.  6 of 1991.  
2 The Investment Climate Facility for Africa, online information. Viewed at: 
http://www.icfafrica.org/project/fast -track-commercial -court-in-freetown  [06.10.2016].  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  of the ebola virus d isease , the public -private sector dialogue was deemed "very good".3 A 
public -private consultation mechanism is in place for the cocoa sector.  
2.8.  In 2008, t he MTI established the National Coordinating Comm ittee on Trade (NCCT), a 
comprising relevant ministries and agencies, as well as representatives from the private sector 
and the academia. The NCCT was structured in various subcommittees, each overseeing a specific 
trade -policy issue.  According to the aut horities, the Committee is being revived through 
assistance from the DFID's Trade Advocacy Fund . Trade policy evaluation is under the 
purview of the  MTI. No evaluation has been undertaken so far.  
2.9.  Sierra Leone considers the fight against corruption as a pri ority and critical to the delivery of 
its Agenda for Prosperity . The Anti -Corruption Commission (ACC) was established in 2007 to 
investigate alleged instances of corruption and prevent corruption practices. The National 
Anti-Corruption Strategy (NACS) is t he main framework for the Government's anti -corruption 
policy. During the review period, the Government implemented two NACS with a focus respectively 
on prevention and enforcement (NACS 2005 -08), and constructive engagement and institution 
strengthening ( NACS 2008 -13). The Parliament also enacted a new anti -corruption Act4 to, 
inter alia, broaden the range of offences (from 9 to 29 offences); provid e protection for "whistle 
blowers "; mak e it mandatory for civil servants to declare their assets; and strengt hen the ACC. 
Unlike the previous legislation, the new act gives the ACC the power to prosecute. Between 2001 
and 2014, the ACC reported 95 cases of convictions.5 Sierra Leone ratified the United Nations 
Convention against Corruption (UNCAC) in 2004, and th e African Union's Convention on Preventing 
and Combating Corruption, in 2008.   
2.10.   As a mineral -rich country, Sierra Leone endorsed the Extractive Industries Transparency 
Initiative (EITI) in 2006. It has been designated EITI compliant as of April 2014. The 20 13 
reconciliation exercise reported  payments of US$48.7 million  by compan ies against Government 
receipts of US$52.4 million.6 The Government has established an online repository th rough which 
revenues generated from mining companies (and forestry licences)  are publicly made available.7 
2.11.   Since its last Trade Policy Review in 2005, Sierra Leone has adopted or amended laws 
in several areas, including: customs, mining, business environment, banking, and intellectual 
property (Table 2.1).  
Table 2.1 Main trade and investment -related legislation issued/amended/implemented 
since 2005  
Law Latest amendment  
Business environment and investment   
   The Constitution of Sierra Leone, 1991  The Constitution of Sierra Leone (Ame ndment) 
Act, 2016  
   Anti-Corruption Act, 2008   
   Investment Code, 2005   
   General Law  (Business Start -Up) (Amendment) , 2007  
   Investment and Export Promotion Agency Act, 2007   
   Companies Act, 2009  Companies (Amendment) Act, 2014  
   Bankruptcy Act, 2009   
   Registration of Business Act, 2007   
   Sierra Leone Produce Marketing Act (Repeal) Act 2013   
   Public Private Partnership Act, 2014   
Sierra Leone Small and Medium Enterprises Development Agency 
Act, 2016   
   Local Content Agency Act 201 6  
Taxation   
   Good and Services Tax Act, 2009   
   Finance Act  Finance Act, 2016  
   Customs Act, 2011   
                                                
3 EIF (2013), Sierra Leone Annual Progress Report 2013.  Viewed at: 
http://www.enhancedif.org/en/file/1074/download?token=ObUQ3oN2 .  
4 The Anti -Corruption Act 2008, repealing the Anti -Corruption Act 2000.  
5 Anti Corruption Commission online information. Viewed at: 
http://www.anticorruption.gov.sl/index.php? p=102&pn=Concluded%20Criminal%20Cases  [05.10.2016].  
6 SLEITI (2016), Sierra Leone Extractive Industries Transparency Initiative 2013 R eport.  Viewed at: 
http://www.sleiti.gov.sl/admin/images/news/SLEITI%202013%20RECONCILIATION%20REPORT.pdf .  
7 Government o f Sierra Leone Online Repository. Viewed at: 
http://sierraleone.revenuesystems.org/login/auth .  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  Law Latest amendment  
Mining   
   Mines and Mineral Act, 2009   
   Petroleum (Exploration and Production) Act, 2011  Petroleum (Exploration and Production) 
(Amendment) Ac t, 2014  
   Petroleum Regulatory Agency Act 2014   
   Diamond Cutting and Polishing Act, 2007   
   National Minerals Agency Act, 2012   
Utilities   
   National Electricity Act, 2011   
   Electricity and Water Regulatory Commission Act, 2011   
Transport   
   Road Transport Authority Act, 1996  Road Transport Authority (Amendment) Act, 2014  
   Maritime Administration Act, 2001  Sierra Leone Maritime Administration  
(Amendment) Act, 2007  
Standards and technical regulations   
   Weights and Measures Act, 2010   
Communications   
   Telecommunications Act, 2006  The Telecommu nications (Amendment) Act, 2015  
   Postal Services Regulatory Agency Act, 2012   
Intellectual Property   
   Copyright Act, 2011   
   Patents and Industrial Designs Act, 2012   
   Trade Marks Ac t, 2014   
Financial services   
   Payment Systems Act, 2009   
   Home Mortgage Finance Act, 2009   
   Credit Reference Act 2011   
Anti-Money Laundering and Combatting of Financial Terrorism Act, 
2012  
   Bank of Sierra Leone Act, 2011   
   Borrowers and L enders Act, 2014   
   Insurance Act, 2016   
Other   
   Environment Protection Agency Act, 2008   
   Public Procurement Act, 2016   
   Legal Practitioners Act, 2015   
Source:  Parliament of Sierra Leone online information, "Acts". Viewed at: 
http://www.parliament.gov.sl/ParliamentaryBusiness/Acts.aspx ; and information provided by the  
authorities.  
2.2  Trade Policy Objectives  
2.12.   The ultimate goal of Sierra Leone's trade policy is to help crea te wealth and employment.8 
The Government seeks to achieve this goal by promoting and developing a robust and competitive 
private sector. It intends to, inter alia , develop a transparent trade -regime; build the required 
capacity and infrastructure for incr eased participation in global trade; promote competition; 
protect consumers; and encourage inflows of aid, private investment, and migrant remittances.  
2.13.   Sierra Leone's trade policy is also guided by a number of trade -related policies and 
strategies, includi ng the 2007 National Export Strategy, the Local Content Policy, and the Small 
and Medium Enterprises Policy.  
2.14.   Sierra Leone views participation in global trade as a vital factor in its economic development 
and intends to build the required capacity to reap the related benefits. In that regard, it supports 
initiatives towards the elimination of trade -distorting measures within international fora such as 
the WTO, promotes trade with the other ECOWAS countries, and is taking steps to better utilize 
existing tra de preferences.  
2.3  Trade Agreements and Arrangements  
2.3.1   World Trade Organization  
2.15.   Sierra Leone is an original Member of the WTO. It extends at least MFN treatment to all its 
trading partners. Sierra Leone is neither a signatory nor an observer to any of the pluri lateral 
agreements concluded under the WTO.  
                                                
8 Ministry of Trade and Industry (2010), Sierra Leone National Export Strategy 2010 -2015.  Viewe d at: 
http://www.3adi.org/tl_files/music_academy/campus/Nigeria/3adi/SIL_Natl_Export_Strategy.pdf  [14.0 9.16]. WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  2.16.   The authorities view the multilateral trading system as important for their country's 
integration into global trade. They recognized that reaping the benefits from WTO membership will 
not come automatically and t hat Sierra Leone will continue to rely on trade -related technical 
assistance, including in capacity building, to address shortcomings in its institutions. They agreed 
the Trade Facilitation Agreement would offer benefits in terms of reduced time and tradin g costs, 
but that considerable investment in infrastructure would be needed.  
2.17.   Sierra Leone joined the Integrated Framework in 2005. Under the Enhanced Integrated 
Framework (EIF), Sierra Leone benefited from two projects on trade information and tourism.9 Its 
Diagnostic Trade Integration Study update was validated in November 2013, and is aligned with its 
Agenda for Prosperity . At the 10th Session of the Ministerial Conference in 2015, Sierra Leone 
emphasized its need for technical assistance and capacity bui lding through EIF and the Aid for 
Trade initiative s, in particular as it was embarking on the phase of recovery from the ebola virus 
disease.10  
2.18.   Sierra Leone established a Mission to the WTO in 2011.  It continues to face difficulties in 
fulfilling its notif ication obligations, and has made only two notifications to the WTO since its 
previous TPR. In 2014, Sierra Leone notified the WTO Committee on Safeguards that it has no 
relevant legislation, regulation s or administrative procedures on safeguard measures.11 In 2010, 
Sierra Leone notified the Committee on Subsidies and Countervailing Measures that it had not 
established an authority competent to initiate investigations, and had not taken any countervailing 
action.12  
2.19.   Sierra Leone has not been involved in any d ispute case, as a complainant, respondent, or 
third party. In the negotiations at the WTO, Sierra Leone is a member of the ACP group, the 
African Group, the G -90, the LDCs, and the "W52" sponsors.13 
2.20.   Within the WTO, Sierra Leone is currently under administra tive measures (category III) due 
to contribution arrears. As a consequence, Sierra Leone is, in principle, denied training and 
technical assistance other than those necessary to meet its GATT Article XIV -2 obligations.  
2.3.2   Regional agreements  
2.3.2.1   African Union  
2.21.   Sierra Leone is a founding member of the African Union (AU), successor to the Organization 
of African Unity (OAU). The AU aims to become an economic and political union. The Abuja Treaty 
provides for the establishment of the African Economic Community (AEC) b y 2028, using existing 
regional economic communities (RECs) as pillars.14 Sierra Leone participates in this process 
through the Economic Community of West African States (ECOWAS). However, the integration 
process has been slow in taking hold.  
2.22.   Through the A frican Peer Review Mechanism, the AU has been providing an opportunity for 
countries to voluntarily submit for review, their policies and practices in the areas of democracy 
and political governance, economic governance and management, corporate governance , and 
socio-economic development. Sierra Leone acceded to the Mechanism in 2004, and in 2010, 
                                                
9 Enhanced Integrated Framework online  information. Viewed at: 
http://www.enhancedif.org/en/country -profile/sierra -leone .  
10 WTO document WT/MIN(15)/ST/64, 21 December 2015.  
11 WTO document G/SG/N/1/SLE/1 , 20 March 2014.  
12 WTO document G/SCM/N/202/SLE, 15 January 2010.  
13 The "W52" sponsors support a proposal for modalities in the negotiations on geographical indications 
(establishing a multilateral register for wines and spirits, and extending the higher level of protectio n beyond 
wines and spirits), and for patents applicants to disclose the origin of genetic resources and traditional 
knowledge used in their inventions ( http://www.wto.org/eng lish/tratop_e/dda_e/negotiating_groups_e.htm ). 
14 The pillars of the AEC are: the Community of Sahel -Saharan States (CEN -SAD), the Common Market 
for Eastern and Southern Africa (COMESA), the East African Community (EAC), the Economic Community of 
Central A frican States (ECCAS), the Economic Community of West African States (ECOWAS), the 
Intergovernmental Authority on Development (IGAD), the Southern African Development Community (SADC), 
and the Arab Maghreb Union (UMA).  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  became the 15th country to complete its peer review.15 In the report, the panel of experts 
identified several economic constraints16, and noted that poverty, poor e nergy supply, and 
inadequate and poorly maintained infrastructure are the key challenges to the country's political 
and socio -economic development. They suggested that priority be given to,  inter alia,  corruption, 
and mineral resources management.   
2.3.2.2   Economi c Community of West African States  
2.23.   Sierra Leone has been a member of the Economic Community of West African States 
(ECOWAS)  since its establishment in May 1975.17 The ECOWAS was notified to the WTO in 2005 
under the Enabling Clause .18 ECOWAS members adopted a common external tariff (CET) in 
October 2013 ; some member S tates have been implementing the CET since January 2015. The 
authorities indicated that Sierra Leone plans to implement the CET as from  1 January 2017.   
2.24.   Sierra Leone has ratified ECOWAS's Trade L iberalization Scheme (ETLS), which provides for 
products deemed of Community origin to be traded across borders duty free and without 
quantitative restriction. To benefit from the ETLS, the companies and each of their products must 
be registered as meeting  the rules of origin specified under the scheme. Registration of products 
involves a two -stage approval process: a national committee examines the application and makes 
recommendations to a regional committee for decision. Sierra Leone set up its National Approval 
Committee in 2014. To date, the Committee has approved nine enterprises and their products 
under the ETLS.  
2.25.   The ECOWAS protocols establish the free movement of persons: ECOWAS citizens with a 
valid travel document and health certificate may stay fo r up to 90 days in another ECOWAS 
member state before being required to apply for residency. In principle, residency is automatically 
granted upon application. The authorities indicated that ECOWAS citizens are treated identically to 
national citizens in e stablishing and running a business.   
2.26.   The ECOWAS' Monetary Cooperation Programme (EMCP), adopted in 1987, called for the 
creation of a single monetary zone in the sub -region. As part of their efforts to implement the 
EMCP, the Heads of State of six ECOWAS m embers who are not members of the West African 
Economic and Monetary Union (WAEMU) have been working since 2000 to establish a second 
monetary zone in the sub -region, the West African Monetary Zone (WAMZ).19 The WAMZ 
comprise s Sierra Leone, the Gambia, Ghan a, Guinea, Liberia, and Nigeria. The launch of its single 
currency has been delayed many times.  
2.3.2.3   Other arrangements  
2.27.   Sierra Leone is a founding member of the Mano River Union (MRU), established in 1973 with 
Liberia. Guinea joined the MRU in 1980, and C ôte d'Ivoire, in 2008. All MRU members are also 
members of the ECOWAS. The objective of the MRU is to eliminate barriers to bilateral trade, and 
to promote cooperation in the expansion of international trade and the expansion of productive 
capacity, with a view of forming an economic union among members. Member countries adopted a 
common external tariff in 1977, and launched a customs union in 1981. However, the integration 
process was disrupted by episodes of political instability and violent armed conflicts wit hin the 
region. The MRU resumed its activities in 2008.  
2.28.   Sierra Leone joined the Community of Sahel -Saharan States (CEN -SAD) in 2008.20 The 
main objective of the CEN -SAD is to establish a comprehensive economic union based on a 
development plan consistent wi th the national plans. Specifically, CEN -SAD aims to carry out 
                                                
15 APRM (2012), Republic of Sierra Leo ne: APRM Country Review Report No. 12, January. Viewed at: 
http://aprm -au.org/admin/pdfFiles/Country -Review -Report.pdf  [20.09.2016].  
16 The constraints include poor resource mobiliz ation, a lack of access to credit, and a lack of institutions 
to support agricultural credit.  
17 The other members of ECOWAS are Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, the Gambia, 
Guinea, Guinea -Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierr a Leone, and Togo.  
18 WTO document WT/COMTD/N/21, 26 September 2005 . 
19 All WAEMU countries are members of ECOWAS.  
20 CEN-SAD is  a regional organization created in 1998 at the initiative of six countries from the Sahel -
Saharan region : Burkina Faso, Libya, Mal i, Niger, Sudan, and Chad.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  common infrastructure projects in transport and communications, development of trade between 
the member States, and the removal of barriers to the free movement of goods, commodities and 
servic es. Like ECOWAS, CEN -SAD is one of the eight pillars of the African Economic Community. 
However, its progress in trade and economic integration has been relatively slow.  
2.3.3   Preferential trade arrangements  
2.29.   As an LDC, Sierra Leone is eligible for non -reciproca l GSP treatment from a number of 
countries, including Australia, Belarus, Canada, EU, Japan, New Zealand, Russian Federation, 
Switzerland, Turkey, and the United States.21  
2.30.   In addition to the GSP, Sierra Leone is eligible for the EU's "Everything But Arms I nitiative", 
which provides LDCs with non -reciprocal, duty-free and quota -free access to the EU market. Sierra 
Leone is participating in the negotiations for an Economic Partnership Agreement (EPA) with the 
EU, through the ECOWAS group. The EU is among Sier ra Leone's major trading partners 
(section  1.3). In 2009, 2.3% of Sierra Leone's exports to the EU were under the GSP.22  
2.31.   Sierra Leone is eligible for preferences under the U.S. African Growth and Opportunity Act 
(AGOA), including  its apparel provisions. In  2005, it was established that Sierra Leone met the 
requirements for exports of handicrafts to the United States. Cane products (sugar, molasses, 
ethanol, etc.) and oil -palm products (palm oil, palm kernel oil, oilcake from palm, palmitic acid, 
etc.) are e ligible for duty -free export to the United States.23 In 2013, four additional products 
(lemon grass, ginger, tobacco, and bitter root) were added to the list of eligible products.24  
2.32.   Sierra Leone receives trade preferences from other developed countries unde r their national 
preference schemes. Although it has not signed the Agreement on the Global System of Trade 
Preferences among Developing Countries (GSTP), Sierra Leone, as an LDC, is granted 
non-reciprocal preferences by certain signatories.25 
2.33.   Sierra Leone has signed some bilateral agreements, for example with: Angola, China, 
Ghana, Guinea, Cote d'Ivoire, Liberia, Morocco, Nigeria, and South Africa. These agreements are 
mostly on trade cooperation matters.  
2.4  Investment Regime  
2.34.   Since its last Trade Policy Review , the Government has undertaken measures to improve its 
investment framework and attract FDI. These include a zero -tolerance policy against corruption; 
the adoption of new laws, especially in the mining and minerals sector; and the simplification of 
busine ss registration procedures. In 2009, the Government introduced a goods and services tax, 
repealing several taxes imposed under different pieces of legislation.26 In 2016, the Small and 
Medium Enterprises Development Agency  was established , with a view to fostering  a conducive 
business environment for small and medium enterprises.27 
2.35.   Several reforms were also implemented in areas relating to, inter alia , business taxation, 
investment policy and promotion, business registration, and in the tourism sector.28 These  reforms 
                                                
21 UNCTAD (2011), Generalized System of Preferences: List of Beneficiaries, 
UNCTAD/ITCD/TSB/ Misc.62/Rev.5. Viewed at:  http://unctad.org/en/docs/itcdtsbmisc62rev5_en .pdf. 
22 European Commission document SEC(2011) 536 final, 10 May 2011. Viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2011/sec_2 011_0536_en.pdf  [06.10.16]. 
23 U.S. Department of Commerce online information. Viewed at: http://agoa.info/news/article/4519 -
sierra-leone -preferential -market -access -to-key-markets -for-sugar -palm-oil.html  [20.09.16].  
24 U.S. Department of Commerce online  information. Viewed  at: http://agoa.info/news/article/5057 -
sierra -leone -four-products -certified -for-us-export.html  [20.09.16].  
25 UNCTAD online information. Viewed at:  
http://unctad.org/en/pages/Pre ssRelease.aspx?OriginalVersionID=65 . 
26 Goods and Services Tax Act, 2009. The Act repeals taxes imposed under: the Entertainment Tax Act, 
1971; the Restaurant Food Act, 1989; the Development of Tourism Act, 1990; the External 
Telecommunications Tax Act, 19 95; and the Sales Tax Act, 1995.  
27 Small and Medium Enterprises Development Agency Act, 2016 . 
28 Economisti Associati (2015),  Evaluation  of the World  Bank Group's  investment  climate  programs:  
Sierra  Leone  Case Study  – Good Results  in Attracting  Foreign  Investment  but Challenges  for Sustainability . 
Washington, D.C.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  have contributed to improving the country's Doing Business ranking from 168th place in 2006 to 
140th in 2013.29 Sierra Leone ranked 147th on the 2016 Doing Business Index. Sierra Leone ranks 
relatively better in terms of the subcategories of protec ting minority investors (88th), starting a 
business (99th) and enforcing contracts (105th). Lower rankings were recorded in the areas of 
getting electricity (178th), trading across borders (164th), and registering properties (159th). 
2.4.1   Legal framework for bu siness  
2.36.   The Companies Act  of 2009, the Registration of Business Act  of 2007, and their subsequent 
amendments are the main laws governing the registration and op eration of businesses in 
Sierra  Leone. In accordance with these laws, all business es must registe r with the relevant agency 
before starting its activities. The Corporate Affairs Commission  (CAC)  deals with companies' 
incorporation, while sole proprietorships and partnerships are registered with the Office of the 
Administrator and Registrar General (OA RG).  
2.37.   Since its previous TPR, Sierra Leone has taken steps to streamline the process for business 
registration. Companies are no longer required  to, inter alia , obtain a foreign exchange control 
permit from the Bank of Sierra Leone; pay an advance tax befo re registration; have their 
Memorandum and Articles of Association established by a lawyer; or renew their business 
registration annually. In addition, the Bankruptcy Act 2009 made it easier to handle cases of 
business closure.  
2.38.   For companies, the incorpora tion process involves: a company name search, free of charge, 
conducted manually or electronically at the Corporate Affairs Commission; the business name 
registration and incorporation by the CAC; and the issuance of a tax clearance certificate. The 
numero us fees have been replaced by a flat fee of Le 250,000. The registration fee for sole 
proprietorships and partnerships is between Le  20,000 and Le  60,000 depending on the class of 
business. One -stop shops have been set up at the OARG and the CAC in order t o expedite the 
registration process. Starting in 2014, investors may submit registration application s and pay 
applicable fees online through the CAC website.30 
2.39.   In addition to these procedures, foreign companies wishing to establish a subsidiary may be 
required to authenticate the documents of the parent company abroad. A trade licence from the 
MTI is no longer required for companies wishing to engage in international trade.  
2.40.   The Investment Promotion Act, 2004 provides for equal treatment of foreign and domes tic 
investors. With a few exceptions, foreigners may invest in any legitimate form of business. The 
restrictions include prohibition of foreign participation in airport and port operation services31, and 
the requirement to have nationals holding at least 25 % of shares for investments of less than 
US$500,000 in the mining sector.  
2.41.   The Act guarantees remittance of profits and repatriation of capital without restrictions, 
except any applicable obligation under the Income Tax Act. Foreign investors are guaranteed  
against expropriation, and have access to the judicial system on the same basis as nationals.  
2.42.   All investors may open and maintain bank accounts in foreign currency. They may, in 
principle, withdraw and remit any amount from a commercial bank, and have it  transferred into 
any freely convertible currency at any legal market clearing rate. Investors may also acquire 
foreign currencies through foreign exchange auctions conducted regularly by the Bank of 
Sierra  Leone. There is no minimum capital requirement ex cept for investments in banking and 
telecommunications.  
2.43.   The Sierra Leon e Investment and Export Promotion Agency (SLIEPA) is responsible for the 
administration of the Investment Promotion Act.32 Its responsibilities include promoting investment 
opportunitie s and providing a one -stop service to investors. The SLIEPA is under the supervision of 
the MTI. With the country emerging from the Ebola crisis, SLIEPA has been working on rebranding 
                                                
29 The World Bank's Doing Business website. Viewed at: http://www.doingbusiness.org . 
30 The Corporate Affairs Commission, online information. Viewed at: www.cac.gov.sl .  
31 World Bank online information. Viewed at: http://iab.worldbank. org/data/exploreeconomies/sierra -
leone . 
32 Sierra Leone Inve stment and Export Promotion Act, 2007.  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  it as a destination for investment. A number of guides were published in  2015 (including an 
Investor Guide), and a "Sierra Leone Back to Growth" documentary was disseminated.33 
2.44.   Some restrictions are in place for land access. Indeed, n on-citizens and foreign companies 
are not allowed to own land in Sierra Leone; they may lease l and for a term of 21 years, 
renewable. A longer term (50 -year term renew able for 21 years) is available for foreign companies 
involved in agricultural activities. The leasing of public land is subject to approval by the Ministry of 
Lands. Decisions are gen erally issued within 14 days of the request. Land outside Freetown and 
the Western Area are governed by the customary land tenure system (section  4.1). 
2.45.   In 2014, the minimum wage for all workers was raised to Le  500,000 (US$115) per month 
(compared to Le  21,000 previously).34 
2.4.2   Local content prescriptions  
2.46.   Sierra Leone adopted a local -content policy in May 2012.35 The stated goal of the policy was 
"to promote growth and development of the domestic private sector by creating linkages with the 
large domestic and fo reign firms through the utilization of local resources and products, and to 
promote the integration of the Sierra Leoneans in all economic activities". The policy details 
prescriptions for the use of locally -sourced goods and services, national preference in contracts 
and procurements, employment of nationals, a nd national owne rship (T able 2.2 ). 
Table 2.2 Key policy prescriptions in the Local Content Policy  
Objective  Prescriptions  
Use of locally 
available good s and 
services   Investment incentives:  the granting and/or continued use of incentives is conditional on 
compliance with the LCP. In particular, a local -content plan will be required upon application for 
government incentives;  
 Materials, products and goods:   
o Manufacturing industry: at least 10% of domestically produced input s;  
o Beer industry: up to 20% of locally produced sorghum;  
o Bakery and confectionery: up to 10% of cassava flour produced locally from locally 
grown cassava;  
o Sugar industry: for any produc t requiring sugar as an additive, up to 15% of locally 
produced sugar in the first five years, and up to 30% in the succeeding five years ; 
o Soap making industry: up to 50% of locally produced palm oil in the first five years, 
and up to 70% in the succeeding  five years;  
o Flour industry: up to 10% of wheat flour produced locally in the first five years, and 
up to 30% in the succeeding five years;  
o Locally produced fabric, wood carvings and painting s: 25%.  
 Services sector:  requirement to use services providers re gistered and located in Sierra Leone. 
Where there is no local entity, the foreign entity shall operate in partnership with a nationally 
owned and registered company.  
o Hotel, h ospitality and tourist industry   
National preference 
in contracts and 
procuremen ts  Contracts and concessions:  first consideration should be given to Sierra Leonean firms in 
sectors such as mining and the petroleum industry;  
 Procurements: a preferential margin of 10% for domestic firms;  
 Bid evaluation:  a 5% price preference is granted , provided that the local content of the selected 
bid is at least 5% higher than that of its closest competitor.  
Employment of 
nationals   Employment targets:  at least 50% of nationals at the managerial level and 40% at the 
intermediate level. If the requi red skills are not available locally, the company must demonstrate 
a capacity -building plan to comply with the requirement within 5 years;  
 Use of foreign skills:  all junior -level positions shall be held by nationals. The employment of 
expatriates is subjec t to quotas.  
                                                
33 SLIEPA (2015), Sierra  Leone: An Investor's Guide. A Private S ector Perspective on the Investment 
Landscape . Freetown, July 2015. Viewed at: 
https://drive.google.com/file/d/0B5QXLAFG5MhiRmRsRlRoNWRyUmM/view .  
34 The previous rate of Le 21,000 (US$5.75) was set in 1997 (The Minimum Wage Act, 1997).  
35 Government of Sierra Leone (2012), Sierra Leone Local Content Policy . Viewed at: 
https://www.humanitarianresponse.info/sites/www.humanitarianresponse.info/files/assessments/approved_loc
al_conten t_policy_document_0.pdf  [06.10.2016].  WT/TPR/S/ 303/Rev.2  • Sierra Leone  
 
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  Objective  Prescriptions  
Local ownership   Local -foreign partnerships:  first consideration to be given to companies with significant equity 
ownership by nationals, when assigning rights such as mineral concessions;  
 Promote access to finance by nationals.  
Source:  Sierra Leone Local Content Policy and information provided by the authorities.  
2.47.   A Local Content Agency was established in 2016 with the task of enforcing the policy.36 
Companies are required to submit local content plans to demonstrate compliance with the policy . 
Violations are subject to fines and the loss of investment incentives.  
2.4.3   International investment agreements  
2.48.   Sierra Leone has ratified six multilateral investment agreements, including the ICSID 
Convention37 and the Convention establishing the Multilateral Investment Guarantee Agency 
(MIGA).38 Sierra Leone is not a party to the Convention on the Recognition and Enforcement of 
Foreign Arbitral Awards (New York Convention).  
2.49.   Sierra Leone has signed bilateral investment agreements with Germany (signed in 1965), 
the United Kingdom (signed in 1981 and revised in 2000), and China (signed in 2001, not in force 
yet).39 Agreements on double taxation avoidance are in force with the United Kingdom, Denmark, 
Norway, and India.  
 
                                                
36 The Sierra Leone Local Content Agency Act 2016 . 
37 The International Convention on the Settlement of Investment Disputes (ICSID) between States and 
Nationals of other States . 
38 The other investment agreements are:  the Convention setting up the Inter -Arab Investment 
Guarantee Corporation of May  1971 (since April 1974); the Agreement for the Promotion, Protection and 
Guarantee of Investment among Members States of the Organization of Islamic Conference of 1 June 1 981 
(since 23  September 1986); t he Unified Agreement for the Investment of Arab Capital in the Arab States 
of 1982;  and the Agreement of the Islamic Corporation for the Insurance of Investment and Export Credit of 
19 February 1992 (since 1 August 1994).  
39 UNCTAD  online information. Viewed at:  http://investmentpolicyhub.unctad.org/IIA/CountryBits/189 . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE   
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and requirements  
3.1.  Sierra Leone ranks 164th among 189 economies in terms of the ease of trading across 
borders, according to the World Bank's Doing Business 2016 report.1 The Customs Act 2011 is the 
main law governing customs procedures in Sierra Leone. It is administered by the Customs and 
Excise Department (CED) of the National Revenue Authority (NRA).  
3.2.  The main documents required for customs clearance include commercial invoice(s), a bill of 
lading, a d estination inspection classification and valuation certificate (from the destination 
inspection company), and evidence of fund transfer. Other documents such as a phytosanitary or 
fumigation certificate  or a certificate of origin may be required depending on the nature of the 
goods or the country of origin.  
3.3.  In 2010, Sierra Leone replaced its manual customs clearance system with the Automated 
System for Customs Data (ASYCUDA). The ASYCUDA++ platform is currently in place at the main 
customs office in Freeto wn, the Queen Elizabeth Port, the Lungi International Airport, and the 
Gbalamoya border post. The day -to-day operation of the system is frequently affected by issues 
related to Internet connectivity and electricity supply. The ASYCUDA has helped to increas e the 
efficiency of the customs administration. Processing and clearance times have been reduced 
considerably, to as short as four hours for consignments that do not require a customs 
examination.  
3.4.  The process for importing goods into Sierra Leone includes the following steps: submission of 
the destination inspection form together with other required documents to the relevant destination 
inspection company; submission of the delivery order (upon arrival of the consignment); 
completion and assessment of the S ingle Customs Declaration using ASYCUDA; and, payment of 
duties and taxes at the bank. Once the importer submits all supporting documents to customs, 
ASYCUDA triggers the selectivity of the customs declaration to one of the four lanes for clearance 
process ing: green lane (immediate release of the cargo without inspection); blue lane 
(documentary check before release); yellow lane (detailed documentary check before release); 
and red lane (detailed documentary check and physical examination).  
3.5.  Sierra Leone ha s not yet ratified the WTO Trade Facilitation Agreement, nor has it notified its 
list of category A commitments. A trade facilitation gap analysis was conducted in May 2016, with 
the support of the WCO and the World Bank. The authorities indicated that the  ratification process 
was under way.  
3.6.  During the review period, Sierra Leone gradually replaced its pre -shipment inspection with a 
destination inspection. The pre -shipment inspection was terminated in 2009. The destination 
inspection  too aims to assess qua lity, quantity and value, and to propose customs classification of 
imports. The programme is carried out by two companies under contracts: Africa Link Inspection 
Company (ALIC), for shipments arriving by sea, and Sierra Inspection Company (SIC) for 
shipmen ts arriving by air or through terrestrial borders. The inspection companies collect a service 
fee of 0.8% of the assessed f.o.b. value of the consignment. They also collect a fee of 0.15%, on 
behalf of the Sierra Leone Bureau of Standards, and 0.05%, on be half of the Destination 
Inspection Secretariat within the Ministry of Trade and Industry. These bring the overall charge to 
1% of the f.o.b. value of the consignment. There is no exemption. The inspection company also 
charges a container scanning fee of US $50 for 40 feet containers and US$30 for 20 feet 
containers.2 The inspection company issues a c lassification and valuation certificate (CVC) which is 
required for customs clearance operations.  
3.7.  The authorities indicated that the destination inspection cont racts contain provisions for the 
training of customs officials in classification and valuation, with a view to preparing the Customs 
                                                
1 World Bank (2016), Doing Business 2016: Measuring Regulatory Quality and Efficiency.  Wash ington, 
DC: World Bank Group.  
2 Awareness Times , online information. Viewed at: 
http://news.sl/drwebsite/exec/view.cgi?archive=8&num=21115  [07.10.16].  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
- 27 - 
 
  Administration to take ownership of the functions covered by the contract. The current contracts 
run until 2023.  
3.8.  The follo wing products are exempted from the destination inspection: arms, ammunition, and 
related parts and accessories imported by the Government for military or paramilitary use; 
explosives and pyrotechnical products; commercial samples; live animals; fruits; ve getables; 
eggs; meat (fresh, chilled or frozen); newspapers and periodicals (HS heading 4902); precious 
metals and precious stones (HS headings 7101 to 7112); work of art, collectors' pieces, and 
antiques (HS chapter 97); goods by courier and parcel post; personal and household effects; and 
radioactive and nuclear substances. Goods belonging to non -governmental organizations, and 
goods imported by diplomats for their own use are also exempted.  
3.9.  There is no formal mechanism for consultations between the custo ms authorities and the 
public. The Customs Act 2011 mandates the Commissioner -General to ensure that all relevant 
information is easily available to interested stakeholders, and to consult with them with a view to 
increasing cooperation and compliance. The  NRA's Public Education Department is in charge of 
making customs -related information available to the public.  
3.10.   The Customs Act 2011 allows  stakeholders to apply for an advance binding ruling on, 
inter alia, the tariff classification, determination of origi n, and the valuation method. In principle, 
the ruling is valid throughout the country. In practice, binding advance rulings are issued only on 
matters related to classification.  
3.11.   The Act allows the CED to seize imported goods in cases of smuggling, or where  it is 
determined that the goods have been intentionally mis -described or under -valued by an importer, 
with the intention to avoid payment of duties. Seized goods, if they are not prohibited, may be 
released upon payment of a penalty. In the case of smuggl ed goods, the penalty amounts to the 
value of the goods, augmented by applicable duties and taxes. In the case of mis -described or 
under -valued goods, the penalty is twice the amount of all duties and taxes on the 
first contravention, three times in case o f recidivism, and four times in case of multi -recidivism. 
Importers and clearing agents are encouraged to voluntarily report any error, omission or 
infraction. No penalty will be assessed if such a report occurs prior to the initiation of an audit or 
an in vestigation. Importers have the right of appeal on goods seized or penalties assessed. 
Appeals are received, in first instance by the Commissioner -General. Any contravention to the 
customs law may be prosecuted within five years from the date of its end.  
3.12.   Traders are not required to use the service of a licensed customs clearing agent, provided 
that they demonstrate their ability to use ASYCUDA. Licences for customs clearing businesses are 
granted by NRA's Commissioner -General. Applicants have to, inter ali a, demonstrate that they 
have trained staff in ASYCUDA and other customs processes, and acquire a guaranteed bond. A list 
of licensed customs is published annually in the Gazette .  
3.1.2   Customs valuation  
3.13.   The Customs Act 2011 is broadly based on the provisions o f the Agreement on 
Implementation of Article VII of the GATT 1994 (WTO Customs Valuation Agreement). The Act 
prohibits the use of minimum, arbitrary or fictitious values. However, in practice, Sierra Leone 
continues to use minimum values on some food items , drinks, clothing and footwear, toiletries, 
plastic chairs, and engine oils.  
3.14.   A customs officer may examine and re -determine the classification of the goods, their value 
or the country of origin within five years of the date of the customs declaration. Su ch a decision 
can be appealed to the Commissioner -General within 90 days of receipt of the formal notice. The 
appeal does not dispense the importer from payment of the re -assessed import duties and taxes. 
The Act requires the Commissioner -General to decide  on the appeal as soon as possible, but does 
not give a specific delay. The importer has the right to lodge a further appeal to the High Court 
within 90 days of the date of notification of the decision by the Commissioner -General.  
3.15.   Sierra Leone is a member of the World Customs Organization. Sierra Leone acceded to the 
Kyoto Protocol in 2006 and started implementing it from February 2007.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.1.3   Rules of origin  
3.16.   Under the Customs Act 2011, the country of origin of a product is the country where it was 
wholly obtained , or the country of its last substantial transformation. A product is deemed to have 
undergone a substantial transformation if such a transformation leads to a change in the tariff line 
(at the HS 6 -digit subheading).  
3.17.   As a member of the ECOWAS, Sierra Leon e grants duty -free treatment to products 
originating in other ECOWAS members. Under the ECOWAS Protocol, goods are considere d as 
originating in the member S tate where they were wholly produced or sufficiently transformed. 
Sufficient transformation in this case is a change in the tariff line (HS 6 -digit subheading), 
local-content of at least 60%, or local value added of at least 30%.  
3.18.   Sierra Leone's exports are granted preferential treat ment under various agreements 
(section 2.3). In order to benefit, the ex porter is usually required to obtain a certificate of origin, 
issued in many cases by the Chamber of Commerce, Industry and Agriculture (CCIA). For exports 
to ECOWAS countries and to the European Union, the CCIA issues the certificate and certifies the 
other export documents against payment of a fee of Le 300,000.  
3.19.   Companies that wish to benefit from the ECOWAS Trade Liberalization Scheme must 
register with the ECOWAS Commission, and register each of the products they wish to ship 
duty free. The registration  procedure involves a two-stage approval process where a national 
committee forwards the decision to a regional committee. It takes between four and six months to 
obtain approval.3 The process is considered by many operators as cumbersome, and a barrier to  
exports  to the other ECOWAS member States .  
3.20.   Exports under the AGOA provisions follow a different process. Businesses are required to 
register with the AGOA Secretariat, located within the Ministry of Trade and Industry. In addition 
to the registration req uirement, exports of textile or apparel products must be accompanied by a 
visa issued by the Ministry of Trade and Industry.4 
3.1.4   Tariffs  
3.21.   Border taxation remains an important source of government revenue in Sierra Leone. 
Import duties accounted for 14.1% of to tal domestic revenue in 2015 (Table  3.4).  
3.1.4.1   Applied MFN tariff  
3.22.   Sierra Leone became a contracting party to the International Convention on the Harmonized 
Commodity Description and Coding System  (HS Convention)  in 2015. It uses the Harmonized 
System for its customs tariff. The 2016 applied MFN tariff is based on the 2007 version of the HS 
(HS2007). It has 5,467 lines at the 8 -digit level. All t ariffs rates are ad valorem  (Table 3. 1). The 
2016 tariff averages out to 12% (down from 13.9% in 2004), reflecting ma inly lower imports 
duties on manufactured products (ISIC definition). The tariff has 6 bands (Chart  3.1); most 
products fall in the 5% band (44.9% of tariff lines) or the 20% band (41.1% of tariff lines). Only 
0.3% of tariff lines are duty -free; these incl ude some pharmaceutical products, medical 
equipment, children's books, and computers. The highest rate (30%) applies to 0.7% of tariff line, 
mainly beverages (alcoholic and non -alcoholic) and used vehicles (older than 10 years).  
3.23.   Sierra Leone has neither s easonal nor variable tariffs. The customs tariff is applied to the 
value of imports plus the incurred cost of insurance and freight (c.i.f. value). In the absence of 
proper insurance documentation, insurance cost is assessed at the rate of 0.375% of the va lue of 
goods.   
3.24.   Sierra Leone's applied tariff is subject to frequent reviews, mainly through Finance Act s. 
These frequent revisions are likely to impact the predictability of the tariff regime. In 2016, the 
                                                
3 Hoppe M. and F. Aidoo (2012) , Removing Barriers to Trade between Ghana and Nigeria: Strengthening 
Regional Integration by Implementing ECOWAS Commitments . The World Bank Group, Africa Trade Policy 
Notes No. 30, March . 
4 Statutory Instrument – Export Control (Textiles and Apparel Arti cles) Regulations 2004, Supplement to 
the Sierra Leone Gazette , Vol. CXXXV, No. 16, 11 March 2004.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  tariff was amended to, inter alia , set the duty ra te at 5% on all "raw materials" or "packaging 
materials".5 There is however some room for discretion, as  the legislation provides a 
non-exhaustive list of such materials, and tariff line numbers are not always available.6    
Table 3.1 Structure of applied MFN tariffs, 2004 and 2016  
(%) 
 Description  2004  2016  Final bounda 
1.  Bound tariff lines (% of all tariff lines)  100.0  100.0  100.0  
2. Simple average tariff rate  13.9 12.0 47.6 
 Agricultural products (WTO d efinition)  16.5 15.6 40.6 
 Non-agricultural products (WTO definition)  13.5 11.4 48.7 
 Agriculture, hunting, forestry, and fishing (ISIC 1)  14.6 14.4 42.1 
 Mining and quarrying (ISIC 2)  5.3 5.4 50.0 
 Manufacturing (ISIC 3)  14.1 12.0 47.8 
3.  Duty-free tariff lines (% of all tariff lines)  0.4 0.3 0.0 
4.  Simple average rate of dutiable lines only  14.0 12.0 47.6 
5.  Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 0.0 
7. Domestic tariff peaks (% of all tariff lines)b 0.0 0.0 0.0 
8. International tariff peaks (% of all tariff lines)c 47.2 41.8 100.0  
9. Overall standard deviation of applied rates  9.5 7.2 6.5 
10. Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
a Final bound rates a re based on the 2016 tariff schedule in HS07 nomenclature.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are th ose greater than zero, but less than or equal to 2%.  
Note:  The 2004 tariff is based on the HS02 consisting of 5,577 tariff lines (at 8 -digit tariff line level). The 
2016 tariff is based on the HS07 consisting of 5,467 tariff lines (at 8 -digit tariff line l evel). No duty 
rates are provided for 4 tariff lines.  
Source:  WTO (2005); and WTO Secretariat calculations based on tariff information provided by authorities and 
the WTO Consolidated Tariff Schedule database.  
Chart 3.1 Breakdown of applied MFN tariffs, 201 6 
(0.3)(44.9)
(12.5)
(0.4)(41.1)
(0.7)
0102030405060708090100
05001,0001,5002,0002,5003,000
Duty-free 5 10 15 20 30
Number of lines Cumulated percentage (right-hand scale)
Figures in parentheses denote the share of total lines.  They do not add to 100% since duty rates are not 
available for 4 tariff lines.  The 2014 tariff schedule consists of 5,467 tariff lines.  
WTO Secretariat calculations, based on data provided by the authorities of Sierra Leone.Chart 3.1
Breakdown of applied MFN tariffs, 2014
Number of tariff lines
Source:Note:Per cent
 
Note:  Figures in parentheses denote the share of total lines. They do not add to 100% since duty rates are 
not available for 4 tariff lines. The 201 6 tariff schedule consists of 5,467 tariff lines.  
Source : WTO Secretariat calculations, based on data provided by the authorities of Sierra Leone.  
                                                
5 Finance Act, 2016.  
6 Schedule to the Finance Act 2016 (List of Raw and Packing Materials).  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
- 30 - 
 
  3.25.   The coefficient of variation of the tariff is 0.6, indicating moderate dispersion of the rates. 
With an average of 15.6%, MFN rates on agricultural products (WTO def inition) are generally 
higher than the overall average. The highest rate applies to dairy products, beverages, spirits and 
tobacco. Tariffs on non -agricultural products average 11.4%. Using the ISIC (Revision 2) definition 
of sectors, agriculture (includin g hunting and fishing) remains the most protected sector, with an 
average tariff of 14.4%, followed by manufacturing (12%), while imports of mining and quarrying 
products face the lowest tariffs (5.4%).  
3.26.   Escalation in the MFN tariff is mixed, with semi -processed products being subject to a lower 
average applied rate than raw materials, while fully processed products attract a higher average 
applied rate (Table 3. 2). At a disaggregated level (ISIC 2 -digit), positive tariff escalation is 
prevalent in most ind ustries (Chart 3.2), pointing to high rates of effective protection. This is, for 
example, the case of textiles and apparel, and non -metallic mineral products, where the average 
applied rate on fully processed items exceeds by more than 10  percentage point s, the rate on 
products at the first stage of processing. Such high protection does not encourage these industries 
to improve their international competitiveness.  
Table 3.2 Comparative analysis of Sierra Leone 's MFN tariff and the ECOWAS CET,  2016  
 Sierra Leonea ECOWAS 
CETb 
Number  
of lines  Average  
(%) Range  
(%) Coefficient  
of variation  Average  
(%) 
Total  5,467  12.0 0-30 0.6 12.3 
HS 01 -24 846 16.3 5-30 0.4 16.1 
HS 25 -97 4,621  11.2 0-30 0.6 11.4 
By WTO cate gory 
WTO agricultural products  789 15.6 5-30 0.4 15.6 
Animals and products thereof  94 19.0 5-20 0.2 23.9 
Dairy products  29 19.0 10-20 0.2 16.0 
Fruit, vegetables, and plants  203 17.9 5-20 0.3 17.6 
Coffee and tea  31 15.5 5-20 0.4 12.0 
Cereals and prepa rations  97 14.4 5-20 0.4 13.5 
Oils seeds, fats, oil and their products  93 10.6 5-20 0.5 14.1 
Sugars and confectionary  23 14.3 5-20 0.5 13.8 
Beverages, spirits, and tobacco  83 20.7 5-30 0.3 17.0 
Cotton  6 5.0 5.0 0.0  5.0 
Other agricultural products, n. e.s. 130 10.4 5-20 0.7  9.5 
WTO non -agricultural products  4,678  11.4 0-30 0.6 11.7 
Fish and fishery products  127 16.7 5-20 0.3 15.4 
Minerals and metals  935 10.4 5-20 0.7 11.7 
Chemicals and photographic supplies  901 7.7 0-20 0.7  8.0 
Wood, pulp, paper,  and furniture  275 11.4 0-20 0.6 11.4 
Textiles  653 14.3 5-20 0.4 16.0 
Clothing  219 20.0 20.0 0.0 20.8 
Leather, rubber, footwear, and travel goods  170 16.1 0-20 0.4 12.9 
Non-electric machinery  525 6.7 0-20 0.7  7.0 
Electric machinery  248 13.9 5-20 0.5 11.2 
Transport equipment  205 9.7 5-30 0.9 10.2 
Non-agricultural products, n.e.s.  400 14.3 0-30 0.5 14.3 
Petroleum  20 10.3 5-20 0.7  7.9 
By ISIC sectorc 
ISIC 1 - Agriculture, hunting, and fishing  312 14.4 5-20 0.5 11.5 
ISIC 2 - Mining and quarrying  100 5.4 5-20 0.4  5.1 
ISIC 3 – Manufacturing  5,054  12.0 0-30 0.6 12.5 
By stage of processing  
First stage of processing  658 11.7 5-20 0.6 10.2 
Semi-processed products  1,778  9.0 5-20 0.6 10.0 
Fully processed products  3,031  13.8 0-30 0.5 14.0 
a The 2016 t ariff is based on HS07 nomenclature consisting of 5,467 tariff lines (at 8 -digit tariff line 
level). No duty rates are provided for 4 tariff lines.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  b The ECOWAS tariff schedule is based on HS 2012 nomenclature consisting of 5,899 tariff lines 
(at 10-digit tariff line level).  
c International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded 
(1 tariff line).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Chart 3.2 MFN tariff escalation by manufacturing, ISIC 2 -digit, 201 6 
(%) 
0.02.55.07.510.012.515.017.520.022.5
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
productsBasic metal Fabricated
metal
products and
machineryOthern.a.
n.a.Chart 3.
MFN tariff escalation by manufacturing, ISIC 2 -digit, 2014
Per cent
First stage of 
processingFully 
processedSemi -
processed
Not applicable.
WTO Secretariat calculations, based on data provided by the authorities of Sierra Leone.n.a.
Source:Average applied rate in manufacturing
(12.0 %)
 
Source:  WTO Secretariat calculations, based on data provided by the authorities of Sierra Leone.  
3.27.   The authorities indicated that Sierra Leone w ould start  implement ing the new ECOWAS  
common external tariff (CET) on 1 January 2017.7 Although the CET rates are within Sierra Leone's 
WTO binding commitments, implementation will lead to some changes to the structure of the 
applied tariff. Sierra Leone will be required to elimin ate its 15% and 30% bands, which currently 
apply to about 1.1% of tariff lines; to apply the 35% rate to the "specific goods for economic 
development"; and to revise its tariff structure accordingly. Sierra Leone would have to lower by 
more than 3 percenta ge points its tariff on (using the WTO classification): dairy products; 
beverages, spirits, and tobacco; coffee and tea; and leather, rubber footwear, and travel goods 
(Table 3.3). Import duties on fish and fishery products will be lowered by about 1.3 per centage 
points. For animals, oil seeds, fats, oil and related products, the adoption of the new ECOWAS CET 
would lead to higher average tariffs (up 5 percentage points on animals and related products). 
Sierra Leone would also have to raise duties on minera ls and metals by an average of 
1.3 percentage points.  
3.28.   The ECOWAS authorities also adopted an Import Adjustment Tax (IAT) and a 
Supplementary Protection Tax (SPT), to take effect simultaneously with the CET. These measures 
would allow countries to deviate f rom the CET rates when necessary  and under specified 
conditions . The IAT is to be used in instances when a country needs tariff protection higher than 
provided by the CET. Sierra Leone is yet to identify its list of products that would be subjected to 
the IAT. These taxes are for a transitional period of  up to  five years, and should not apply to more 
than 3% of all tariff lines.  
3.29.   During the Uruguay Round, Sierra Leone bound all its tariffs lines at ceiling rates between 
30% and 80%, with an average bound ra te of 47.5%. Tariffs on agricultural products were bound 
at a ceiling rate of 40%, except for preparations of cereals, flour (HS Sections 1902 -1905), solid 
soup (HS Section 2104), cotton linters (HS Sections 5501 -5504), which were bound at ceiling 
rates of  30%, and beer made from malt (HS Section 2203) at 80%. Tariffs on non -agricultural 
                                                
7 The first ECOWAS common external tariff was established in 200 6, and based on the WAEMU's 
four-band CET: 0% on essential  social goods; 5% on goods of primary necessity, raw materials and specific 
inputs; 10% on intermediate goods; and 20% on final consumption goods. Sierra Leone did not implement this 
CET. In 2007, t he Heads of States adopted a Supplementary Act creating a 5th band at 35% on "specific goods 
for economic development"; the resulting revised CET was adopted in October 2013 and is due for 
implementation from 1 January 2015 ( ECOWAS Commission (2013) ). WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
- 32 - 
 
  items are all bound at a ceiling rate of 50% except for certain items.8 Sierra Leone's schedule of 
commitments has been transposed into HS07 and certified effective as of 2 5 October 2014.9 
3.30.   Many of Sierra Leone's bound rates are considerably higher than applied duties, leaving 
scope for the authorities to raise applied rates within the ceiling bindings (Chart 3.3). This reduces 
the predictability of the tariff regime.  
Chart 3.3 Average MFN tariff rates, by WTO product categories, 2016  
(%) 
0102030405060
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21 22 23 24
WTO Secretariat calculations, based on data provided by the authorities and WTO CTS database.%Chart 3.[avg]                
Average MFN tariff rates, by WTO product categories, 2014
Source:1 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and plants
5 Coffee and tea
6 Cereals and preparations
7 Oils seeds, fats, oil and their 
products8 Sugars and confectionary
9 Beverages, spirits and 
tobacco
10 Cotton
11 Other agricultural 
products
12 WTO Non -agriculture
13 Fish and fishery products
14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper and 
furniture
17 Textiles
18 Clothing19 Leather, rubber, footwear 
and travel goods
20 Non -electric machinery
21 Electric machinery
22 Transport equipment
23 Non -agricultural products
24 PetroleumApplied rates
Bound rates
Average applied rate
(12.0%)Average bound rate
(47.6%)
 
Source:  WTO Secretariat calculations, based on data provided by the authorities and WTO CTS database.  
3.1.4.2   Other duties and charges  
3.31.   Sierra Leone bo und its other duties and charges (ODCs) at rates that vary between zero and 
50%, depending on the product10; most tariff lines were bound at either 50% (80.1% of HS 6 -digit 
subheadings), or 20% (15.2% of HS 6 -digit subheadings). The zero bound ODC rate appl ies to 
3.8% of HS 6 -digit subheadings including rice; baby food items; children's books; machinery, 
mechanical appliances and parts; and medical instruments.  
3.32.   In practice, Sierra Leone is levying the ECOWAS Community Levy on imports from 
non-ECOWAS countri es, at the rate of 0.5% of the c.i.f. value. This charge is intended to finance 
the operating expenses of the ECOWAS Commission and regional integration projects.  
3.33.   Bills of lading for duty free imports are subject to a stamp duty of Le 750,000. Port  charge s 
are assessed on the volume of imports and exports, at rates ranging from Le 500/t to Le 1,000/t. 
A customs processing fee of Le 30,000 is applicable to all transactions.  
                                                
8 Items bound at 30%: pharmaceutical products; fertilizers; disinfectants, insecticides, fungicides, 
herbicides, pesticides; printed books, booklets, brochures, pamphlets and leaflets; children's picture books and 
printing books; maps; pumps for liquid; air pu mps, vacuum pumps and air or gas compressors, fans; 
machinery and mechanical appliances, electrical equipment and parts; transmitters, colour televisions; 
tractors; buses, trucks and trailers; and medical, dental, surgical, and veterinary instruments and a ppliances. 
Items bound at 35%: hand tools and implements. Items bound at 70%: motor vehicles with capacity up 
to 2,000 cc. Items bound at 80%: motor vehicles with capacity exceeding 2,000 cc.  
9 WTO document WLI/100 , 17 November 2014 . 
10 WTO online informati on. Viewed at:  
http://www.wto.org/english/thewto_e/countries_e/sierra_leone_e.htm . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
- 33 - 
 
  3.34.   These other duties and charges apply to all products, including those bound at zero  by 
Sierra Leone.  
3.1.4.3   Internal taxes  
3.35.   The Goods and Services Tax (GST) has been in place since 2010; it replaced the sales tax 
and some other taxes.11 It is an important source of government revenue. In 2015, it accounted 
for about a quarter of government domest ic revenue (Table 3. 4).  
3.36.   The GST is levied at a standard rate of 15% on taxable goods and services (domestically 
produced and imported goods). On imports, the base comprises the c.i.f. value, customs duties, 
and any other tax or fiscal charge payable on th e importation of goods. GST -exempted goods and 
services include12: animals; fish and birds imported for breeding and rearing purposes; agricultural 
inputs, seeds, bulbs, and roots imported for propagation; rice (in its raw state); machinery for use 
in agric ulture, veterinary, fishing, and horticulture, manufacturing and mining; exports of 
minerals; water (excluding package and distilled water); crude oil and hydrocarbon products 
(excluding lubricating oils); books and newspapers; land, buildings, and public work; and some 
services (education, medical, and pharmaceuticals services; passenger transportation13; and 
financial services).  
3.37.   Sierra Leone levies an excise tax on about 51 tariff lines at specific rates, and at ad valorem  
rates between 5% and 35% (Table 3.3). The tax base is the c.i.f. value of imports  or the sale 
value (for domestic goods) . The tax on tobacco products was removed in 2006, but reinstated in 
2013. In 201 5, the excise tax contributed to 9.3% of the Government's domestic revenue 
(Table  3.1), with a large share coming from petroleum imports.  
Table 3.3 Products subject to the excise tax, September 2016  
Tariff item  Description  Tax rate and basis  Amending 
legislation  
22.02  Aerated waters and non -alcoholic beverages  
Soft drinks, bottled or canned  10% on sales or CIF  
0% on sales  Finance Act, 2013  
Finance Act, 2014  
22.03  Alcoholic drinks (imported only):  
- alcoholic content of 10% or less  
- alcoholic content of more than 10%   
US$4/litre  
US$6/litre  Finance Act, 2016  
2204, 2205, 2207.10.90, 
2207.20, and 2208  Alcoholic beverages:  
- alcoholic content of 10% or less  
- alcoholic content of more than 10%   
30% 
35%  
 
Finance Act, 2010  
22.09  Locally manufactured:  
- alcoholic drinks of more than 10% alcoholic 
content  
- beer of more than 80% locally produced raw 
materials   
30% on sales  
 
5% on sales  Finance Act, 2016  
22.10  Locally manufactured alcoholic drinks with less 
than 10% alcoholic content  20% on sales   
22.11  Imported alcoholic drinks of less than 10% 
alcoholic content  30% on CIF   
24.02  Tobacco products  
Cigarettes  20% on CIF  
0% on sales  Finance Act, 2013  
Finance Act, 2014  
33.06  Cosmetic and cosmetic aids  10% on CIF  Finance Act, 2013  
39.07  Polythene and plastic materials  5% on CIF  Finance Act, 2013  
39.08  Rubber (imported)  10% on CIF   
2710, 2711, 2712, 2713, 
2714, 2715, and 2716  Petroleum products  30% on CIF   
 Fireworks and pyrotechnic articles  30% on CIF   
9301, 9302, 9303, 9304, 
9305, 9306.21, 9306.90, and 
9307 Arms and ammunition  30% on CIF   
97.01  Products and equipment designed for gambling  20% on CIF  Finance Act, 2013  
Source:  Excise Duty Act, 1979 and various Finance Acts.  
                                                
11 Goods and Services Tax Act, 2009.  
12 Second Schedule of the Goods and Services Tax Act, 20 09. 
13 Excluding domestic air travel, boat, and hovercraft services.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.38.   In 2010, the authorities instated a stamp duty, levied at 20% on tobacco products and 
alcoholic beverages.14 The tax applies to  imported and locally manufactured goods.  
3.39.   A withholding tax (collected as a prepayment of the income tax) is charged at a rate of 3% 
of the CIF value of imported goods intended for resale.  
3.1.4.4   Tariff preferences  
3.40.   Under the ECOWAS Trade Liberalization Scheme (E TLS), Sierra Leone grants duty -free 
treatment to approved products from approved enterprises established in any ECOWAS member 
State (section 2.3.2.2 ). 
3.1.5   Duty and tax concessions and exemptions  
3.41.   Sierra Leone's invest ment incentive schemes ( section 3.3.1.2 ) pro vide for duty -free 
importation of items such as agricultural inputs (fertilizers, seeds, pesticides, tractors and parts, 
machinery); building materials in the tourism sector; and machinery, plant, and equipment for 
mining prospection and exploration.  
3.42.   In accordance with the Customs Act 2011, exemption from the payment of customs duties 
may be granted for imported goods used for inward processing (including goods directly consumed 
in the process), as foreign aid, or under the terms of a technical assistance programme. In 
particular, exemption is granted for goods imported into a special economic zone for use in the 
production of exports. In the case of inward processing, the processed goods must be exported 
within four years of the customs declaration.  
3.43.   Goods  re-imported into Sierra Leone in the same state and within one year of exportation, 
may be entitled to a re -entry free of import duties and taxes. The importer may also claim back 
any duty and tax paid at the time of exportation.  
3.44.   The Customs Act provides for the drawback of duties on imported goods that were 
subsequently exported in the same condition, or used in the manufacture of exported goods. The 
drawback corresponds to the amount of the duty paid on the imported products. Fuel and plant 
equipment are  excluded from duty drawback. Applications for drawback of duties are receivable 
within 4 years of the customs declaration. The authorities indicated that ASYCUDA in its current 
configuration does not support drawbacks, and importers are allowed to re -utilize paid duties on 
subsequent imports.  
3.45.   The National Revenue Authority is responsible for the administration of duty waivers. The 
Finance Act 2013 introduced a cap of 3% of GDP on duty waivers  granted in a given year . In 
assessing applications for duty exem ptions, the NRA charges a non -refundable administrative fee 
of Le 750  000 per consignment.  
3.1.6   Import prohibitions, restrictions, and licensing  
3.46.   In accordance with the Customs Act 2011, the import or export of some products may be 
prohibited on the basis of, inter alia , protection of public morals; protection of human, animal, 
plant life or health; or protection of the environment. The authorities may restrict the exportation 
of some domestic materials if deemed necessary to ensure that essential quantities are  available 
to domestic industries. Prohibition measures may also be imposed for the purpose of conservation 
of exhaustible natural resources.  
3.47.   As a party to the Montreal Protocol, Sierra Leone prohibits the import and export of 
products containing ozone -depleting substances. These include non -CFC-free refrigerators, air 
conditioners, vehicles, and aerosol products (except medical aerosols).15 The importation of halon 
for firefighting is prohibited, except for the army, the police, and the airport and the por t 
authorities. The Environmental Protection Agency may issue permits for the importation of some 
ozone -depleting substances if it is satisfied that the applicant has adequate facilities to handle 
                                                
14 Finance Act, 2010.  
15 The Environment Protection Agency Act, 2008, repealing the Environment Protection Act, 2000.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  them without causing damage to the environment. Imports and exports are allowed only if they 
originate in, or are to be exported to a country that is party to the Protocol.  
3.48.   Trade in counterfeit or pirated products may be challenged by holders of intellectual 
property rights ( section 3.3.8). Permits, licences or oth er approval procedures may apply to 
imports of drugs, arms and ammunition, and hazardous products (e.g. caustic soda). Imports of 
counterfeit drugs, expired foodstuffs, and substandard goods are prohibited. Such goods, if seized, 
are systematically destroy ed.  
3.49.   In accordance with the 2011 Finance Act, importation of right -hand-drive vehicles is subject 
to an environmental impact assessment licence, and to a surcharge of 40% of the c.i.f. value. 
The 2011 Road Traffic Regulation prohibits their importation.  
3.1.7   Contingency measures  
3.50.   Sierra Leone has no legislative or institutional framework for anti -dumping, countervailing 
or safeguards actions, and has not taken any anti -dumping, countervailing or safeguard measures.  
3.51.   As a member of the ECOWAS, Sierra Leone can avail itself of the supplementary protection 
tax in case of import surges from non -members  once it starts implementing the CET .  
3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.52.   Exporters are required to submit, with their customs declar ation, the relevant business 
registration or incorporation certificate, and a tax clearance certificate. Exporters of fresh produce 
such as cocoa, coffee, ginger, and palm kernel are required to obtain a letter from the Produce 
Monitoring Board16, stating t hat they have met the statutory requirements. Other required 
documents may include a bill of lading/airway bill, and a Custom Entry Form. The customs 
declaration and supporting documents are submitted through the ASYCUDA system.  
3.2.2   Export taxes, charges, and levies  
3.53.   An export tax is levied on major domestic goods such as cocoa, coffee products, palm oil 
and palm kernel, diamonds, and gold. The tax  aims at  encourag ing value addition and support ing 
the development of local communities. The tax on cocoa, coffee, p alm oil, and palm kernel is 
levied at the rate of 2.5% of the f.o.b. export value.  
3.54.   The export tax is levied on diamonds at a rate of 3%. Small -scale mining lease -holders pay 
a royalty fee of 5% of the export value, and 1% as a valuation fee. Individuals ex porting on an ad 
hoc basis, such as tourists or exporters interested in testing the market, may obtain a special 
dispensation from the licensing requirement. However, they are charged an extra 2% in addition 
to the 3% export tax. Gold exports are taxed at the rate of 5% of their value as assessed by the 
Precious Minerals Trading Directorate. Individually mined gold is taxed at a lower rate  of 3%.  
3.55.   Most exports from Sierra Leone are zero -rated for the GST. However, some mineral 
products are taxed at the stan dard rate of 15%. These include: rutile and its by -product, iron ore, 
bauxite, gold, and diamonds.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.56.   The authorities may implement restrictions on exports for various reasons, including health, 
safety, and env ironment -related. In order to encourage farmers to export, the 2004 Investment 
Promotion Act abolished the licensing requirement for exports of locally produced goods, with the 
exception of gold, diamonds, and occasionally, some selected goods and material s (currently, 
scrap metals). Exports of traditional commodities, such as cocoa, coffee, and rubber are subject to 
a permit. Permits are issued automatically, at no cost to the trader.  
                                                
16 The Produce Monitoring Board, established in 2013 ( Produce Monitoring Board Act 2013), replaced the 
Commodity Market Monitoring Unit. WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.57.   Gold and d iamond exporters are required to obtain a licence from the Mi nistry of Mines and 
Mineral Resources. As a member of the Kimberley Process, Sierra Leone is required to certify that 
all shipments of rough diamonds are "conflict -free". The Kimberley Process Certificate is issued by 
the Directorate of Precious Minerals T rading (in the Mines and Minerals Agency) . There is no 
separate fee for the certificate. It is covered by the annual diamond exporters' fee of US$1,500.  
3.58.   In accordance with the Montreal Protocol, the exportation of ozone -depleting substances is 
prohibited. The National Drugs Control Act 2008 contains, in its First Schedule, a list of prohibited 
drugs. The transport, import or export of these drugs is considered an offence, and liable to 
conviction.   
3.59.   Exports of raw logs have been banned since 2008. Du e to env ironmental regulations, a 
special permit from the ministry in charge of natural resources is required for the exportation of 
plants and charcoal.17 
3.2.4   Export support, promotion, guarantee, and insurance  
3.60.   The authorities indicated that Sierra Leone does not oper ate any export subsidy 
programmes.  
3.61.   Established in 2007, t he Sierra Leone Investment and Export Promotion Agency (SLIEPA) 
has the mandate to, inter alia , encourage and promote the development of exports -oriented 
activities, with a special focus on agricultu re and marine resources. It provides exporters with 
information on market access and technical assistance opportunities, and advocates their 
interests. SLIEPA is governed by a board composed of representatives from relevant ministries as 
well as the Chambe r of Commerce, Industry and Agriculture, the bankers association, and the 
association of manufacturers. The agency is funded under the Government's regular budget. 
Activities undertaken include facilitation of trade fairs and exhibitions; provision of mark et 
intelligence and trade information; provision of capacity building in export value chains; and 
development of product profiles for some non -traditional exports. An investor's guide was 
published in 2016.  
3.62.   In 2010, SLIEPA developed a National Export Strat egy (NES) with a vision to "transform 
Sierra Leone into a flourishing country through a globally competitive export -driven economy".18 
The NES identified agriculture, fisheries, mining, and tourism as being strategic for export 
performance, and defined gove rnment interventions accordingly. The NES also aims to address 
cross-cutting issues such as access to trade finance, transport and trade logistics, and trade 
information services. Over its implementation period (2010 -15), the strategy is expected to put 
nearly US$590 million into the economy, mainly in the agriculture sector.  
3.63.   An assessment of the strategy19 found that export capabilities were improving, although the 
awareness of local producers about export opportunities remained limited. The report also fou nd 
that the physical infrastructure is largely inadequate, and compliance with quality requirements 
and standards is still a major challenge. Limited access to credit restricts considerably the 
development of export -oriented activities, especially in the a bsence of any export credit guarantee 
or credit risk insurance scheme. The report also pointed out the land -tenure system, in its current 
form, especially the application of the customary land system in rural areas, as an important 
barrier to the developme nt of the agriculture sector ( section 4.1).  
3.64.   In 2013, the authorities dissolved the Sierra Leone Produce Marketing Board20, a 
state-owned enterprise solely responsible for the purchase, export, and marketing of agricultural 
cash crop products including cocoa , coffee, cashew, palm oil, rice, and sorghum. The Board was 
replaced by a limited liability company, the Sierra Leone Produce Marketing Company Limited . 
                                                
17 The Agricultural Act (Public Notice No. 66 of 1974) – (Cap 185), 12 December 1974; and the Rural 
Area Act (Public Notice No. 16 of 1990) – (Cap 75), 31 December 1990.  
18 Ministry of Trade and  Industry (2010), Sierra Leone National Export Strategy 2010 -2015. Viewed at:  
http://www.3adi.org/tl_files/music_academy/campus/Nigeria/3adi/SIL_Natl _Export_Strategy.pdf  [14.09.16].  
19 Belloc M. and M. Di Maio (2012) , Sierra Leone 's National Export Strategy: Implementation issues and 
recommendations.  International Growth Centre, Working Paper 11/1018, January. Viewed at: 
http://www.theigc.org/wp -content/uploads/2014/09/Belloc -Et-Al-2012-Working -Paper.pdf  [14.09.16].    
20 Sierra Leone Produce Marketing Act (Repeal) Act, 2013.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.65.   Under the Finance Act 2011, expenses related to the promotion of exports (goods and 
services) and local brand s abroad  are fully deductible from taxable profits.  
3.2.5   Export processing zones  
3.66.    In 2011, First Step, a subsidiary of a U.S. -based non -profit agency, established a special 
economic zone (SEZ)21 near the main port of Freetown. The goal is to provide poten tial investors 
with facilities where they have guaranteed access to the logistic support and the utilities they need 
to operate their business. Enterprises that locate in the SEZ are granted several incentives, 
including a perpetual duty exemption on impor ts and exports, a three -year corporate tax holiday, 
and on -site government services including customs inspection, immigration, and business 
registration. The Government has also committed to allow investors in the SEZ to use international 
arbitration forum s to resolve disputes that may occur between them and the Government.  
3.67.   Under the ECOWAS Protocol, exports by EPZ enterprises to other ECOWAS countries are not 
eligible for preferential treatment. They are subject to customs duties at applicable rates.  
3.3  Measures Affecting Production and Trade  
3.3.1   Tax and incentives  
3.3.1.1   Tax 
3.68.   Sierra Leone's tax revenue increased steadily during the review period. In 2015, income 
taxes, goods and services tax , and taxes collected by the Customs and Excise Department 
accounted for about 87.6% of total government domestic revenue (T able 3.4).   
Table 3.4 Composition of Government domestic revenue, 2010 -15 
Source/type of tax  2010  2011  2012  2013  2014  2015  
Total domestic revenue (Le billion)  987.8 1,462.1  1,873.5  2,280.0  2,226.2  2,330.2  
 (in % of total)  
Income t axes  23.9 32.4 41.5 40.8 40.2 38.7 
   Company tax  7.7 5 10.8 11.7 12.1 10.5 
   Personal income tax  14.9 26.9 30.5 28.8 27.8 27.9 
   Other taxes  1.3 0.4 0.2 0.2 0.3 0.3 
Goods and serv ices t ax 25.3 24 22.3 19.3 20.6 25.5 
Customs and Excise Department  35.4 23.5 18.1 21.5 22.8 23.4 
   Import duties  20.7 19.3 12.6 11.8 12.8 14.1 
   Excise duties  13.9 3.8 5.3 9.7 10.3 9.3 
   Other  0.8 0.4 0.2 0.1 0 0 
Mines Department  3.2 13.8 11.9 10.3 8.4 3.7 
   Royalty on rutile  0.1 0 0.3 0.2 0.1 0.3 
   Royalty on bauxite  0.4 0 0.1 0.1 0.3 0.3 
   Royalty on diamonds and gold  0.6 1.1 1.1 1.5 1.8 1.2 
   Royalty on iron ore  0 0 3.3 5.5 4.3 0.3 
   Licences  2 12.7 7.1 3 1.8 1.6 
Other d epartments  6.4 4.7 4.3 4.4 4 4.7 
Road user c harges and vehicle licences  5.8 1.6 1.9 3.7 3.9 4.1 
Source:  Information provided by the authorities.  
3.69.   The Income Tax Act of 2000 and the various amendments constitute the main framework 
for business taxation in Sierra Leone. The main taxes applicable to businesses include:  
a. the corporate tax, levied at a rate of 30% on worldwide profits (for resident companies) 
or profits from activities  carried out in Sierra Leone (for companies established through 
a branch or a subsidiary);  
                                                
21 First Step Agreement was rat ified in February 2010.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  b. the personal income tax, applicable to worldwide income of resident individuals and 
partnerships , and levied at rates between 0 and 3 0% depending on the income level;  
c. the rental income tax , levied at a rate of 10% on income generated from building rented 
for commercial activities  (25% for non -resident individuals);  
d. the capital gains tax , at a rate of 30% of the capital gain acquired from the disposal of a 
chargeable asset;  and, 
e. the goods and services tax , levied at a rate of 1 5% on most goods and services 
(section  3.1.4.3) . 
3.70.   Interest income is taxed at a rate of 15%, and dividends for non -resident companies are 
taxed at a rate of 10%. Stamp duties are levied on  administrative services  at rates ranging from 
1% to 12.5%. Land acquisitions are  subject to  a land tax (in addition to registration fees and the 
stamp duty).  
3.71.   Sierra Leone's national pension scheme is a defined benefit scheme and is administered by 
the National Social Security and Insurance Trust (NASSIT). The employer and the employee 
contribute respect ively 10% and 5% of the basic salary to the scheme . The scheme is compulsory 
for public and private sector employees, and voluntary for the self-employed.  
3.3.1.2   Incentives  
3.72.   Incentives are provide d under various pieces of legislation, including the Income Tax Ac t, 
the Goods and Services Tax Act, various Fi nance Acts, the Business Start -Up Act, the Bankruptcy 
Act of 2009, and various sector -specific laws  (Table 3.5) . The re has been no assessment of the 
impact of these incentive schemes on the economy.  
Table 3.5 Main investment incentives  
Sector/incentive  Selected requirements  Legal basis  
General incentives    
- Deduction for income tax purposes:  
 Plant, machinery and equipment (including 
automobiles and trucks): 40%  
 All other tangible depreciable assets (except buildings 
and intangible depreciable assets): 10%  
 Building s used to house industrial, manufacturing or 
agricultural activities: 15%  
 Buildings used to house other commercial activities: 
3-10% 
 Other buildings: 3 -5% 
 Employment of dis abled persons: 200% of the cost  
 Research and development: 100% of the expenses;  
 Training of lo cal staff: 100% of the expenses  
 Social services (building schools, hospitals,  etc.: 
100% of the expenses  
 Donation into Skills Development Fund:  100% of the 
donation   Income Tax Act 
2000 and various 
amendments; 
Finance Act 2011; 
and Finance Act 
2014 
- 3 years ' duty-free import of machinery, plant and equipment 
for the first 3 years  A minimum of US$10 million 
investment for new businesses, 
US$5  million for business expansion  Finance Act 2016  
- Lower import duty (3%) on raw materials   Finance Act 2013  
- 5 to 10 years ' corporate tax exemption  Businesses with a least 20% of Sierra 
Leonean ownership, 100 employe es, 
and US$5 million investment  
 
Busine sses with at least 
150 employees and investment of 
US$7.5 mil lion get 10 years tax 
exemption  Finance Act 2014  
Refinery    
 5 years ' corporate relief tax  
 5 years duty -free imports of equipment and 
machinery   A minimum of US$20 million 
investment  
 Employment o f at least 
50 nationals   
 
 
 WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Sector/incentive  Selected requirements  Legal basis  
Agriculture    
5 years ' duty-free import of agricultural inputs (fertilizers; 
pesticides; insecticides; seeds and seedlings; hybrid tree 
seeds; seed animal for feeding; day -old chicks; and animal 
semen )  Finance Act 2013  
Poult ry and livestock    
 3 years income tax exemption  A minimum investment of US$50,000 
for nationals a nd US$500,000 for 
non-nationals   
 5 years duty free import of feeds, vaccine and 
veterinary drugs   Finance Act 2013  
Fish farming    
5 years exemption from i ncome tax on income derived from 
the farming activity and 50% of dividends paid  Farms with at least 10 fis h ponds and 
measuring at least 2 00 square metres  Finance Act 2014  
Energy    
3 years ' duty-free import of assembling stoves and cookers; 
equipment for  the production of LPG; photovoltaic system 
equipment and energy efficient appliances that meet IEC 
global standards   A minimum of US$500,000 
investment  
 Employment of at lea st 50 persons  Finance Act 2011 ; 
Finance Act 2016  
Pharmaceuticals    
 10 years ' incom e tax exemption  
  A minimum of US$500,000 
investment  
 Employment of at least 50 persons  Finance Act 2011  
 10 years ' duty-free imports of raw materials for drug 
manufacturing  
 Reduced duty rate of 3% for intermediate goods   Finance Act 2011  
Tourism    
 5 years ' income tax exemption (up to 150% of the 
original capital invested)  Hotels with a minimum of 10 ensuite 
bedrooms (50 bedrooms for hotels in 
the Western Area).  Finance Act 2011  
 Tax relief for the employment of expatriate staff for 
tourism development   Finance Act 2010  
PPP infrastructure projects    
 15 years ' income tax exemption  A minimum of US$2 0 million in capital 
investment  Finance Act 2011  
 Duty-free import of plant, machine and equipment 
during the period of construction  Subject to an approved bill of 
quantities  (excluding petroleum 
products)  Finance Act 2011  
Source:  Various Finance Act s; and information provided by the authorities of Sierra Leone.  
3.73.   According to the authorities, there is no discrimination against foreign investors with respect 
to the  granting of investment incentives. Since 2013, all investment agreements containing 
incentives must be r atified by Parliament.22 
3.3.2   Standards and other technical requirements  
3.74.   Sierra Leone has not notified any technical regulations, or its national enquiry poi nt under 
the WTO Agreement on Technical Barrier to Trade (TBT) . The enquiry point is yet to be set up.  
3.75.   The Sierra Leone Standards Bureau (SLSB)23 is the national statutory body in charge of 
standards, certification, and accreditation. It collects and dissem inates information on standards 
and related matters, verifies weights and measures, and calibrates industrial and laboratory 
equipment. The SLSB has five technical committees: the National Codex Committee, the Industrial 
Standards Board, the Metrology Comm ittee, the Food and Agriculture Committee, and the 
Engineering Technical Committee. The authorities indicated that the technical committees base 
their standards on those of international organizations, including regional institutions. In the 
absence of int ernational standards on an issue (in the case of indigenous products for instance), 
the Bureau develop s its own guidelines.  
3.76.   The SLSB is funded mainly by the Government. It also receives support from international 
and regional organizations, mainly the EU, ISO and ARSO,  through technical assistance and 
capacity -building activities. Its own resources include fees charged for the verification of weights 
and measures instruments24, and product testing.  
                                                
22 Finance Act, 2013.  
23 Standards Act No. 2 of 1996 . 
24 Statutory I nstrument  No. 11 of 2010.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.77.   In general,  the SLSB follows ISO/ IEC directives, and the Pro cedural Manual of the Codex 
Alimentarius in the development of national standards. The process includes identifying the 
country's needs and priorities, based on national development strategies such as the Agenda for 
Prosperity, the National Export Strategy  or the National Agricultural Development Plan; 
consultations with relevant stakeholders; development of the standard by the National Technical 
Committee; and publication of the standard in the Gazette .  
3.78.   The standard is then implemented by the relevant ind ustry. Once a standard is published in 
the Gazette , the regulator of the relevant industry may submit it to Parliament to make it 
mandatory. A 60 -day period is allowed for public comments before a standard can become a 
technical regulation. There are curre ntly 100 standards and 33 technical regulations (Table 3. 6). 
About 67 standards (voluntary), mainly on fresh fruits and vegetables , were published in 2014.  
3.79.   Sierra Leone has no mutual recognition agreement s in place. The SLSB may inspect all 
imports at the borders, in collaboration with the regulatory authorities and Customs. The SLSB 
checks the certificate of conformity and labelling requirements, and may perform field tests before 
issuing clearance to Customs for the release of goods. In principle, substan dard goods are 
confiscated and destroyed.  
Table 3.6 Sierra Leone's technical regulations in force, September 2016  
 Title Reference  
Alcoholic beverages  Specification for brandy  SLS 14:2010  
 Specification for  gin SLS 15:2010  
 Specification for whiskey  SLS 16:2010  
 Specification for wine -flavoured alcoholic drinks  SLS 18:2010  
 Specification for wines  SLS 19:2010  
Animal and vegetable fats and oils  Specification for edible palm oil  SLS 23:2010  
 Specification  for fortified palm olein oil  SLS 41:2010  
Building and construction materials  Specification for ordinary and rapid hardening portland 
cement  SLS 11:2010  
 Specification for portland limestone cement CEM II/B – L 
(LL) SLS 12:2010  
 Specification for portla nd limestone cement  SLS 13:2010  
 Steel for the reinforcement of concrete – Part 1: plain 
bars SLS 27:2010  
 Steel for the reinforcement of concrete – Part 2: ribbed 
bar SLS 27:2010  
 Steel for the reinforcement of concrete – Part 3: welded 
fabric  SLS 27:2 010 
Cereal, pulses and legumes  Specification for rice  SLS 9:2010  
 Specification for fortifi ed premix for wheat flour  SLS 38:2010  
 Specification for fortified soft wheat flour  SLS 39:2010  
 Specification for fortified strong wheat flour  SLS 40:2010  
 Specification for cocoa bean  SLS 7:2010  
Food technology  General principles of food hygiene  SLS 2:2010  
 General standards for the packaging of pre -packaged 
foods  SLS 4:2010  
 Specification for edible cassava flour  SLS 10:2010  
Managing for the sustained succ ess 
of an organization  Specification for raw cashew nuts and kernels  SLS 5:2010  
Quality management systems  Fundamentals and vocabulary  SLS: ISO 9000_2005  
 Requirements  SLS: ISO 9001_2008  
Roots and tubers  Specification for gari  SLS 8:2010  
Spices and con diments  Specification for fresh ginger  SLS 26:2010  
 Specification for refined common salt  SLS 29:2010  
Water quality  Specification for drinking water  SLS 21:2010  
 Specification for natural mineral waters  SLS 28:2010  
Others  Confectionery – Specification for sugars  SLS 3:2010  
 Environmental management systems – Requirements 
with guidance for use  SLS: ISO 14001_2004  
 Food safety management systems – Requirements for 
any organization in the food chain  SLS: ISO 22000_2005  
 Fresh fruits and vegetables – Specification for mangoes  SLS 6:2010  
Source:  Government Notice No. 233. Published in The Sierra Leone Gazette , Vol. CXLLII, No. 52. August  2011.  
3.80.   The SLSB has an agreement with the American Society for Testing and Materials (ASTM). 
Under the agreement, SLSB has access to ASTM 's standards, may participate in its technical 
committee meetings, and receives technical assistance. SLSB is a member of the African 
Organization for Standardisation (ARSO). It became a corresponding member of the ISO in 
January 2009. Wit h this status, the SLBS may participate in technical committee meetings as an WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  observer, but does not have the right to vote. The SLBS is an affiliate member of the International 
Electrotechnical Commission (IEC) since 2003. It has adopted standards from th e Codex, the IEC 
and the ISO (Table 3.5).  
3.81.   During the review period, the SLSB has strengthened its laboratory facilities for food 
microbiology, food chemistry  and petroleum products.  Occasionally, SLSB uses the laboratories of 
the University of Sierra Leone  for checking the quality of materials such as cement, pai nts, 
varnish, and fertilizers. A STDF project , related to a national assessment of the food control 
system , was approved in 2014. The authorities are currently working on finaliz ing an EIF Tier 2 
project on standards.25 
3.82.   In 2011, Sierra Leone switched from the English system of measurement to the 
international system of units, the metric system.26  
3.3.3   Marking, labelling, and packaging  
3.83.   Sierra Leone has some technical regulations in place for the labelling a nd packaging of pre -
packaged food (T able 3.5). SLSB has developed a conformity mark, which is yet to be adopted. 
The Price Tag Order 1956 requires traders to display prices on the shelves.  
3.84.   The Weights and Measures Act, 2010 requires sellers of packaged go ods to declare the 
gross and net weights or measures on the package. Canned goods, foodstuffs, and 
pharmaceuticals must also be labelled to show the net weight or quantity of contents, and their 
country of origin. The Act requires the liquid content of bev erages to be labelled, as well as the 
yardage and width of textiles.  
3.3.4   Sanitary and phytosanitary requirements  
3.85.   Sierra Leone has not notified the WTO of its sanitary and phytosanitary legislation. The 
phytosanitary legislation includes the Agricultural Act 19 46, the Plant Phytosanitary (Import) Rules 
of 1974, and was supplemented in 1976 with the Plant Phytosanitary (Import Restriction) Notice. 
The latter lists conditions under which about 64 categories of plants and plant products may be 
imported. It also lis ts plants that are the object of an absolute prohibition. The authorities 
indicated that a phytosanitary policy and a phytosanitary and a pest control bill are at the drafting 
stage. A draft food bill and food safety bills are under preparation . 
3.86.   In general , a phytosanitary certificate is required for the international movement of any 
plant material or product. The certificate is issued by the Ministry of Agriculture, Forestry and Food 
Security (MAFFS), in the format established by the I nternational Plant Pr otection Convention 
(IPPC) . A pest -risk analysis is carried out prior to the issuance of the certificate. Plant products 
that are considered "pathways" for pest introduction require fumigation. These include: plant 
materials; foodstuffs in jute bags, carto ns; timber, logs, piassava, ginger, rubber, kola nuts, 
furniture; other imported goods such as used mattresses, furniture, and used clothes. Since 2013, 
the authorities have charge d a fumigation fee of Le 250,000 for a  20 ft container, and Le 450,000 
for a 40 ft container; and a fee for issuing the certificate.  
3.87.   The Phytosanitary Control Unit operates at seven border ports of entry: the Queen 
Elizabeth  II Quay (Freetown); the Freetown International Airport (Lungi); the Gbalamuya Customs 
(Kambia District); th e Jendema Customs (Pujehun district); the Koindu and the Buedu Customs 
(both in Kailahun district) ; and Dogolia Customs (in the Koinaduou district) . These entry/exit 
points inspect and certify import and export consignments, issue phytosanitary certificate s, 
clearance certificates, or import and export permits.   
3.88.   The Crop Protection Unit is mandated to carry out phytosanitary inspections, treatment, and 
certification of plants and plant products for exports. It is the contact point under the SPS 
Agreement.  
                                                
25 Strengthening the Sierra Leone Quality Infrastructure to support industrial development and trade.  
26 The Weight and Measures  Act, 2010. WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
- 42 - 
 
  3.89.   The Animal Diseases Act (undated) is the main legislative framework for animal health. 
Veterinary activities are performed by the Livestock Services Division of the MAFFS. According to 
the authorities, livestock inspectors are currently available at only tw o border posts. In the fishery 
sector, the Fisheries Sanitary Regulations of 2006 give power to the Director of Fisheries to adopt 
sanitary control schemes for the supply of fishery products. These may include inspection of 
fish-processing establishments a nd management of licensing policies.  
3.90.   The authorities indicated that no SPS -related restrictions or prohibitions are currently in 
place.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.91.   Sierra Leone has not notified to the WTO any state -trading act ivity within the meaning of 
Article  XVII:4(a) of the GATT 1994.  
3.92.   In 2002, Sierra Leone established the National Commission for Privatisation (NCP) with a 
view to privatize and divestiture of public enterprises, and to reviewing existing legislation and 
proposing changes. This represented a major change as it removed the management of public 
enterprises from supervision by line ministries.  
3.93.   Recent privatization activities (Table 3.6) include a 20 -year concession contract for the 
management of the container te rminal at the Freetown port by a private company. In the 
agriculture sector, the Sierra Leone Produce Marketing Board was dissolved27, and replaced with 
the Sierra Leone Produce Marketing Company (SLPMC). The authorities indicated that the 
Government plans to disinvest 51% of its share in the SLPMC. The privatization of the Sierra Leone 
Telecommunications Company (Sierratel) is under way.  
3.94.   The authorities indicated that they are currently in the process of divesting two commercial 
banks: the Rokel Commercial Bank and the Sierra Leone Commercial Bank.  
Table 3.7 State involvement in enterprises  
Sector/Entity  Activity/Monopoly rights   State 
ownership 
(%) Privatization status  
Agriculture and manufacturing  
Sierra Leo ne Produce and Marketing 
Company  Export of agricultural produce  100 51% of shares are up for 
sale 
Forest Industries  Corporation  Furniture and logging of timber  100 Privatized  
Seaboard West Africa  Flour mill  0.01 .. 
Sierra Leone National Workshop  Economi c zone  18 Privatized  
Utilities  
Guma Valley Water Company  Supply of potable water ( de jure ) 95 Not yet privatized  
Sierra Leone Water Company  Supply of potable water ( de jure ) 100 Not yet privatized  
National Power Authority  National state electricity pro vider 100 .. 
Sierra Leone Postal Services Ltd  Postal services (de jure ) 100 Up for privatization  
Sierra Leone Telecommunication Co. Ltd  Telecommunication ( de jure ) 100 Under management 
contract since 2012  
Transport  
Sierra Leone Airport Authority  Airpor t facilities ( de jure ) 100 Up for privatization  
Sierra Leone Port Authority  Port facilities ( de jure ) 100 Up for privatization  
Sierra Leone Airlines  National airline ( de facto ) 100 No longer in operation  
Sierra Leone National Shipping Company 
Limited  Limited cargo clearing and 
forwarding services ( de facto ) 100 .. 
Sierra Leone Road Transport Corporation  Long-distance domestic bus 
services  100 .. 
Sierra Leone Roads Authority  Road construction and 
maintenance (de jure ) 100 .. 
Information services  
Sierra Leone Broadcasting Corporation  Broadcasting (de facto ) 100 .. 
Sierra Leone Daily Mail  Newspaper publication  100 .. 
Government Printing Department  Printing and supply of stationery 
to Government, and 
manufacturing educational 
material to schools.  100 Privatized in 2012  
Financial services  
Sierra Leone Commercial Bank Ltd  Banking  100 Under restructuring  
National Development Bank Ltd  Banking  98.98  Under restructuring  
                                                
27 Sierra Leone Produce Marketing Act (Repeal) Act, 2013.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Sector/Entity  Activity/Monopoly rights   State 
ownership 
(%) Privatization status  
Rokel Commercial Bank  Banking  51 In the process  
National Insurance Company  Insuranc e and life insurance  100  
Other  
Sierra Leone State Lottery Co. Ltd  Lottery ( de jure ) 100 .. 
Sierra Leone Housing Corporation  Construction of houses (de jure ) 100 .. 
.. Not available.  
Source:  National Commission for Privatization . 
3.3.6   Competition policy and  price controls  
3.95.   Sierra Leone does not have domestic legislation on competition or anti -competitive 
practices. A Competition Policy and a Consumer Protection Policy have been approved by the 
Cabinet. Related laws are yet to be approved by the Cabinet and su bmitted to Parliament for 
enactment. The Ministry of Trade and Industry is in charge of regulating anti -competitive 
practices. The authorities indicated that it is not unusual for firms to use their dominant position to 
manipulate prices.  
3.96.   In a review of S ierra Leone's investment policy regime28, the UNCTAD identified some areas 
that deserved priority consideration. These include, in the mining sector, ensuring access for other 
operators to facilities such as roads and railways that may be privately owned, a nd in the 
operation of port services, a competitive determination of prices.  
3.97.   Rice, fuel, and flour are subject to price controls. Prices of regulated services are subject to 
the approval by the relevant regulatory bodies. Similarly, the prices and charges  on goods and 
services provided by government departments, public institutions, and companies owned in 
majority by the Government, are subject to approval by the National Income and Pricing 
Commission.  
3.3.7   Government procurement  
3.98.   A large share of the Governmen t's annual budget is spent on public procurement. In  2010, 
procurement expenditure amounted to 46.8% of the budget, representing about 16% of GDP.29 
3.99.   Sierra Leone is neither a member, nor observer to the WTO Plurilateral Agreement on 
Government Procurement.  
3.100.   Public procurement in Sierra Leone is regulated mainly under the Public Procurement Act of 
2016.30 The Act applies to procurement  financed from public funds or by donors and carried out by 
ministries, departments and agencies; state -owned enterprises which  utilise public funds; local 
councils; companies and institutions in which the State has at least a 25% interest; and any entity 
in the private sector which is given the responsibility for carrying out activities using public funds. 
Exception s may be allow ed for procurement  related to national defence or national security.  
3.101.   The National Public Procurement Authority (NPPA) is in charge of ensuring that policies and 
procedures are consistent with the legislation. The Act stipulates that procurements are to be 
undertaken by relevant ministries, departments, and agencies (procuring entities). Entities lacking 
the required technical expertise may request the assistance of the Ministry in charge of works. 
Each procuring entity should establish a Procurement Committ ee, in charge of verifying and overall 
approval of the procurement process. The Committee may include officials from other procuring 
entities. The procuring entity should also establish a procurement unit, in charge of planning the 
procurement, preparing t he invitation to bid and the bidding documents, and conducting the 
                                                
28 UNCTAD (2010), Sierra Leone: Investment Policy Review . UNCTAD/DIAE/PCB/2009/14.  Viewed at: 
http://unctad.org/en/Docs/diaepcb200914_en.pdf . 
29 World Bank (2012) , Sierra Leone – Assessment of National Public Procurement System based on 
OECD and DAC Benchmarking T ool, Washington DC. Viewed at: 
http://documents.worldbank.org/curated/en/2012/05/16597175/sierra -leone -assessment -national -public -
procurement -system -based -oecd-dac-benchmarking -tool. 
30 The Public Procurement Act, 2016. Su pplement to the Sierra Leone Gazette Vol. CXLVII, No.10 dated 
25th February 2016. Viewed at: http://www.publicprocurement.gov.sl/files/Public_Procurement_Act_2016.pdf .   WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  bid-opening procedures. The Act establishes an Independent Procurement Review Panel (IPRP), 
tasked with, inter alia , reviewing bidders' complaints and challenges on contract award decisions . 
The IPRP is to be composed of three  members appointed by the Ministry of Finance for a term of 
three years. The IPRP is not functional.  
3.102.   The Act requires all public procurement to be undertaken by means of advertised open bid 
proceedings. If the procuring  entity uses another method, it must note in the records the grounds 
for the choice of the method. The procurement process may include a prequalification stage, or a 
post qualification procedure. The Act prescribes equal access for all eligible and qualifi ed bidders.  
3.103.   A margin of preference may be granted to domestic contractors, domestic suppliers, or for 
the benefit of domestically produced goods, subject to NPPA approval. The criteria for eligibility for 
the preference may be specified in terms of owners hip, location of the bidder or the production 
facilities, the origin of the labour, the raw materials or components used, or the extent of 
association with local partners.  
3.104.   Under the Act, public procurement for goods and works is to be carried out through  open 
tender s. The process may include a pre -qualification stage or a post -qualification procedure. The 
procuring entity may use a national competitive bidding procedure if it determines that only 
domestic bidders are likely to be interested. A national bid ding procedure may also be used for 
procurements below a given threshold, currently set at Le 600 million for goods and services, and 
Le 900 million for works. For procurements above these thresholds, an international competitive 
bidding procedure should b e used. Preparation and submission of bids should be allocated at least 
4 weeks in the case of a national bidding procedure, and 6 weeks for an international procedure. 
In the latter case, the invitation to bid should be published in a newspaper with adequ ate 
circulation, and technical specifications should be based on standards widely used in international 
trade.  
3.105.   Restricted bidding procedures may be used when the products are only available from a 
limited number of bidders or the time and cost of consider ing a large number of bids is deemed 
disproportionate to the value of the procurement. In the first scenario, all known capable suppliers 
shall be invited to bid. In the second case, at least five bidders shall be solicited. Request for 
quotations may be u sed for procurement of goods and services below Le 60 million, and 
procurements of works below Le  150 million. The procuring entity should request quotations from 
as many bidders as practicable, and at least three. Sole -source procurement is permitted unde r 
very limited circumstances, e.g. where the supplier has the exclusive right, or there is a situation 
of extreme urgency. In any case, the approval of the NPPA is required.  
3.106.   The recommended procurement method for consultant services is requests for propos al. 
The procuring entity is required to contact three to six firms. The solicitation of expressions of 
interest is mandatory when the estimated value of the consultant services exceeds Le 600 million. 
Shopping procedures may be used for procurements of goo ds and services below Le 60 million 
(below Le  150 million for works).  
3.107.   A bid security may be required in the bidding documents. The amount of the security must 
be explicitly stated, and should be between 2% and 5% of the estimated value of the contract.  
3.108.   The Act stipulates that the contract should be awarded to the bidder with the lowest 
evaluated and substantially responsive bid. Once awarded, the procuring entity may publish a 
notice in the Gazette,  and any newspaper of wide national circulation. Publicatio n is mandatory for 
goods and services contracts exceeding Le 300 million (Le 600 million for works).   
3.109.   The level of the contract approving authority depends on the value and the object of the 
contract. Contracts under Le 6 million for consulting services, L e 15 million for goods, Le 30 million 
for works and technical services, may be approved directly by the head of the procurement unit. 
The head of the procuring entity may approve contracts valued up to Le 60 million for goods, 
Le 100 million for works and technical services, and Le 30 million for consulting services. Contracts 
above these thresholds are to be approved by the Procurement Committee.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.110.   Procurement for drugs and medical supplies are under the responsibility of the National 
Pharmaceutical Procurem ent Unit.31 They are also subject to the provisions of the Public 
Procurement Act.  
3.111.    Foreign bidders, if registered locally or in partnership with locally registered companies, 
may participate in procurements under national competitive bidding procedures.  
3.3.8   Intellectual property rights  
3.112.   As a least developed country, Sierra Leone benefited from the TRIPS Council's decision to 
extend the transition period for the full implementation of the TRIPS to 1 July 2021.32 In 2007, 
Sierra Leone undertook an assessment of it s needs for technical and financial assistance related to 
the implementation of the TRIPS Agreement.33 Priorities were identified along the following 
clusters: updating the policy, the legal and the regulatory framework; strengthening the 
administration ser vices; and increasing awareness, understanding, and use of intellectual property 
rights. During the review period, Sierra Leone enacted new legislation relating to copyrights, 
patents and trademarks.  
3.113.   Sierra Leone is a contracting party to the World Intelle ctual Property Organization (WIPO). 
It participates in the Paris Convention for the protection of Industrial Property, the Patent 
Cooperation Treaty, the Madrid Agreement concerning the International Registration of Marks, and 
the Madrid Protocol.34 
3.114.   Sierra Leone is among the 18 members of the African Regional Intellectual Property 
Organization (ARIPO), whose mission is to provide a shared pool of expertise in intellectual 
property matters and to foster harmonization of the relevant national frameworks.35 ARIPO 
operates a system for centralized filing and substantive examination of patent, industrial design, 
and trademark applications. However, the granting of protection is governed by each member 
state's national legislation.36 While an ARIPO patent application  may offer a convenient and 
cost-effective way of obtaining patent protection in a large number of countries37, the 
enforceability and effects of ARIPO trade mark registrations vary across member states due to 
different or non -existent provisions in their n ational laws.38 Sierra Leone has ratified the Harare 
Protocol on Patents and Industrial Designs, but not the Banjul Protocol (related to the protection of 
trademarks).  
3.115.   Sierra Leone enacted a new Copyright Act in 201139, repealing the Copyright Act of 1965. 
Rights are protected during the lifetime of the author (or the last surviving author) plus 50  years. 
For works owned by public corporations or corporate bodies, protection is for 50 years from the 
date on which the work was made public. The Act provides for  copyright protection by reference to 
international agreements, that is, on the basis of residence in a country that is party to a treaty or 
other international agreements to which Sierra Leone is party, or publication of the work in any of 
these countries . Expressions of folklore are protected for perpetuity.40 
                                                
31 The National Pharmaceutical Procurement Unit Act, 2012.  
32 WTO document IP/C/64, 12 June 2013.  
33 WTO document IP/C/W/499, 3 October 2007.  
34 WIPO online information. Viewed at: http://ww w.wipo.int/wipolex/en/profile.jsp?code=sl  [21.09.16 ]. 
35 The other ARIPO members are: Botswana, the Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, 
Mozambique, Namibia, Rwanda , Somalia, Sudan, Swaziland, Tanzania, Uganda, Zambia , and Zimbabwe ; 
Angola and M adagascar have applied for membership.  
36 When filing for protection, applicants may use either the national or the ARIPO channel. In the 
process of substantive examination, ARIPO must ensure compliance with national legislation. No provisions on 
parallel i mport s, including through compulsory licensing or government use, exist at ARIPO level.  
37 The cost of an application for patent protection in all ARIPO states does not exceed US$3,000; costs 
are reduced as processing, publication, granting , and renewals ar e all managed by the ARIPO Office.  
38 At the national level, some legal frameworks have yet to provide for registration of service marks. 
Moreover, very few countries (Botswana, Lesotho, Liberia,  and Swaziland) have adopted a multi -class system 
in which a s ingle application may cover more than one class of goods and/or services, as set out in the 
International Classification of Goods and Services for the Registration of Marks.  
39 Copyright Act, 2011 . Viewed at: http://www.sierralii.org/sl/legislation/act/2011/8  [10.09.16].  
40 Sierra Leone has not yet acceded to ARIPO's Swakopmund Protocol on the Protection of Traditional 
Knowledge and Expressions of Folklore . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.116.   The Copyright Act establishes the Collecting Society of Sierra Leone, tasked with protecting 
the rights of authors and owners of copyrights. The institution is to include representatives from 
the fol lowing professional groups: musicians, music producers, writers, book publishers, 
performing artists, and film producers.  
3.117.   Sierra Leone adopted a Patents and Industrial Design Act in 201241, ending the preferential 
treatment given to marks registered in Engl and under the previous legislation. An invention is 
patentable if it is new, involves an inventive step, and is industrially applicable. The Act 
incorporates, inter alia , provisions related to marks registered in other jurisdictions. Responsibility 
for adm inistration of the register of patents, trademarks, and industrial designs lies with the Sierra 
Leone Intellectual Property Organisation (SLIPO). Patents are protected for  29 years from the filing 
date.  
3.118.   The SLIPO may issue a non -voluntary licence after a period of four years from the filing 
date (three years from the date of the grant of the patent) if it is established that the invention is 
insufficiently exploited. Similarly, the Government may exploit or authorize a third person to 
exploit a patented in vention when the public interest so requires, or when the Registrar 
determines that the manner of exploitation of a patent is anti -competitive. In the latter case, it 
should be established that such an authorization will remedy the practice. In any case, t he right 
owner is entitled to adequate remuneration.  
3.119.   Registered industrial designs are protected for five years from the filing date, renewable 
twice for the same duration. Infringements are subject to a fine not exceeding Le 60 million, 
imprisonment not exceeding 1 year, or both.  
3.120.   For an invention to qualify for a utility model certificate, it must be new and industrially 
applicable. Utility model certificates are valid for a non -renewable period of 7 years.  
3.121.   New trademark legislation was enacted in July 20 14, repealing the outdated Trade Marks 
Act of 1923 and the Merchandise Marks Act.42 Under the Trade Marks Act 2014, applications for 
the registration of trademarks are to be lodged at the Office of the Administrator and Registrar 
General (OARG). If the OARG  finds that the requirements are fulfilled, it advertises the application 
in the Gazette  as "received". Opposition may be lodged within three months following the date of 
advertisement. Once an application is accepted, the trademark is registered and adver tised in the 
Gazette  as "accepted", and a certificate of registration is issued to the applicant. The process takes 
between six and eight months. Under the new legislation, trademarks are protected for 10 years 
from the date of application, renewable for a  further 10 years (compared to 14 years previously). 
Applicants may appeal the decision of the Registrar to the Courts.  
3.122.   The legislation also establishes a Trade Marks Registry. Upon the request of an interested 
party, a trademark may be removed from the re gister if not used for a continuous period of five 
years. Trademarks are subject to: an application fee of US$1,210 for the first trade mark and 
US$1,070 for each additional mark filed simultaneously; publication and registration fees of 
US$290 per mark; a nd an assignment fee of US$680 for the first trade mark and US$460 for each 
additional mark filed simultaneously. Renewal fees amount to US$950 for the first mark and 
US$840 for each additional trade mark.  
3.123.   Sierra Leone is neither a member nor an observer o f the International Union for the 
Protection of New Varieties of Plants (UPOV). Sierra Leone is a party to the Convention on 
Biological Diversity.  
3.124.   Holders of intellectual property rights may challenge intended or pending importation, 
transit or exportatio n of suspected counterfeit trademarked goods, or pirated copyright goods. 
Upon receipt of an application from a right holder, the CED is required to make a decision within 
30 days, or within 3 days for urgent matters. The CED may suspend customs clearance 
procedures, detain the suspected goods, and eventually proceed to their destruction. In any case, 
re-exportation of the goods in an unaltered state is not allowed.  
                                                
41 Patents and Industrial Design Act 2012, repealing the United Kingdom Designs (Protection) Act, 
Cap 246, and the Patents Act, Cap  247. Viewed at: http://www.sierra -leone.org/Laws/2012 -10.pdf  [12.09.16].  
42 Trade Marks Act, 2014. Vi ewed at: 
http://www.parliament.gov.sl/Portals/0/BILLS/2014/THE%20TRADE%20MARKS%20ACT%202014.pdf .  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  3.125.   According to the authorities, copyrights and trademarks are more frequently subject to 
infringement than other IP rights. Infringements of copyrights are punishable by a fine of up to 
Le 60 million, and/or up to three years of imprisonment. Infringement of rights prot ected under 
the Trade Marks Act  is subject to a fine not exceeding Le 60 million  and/or up to five years of 
imprisonment. Victims of trademark violations have resort to court litigation. The enforcement of 
IP rights is a challenge due to the limited awareness of the public  and capacity constraints in the 
public sector.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4  TRADE POLICIES  BY SECTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  The agriculture sector (including livestock, forestry and fisheries) is the backbone of 
Sierra  Leone's economy. Its contribution to GDP was 53.7 % in 2015  (see Table 1.1). The sector 
employs about 75% of the labour force. Food crop products (mainly rice and cassava) are by far 
the most important output. According to information provided by the authorities, the production of 
rice paddy doubled to over one million tonnes  between 2006 and 2012 , owing to the 
implementation of poli cies geared toward increasing the productivity and extending the cultivated 
area. Over the same period, the production of cassava increased fourfold thanks to Government 
support to farmers through the provision of processing equipment and improved planting  
materials.  
4.2.  Imported food products account for a large share of domestic consumption. Food products 
(SITC categories) accounted for about a t hird of total imports in 2015 (T able A1.2). Major 
imported food products include: rice, wheat, flour, and poultry.  
4.3.  Sierra Leone's land tenure system is deemed to keep a sizable portion of arable land away 
from productive activities.1 There are two types of land tenure: the freehold system, applicable to 
Freetown and the Western Area, and the customary land tenure syste m, applicable to the rest of 
the country. In rural areas, individual ownership of land is not common. Under the customary law, 
the land is under the control of district paramount chiefs. They have the custody of lands on behalf 
of extended families and lin eages attached to a particular chiefdom. Therefore, they have the final 
say in granting or obstructing land access to any individual.2 This situation is aggravated by the 
decade -long conflict, which has led to the displacement of an important fraction of r ural 
population.  
4.4.  The National Lands Policy puts paramount chiefs centre stage in the formal procedures for 
foreign investors to access land. Non -citizens and foreign companies are not allowed to own land. 
They may lease land by entering into a joint ventu re with the local paramount chief. The 
paramount chief consults with local customary landowners, and if the principle of the lease is 
accepted, the investor must request approval from the Ministry of Agriculture. A land lease 
agreement may not exceed 50 ye ars, with a possibility of a renewal for 21 years. The annual rent 
rate amounts to US$5 per acre of land initially, and is subject to a review every five years.3 
4.5.  In 2008, the Ministry of Lands placed a moratorium on the sale of land in the Western Area, 
in an attempt to curb land grabbing and multiple sales. While the ban has been lifted on the sale of 
private land, it remains in force on public land. A Commercial Use of Land Bill is awaiting Cabinet 
approval.  
4.1.2   Agricultural policies  
4.6.  Agriculture is usually gi ven priority in the Government's various development programmes. 
One of the four priorities in the Agenda for Change (2008 -12) was to raise agricultural production 
and productivity.4 In 2012, the Government embarked on an Agenda for Prosperity5, setting a 
pathway to middle income status by 2035. The first pillar aimed at achieving economic 
                                                
1 See for instance, Unruh a nd Turray (2006).  
2 The Chie ftaincy Act, 2009.  
3 The rent is distributed among the following stakeholders: landowners (50%); District Council (20%); 
Chiefdom Administration (20%); and the Government (10%).  
4 The other priorities were energy, transportation, and human development. See  Government of Sierra 
Leone (2008).  
5 Government of Sierra Leone (2012), The Agenda for Prosperity, Road to Middle Income S tatus – Sierra 
Leone's Third Generation Poverty Reduction Strategy Paper (2013 -2017) . Freetown. Viewed at: 
https://unsierraleone.files.wordpress.com/2016/06/undp_sle_the -agenda -for-prosperity.pdf  [14.09.16].  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  diversification by investing massively in agriculture, manufacturing, and tourism, which were 
identified as possessing strong potential for long -term inclusive and sustai nable growth.6  
4.7.  The agriculture sector is under the oversight of the Ministry of Agriculture, Forestry and Food 
Security (MAFFS). In 2009, the Ministry developed the National Sustainable Agriculture 
Development Plan 2010 -2030 (NSADP)7, a framework linking some objectives of Agenda for 
Change to specific actions. The NSADP comprises four major investment sub -programmes: 
commodity commercialization, infrastructure development, private sector promotion, and sector 
coordination and management. However, the focu s was almost entirely on the commercialization 
component because it was deemed to have the strongest potential in terms of achieving food 
security and generating income for the poor.  
4.8.  The Smallholder Commercialization Programme (SCP), launched in 2010, is a US$403 million 
programme to move the sector away from subsistence to commercialization through, inter alia , 
increased productivity, value addition, market access expansion, provision of adequate rural 
financial services, and the development of small -scale irrigation projects. The programme aims to 
attain annual growth of 7.7% in the agriculture sector, raising farmers' income by 10%, and 
increasing food security level by 25% by 2015.  The agriculture commercialization sub -component 
is targeted at increasin g productivity, value addition and marketing with emphasis on commodity 
chain development, and strengthening farmer -based organizations (FBOs). It is expected to lead 
to the creation or the rehabilitation of about 2,750 FBOs grouped into 650 agricultural b usiness 
centres (ABCs), to be equipped with adequate infrastructure and equipment for the provision of 
agricultural services.  According to the authorities, about 392 ABCs and 1,178 FBOs where created 
or rehabilitated under the SCP.  
4.9.  In 2006, the authorities  adopted a National Seed Policy and, for its implementation, 
established a National Seed Board, a Variety Release Committee, a Seed Industry Development 
Unit, and a Seed Quality Control Unit.  
4.10.   Market access, especially to the ECOWAS and the EU markets, is a lso part of the 
Government's strategy in the sector. The National Export Strategy defined a framework for 
boosting agricultural exports to US$251 million by 2015 (from US$33.1 million in 2009).8 The SCP 
included a US$100 million component for the rehabilit ation of feeder roads. The objective is to 
rehabilitate 2,000 km of feeder roads, as well as provide for routine maintenance and spot 
improvements. About 771 km of feeder roads had been rehabilitated under the SCP, by the end 
of 2013.  
4.11.   At 15.6% in 201 6, the average applied MFN tariff for agriculture products (WTO categories) 
is more than 3 percentage points above the overall average (Table 3.3). The most protected 
products are: beverages, spirits and tobacco (with an average MFN rate of 20.7%), dairy product s 
(19%), and animal products (19%). At the other end of the spectrum, the average MFN rate is 5% 
for cotton products, and 10.6% for oil seeds, fats, oil and related products. Sierra Leone bound 
tariffs for agricultural products at a ceiling rate of 40%, wi th very few exceptions.  
4.12.   On the export side, there is a 2.5% tax on certain cash crop exports, including cocoa and 
coffee. Some agricultural products are subject to export ban (timber), licensing or permit 
requirements (agricultural produce, plants, and cha rcoal).  
4.13.   In 2009, the Government adopted a set of incentives specific to investors in the agriculture 
sector. These include complete exemption from corporate income tax until 2020, and 50% 
exemption from withholding taxes on dividends. Investments in tree c rops and rice are eligible for 
a ten -year tax holiday. Businesses in the agriculture sector, like in most of the other sectors, are 
                                                
6 The Agenda for Prosperity  relies  on 8 pillars: promoting the diversifica tion of production; managing 
natural resources; accelerating human development; fostering international competitiveness; promoting labour 
and employment; providing social protection services; ensuring good governance of the public sector; and 
promoting gen der equality and empowering women.  
7 The Plan is also the national denomination of the African Union's Comprehensive Africa Agriculture 
Development Programme (CAADP). Within the CAADP framework, in 2003 governments committed to allocate 
at least 10% of the ir expenditures to the agriculture sector within the following five years (Maputo 
declaration).  
8 Ministry of Trade and Industry (2010), Sierra Leone National Export Strategy 2010 -2015.  Viewed at: 
http://www.3adi.org/tl_files/music_academy/campus/Nigeria/3adi/SIL_Natl_Export_Strategy.pdf  [14.0 9.16]. WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  eligible for full duty exemption on their imports of machinery and equipment. In addition, they are 
entitled to full exempti on on parts and other equipment for three years, and a reduced rate of 3% 
on any other raw material. Seeds and fertilizers are exempted from import duties and from the 
goods and services tax.  Businesses in the agriculture sector are allowed to fully deduct  from their 
taxable base, expenses incurred on research and development, training, and export promotion.  
4.14.   The Government subsidy programme mainly provides farming equipment and inputs at 
discounted prices. Fertilizers and seeds are imported and subsidized a t the rate of 40% of their 
market prices. Through the SCP Tractor Hire Purchase scheme, the Government used a 
US$15  million line of credit from the Export -Import Bank of India to import about 265 tractors 
between 2009 and 2010. The tractors were sold to fa rmers (through FBOs and ABCs) at a 60% 
discount.9 The balance was to be paid over seven years with an annual interest rate of 4%.  
4.15.   Agricultural research is a key component in the Government's strategy for increasing 
productivity in the sector. The authorit ies reformed the research environment through the 
enactment of The 2007 Sierra Leone Agricultural Research Institute Act10 established the Sierra 
Leone Agricultural Research Institute (SLARI) as the national agricultural research institution, and 
brought un der its umbrella various institutions dealing with, inter alia , fisheries, livestock, and 
forestry. The SLARI is funded through government budgets, and various research grants, gifts, 
and donations. The Rice Research Station and the Institute of Agricultur al Research were reformed 
and renamed the Rokupr Agricultural Research Centre and the Njala Agricultural Research Centre, 
respectively. The Act established new research institutions for fisheries, livestock, plant genetics, 
land and water, forestry, and ho rticulture.11  
4.16.   Credit to the agriculture sector is generally limited. The 2009 Financial Sector Development 
Plan12 identified increased access to affordable finance as one of its five priorities. It devised 
strategies in terms of broadening the outreach of r ural finance, strengthening governance and 
supervision of microfinance institutions, as well as expanding the coverage by community banks.  
4.17.   In line with the Plan, the SCP includes a US$28 million component to provide financial 
services for farmers and farme r-based organizations. The programme would support the 
establishment of 32 additional community banks (to reach a target of 53 nationally), and the 
establishment of microcredit institutions at the chiefdom level.  
4.18.   The Sierra Leone Produce Marketing Company (SLPMC) was established in 2013 to operate 
as the primary exporter of agricultural produce while guaranteeing fair prices to farmers. However, 
it does not have a monopoly over the export of agricultural produce. Its activities cover cocoa, 
coffee, rice, ca shews, sorghum, and palm oil (including industrial palm oil).  
4.1.3   Key subsectors  
4.1.3.1   Crops  
4.1.3.1.1   Cocoa  
4.19.   Cocoa, and to a lesser extent, coffee, comprise Sierra Leone's major agricultural exports. 
Cocoa's share in total exports peaked at 12.5% in 2011 (from 3.3% in 2005), and then dropped to 
2.3% in 2012. The coca sector relies on about 60,000 farmers with small -sized farms (usually, less 
than two hectares). Intermediary agents typically purchase cocoa from farmers and convey it to 
traders' warehouses in urban areas; the tr aders negotiate directly with international buyers. 
Domestic processing is limited to the fermentation and drying of the beans. All production is 
exported. According to the SLIEPA, farmers receive about 55% of the f.o.b. price.  
4.20.   Sierra Leone's cocoa produc tion is relatively small compared with other regional producers, 
such as Ghana and Cote d'Ivoire. The authorities' strategy is to focus on the fair -trade organic 
                                                
9 The discount was initially at the rate of 40%.  
10 The Sierra Leone Agricultural Research Institute Act , 2007.  
11 These are the Freetown Fisheries Research Centre; the Teko Livestock Station; the Woama Plant 
Genetic Resources Centre; the Magbosi Land and Water Research Centre; the Kenema Forestry and Tree Crops 
Research Centre; and the Kabal Horticultural Cr ops Research Centre.  
12 Government of Sierra Leone (2009), The Republic of Sierra Leone Financial Sector Development Plan 
(FSDP).  Freetown, October. Viewed at: http://www.bsl.gov.sl/pdf/FSDP.pdf  [14.0 9.16]. WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  segment as a niche market. The National Export Strategy (NES) is the main policy framework for  
the subsector. Over its 5 -year framework (2010 -15), it plans to invest about US$72 million in the 
subsector through policy actions geared towards increasing production, enhancing the application 
of quality standards, and developing a robust market system.  Through the NES, cocoa growers 
were provided with fermentation boxes and drying tables. With a view to supporting organic cocoa 
farming in Sierra Leone, the Government provided training and fair trade certification 
opportunities. The NES also supported th e modernization of the regulatory framework with respect 
to certification and conformity assessment.  
4.21.   Cocoa growers received additional support through credits for the rehabilitation and the 
expansion of plantations.  
4.22.   Sierra Leone is a member of the Intern ational Cocoa Organization, comprising major cocoa 
exporting countries, and some importing countries (mainly EU).13 Sierra Leone signed the 2010 
International Cocoa Agreement in January 2012, but has not ratified it yet.  
4.1.3.1.2   Rice 
4.23.   Rice is Sierra Leone's main sta ple food. During the post -war period, rice production 
increased steadily, nearing 700,000  tonnes during the crop year 2006/07 before dropping below 
400,000 tonnes the following year (Chart 4.1). With the implementation of the National Rice 
Development Stra tegy, production picked up, reaching its 2006/07 level again in 2011/12, before 
dropping sharply the following year. Rice production is essentially for the domestic market. There 
are some marginal cross -border exports to Guinea and Liberia. Imports are an important source of 
domestic consumption (20% of domestic consumption in 201 5/16).  
Chart 4.1 Rice production and imports, 2000 -16 
('000 tonnes)  
 
Source:  U.S. Department of Agricult ure, Foreign Agricultural Service. Online database, viewed at: 
http://apps.fas.usda.gov/psdonline/psdQuery.aspx . 
                                                
13 Online information. Viewed at: http://www.icco.org/about -us/membership -of-the-icco.html  
[10.09.16].  0 200 400 600 800 1000 Imports  Production  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.24.   The 2007 National Rice Development Strategy (NRDS)14 is the main policy framew ork in the 
subsector. Its objective is to achieve rice self -sufficiency by 2015, that is, production of 
1.5 million  tonnes of paddy, by expanding of cultivated areas, and doubling productivity.15 Action 
includes rehabilitating and constructing feeder roads in key locations; providing community service 
infrastructures, such as farm market centres, daily retail markets, and irrigation schemes; 
providing inputs and agricultural services, as well as making credit accessible.  
4.25.   The SCP includes a US$55 million com ponent targeted at rehabilitating and developing 
small -scale irrigation systems for rice production. The programme is expected to rehabilitate about 
18,000  ha of inland valley swamps (IVS). According to official statistics, 8,657 ha of IVS (47.6% of 
the ta rget) have been developed or rehabilitated as of mid -2014.  
4.26.   Rice imports are duty free.  
4.1.3.2   Forestry  
4.27.   According to FAO estimates16, forest covered 38.1% of Sierra Leone's land area in 2010, 
down from 40.4% in 2000, and 43.5% two decades earlier . High reliance on  biomass -based 
energy, logging activities, and to some extent the extension of agricultural and mining activities 
are contributing to this declining trend. The contribution of the sector to GDP declined from 6.6% 
in 2005 to 4.6% in 2012.  
4.28.   The overall goal of the Government in the subsector is to ensure sustainable management 
of forest resources, and biodiversity conservation. The MAFFS is responsible for forest issues. Its 
Division of Forestry is responsible for policy implementation. The Forestry Act of 19 88 and the 
Wildlife Act of 1972 are the main pieces of legislation in the sector.  
4.29.   The Director of Forestry is  in charge of forest resources management. Forests are classified 
as: national production forests, oriented toward the production of forest produc e; national  
protection forests, destined to the preservation of the forest and the protection of related species; 
and community forests. Community forests are designated on the basis of an agreement between 
the Director of Forestry  and the Chiefdom Council . They are under the jurisdiction of relevant 
chiefdoms but the Director of Forestry retains the authority to issue permits for their exploitation.  
4.30.   The Forestry Act sets a permit requirement for operations in classified forests. A permit is 
required, in pr inciple, for: cutting, burning, uprooting, damaging or destroying trees; removing 
any timber or forest produce; clearing land; building roads or structures; taking any earth, clay, 
sand, gravel or stone; cultivating crops and grazing animals.  
4.31.   There are th ree types of forest utilization rights:  
a. forest utilization licence: grants the holder the right to perform the designated activities 
in the area covered by the licence. Licences are usually issued for a period not exceeding 
one year for a fee of Le 5 milli on. Longer periods may be granted for activities such as 
clearing land or planting trees or crops;  
b. forest utilization concession: may include, in addition to the right of felling and 
extracting timber or other forest produce, the right to build infrastruc ture for carrying 
out these activities, including roads, bridges, and saw mill factories. Utilization 
concessions are granted for periods not exceeding 10 years, but may be extended to 20 
years if the project includes substantial transformation of the fore st product. Applicants 
for forest concession must submit, together with their application, a forest management 
plan making provisions for, inter alia , forest protection; the allowable annual cut; 
protected species; and the methods of felling  and extracting  timber, sylviculture, and 
                                                
14 Coalition for African Rice Development (2009), National Rice Development Strat egy – Sierra Leone.  
Viewed at: http://www.jica.go.jp/english/our_work/thematic_issues/agricultural/pdf/sierraleone_en.pdf  
[16.09.16] .  
15 In a second stage, the cultivated area would be extended to 1.1 million hectares, and productivity 
would be raised to 4 tonnes per hectare, leading to overall production of 3 million tonnes by  2018.  
16 FAO (2011), Global Forest Resources Assessment 2010, Main Report.  FAO Forestry Paper No. 163. 
Rome, Italy. Viewed at: http://www.fao.org/docrep/013/i1757e/i1757e.pdf  [14.09.16] .   WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  reforestation measures. Concessions are negotiated with the Paramount Chief or the 
Government, depending on the status of the forest. There are currently five concessions 
licences, all issued for community forests;  
c. forest planta tion concession: gives the holder the right to clear an area with the aim of 
restocking it. It is generally valid for the estimated optimum growth cycle of the forest 
vegetation to be planted.  
4.32.   The Forestry Act provides for a Reforestation Fund to finance reforestation and encourage 
reforestation initiatives. The Fund fee is assessed at the rate of 10% on the value of exports, and 
is collected on timber, non -timber forest products, and related transport cost. Funds are 
redistributed to districts for their r eforestation activities. Holders of utilization concessions are 
required to pay an annual rent fee of US$12 per ha of forest.  
4.33.   Some restrictions on the transportation and export of fuel -wood and charcoal have been in 
place since 1990.17 Transportation of 100  kg or more of wood, and 50  kg or more of charcoal, is 
subject to a permit. The purpose of these restrictions is to limit the pressure on forest resources, 
due to the high reliance on bio -mass energy. The permit fee is to be paid to revenue collectors at 
checkpoints alongside the main roads. The fee varies between Le 1,000 and 2,000 per unit of 
timber depending on the size, and amounts to Le 500 per bag of charcoal.  
4.34.   In August 2007 the Government issued a ban on the felling, processing, and export of 
timber . The goal of the ban is to curb the over -utilization of forest resources and the loss of 
revenue caused by the expansion of illegal forest activities. The ban was lifted in 2008 and 
reinstated in 2011. The Government also adopted a set of guidelines in  2010 covering a wide 
range of forestry issues leasing of classified forest; issuance of logging permits; stumpage fees; 
including transportation of forest products; export permits; importation of chain saws and 
sawmills.  
4.35.   Sierra Leone is a party to several c onventions and treaties on conservation and 
environmental management, including: the Convention on the Conservation of Biodiversity; the UN 
Framework Convention on Climate Change; the Convention on International Trade in Endangered 
Species of Wild Fauna an d Flora; the International Convention to Combat Desertification; the 
World Heritage Convention; and the African Convention on the Conservation of Nature and Natural 
Resources.  
4.1.3.3   Fisheries  
4.36.   Sierra Leone has a coastline of 506 km, and a continental shelf of abo ut 30,000 km2, with a 
commercially viable stock of fish. The fishery sector remains a key sector of the economy, both in 
terms of employment and output. Between 2006 and 2013, its contribution to GDP varied between 
5% and 10% (Table 1.1). The sector employ s directly an estimated 100,000  persons. It is 
estimated that about a million of individuals are engaged in fisheries activities (including related 
processing). The sector comprises: the capital -intensive industrial subsector, operating mostly 
off-shore; l ow-tech artisanal fishery, operating in the in -shore marine fisheries; and aquaculture 
and inland fisheries. Total fish production  was about 13 7,000 tonnes  in 2010, the latest year for 
which the data is available .18 Artisanal catch accounted for 82% of the total production.  
4.37.   Sierra Leone does not export fish products to some of its major markets either because of 
failure to meet required standards (EU market), or the non -use of by catch reduction devices (U.S. 
market).  
4.38.   Challenges for the sector include illega l, unreported and unregulated fishing (IUU), which is 
estimated to cause annual revenue loss of US$30  million. In a move to curb this practice, the 
authorities closed their international shipping registry to foreign -owned vessels in 2010. As from 
that date , international vessels are no longer allowed to register with Sierra Leone flag.  
                                                
17 The Forestry Act No. 7 of 1988, Public Notice No. 17 of 1990.  
18 Bank of Sier ra Leone online information. Viewed at: http://www.bsl.gov.sl/statistics.html .  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.39.   The Fisheries (Management and Development) Act, 199419 is the main legislation governing 
the fishery sector. The Ministry of Fisheries and Marine Resources is in charge of dev elopment of 
the sector, and the Joint Maritime committee (JMC) deals with supervision and licensing activities. 
The Government's strategy for the sector includes promoting freshwater fishing and aquaculture, 
and establishing a semi -industrial fishing subse ctor operating in inland waters. To that end, the 
authorities have engaged in major infrastructure investments, since 2005, comprising the 
construction of fish -processing plants, dry -dock facilities, vessel -repair operations, and a new 
fishing port.  
4.40.   The 2 010 Policy Framework for the Fisheries of Sierra Leone20, for the long term 
development of the sector, aims to turn fisheries into an ecologically sustainable and economically 
efficient sector. Through the Artisanal Fisheries Development Project, the Govern ment, with the 
support of the African Development Bank, has constructed four fish landing sites at Tombo, 
Goderich, Shenge, and Bonthe. During the first stage of the project, the authorities are focusing on 
adding value to products for the local market. At  a later stage, the sites will be equipped with 
processing and distribution facilities that meet international standards.  
4.41.   Sierra Leone is also participating in the World Bank -funded West Africa Regional Fisheries 
Programme (WARFP). Through this programme, the Government had secured US$8 million of 
funding for the construction of a fisheries harbour with the infrastructure to accommodate up to 
20 vessels at a time. The complex would comprise a fisheries quay, a transhipment quay, a reefer 
quay, and a port ad ministration building. The project also includes components aiming at: 
improving governance in the sector (data collection, stock assessment); curbing illegal fishing by 
reinforcing patrolling and inspection; and value addition.  
4.42.   A draft Fisheries and Aquac ulture Bill is at the final drafting stage. The authorities indicated 
that the bill has provisions for a quota -management system for fishing activities.  
4.2  Energy  
4.2.1   Overview  
4.43.   Biomass is the main source of energy in Sierra Leone. It is estimated to account for ov er 
80% of the energy used each year. Petroleum products account for 13% of energy consumption, 
and grid -generated electricity for the rest. Biomass energy is almost exclusively used by 
households (Table 4. 1), while petroleum products are mainly used in tra nsportation, and to some 
extent, by households and operators with private generator capacity. Less than 10% of the 
population has access to grid -generated electricity.  
Table 4.1 Structure of energy consumptio n, 2011  
(%) 
Sector  Fuel wood  Charcoal  Petroleum 
products  Thermal 
and hydro  Total  
Agriculture, forestry, and 
fishing  1.0 0.0 5.0 2.0 2.0 
Mining  0.0 0.0 9.0 1.0 2.5 
Industrial/commercial  3.0 10.0 12.0 60.0 21.0 
Transportation  0.0 0.0 49.0 0.0 62.5 
House holds 96.0 90.0 25.0 37.0 12.0 
Total 100.0  100.0  100.0  100.0  100.0  
Source:  Government of Sierra Leone (2012b).  
4.44.   The Ministry of Energy is responsible for oversight of the sector. However, other ministries 
retain responsibility over some specific issues. F or instance, the Ministry of Agriculture, Forestry 
and Food Security is in charge of issues related to bioenergy and crop -related energy, and the 
                                                
19 The Act was amended in 2007 ( The Fisheries (Management and Development) (Amendment) Act, 
2007). 
20 Government of Sierra L eone (2010), Policy and operational framework for the fisheries of Sierra 
Leone . Ministry of Fisheries and Marine Resources.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Ministry of Trade and Industry, through its Petroleum Regulatory Agency, deals with the marketing 
and sales of  petroleum products.  
4.2.2   Upstream petroleum and gas activities  
4.45.   Between 2005 and 2013, about US$524 million were invested in oil and gas exploration 
activities in Sierra Leone. The country is not an oil producer, but the announcement of a discovery 
of natural gas and oil in 2010 has sparked the interest of several global oil producers. 
In October  2013, Lukoil Overseas announced another discovery of oil.  
4.46.   In anticipation of a boom in the sector, the Government adopted a new Petroleum Act  
in 201121, reforming the framework for the management and the regulation of petroleum 
operations, and making provisions for the State's participation in the industry. The Act created a 
Petroleum Directorate, under the O ffice of the President, and a National Company. The Directorate 
is in charge of the regulation of petroleum operations. It is allowed to participate in,  inter alia , the 
tender process and the negotiation of petroleum licences, their administration, and the  assessment 
of royalties and bonuses. The National Company, on behalf of the State, is in charge of managing 
the commercial aspects of petroleum operations (including participation in petroleum licences).  
4.47.   Petroleum resources are the property of the State. The Act provides for three types of 
access rights: a reconnaissance permit, a petroleum licence, and a permit for laying and operating 
pipelines (Table 4. 2). The application process for any petroleum right includes a prequalification 
stage where applicants  are required to obtain the status of qualified operator or applicant. The 
status is granted by the Petroleum Directorate  upon application and payment of a fee. Criteria 
used in assessing applications include: the technical ability of the applicant to oper ate in deep 
waters; its financial ability to undertake capital -intensive ventures; and its sense of environmental 
responsibility, and corporate social responsibility.  
Table 4.2 Petroleum rights, related fees,  and conditions  
Licence/ mode of acquisition  Conditions  Rights  
Reconnaissance permit  
Application submitted to the 
Petroleum Directorate  Duration: by negotiation  
Non-renewable  
No fee  Non-exclusive right to reconnaissance 
operations  
Petroleum licence  
Call for tenders or for direct 
negotiations  Maximum duration: 30 years, 
extendable once for 10 years;  
Application fee: US$25,000/block  Exclusive rights to exploration and 
production operations  
Permit to build and operate pipelines  
Application submitted to the 
Petroleum Directorate  Linked to the petroleum licence  Laying and operation of pipelines  
Source : Petroleum (Exploration and Production) Act of 2011; and information provided by the authorities.  
4.48.   Petroleum licences are acquired through a call for tender,  open only to qualified operators. 
The Minister may issue a call for direct negotiations if the call for tender is unsuccessful. In 2012, 
the application fee was raised to US$25,000 per block, from US$7,500. The Petroleum Directorate 
assesses applications and recommends a decision to the Minister. Licences are valid only after 
ratification by Parliament. They are published in the Gazette .  
4.49.   Petroleum licences are granted to applicants deemed as offering the most favourable terms 
and conditions to the country . They confer on the holder the exclusive right to undertake 
exploration and production activities within the licence area. Licences are issued for periods not 
exceeding 30 years, including the exploration phase. Operators are allowed an initial exploratio n 
period of three years, renewable twice for two years each. However, renewal is subject to approval 
from the Minister. The legislation provides for a set of minimum obligations to be fulfilled by 
licence holders before entering the production phase. In pa rticular, they must complete all the 
exploration activities planned in the licence agreement.  
                                                
21 The Petroleum ( Exploration  and Production) Act  of 2011 repealed the legislation enacted in  2001.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.50.   Licensees have the obligation to inform the Ministry of any discovery of petroleum resources 
within seven days of the discovery. They are required to assess whet her the discovery merits 
appraisal, and inform the Petroleum Directorate within 60 days of the discovery. The State, 
represented by the NPC, may participate in a petroleum licence. It is entitled to a free initial 
interest of at least 10% during the explor ation phase.  
4.51.   Licensees and their contractors are required to provide employment and training 
opportunities to nationals. They must give preference to nationals with adequate qualifications, 
and in any case, implement training and technology transfer progr ammes in their favour. They are 
also required to give preference to local goods. The licence agreement may set out the payment of 
an annual fee for training. There are currently 8 licences and 16 companies involved in offshore 
petroleum exploration activit ies in Sierra Leone.  
4.52.   Holders of petroleum rights are liable for the payment of applicable taxes, including 
corporate income tax, royalties, and a surface rent tax. Royalties are assessed on gross production 
at the rate of 10%. The surface rent tax is at US $40 per km2 per annum during the initial 
exploration period. It is raised to US$60 on the first extension, and US$85 on the second 
extension. Companies engaged in the development or production phase are charged 
US$110  per km2 per annum.  
4.53.    Sierra Leone is a participant in the Extractives Industries Transparency Initiative. The 
Initiative also applies to petroleum resources. Holders of petroleum rights are mandated to 
disclose all payments made to the Government. For 2011, the Government's reported receipts 
from the oil and gas sector amounted to US$15.4 million, representing 54.4% of all receipts from 
the extractive industries.22  
4.54.   The current legislation covers only offshore petroleum activities. It is currently being 
revised, with a view to establishing a sing le legal framework for onshore and offshore activities.  
4.2.3   Downstream activities  
4.55.   Since the closing of the Sierra Leone Petroleum Refining Company, all the oil needed for 
consumption is imported. Between 2005 and 2009, the volume of oil imports (mainly diesel ) 
declined by 36% to 170,000 tonnes (Chart 4. 2), reflecting largely the pressure of higher 
international oil prices. With the burgeoning iron ore sector, imports picked up and neared 
400,000  tonnes in 2013.  
4.56.   In 2014, Sierra Leone enacted legislation establ ishing a regulatory agency for downstream 
activities, replacing the Petroleum Unit within the Ministry of Trade and Industry.23 The 
responsibilities of the Petroleum Regulatory Agency include monitoring the procurement, 
importation, refining, exportation an d supply of petroleum; ensuring effective harmonization of 
local pump prices; promoting transparent open market guarantees for competitive distribution 
margins and pump price adjustment mechanisms; establishing and managing a strategic 
petroleum stock prog ramme. The legislation also established a Petroleum Fund to finance the 
activities of the Agency, and instituted a levy on petrol, diesel or kerosene sold by companies.  
4.57.   According to the authorities, there is no restriction on the importation of petroleum 
products. However, authorization is required from the Petroleum Regulatory Agency of the Ministry 
of Trade and Industry. The Unit determines p ump prices through an automatic pricing mechanism. 
Starting from Platts weekly average, the landed price is estima ted by adding freight costs, import 
duties, and other logistic related fees (storage, port charges, and demurrage fees). Distribution 
costs, excise duties, and the road -user charge are added to the landed price to obtain the 
indicative price. Therefore, fl uctuations in international prices or the exchange rate are passed on 
to the indicative price. However, there is no price adjustment if these fluctuations do not cause the 
landed price to change by more than 5%. Fluctuations within the 5% range are compens ated with 
excise tax revenues.  
                                                
22 SLEITI (2013), Sierra Leone Extractive Industries Transparency Initiative:  Reconciliation Report for 
the Year 2011.  December. Viewed at: http://eiti.org/files/SLEITI%20Reconciliation%20Report%202011%20 -
%20Final.pdf  [14.09.16]. 
23 Petroleum Regulatory Agency Act, 2014.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Chart 4.2 Import of petroleum products, 2000 -13 
('000 tonnes)  
050100150200250300350400450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Petrol Diesel Kerosene/Jet A-1 Fuel oilChart 4.[Petro]                
Import of petroleum products, 2000 -2013
(In 1,000 MT)
Petroleum Unit, and Government of Sierra Leone (2012), National Energy Profile of Sierra Leone, June 2012. Viewed at: 
http://www.undp.org/content/dam/sierraleone/docs/focusareadocs/undp_sle_energyprofile.pdf.Source:
 
Source:  Petroleum Regulatory Agency.  
4.2.4   Electricity  
4.58.   The installed capacity of the Electricity Generation and Transmis sion Company (EGTC), the 
public utility company, comprises a thermal oil plant of 37 MW and six hydropower plants with 
combined capacity of 56.75 MW. The rest of the installed capacity of the country is privately 
owned, mostly by mining companies, and is n ot connected to the grid. The mining sector relies on 
captive generation, while the other customers and households rely mainly on private generation. It 
is estimated that 33,000 small generators are currently in use, providing about 180 MW annually. 
Total electricity generation is estimated at 199.4  GWh in 2014 (Table 4. 3). 
Table 4.3 Electricity generation and consumption, 2009 -14 
Year 2009  2010  2011  2012  2013  2014  
Electricity generation (GWh)  132.0  168.0  175.6 186.9  163.1  199.4  
Consumption  (% share)   
  Industrial  33.1 29.2 40.3 28.4 14.5 30.7 
  Government  20.3 15.0 14.5 16.0 10.2 26.3 
  Domestic  31.2 29.9 27.9 30.8 37.4 25.7 
  Commercial  15.4 26.0 17.3 24.9 37.8 17.4 
Source:  Bank of Sierra Leone online i nformation . Viewed at: http://www.bsl.gov.sl/statistics.html  [14.09.16].  
4.59.   Sierra Leone's electricity tariffs remain among the highest in Africa. Its average of 
US$0.28/kWh is twice as much as the conti nental average.24 Although the Government subsidized 
oil imports, electricity tariffs escalated between 2000 and 2008, reflecting mainly the global trend 
in oil prices combined with the weakening of the local currency. The tariffs were raised by 82% 
between  2000 and 2005. In 2008, the authorities replaced the tariff bands in place in the domestic 
and commercial sectors with single tariffs of Le 989 and Le  1,290 per kWh, respectively.25   
4.60.   Energy supply is one of the major constraints to private sector developm ent. Anticipating 
increased demand from the mining sector, the Government's objective is to boost installed 
                                                
24 World Bank (2013), Sierra Leone – Energy Sector Utility Reform Project, Washington DC. Viewed at: 
http://documents.worldbank.org/curated/en/2013/11/18594160/sierra -leone -energy -sector -utility -reform -
project .  
25 Government of Sierra Leone (2012), National Energy Profile of Sierra Leone . Viewed at: 
http://www.undp.org/content/dam/sierraleone/docs/focusareadocs/undp_sle_energyprofile.pdf  [14.09.16] . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  capacity to 1,000 MW by 2018.26 The Government is planning to involve mining companies in the 
sector, through public -private partnerships. One such p artnership is Addax Biotechnology's Makeni 
Project, consisting of a sugarcane plantation, an ethanol refinery, and a biomass power plant. 
Upon completion, the company is expected to provide up to 15 MW annually to the national grid. 
In June 2013, the Parli ament approved a power purchase agreement with Copperbelt Energy 
Corporation (CEC) Africa Sierra Leone Ltd. The agreement involves the development and operation 
of a 128 MW thermal power plant.  
4.61.   Launched in April 2010, the National Energy Policy27 aims at pr oviding access to electricity 
to 35% of the population by 2015, and universal access by 2030. Achievements include the 
construction of several hydropower stations (Charlotte, Banksoka, Makali and Bumbuna II) as well 
as the installation of thermal plants in  Lungi, Bo and Kono.  
4.62.   Sierra Leone is a pilot country in the UN Sustainable Energy for All (SEFA) initiative.  
4.63.   The electricity sector was revamped in 2011 with the enactment of the Sierra Leone 
Electricity and Water Regulatory Commission Act of 2011, and th e National Electricity Act of 2011. 
The first Act established the Electricity and Water Regulatory Commission (EWRC), responsible for 
issuing licences and monitoring compliances, regulating tariffs, and ensuring fair competition 
among providers (in the cas e of unregulated services). The Commission is to be funded through 
government subventions, and an annual levy on the gross revenue of suppliers. It is not yet fully 
operational.  
4.64.   The Act imposes a licensing requirement for the sale, provision, and supply o f electricity and 
water services, and the installation or operation of any related facilities. Licences are issued by the 
EWRC. Eligibility is restricted to nationals, partnerships of nationals, and companies incorporated 
or registered in Sierra Leone. The  Act allows independent power producers to construct generating 
stations, including hydro -electric schemes, and to own and operate transmission facilities. 
However, they are required to sell their production to the Electricity Distribution and Supply 
Autho rity (EDSA).  
4.65.   The National Electricity Act dismantled the National Power Authority (a vertically integrated 
utility company), and established two state -owned enterprises: the Electricity Generation and 
Transmission Company (EGTC), and the EDSA.28 The EGTC i s responsible for electricity generation 
and transmission. The EDSA is in charge of transmission and distribution of electricity in areas 
where the Commission has not issued a licence to another entity. The Authority purchases 
electricity from the EGTC und er the terms of a power purchase agreement.  
4.66.   The EGTC's capacity was boosted in 2009 with the entry into operation of the Bumbuna 
hydropower plant (Bumbuna I). The plant generates around 50 MW during rainy seasons. 
Additional investments are expected to boo st its capacity to 300  MW by 2015.  
4.67.   In 2012, the Government signed an agreement with Joule Africa for the development of 
Bumbuna II, a project with a generation capacity of up to 389 MW during rainy seasons and at 
least 112 MW during dry seasons. The Govern ment is also engaged in several other energy 
programmes covering the installation of new plants, transmission and distribution lines, and 
prepaid meters.  
4.68.   Sierra Leone is part of the West Africa Power Pool (WAPP), launched by ECOWAS Heads of 
State in 1999 t o integrate the operations of national power systems into a unified regional 
electricity market, thereby providing a stable and reliable electricity supply.29 With funding from 
several sources, the WAPP launched an interconnection project in 2014 that invol ves the 
construction of 1,411 km of high voltage transmission line between Côte  d'Ivoire and Guinea 
                                                
26 Government of Sierra Leone (2013), Letter of Intent, Memorandum of Economic and Financial 
Policies, and Technical Memorandum of Understanding.  Viewed at:  
http://www.imf.org/External/ NP/LOI/2013/SLE/100113.pdf .  
27 Ministry of Energy and Water Resources (2009), Sierra Leone National Energy Policy.  Viewed at: 
http://www.undp.org/cont ent/dam/sierraleone/docs/focusareadocs/undp_sle_energyprofile.pdf  [14.0 9.16]. 
28 The Authority replaced the National Power Authority (National Power Authority Act , 1982). 
29 The West African Power Pool is a specialized institution of ECOWAS.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  (through Liberia and Sierra Leone).30 The project includes the electrification of communities along 
the transmission line. The project will allow the provisi on of a minimum of 83  MW by Côte d'Ivoire 
to the three other countries, and better use of existing hydropower resources in these countries. 
The Sierra Leone section comprises the construction of 530  km of transmission lines and of 
5 substations. Constructi on work is yet to begin.  
4.69.   In 2013, the World Bank approved a US$40 million project aimed at improving the 
operational performance of the Electricity Distribution and Supply Authority.31 The project includes 
the financing of a three to five -year performance -based contract for the operation and 
management of the Authority, and the rehabilitation and upgrading of the distribution network.  
4.70.   Since September 2016, electricity supply has been subject to the goods and services tax at 
the standard rate of 15%.  
4.3  Mining  
4.71.   Sierra Leone has a variety of mineral resources (Table 4. 4). The sector accounts for about 
90% of export revenues annually, comprising mainly diamonds, and recently, iron ore. In 2010, 
the country was the 10th largest producer of diamonds (by volume), and  the 3rd largest producer of 
rutile.  
Table 4.4 Mineral production 2009 -14 
Mineral  2009  2010  2011  2012  2013  2014  
Diamond ('000 carats)  400.4  437.6  376.5  532.9  612.4  593.6  
Bauxite ('000 tonnes)  742.8  1,089.1  1,457.5  734.5  654.1  1,178.6  
Rutile ('000 tonnes)  63.9 68.2 68.0 94.5 122.1  115.1  
Zircon ('000 tonnes)  0.0 0.0 7.1 22.5 128.3  2.4 
Ilmenite ('000 tonnes)  15.2 18.2 14.7 21.4 32.5 35.8 
Gold (ounces)  5,356  8,690  5,284  4,345  3,099  1396 
Iron ore ('000  tonne s ) 0.0 0.0 137.9  967.9  7,482.2  17,497.6  
Source:  Ministry of Mines and Mineral Resources.  
4.3.1   Regulation  
4.72.   The Ministry of Mines and Mineral Resources is responsible for mineral resources. 
Established in  2012, the National Minerals Agency is responsible for im plementing policies and 
regulations.32 Its Department of Precious Metal Trading is in charge of valuation and certification of 
gold and diamonds, and the collection of export -related taxes.  
4.73.   Development of the mining sector was identified as a fundamental pi llar for the promotion 
of sustainable economic growth in  the Agenda for Prosperity.  The Government's main priorities in 
the sector are to ensure that mineral resources support economic and social development in a 
sustainable manner, and to increase transpa rency and accountability. In line with these priorities, 
it adopted a new Mines and Minerals Act in 2009.33 The Act established the Minerals Advisory 
Board to monitor the implementation of minerals -related polices, advise and make 
recommendations to the aut horities, and formulate recommendations on minerals -related policies. 
The Board comprises representatives from the Ministry, local governments, the mining industry, 
and civil society.  
4.74.   Under the Mines and Minerals Act, all mineral resources are the propert y of the State, and 
the right to exploit them is subject to licences. Nationals, corporate bodies, and cooperatives 
                                                
30 The Côte d 'Ivoire – Liberia – Sierra Leone – Guinea (CLSG) Interconnection Project . 
31 World Bank (2013), Sierra Leone – Energy Sector Utility Reform Project,  Washington DC. Viewed at: 
http://documents.worldbank.org/curated/en/2013/11/18594160/sierra -leone -energy -sector -utility -reform -
project  [16.09.2016] .  
32 National Minerals Agency Act, 2012.  
33 The Act repealed the Mines and Minerals Act 1994, a nd the Commission for the Management of 
Strategic Resources, National Reconstruction and Development Act 1999.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  registered or incorporated in Sierra Leone are eligible to apply for a minerals right. Non -national 
residents become eligible only after ten  years of residency. The Act defines five types of mineral 
rights: reconnaissance licence, exploration licence, artisanal mining licence, small -scale mining 
licence, and large -scale mining licence (Table 4. 5). Artisanal mining activities are reserved for 
nationals.  
4.75.   The Mining Cadastre Office receives and verifies mineral rights applications, and forwards 
them to the Minerals Advisory Board for verification of legal requirements. If all requirements are 
met, the Board certifies the application and advises t he Minister of its approval. However, the final 
decision depends on the Minister who may go against the recommendation of the Board. In case of 
refusal, the applicant is notified of the reasons, and given 30 days to remedy the causes of refusal 
(if it is f easible). The applicant may appeal the Minister's decision to the High Court.  
4.76.   Artisanal mining licences are granted directly by the Mining Cadastre Office. Appeals, in this 
case, may be brought to the Minister in charge of the sector. Once granted, mineral  rights are 
published in the Gazette . Holders of large -scale mining licences must commence operations within 
180 days after the licence is granted. The period is reduced to 90  days for all the other types of 
licences.  
Table 4.5 Licensing requirements in the mining sector  
Licence  Eligibility  Conditions  Rights  
Reconnaissance  Registered or incorporated 
companies  Maximum area: 10,000 km2 
Maximum duration: 1 year, 
renewable once  
Non-transferable  Non-exclusive righ t to carry on 
reconnaissance operations  
Exploration  Registered or incorporated 
companies  Maximum area: 250 km2 
Maximum duration: 4 years 
initially, 3 years on first 
renewal and 2 years on 
second renewal  
Transferable  Exclusive right to carry on approved 
exploration operations, and to apply 
for a mining licence over any part of 
the exploration area  
Artisanal mining  Nationals; joint ventures, 
partnerships, cooperatives made 
up of nationals; companies 
wholly owned by nationals  Maximum area: 0.5 hectare  
Maximum duration: 1 year, 
renewable 3 times  
Non-transferable  Exclusive right to carry on exploration 
and mining operations  
Small -scale 
mining  Cooperative societies with at 
least 25% of members being 
citizens  
Companies with at least 25% of 
shares held by citiz ens Area: 1 to 100 hectares  
Maximum duration: 3  years, 
renewable for 3  years  
Transferable  Exclusive right to carry on exploration 
and mining operations  
Large -scale 
mining  Registered or incorporated 
companies  Maximum area: not 
indicated  
Maximum duration: 
25 years initially, 15 years 
for renewals  
Transferable  Exclusive right to carry on exploration 
and mining operations  
Source:  The Mines and Minerals Act of 2009; and the Mines and Minerals Regulations of 2009.  
4.77.   The legislation requires mining licence holder s (small and large scale) to assist in the 
development of the communities where they operate. Companies with mining operations above a 
certain threshold may be required to conclude community development agreements with local 
authorities. The agreement shou ld include provisions requiring them to invest at least 1% of their 
gross revenue in the development of communities. Licence holders are required to give preference 
to domestic products, public corporations, and domestically incorporated or registered comp anies.  
4.78.   Holders of small - and large -scale mining licences are required to give preference to 
nationals when recruiting, and to carry out a scheme of training and employment of local 
employees. Large -scale mining licence holders are required to obtain a lan d lease or other rights to 
use the land. Rent is distributed among stakeholders: 50% to land owners, 15% to the District 
Council, 15% to Paramount Chiefs, 10% to the Chiefdom Administration, and 10% to the 
Constituency Development Fund. The Ministry may co mpulsorily acquire private land if it is proven 
that the licence holder has taken all reasonable steps to acquire the right to use it but without 
success. Landowners retain the right to graze, stock, and cultivate the surface of the land (to the 
extent tha t such activities do not interfere with mining operations).  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.79.   In addition to application and renewal fees, holders of mining licences and permits are 
subject to an annual charge of US$600 per hectare for small -scale mining operations, and 
US$500,000 for lar ge-scale mining licence holders (Table 4. 6). 
4.80.   Royalty fees are assessed on the market value of the extracted minerals, as determined by 
the Department of Precious Metal Trading.  
4.81.   In 2014, the Mines and Minerals Act 2009 was amended to reduce and restructure  the 
royalty rates as follows34: 6.5% and 5% respectively for precious stones and precious metals 
obtained under large -scale or small -scale mining licences; 3% for precious stones and metals 
obtained under an artisanal mining licence; and 3% for other miner als.35 The Finance Act 2014 
also amended (mostly doubl ed) the vari ous fees payable for licences (T able 4. 6). 
4.82.   Incentives in the mining sector include full deduction of fees related to prospection and 
exploration activities from taxable income; a deduction of  40% of production costs from the 
taxable income during the first year of activity; and a 10% amortization of start -up costs. 
Individuals may also deduct 50% of some investment expenditures from their personal income 
taxes, up to a limit of US$150,000.  
Table 4.6 Fees related to mineral rights and permits   
Type of permit  Mineral right  Application fee  Annual charge  
Licences  Reconnaissance  Application: US$500  
Renewal: US$500  US$5,000  
 Exploration  Application: US$500  
Renewal: US$500  Year 1 to 4: US$100/km2 
Year 5 to 9: US400/km2 for the first 125km2 and 
US$800/km2 for the remainder  
 Artisanal mining  Application: Le  50,000  
Renewal: Le 10,000  Le 400,000 (includes Le 150,000 for a the Artisanal 
Mining Rehabilita tion Fund)  
 Small -scale mining  Application: US$1000  
Renewal: US$1000  US$800/ha  
 Large -scale mining  Application: US$2,500  
Renewal: US$2,500  
Transfer: US$500  US$500,000  
Permits  Dredging  Application: US$250  
Renewal: US$250  US$500 (exploration and arti sanal mining)  
US$10,000 (small -scale mining)  
US$20,000 (large -scale mining)  
 Radioactive minerals  Application: US$250  
Renewal: US$250  US$20,000  
Source:  Mines and Minerals Regulations of 2009, First Schedule; and Schedule to the Finance Act, 2014.  
4.3.2   Main p roducts  
4.3.2.1   Diamonds  
4.83.   Sierra Leone has participated in the Kimberley Process Certification Scheme (KPCS) since its 
inception, in 2003.36 Accordingly, Sierra L eone exports diamonds only to participating countries. 
The certification process was formally incorporat ed into Sierra Leone's legal apparatus in 2009.37 
4.84.   In 2007, the Parliament enacted the Diamond Cutting and Polishing Act, subjecting diamond 
cutting and polishing activities to licensing requirements. A licence, issued by the Directorate of 
Precious Minerals  Trading  for a period not exceeding five years, gives the holder the right to deal 
in, export and import, as well as cut, polish, crush, or set diamonds. It can be renewed indefinitely 
for periods of five years each. Only licence holders are allowed to exp ort cut and polished 
diamonds. Product is subject to valuation by the Gold and Diamond Department. The licensee 
must pay the National Revenue Authority a duty of 0.5% of the difference between the certified 
                                                
34 Finance Act, 2014.  
35 Previously, precious stones with a market value below US$500,000 were taxed at a rate of 6.5%; 
those with a value above th is threshold (special stones) were taxed at a rate of 15%. Precious metals were 
taxed at 5%, and all the other minerals at 3% (Mines and Minerals Act, 2009).  
36 The process imposes certain requirements for the control of rough diamond production and trade. In 
particular, it requires each shipment of rough diamonds to be certified as meeting a minimum set of standards 
and accompanied by the Kimberley Process Certificate. As of January 2014, 81 countries participate in the 
process. Online information, viewed a t: http://www.kimberleyprocess.com/en/about . 
37 Diamond Trading Act, 2009.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  value of the unpolished and polished diamonds. Sm all-scale mining lease holders pay a royalty fee 
of 5% of the export value, and a 1% valuation fee. Individuals exporting on an ad hoc basis, such 
as tourists or exporters interested in testing the market, may obtain a special dispensation from 
the licensi ng requirement. However, they are charged an extra 2% in addition to the 3% export 
tax.  
4.85.   Any equipment used in the cutting and polishing of diamonds may be imported duty free.  
4.86.   Since 2011, the export tax on diamonds has been reduced to 3% (from 6.5%). It is  
allocated, in terms of percentage points: 0.75 to the local community, 0.75 to the Directorate of 
Precious Minerals Trading, 0.70 to a special treasury account, 0.25 to a monitoring fund, 0.40 to 
the Independent Valuator, and 0.05 to a Rehabilitation Fund , a Public Information Unit, and the 
Precious Minerals Monitoring Team.38 
4.3.2.2   Other minerals  
4.87.   Gold exports are subject to an export duty of 3% of their f.o.b. value.  
4.4  Manufacturing  
4.88.   Sierra Leone's manufacturing sector is relatively small, accounting for less tha n 3% of GDP 
during the review period (Table 1.1). The sector employs roughly 2% of the labour force, and 
consists mainly of small and medium -scale enterprises. Activities are limited to raw materials 
processing and light manufacturing destined for domestic  consumption (Table 4. 7).  
Table 4.7 Selected products in the manufacturing sector, 2009 -14 
Product  2009  2010  2011  2012  2013  2014  
Beer, stout, and maltina ('000 cartons)  859.1  996.9  1,237.2  1,199.9  946.5  1,001.7 
Acetylene ('000 cubic feet)  168.9  166.2  199.6  191.6  235.1  296.7  
Oxygen ('000 cubic feet)  244.7  227.5  267.4  230.2  273.6  265.3  
Paint ('000 gallons)  149.9  221.2  204.0  201.1  233.1  211.0  
Confectionery ('000 lbs)  3,054.9  2,947.9  3,469.9  3,164.5  3,516.3  3,207.4  
Cement ('000 tonnes)  236.2  301.0  317.9  335.4  313.4  303.1  
Soft drinks ('000 crates)  1,541.8  1,962.0  1,881.3  2,180.0  2,261.8  1,502.8  
Soap (tonnes)  585.7  422.0  503.2  643.2  633.6  664.6  
Flour ('000 tonnes)  11.4 9.6 13.4 23.2 .. .. 
.. Not available.  
Source:  Statistics Sierra Leone.  
4.89.   The sector faces many challenges, including weak infrastructure, the high cost of 
production, the inadequate or unreliable supply of raw materials and energy, and limited access to 
financing. In the 2016 -17 WEF report on global competitiveness, Sierra Leone ranked 132nd out 
of 138 economies.39  
4.90.   The overall goal of the Government in the manufacturing sector is to build a commercially 
viable sector that adds value to locally produced primary products, and creates employment. The 
Ministry of Trade and Industry has responsibility for overseeing the sector.  
4.91.   In 2004, the UNIDO launched the four -year Sierra Leone Integrated Programme (SLIP) 
aimed at helping recovery from the civil war, by re -establishing entrepreneurial initiative s and 
providing job and income opportunities to displaced people. Through the programme, three 
training centres (industrial growth centres) were rehabilitated and equipped with infrastructure for 
the production of agricultural tools and food processing. Yo ung entrepreneurs were trained in skills 
                                                
38 The Alluvial Diamond Mining (Amendment) Rules, 2006 . Viewed at: 
http://www.sierralii.org/sl/legislation/statutory -instrumen t/2006/15 . 
39 World Economic Forum (2016), Global Competitiveness Index, 2016 -2017 edition. Viewed at: 
http://reports.weforum.org/pdf/gci -2016-2017/WEF_GCI_2016_20 17_Profile_SLE.pdf .   WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  such as masonry, carpentry, metal work, and tailoring. However, most of the components of the 
programme were not implemented due to insufficient funding.40  
4.92.   Sierra Leone launched a Local Content Policy in 2012 and es tablished a  Local Content 
Agency in 2016 ( section 2.4.3).  
4.93.   In 2016, the average applied MFN tariff rate in the manufacturing sector (ISIC definition) 
was 12%, similar to the overall average MFN (Table 3.2). The average bound rate in the sector is 
47.8%, lea ving considerable room for tariff change. Tariff escalation is strongly positive in most 
industries (ISIC 2 -digit), leading to high levels of effective protection. In the textile and leather, 
wood and furniture, and non -metallic mineral products industries , the tariff rate on fully processed 
products may be as high as twice the rate on products at the first -stage of processing. With 
additional protection provided by the excise tax, since it applies only to some imported 
manufactured goods (Table 3.4), Sierr a Leone is less likely to achieve international or even 
regional competitiveness for the protected sector.  
4.5  Services  
4.5.1   Overview  
4.94.   The services sector accounted for 37.9% of Sierra Leone's GDP in 2015 (T able 1.1). 
Transport, storage and communication, and touri sm are the main components and accounted 
respectively for 7.7% and 8.6% of GDP. During the review period, the contribution of financial 
services to GDP was on a declining trend.  
4.95.   Sierra Leone's GATS schedule includes horizontal and sector -specific commitmen ts. In all 
sectors, market access through commercial presence is subject to the requirement that the foreign 
provider incorporates or establishes its business locally. There are also some restrictions with 
regard to land and building acquisition. Access th rough the presence of natural persons (mode 4) 
is generally unbound, except the requirement to obtain a work permit. Sector -specific 
commitments include additional restrictions on commercial presence in the provision of 
professional, insurance, banking, he alth, and transport services.  
4.96.   Under Article II of GATS, Sierra Leone maintains MFN exemptions for all sectors with 
respect to arrangements with members of the ECOWAS and the MRU.  
4.5.2   Financial services  
4.5.2.1   Banking  
4.97.   As at end -September 2016, Sierra Leone's banking sector comprise s 14 commercial banks 
(Table 4.8) through 104  branches . The former HFC Mortgage and Savings Limited  was issued a 
provisional licenced in S eptember 2016, and is now registred as a commercial bank named 
Commercial and Mortgage Bank. The Gover nment has a majority stake in two commercial banks: 
the Sierra Leone Commercial Bank Ltd, and the Rokel Commerc ial Bank (SL) Ltd. There are 
17 community banks  (of which 13 were established after 2008 ), 15 licensed m icrofinance 
institutions (of which 13 are  credit only and 2 are deposit taking  institutions) , 59 financial service s 
associations, 41 registered foreign exchange bureaus, and 2 discount  houses.  
4.98.   During the review period, the legal framework of the banking sector was strengthened with 
the enactment of the Banking Act of 2011, the Bank of Sierra Leone Act of 2011, the Anti -Money 
Laundering and Combating of Financing of Terrorism Act of 2012, and the Borrowers and Lenders 
Act 2014.  
 
                                                
40 UNIDO (2008), UNIDO Integrated Programme – Post-conflict SME support programme for industrial 
development and poverty alleviation.  UNIDO Evaluation Group, Vienna. Viewed at: 
http://www.unido.org/fileadmin/user_media/About_UNIDO/Evaluation/IP -CSF_reports/08 -
57917_ebook_IP_Sierra_Leone.pdf  [16.09.2016] . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Table 4.8 Commercial b anks, September 2016  
(Le billion, unless otherwise indicated)  
Bank  Government 
shareholding 
(%) Total 
assets  Deposits  Total 
gross 
loans  Non-
performing 
loans (% of 
gross loans)  
Sierra Leone Commercial Bank Ltd  85  932  849.3  296.3  39.1 
Standard Chartere d Bank (SL) Ltd  0 830.6  673.2  73.7  8.1 
Rokel Commercial Bank (SL) Ltd  65  752.9  702.7  207.5  61.6 
Union Trust Bank (SL) Ltd  0 449.4  329.5  216.2  30.6 
Guaranty Trust Bank (SL)  0 705.4  524.4  261.4  6.2 
First International Bank (SL) Ltd  0 399.3   314.3  133.3  11.9 
First Bank of Nigeria  0 123.1  71.9  27.6  6.6 
Ecobank (SL) Ltd  0 714.3  587.7  166.2  5.4 
Skye Bank (SL) Ltd  0 106.3  54.4  27.1  5.2 
United Bank for Africa (SL)  0 306.7  210.4  49.3  1.3 
Zenith Bank (SL) Ltd   0 388.8  319.8   23.0  63.0 
Access Bank (SL) Ltd  0 164.1  118.7  12.2  11.9 
Keystone Bank (SL) Ltd  0 82.4  46.2  19.1  10.9 
Commercial and Mortgage Bank 
(formerly HFC Mortgage and Savings 
Limited)  .. .. .. .. .. 
Total for the banking system  - 5,955.3 4,802.5 1,512.9 .. 
..  Not available.  
Source:  Bank of Sierra Leone.  
4.99.   The Banking Act provides for the licensing of banking businesses, the regulation and 
supervision of banking activities, and the protection of depositors. All institutions wishing to 
engage in banking are  required to apply to the Bank of Sierra Leone (BSL) for a banking licence. 
The application is open to registered companies, cooperative societies, and statutory bodies. 
Foreign banks may engage in banking business by establishing a subsidiary. Licences fo r foreign 
banks are subject to the BSL receiving confirmation from the foreign supervisory authority that the 
applicant satisfies its prudential and overall management criteria, and its consent to the 
establishment of the subsidiary. Licences are granted f or a minimum of five years, and are not 
transferable. There is a licence fee of Le  10 million, in addition to a Le 2 million application fee.  
4.100.   Banks are subject to minimum paid -up capital, capital adequacy ratios, and liquidity 
requirements. In general, the  paid-up capital threshold is revised every year, and is currently at 
Le 30 billion (Le 9 billion in 2007). Banks are required to maintain a minimum capital adequacy 
ratio of at least 15% of their risk -weighted assets, and a cash ratio equivalent to at lea st 12% of 
their total deposits.  
4.101.   The Anti -Money Laundering and Combatting of Financing of Terrorism Act of 2012 requires 
any person crossing the borders with more than Le 30 million (or its equivalent) in any foreign 
currency or negotiable instrument, to re port to the customs or the police authorities.  
4.102.   Non-performing loans  (NPL)  are a major issue in the banking system  due to problems of 
connected and concentrated lending. It  has been aggravated by factors such as the decline in iron 
ore prices and delays in  government payments to some contractors. As at end -September 2015, 
Rokel Commercial Bank (RCB) and Sierra Leone Commercial Bank, the two state -owned banks, 
have NPL ratios at respectively 61.55 % and 39.1%, well above the regulatory limit of 10% .41 
                                                
41 IMF (2016), 2016 Article IV Consultation and Fifth Review under the Extended Credit Facility and 
Financin g Assurance Review and Request for an E xtension of the Extended Credit Facility . IMF Country Report 
No. 16/236 . Viewed at: https://www.imf.org/external/pubs/ft/scr/2016/cr16236.pdf . WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.5.2.2   Insuranc e 
4.103.   The Sierra Leone Insurance Commission (SLICOM) is mandated to monitor and regulate 
insurance sector activities. The insurance market is reserved for companies and cooperative 
societies registered under the Insurance Act of 2000 .42 
4.104.   There are currently eleven registered insurance companies, of which seven are operating 
in all classes of insurance businesses (motor, fire, marine, general accident and life), two in motor 
and marine insurance only, and one in life and medical insurance business . Reliance Insura nce 
Trust Corporation is the major player in the general and life insurance markets (Table 4. 9). There 
are 11 licensed and registered insurance brokers and 1 0 agents. The WAICA  Re-Insurance 
Corporation (West African Insurance Companies Association), which started its operations in 2012, 
is the only registered re -insurance company.  
Table 4.9 Premiums collected by insurance businesses, 2009 -14 
(Le m illion unless otherwise indicated)  
Companies  2009  2010  2011  2012  2013  2014  
Life insurance (net premiums)  3,129  5,954  10,675  15,139  19,154  25,304  
   Reliance Insurance Trust Corporation  435  1,953  4,233  5,858  5,874   6,660   
   National Insurance Company  1,173  2,221  3,343  3,754  4,842   7,356   
   Capital Expre ss Assurance Company  265  558  947  1,746  2,550   2,965   
   Aureol Insurance Company  1,255  917  1,406  1,448  1,104   1,142   
   Sierra Leone Insurance Company  ..  248  567  1,073   1,184   1,336   
   International Insurance Company  ..  57  179  1,068  3,360  5,134   
   STACO Insurance Company  ..  ..  ..  191  240 711 
General insurance business 
(gross  premium)  27,764  32,181  46,632  60,895  72,241  83,820  
   Reliance Insurance Trust Corporation  6,486  7,169  14,125  21,208  27,000  38,717  
   Aureol Insura nce 8,304  9,121  11,061  15,927  20,561  18,634  
   International Insurance Company  2,902  3,325  4,159  8,837  6,579  4,174  
   National Insurance Company  5,007  5,981  8,335  6,783  8,976  8,917  
   STACO Insurance Company   705  1,833  3,252  2,905  3,838  7,400  
   Marine and General Insurance 
Company  1,053  1,047  1,845  1,979  1,535  1,635  
   Medical & General Insurance Company  1,257  1,332  1,828  1,490  1,820  2,284  
   Trans -world Insurance Company  1,451  1,466  1,420  1,306  1,292  1,638  
   Sierra Leon e Insurance Company  600  906  607  459  640 421 
.. Not available . 
Source:  Sierra Leone Insurance Commission.  
4.105.    Insurance companies are subject to paid -up capital, deposit, and reserve requirements. 
Under the Insurance Act 2016, the minimum capital require ment has been doubled for all class es 
of insurance businesses. It amounted to Le 480 million for each class of business an insurance 
company is engaged in. Companies engaged in re -insurance businesses are subject to a minimum 
capital requirement of Le 4.8 billion.  
4.106.   Deposit requirements amount to Le 300 million for each class of insurance business, and 
Le 600 million for subsidiaries of foreign companies. Deposit requirements for companies engaged 
in re-insurance business are tenfold the amount required from those engaged in general insurance 
businesses. Deposits are to be remitted to the BSL in cash or any approved form of security. 
Reserve requirements depend on the class of business and the status of the risk involved 
(Table  4.10).  
                                                
42 Insurance Act, 2016.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Table 4.10 Minimum reserve requirements for insurance companies, 2016  
Insurance business  Reserve  requirement  
Unexpired risks  Outstanding claims  Contingency claims  
Life insurance  General reserve fund 
equal to net liabilities  .. 1% of premiums  
Marine hull insurance  75% of net premiums  Amount of claims plus a 
margin of 20%  The greater of: 3% of premiums 
and 20% of net profits  
Other insurance businesses  45% of net premiums  Amount of claims plus a 
margin of 20%  The greater of: 3% of p remiums 
and 20% of net profits  
.. Not available.  
Source:  Insurance Act of 2016.  
4.107.   Insurers must maintain a margin of solvency with respect to their businesses. For life 
insurance businesses, the amount of liabilities must not exceed the amount of the life i nsurance 
funds. For any other class of insurance, the insurer is required to maintain a level of assets above 
liabilities by at least 10% of the premium income. Companies cannot declare or distribute any 
dividend until they fulfil all their obligations rel ated to paid -up capital, solvency, and reserves. 
They should invest at least 25% of their premiums in government securities (the threshold is 50% 
for companies engaged in life insurance businesses).  
4.108.   A company may transact in several classes of business but  is required to keep separate 
accounts for each. In particular, receipts and investments with respect to life insurance are to be 
kept separate from other business.   
4.109.   There is no restriction on companies established in Sierra Leone insuring risks located 
abroad. However, foreign companies must be registered locally to insure risks located in 
Sierra  Leone. Insurance premiums are determined by companies but are subject to SLICOM 
approval.  
4.110.   Insurance agents, brokers, adjusters, and assessors must be registered. Licences are 
issued for one year. Insurance companies are required to pay an annual levy amounting to 1% of 
their gross premiums to the SLICOM. In principle, brokers are required to pay the levy at the rate 
of 0.5% of their commission, although the actual rate is 3%.  
4.111.   Importers are required to insure their imports with a company registered in Sierra Leone. 
Civil liability insurance is required for owners of motor vehicles. Under the recently enacted 
Insurance A ct, the following insurance is compulsory: public liability insurance for building s above 
two storeys under construction; fire insurance for tenantable and public properties; employers ' 
liability insurance (for employers with more than 5 employees); and professional indemnity 
insurance (for medical pra ctitioners, engineers, accountants, brokers,  etc.). 
4.5.2.3   Other financial services  
4.112.   Financial institutions other than commercial banks are regulated under the Other Financial 
Services Act of 2001.43 They must obtain a licence from the BSL. There is an application fee of 
Le 500,000 and a licensing fee of Le 2 million. There are currently two microfinance institutions 
(Ecobank Microfinance (SL) Ltd, and Bank for Innovation and Partnership Microfinance), and one 
institution providing mortgage finance (HFC Mortgage and  Savings (SL) Ltd). They are subject to 
minimum paid -up capital, capital adequacy ratios, and reserve requirements (Table 4. 11). 
4.113.   Financial leasing businesses are required to maintain minimum paid -up capital of 
Le 2 billion, and a reserve fund into which th ey transfer a portion of their after -tax profits 
annually. The portion is set at 20% until the reserve fund reaches the level of the paid -up capital, 
and 5% afterwards.  
                                                
43 The Other Financial Services Act, 2001.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Table 4.11 Financial requirements for ot her financial institutions  
(Le and %)  
Type of institution  Minimum 
paid-up capital  Capital 
adequacy ratio  
(%) Cash reserve 
requirement  
(%) Liquidity reserve 
requirement  
(%) 
Mortgage finance  25 billion  15 10 15 
Deposit -taking MFIs  1 billion  8 10 20 
Discou nt houses  2 billion  .. .. 60 
Community banks  1 billion  8 10 20 
.. Not available.  
Source:  Bank of Sierra Leone.  
4.114.   Under the 2011 Credit Reference Act, credit reference bureaus are subject to a licensing 
requirement. Licences are granted by the BSL and renew able annually.   
4.5.3   Information and communication services  
4.5.3.1   Telecommunications  
4.115.   Access to telecommunications services in Sierra Leone is limited, and much lower than the 
average for Africa (Table 4.1 2). In 201 3, access to fixed -lines was 0. 26 subscriptions per 
100 inhabitants (down from 0.5 8 in 200 9). However, access to mobile telephone services 
increased from 20.6 subscriptions per 100 inhabitants in 200 9 to 44.1 subscriptions in 201 3.44 
Table 4.12 Selected indicator s of the telecommunications sector, 200 9-13 
  2009  2010  2011  2012  2013  
Fixed -telephone subscriptions  (per 100 inhabitants)  0.58 0.24 0.27 0.30 0.26 
Mobile -cellular telephone subscriptions (per 100 inhabitants)  20.6 34.7 36.4 37.0 44.1 
Individuals using  the Internet (percentage)  0.2 0.6 0.9 1.3 1.7 
Source:  ITU's ICT Eye. Viewed  at: http://www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx . 
4.116.   Sierra Leone Telecommunication s Company Ltd (Sierratel), the state -owned operator, has 
a de jure  monopoly over fixed -line communications. Its monopoly over the operation of the 
international gateway (which was managed on its behalf by a private company) was terminated in 
2015.45 Sierrat el is currently in the process of privatization. In 2012, its management was 
transferred to Management Development International Company (MDIC) under a three -year 
contract.   
4.117.   There are currently six licensed operators in the mobile sector, of which 5 are in  operation: 
Airtel, Africell, Comium, Sierratel, and Smart Mobile.  
4.118.   The Ministry of Information and Communications is responsible for national policies on 
issues relating to information and communications. The National Telecommunications Commission 
(NATCOM ) was established in 2006 as the regulator of the telecommunications sector.46 Its 
responsibilities include regulating activities of companies operating in the sector, managing the use 
of the spectrum resources, promoting universal access, and ensuring effi cient, equitable, and 
cost-effective telecommunications services.   
4.119.   The Telecommunications Act of 2006 is the main legislation in the sector .47 In accordance 
with the Act, licences are required for: provision of telecommunications services to the public; 
leasing, selling or provision of telecommunications network capacity to third parties; provision of 
telecommunication services through networks leased from third parties; and building any 
infrastructure related to the provision of these services. Licences are  issued by the NATCOM. The 
                                                
44 These statistics are not adjusted for multiple subscriptions.  
45 The Telecommunications (Amendment) Act, 2015.  
46 The National Tel ecommu nications Commission  online information. Viewed at: 
http://www.natcom.gov.sl/ . 
47 Telecommunications Act, 2006. Viewed at: http://www.sierra -leone.org/Laws /2006 -9s.pdf  
[14.09.16].  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  licensing requirement does not apply to private telecommunications networks. The Commission 
may exempt a class of telecommunications services from the licence requirement, and require 
registration only.  
4.120.   Licensed operators may en ter freely into agreements related to interconnections and 
value -added services. Approval by NATCOM is not required for interconnection agreements, except 
those involving a foreign public telecommunications operator. All operators must submit their 
tariffs  to the NATCOM for approval before they enter into force.  
4.121.   The Act established a Universal Access Development Fund (UADF), to be used to improve 
access to telecommunication services by communities deemed as least advantaged. Operators are 
required to contr ibute at least 1% of their gross annual revenue to the Fund. Airtel and Africell, the 
two major operators in the mobile subsector, provide the bulk of the UADF resources. Each of 
these operators contributes a lump sum of US$150,000 annually into the Fund. The UADF is 
managed by a unit of the regulatory body. The unit prepares projects and invites licensed 
operators and service providers to bid to implement them.  
4.122.   The Commission is also in charge of managing the radio frequency spectrum. It may use 
competiti ve bidding procedures in allocating radio frequency spectrum.  
4.123.   The international gateway was liberalized in 2015. In March 2016, the National 
Telecommunications Commission launched an international competitive bidding procedure to 
recruit a provider for the  monitoring of the international gateway system.  
4.124.   The Telecommunications Act is currently under revision. The revised Act will provide for 
the revocation of the monopoly rights granted to Sierratel, the establishment of a new unit to 
manage the Universal Ac cess Development Fund, and the opportunity for the public to submit 
projects for funding.  
4.5.3.2   Internet access  
4.125.   At the end of 2013, there were 6 licensed public Internet service providers, and 
34 licensed public VSAT operators. In 2013, Sierra Leone launched its  connection to the African 
Coast to Europe (ACE) cable, a project aiming at providing African countries with affordable access 
to the international broadband network, through the construction of a 17,000 km submarine fibre 
optic cable from France to South Africa. Sierra Leone is involved in the consortium, through the 
Sierra Leone Cable Company, a state -owned company. The Government intends to disinvest up to 
51% of its share in the company.  
4.5.3.3   Postal services  
4.126.   The state -owned Sierra Leone Postal Services Limit ed (SALPOST) is responsible for 
providing universal service. It has exclusive rights to provision of domestic courier services for 
packages weighting up to 2 kg; printing and issuance of postage stamps; and installation of boxes 
and mail bags for collectio n and the delivery of mail. International providers include DHL, TNT, Red 
Coad, and UPS .  
4.127.   In 2012, the authorities established the Postal Services Regulatory Agency, to license and 
regulate the operation of postal services.48 The Act established a board in charge of governance of 
the Agency; the board may appoint an executive -director for day -to-day management. The 
operation of any postal service is subject to a licence issued by the Executive -Director. Only 
nationals and registered corporate bodies are elig ible to apply for a licence.  
                                                
48 Postal Services Regulatory Agency Act, 2012. Viewed at: http://www.sierralii.org/files/2012 -05.pdf  
[10.09.16].  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.5.4   Transport services  
4.5.4.1   Air transport  
4.128.   Sierra Leone's air transportation infrastructure comprises the Lungi International Airport, 
and ten regional airports. A site for the c onstruction of another international airport has been 
identified, and discussions are under way for a loan agreement . At the Lungi International Airport, 
the Sierra Leone Airport Authority is responsible for providing fire services, air navigation services, 
and management of the terminal. Aviation security is the responsibility of the Westminster 
Aviation Security Services Ltd. Ground -handling is managed by Sky Handling partners.   
4.129.   Between 2008 and 2013, the number of passengers carried increased threefold to 225,402 
(Chart 4. 3), reflecting the dynamism in the minin g and oil sectors. Airlines currently flying to 
Sierra Leone include Air France, Air Ivoire, Brussels Airlines, Kenya Airlines, and Royal Air Maroc.  
Chart 4.3 Selected indicators in air transportation, 2005 -13 
024681012
050100150200250
2005 2006 2007 2008 2009 2010 2011 2012 2013
Passengers carried Freight (right-scale)Chart 4.4
Selected indicators in air transportation, 2005 -13
Secretariat calculations, based on data provided by the authorities.'000 passengers 
Source: Million ton -km
 
Source:  Secretariat calculations, based on data provided by the authorities.  
4.130.   The authorities indicated that consultations are under way for the establishment of a 
sub-regional airline company among Mano River Union States.  
4.131.   The Sierra Leone Civil Avia tion Authority (SLCAA), established in 2008, became operational 
in 2010.49 It has the mandate to oversee air transport and related cargo services, and ensure 
compliance with related international agreements and obligations. Businesses interested in 
engaging  in commercial air transport services (including foreign air operators) require a licence 
from the SLCAA. The SLCAA is funded through Government subventions.  
4.132.   Sierra Leone is a signatory to the Yamoussoukro Declaration concerning the liberalization 
of intr a-African air transport markets. The Declaration and the subsequent Yamoussoukro Decision 
eliminates, in principle, all non -physical barriers and restrictions related to the granting of traffic 
rights, especially up to fifth freedom rights. Sierra Leone is  also a party to the Banjul Accord Group 
Agreement, together with Cape Verde, Ghana, and the Gambia.  
4.133.   To date, Sierra Leone has concluded 22 air services agreements involving 42 countries.50  
                                                
49 The Civil Aviation Act, 2008 (repealing the Civil Aviation Act of 1966).  
50 These are (year of signature/last review  in parenthesis): Belgium (1973), Benin (1987), Brazil 
(2012), Cameroon (1978), Canada (2011), C ôte d'Ivoire ( not available ), Cuba (1976), Czech Republic (1969), 
France (1990), Gambia (1990), Germany (1970), Ghana (1970), Guinea (1989), Hashemite Kingdom o f Jordan 
(1983), Hungary (1975), Iceland (2013), Italy (1970), Jamaica (2013), Kenya ( not available ), Kuwait (2012), 
Lebanon (1968), Liberia (1973), Luxembourg ( not available ), Mali (1974), Morocco (2008), Netherlands 
(1983), Nigeria (1973), Norway (2013),  Pakistan (1978), Qatar (2013), Republic of the Congo (1995), 
Romania (1980), Russian Federation (1980), Senegal (1997), Singapore (2013), South Africa (2006), Spain WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  4.5.4.2   Land transport  
4.134.   Sierra Leone's road network comprises about 11,31 1 km of roads, classified as primary, 
secondary or feeder. The paved network represents 8% of the overall network, with less than 10% 
built since the previous TPR. Efforts over the last decade aimed at rehabilitating the core road 
network.  
4.135.   Under the Road T ransport Authority Act of 1996, the Sierra Leone Roads Authority (SLRA) 
is in charge of the regulation and development of the road transport industry. The Road 
Maintenance Fund Administration Act of 2010 established a road maintenance fund, to be used to 
defray the cost of maintaining the core road network. The Fund receives mainly the road -user fee 
levied on fuel at the rate of US$0.16 per litre, vehicle licence and registration fees, and other 
licence fees collected under the Road Traffic Act 2007. The Fu nd is administered by the 
Sierra  Leone Road Maintenance Fund Administration.  
4.136.   At the regional level, Sierra Leone is involved in the ECOWAS Trans –West Africa Coastal 
Highway, a 4,560  km highway that is expected to link 12 member countries. According to the  
authorities, about 80% of the Sierra Leonean segment has been completed.  
4.137.   Sierra Leone has an 84 km railway, used mainly for transporting iron ore to the port of 
Pepel. In 2009, the Parliament ratified a decision to lease the railway and port infrastructu re to 
African Minerals, a mining company. The agreement grants exclusive lease rights to the company, 
but provides for the infrastructure to remain available to other users, at commercial rates.  
4.138.   Cabotage is not permitted in Sierra Leone. However, it is com monly practiced in areas 
along the borders.   
4.5.4.3   Maritime transport  
4.139.   There are five main ports in Sierra Leone: Bonthe, Pepel, Freetown, the Kissy Oil Terminal, 
and the port of Sherbro Island. The port of Freetown, with six berths and four warehouses, is the 
primary port; Sherbro is used mainly for exports of bauxite and rutile, and Pepel is currently under 
a leasing contract and used primarily for exports of iron ore.51 
4.140.   The Sierra Leone Maritime Administration Act of 2000 discharged the Sierra Leone Ports 
Author ity (SLPA) from its regulatory functions, and transferred them to the newly established 
Sierra Leone Maritime Administration (SLMA).52 The SLMA is in charge of the registration of ships 
and other vessels53, the licensing and safety of maritime personnel, and  the regulation of 
maritime, coastal, and inland waterway transportation.54 It is funded mainly by the proceeds of a 
charge levied on all cargo loaded or discharged in the country. The levy applies to imports and 
exports at the rate of US$2 and US$1.2 per t onne of shipment, respectively. Operators are subject 
to a r egistration fee and a tonnage tax, both varying between Le 2 million and Le 20 million 
depending on the tonnage. In 2016, there were 11 registered shipping agencies  (compared to 13 
in 2015) . 
4.141.   In 20 10, the National Commission for Privatization launched a reform with the objective of 
increasing the efficiency and the productivity of ports. As part of this process, several companies 
are active at the Port of Freetown : Bolloré Freetown Terminal Limited operating the container 
terminal; Africa Link operating the scanners; Nectar Sierra Leone B ulk Terminal operating the 
break bulk section; and Holland Shipyard Sierra Leone Ltd  operating the slipway.  
4.142.   In 2015, Sierra Leone implemented an advance cargo declar ation scheme under which all 
cargoes  are required to obtain a Movement Reference Number (MRN) from SLPA prior to shipment. 
This requirement is being implemented to comply with the International Ship and Port Facility 
                                                                                                                                                  
(1983), Sudan (2012), Turkey (2011), United Arab Emirates (1978), United Kingdom (2012), a nd United 
States (2012).  
51 In 2012, the authorities granted two mining companies (African Minerals and London Mining), the 
exclusive right to rehabilitate and increase the throughput capacity of the port of Pepel.  
52 Sierra Leone Maritime Administration Act , 2000.  
53 In accordance with the Registration of Shipping Act of 1965.  
54 The SLMA is also responsible for t he administration of the Carriage of Deck Passengers Act of 1961.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Security Code (ISPS Code). A private co mpany (Associated Transport and Port Management 
System) has been designated to issue the MRN.  
4.143.   The Sierra Leone National Carrier (SLNC)  was established in 2012 as the sole national 
carrier.55 It is a joint venture between the Government (51% of the sharehold ing), and Four Handy 
Limited, a UK -based company (49%). Every shipper engaged in se aborne transportation in 
Sierra  Leone is required to register with the SLNC. The SLNC has the right to carry out, at its 
discretion, the seaborne transportation of at least 40% of the total volume of cargo exported or 
imported into Sierra Leone, and to participate with an interest of up to 40% in the provision, 
operation and ownership of any floating production, storage off -loading unit (FPSO) or floating 
storage off -loading unit (FSO). It may enforce this provision by requesting the 40% shareholding 
or the payment of a commission.  
4.5.5   Tourism  
4.144.   Sierra Leone's tourism assets include its beaches, tropical environment and scenery, the 
diversity of its wildlife, and its cultural herita ge. Development of the industry has suffered from the 
decade -long political instability in the country. From 2006, the sector's contribution to GDP 
hovered around 7% until 2012, when it dropped to 5.9% because of the expansion in the mining 
sector. The num ber of arrivals by air nearly doubled between 2007 and 2012, to 59,730 visitors 
(Table 4.1 3). Nearly half of the visitors travelled for business purposes (Chart 4. 4), most were 
from Europe and Africa. As part of its strategy to promote the concept of "root  tourism", the 
authorities are undertaking efforts to restore some historic sites such as the Bunce Island 
Facilities. The outbreak of the ebola virus d isease severely impacted the tourism sector, as 
international airlines suspended their flights and most tourism facilities were forced to close down.  
Table 4.13 Tourism basic indicators, 2006  and 2009 -12 
  2006  2009  2010  2011  2012  
Arrivals  33,704  36,775  38,615  52,442  59,730  
Number of hotels  22 27 33 37 22 
Number of employees  2,620  2,940  3,650  4,687  2,620  
Contribution to GDP (%)  7.5 6.9 7.0 7.2 5.9 
Source:  Information provided by the National Tourism Board.  
Chart 4.4 Visitor arrivals by air, by purpose and orig in, 2012  
(% of total arrivals)  
Business
49.6%
Family visit
23.6%Holidays
15.8%Other
10.9%
Africa
31.3%
Europe
26.2%America
17.7%Asia
17.6%Other
7.2%
National Tourism Board of Sierra Leone. Online information, viewed at: http://www.ntb.sl/site -page/tourism -statistics 
(14 April 2014).Source:Chart 4.5
Visitor arrivals by air, by purpose and origin, 2012
By purpose of visitBy origin(% of total arrivals)
 
Source:  Information provided by the National Tourism Board of Sierra Leone.  
4.145.   The Ministry of Tourism and Cultural Affairs (MoTCA) is responsible for policy formulation 
for tourism and culture. Its objectives are to promote sustainable tourism as a means of economic 
                                                
55 Sierra Leone National Carrier Act, 2012.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  growth and socio -cultural integration, and to promote the country as a friendly tourist destination. 
These objectives are pursued through the development of an appropriate regulatory and policy 
framework, promotio n of the hospitality industry, and encouragement of investments in the sector. 
The National Tourism Board (NTB) is in charge of the promotion and development of tourism.56 It 
is responsible for studying the impact of tourism policies, and for registering, l icensing, and 
classifying tourist facilities. It is also in charge of monitoring all tourist establishments, and 
ensuring compliance with ECOWAS Standards of Classification of Tourist Establishments.  
4.146.   In the 2009 National Investment Policy, the Government adopted a set of incentives for 
development of the tourism industry that includes: a reduced -rate of 15% for corporate tax during 
the first five years of a new investment (the standard rate is 30%); duty -free treatment for 
imports of materials, machinery, and equipment used in new construction, and for extension or 
renovation of existing tourism -related facilities (provided that such materials are not easily 
available locally); and a three -year exemption from the payroll tax for up to six non -national 
emplo yees (provided that the skills are not available locally).  
4.5.6   Professional and business services  
4.147.   In general, business and professional services operators may establish a commercial 
presence if they enter into a partnership or joint venture with Sierra Leonean s. Individuals and 
companies wishing to engage in a regulated profession are generally required to obtain 
authorization or accreditation from the relevant professional association.  
4.148.   The Legal Practitioners Act of 2000 and its various amendments regulate the  practice of 
law in Sierra Leone. Legal practitioners are required to be admitted as such by the General Legal 
Council. Criteria for admission include a relevant university degree, passing a professional 
examination, and serving a pupillage period of one y ear with an established legal practitioner (with 
at least 10 year s of presence in the country). A Code of Conduct for the profession was adopted in 
2011.57 
4.149.   The accountancy profession is regulated under the Institute of Chartered Accountants 
Sierra Leone Act  of 1998. The legislation establishes the Institute of Chartered Accountants Sierra 
Leone (ICASL) as the body in charge of educating and training professional accountants ; 
establishing standards and disciplines for the profession; and promoting the collect ive interest of 
its members. Under the legislation, only firms and individuals licensed by the ICASL are authorized 
to conduct audits of private entities.58 Eligibility criteria for membership include: a professional 
degree, three years of experience and pa ssing qualifying examinations. The ICASL legislation is 
under review.  
4.150.   Other regulated professions include: engineers, notaries, pharmacist s and physicians, and 
architects (T able 4.1 4). 
Table 4.14 Other regulat ed professional services  
Profession  Law and/or professional association  Requirements  
Engineers  Sierra Leone Institution of Engineers  .. 
Notaries  Notaries Public Act, Cap 13  .. 
Physician and  
dental surgeons  Medical Practitioners and Dental Surgeons Act, 
1994 (amended in  2008)  
Medical and Dental Council of Sierra Leone  .. 
Pharmacists  Pharmacy and Drugs Act, 2001  
Pharmaceutical Society of Sierra Leone (all 
registered pharmacists)  Applications for review by t he Pharmacy Board 
which  maintains a register of pharmacists  
Architects  Architects Act, 1986  
Architects Registration Council  Residence  in Sierra Leone , passing qualifying 
examinations, and practical training  
Temporary registration is available to non -
residents  
.. Not available.  
Source:  WTO Secretariat  based on information provided by the authorities.   
                                                
56 The Development of Tourism Act, 1990.  
57 Legal Practitioners (Code of Conduct) Rules, 2010 . 
58 The public sector is regulated under the Audit Service of Sierra Leone Act.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2005 and 2010 -15 
  2005  2010  2011  2012  2013  2014  2015  
Total (US$ million)  159.0  341.2  349.2  1003.8  1527.4  1256.1 536.2  
 (% of total)  
Mineral exports  89.6 58.8 68.8 71.9 91.7 87.1 70.2 
     Diamonds  89.4 33.3 37.2 16.1 12.2 16.5 28.8 
     Bauxite  0.0 9.1 11.2 1.7 0.9 3.1 8.0 
     Rutile  0.0 11.9 9.9 17.1 8.5 7.7 17.2 
     Gold 0.2 2.7 2.1 0.6 0.2 0.1 0.7 
     Ilmenite  0.0 0.8 1.3 0.4 0.2 0.5 0.8 
     Iron o re 0.0 0.0 4.3 35.6 69.7 59.1 14.4 
     Zircon  0.0 1.0 3.0 0.5 0.0 0.1 0.2 
     Other mineralsa 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Agriculture  3.9 11.4 13.4 4.4 1.3 2.4 4.6 
     Coffee  0.5 0.5 0.6 0.4 0.2 0.2 0.3 
     Cocoa  3.3 10.9 12.6 2.2 0.6 2.0 3.6 
     Piassava  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
     Fish and Shrimps  0.0 0.0 0.2 1.7 0.5 0.1 0.8 
     Tobacco  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other domestic exports  2.0 22.9 8.3 19.7 5.3 5.6 20.7 
Re-exports  4.5 6.9 9.5 4.0 1.6 4.9 4.6 
a Comprises ores and concentrates of tin, zinc, molybdenum , and silver. 
Source:  Statistics Sierra Leone.  
Table A1. 2 Merchandise imports by SITC section, 2005 and 2010 -15 
  2005  2010  2011  2012  2013  2014  2015 
Total (US$ million)  341 770 1,717  1,604  1,780  1,568  1,530  
 (% of total)  
Food 15.6 13.6 14.3 19.1 20.1 21.5 34.5 
Beverages and tobacco  2.9 2.5 1.9 1.8 1.8 2.1 2.8 
Crude materials  2.6 1.7 1.1 2.1 1.7 2.4 2.7 
Mineral fuels and lubricants  33.9 22.3 16.1 21.6 23.4 31.2 18.2 
Animal and vegetable oils  0.4 1.2 0.6 0.6 0.8 0.6 0.6 
Chemicals  6.7 5.7 3.9 6.7 7.3 5.6 3.4 
Machinery and transport equipment  21.1 32.3 44.1 30.3 22.5 21.1 21.9 
Manufactured goods classified by 
materials  11.9 14.4 10.2 10.6 8.2 7.4 7.9 
Miscellaneous manufactured articles  5.0 2.4 1.8 1.9 1.6 2.0 2.5 
Miscellaneous transactions and 
commodities  0.0 3.9 6.0 5.4 12.6 6.1 5.6 
Source:  Statistics Sierra Leone.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Table A1. 3 Merchandise exports by destination, 20 05 and 2010 -14 
  2005  2010  2011  2012  2013  2014  
Total (US$ million)  159 341 349 1,004  1,527  1,256  
 (% of total)  
EU-27 87.4 36.3 40.7 26.1 24.2 48.4 
United States  2.4 28.1 26.7 19.6 0.4 5.5 
Japan  0.0 3.4 1.1 0.6 0.0 0.0 
Switzerland  0.0 11.1 9.2 8.0 6.8 9.7 
ECOWAS  3.8 13.5 2.9 1.6 5.1 3.1 
Other  6.4 7.6 19.5 44.1 63.5 33.3 
Source:  Statistics Sierra Leone.  WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  Table A3. 1 MFN tariff averages by HS  2-digit level, 201 6 
HS Description  No. of 
lines  Average 
(%) Range  
(%) Final 
bound 
average 
(%) 
 Total  5,467  12.0 0-30 47.6 
01 Live animals  22 15.9 5-20 40.0 
02 Meat and edible meat offal  59 20.0 20 40.0 
03 Fish and crustaceans, molluscs and other aquatic invertebrates  106 16.3 10-20 50.0 
04 Dairy produce; birds' eggs; natural honey;  edible products of 
animal origin, not elsewhere specified or included  38 18.8 5-20 40.0 
05 Products of animal origin, not elsewhere specified or included  17 11.2 5-20 40.0 
06 Live trees and other plants; bulbs, roots and the like; cut 
flowers and orname ntal foliage  16 15.3 5-20 40.0 
07 Edible vegetables and certain roots and tubers  59 19.6 5-20 40.0 
08 Edible fruit and nuts; peel of citrus fruit or melons  63 19.3 5-20 40.0 
09 Coffee, tea, maté, and spices  31 19.0 5-20 40.0 
10 Cereals  19 8.2 5-20 40.0 
11 Products of the milling industry; malt; starches; inulin; wheat 
gluten  30 14.8 5-20 40.0 
12 Oil seeds and oleaginous fruits; misc. grains, seeds and fruit; 
industrial or medicinal plants; straw and fodder  49 9.3 5-20 40.0 
13 Lac; gums, resins and ot her vegetable saps and extracts  10 6.0 5-15 40.0 
14 Vegetable plaiting materials; vegetable products not elsewhere 
specified or included  5 11.0 5-20 38.0 
15 Animal or vegetable fats, and oils and their cleavage products; 
prepared edible fats; animal or v egetable waxes  57 12.1 5-20 40.5 
16 Preparations of meat, of fish or of crustaceans, molluscs or 
other aquatic invertebrates  28 19.8 15-20 45.4 
17 Sugars and sugar confectionery  23 14.3 5-20 40.0 
18 Cocoa and cocoa preparations  18 13.9 5-20 39.4 
19 Preparations of cereals, flour, starch or milk; pastry cooks' 
products  23 17.4 5-20 38.5 
20 Preparations of vegetables, fruit, nuts, or other parts of plants  58 19.7 10-20 39.3 
21 Miscellaneous edible preparations  26 16.7 5-20 39.0 
22 Beverages, spirits, a nd vinegar  49 21.9 5-30 52.2 
23 Residues and waste from the food industries; prepared animal 
fodder  24 5.0 5 40.4 
24 Tobacco and manufactured tobacco substitutes  16 17.8 5-20 40.0 
25 Salt; sulphur; earths and stone; plastering materials, lime and 
cement  72 6.3 5-20 50.0 
26 Ores, slag, and ash  37 5.0 5 50.0 
27 Mineral fuels, mineral oils, and products of their distillation; 
bituminous substances; mineral waxes  57 8.7 5-20 50.0 
28 Inorganic chemicals; organic or inorganic compounds of 
precious metals, o f rare -earth metals, of radioactive elements 
or of isotopes  165 5.0 5 50.0 
29 Organic chemicals  338 5.0 5 49.9 
30 Pharmaceutical products  38 5.1 0-20 31.3 
31 Fertilizers  23 5.0 5 30.0 
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, 
pigments and other colouring matter; paints and varnishes; 
putty and other mastics; inks  59 9.2 5-20 50.0 
33 Essential oils and resinoids; perfumery, cosmetic or toilet 
preparations  35 15.3 5-20 47.6 
34 Soap, organic surface -active agents, washing prepar ations, 
lubricating preparations, artificial waxes, prepared waxes, 
polishing or scouring preparations, candles and similar articles, 
modelling pastes, dental waxes and dental preparations with a 
basis 28 15.9 5-20 50.0 
35 Albuminoidal substances; modifie d starches; glues; enzymes  16 5.0 5 43.1 WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  HS Description  No. of 
lines  Average 
(%) Range  
(%) Final 
bound 
average 
(%) 
36 Explosives; pyrotechnic products; matches; pyrophoric alloys; 
certain combustible preparations  10 15.5 5-20 50.0 
37 Photographic or cinematographic goods  35 19.1 5-20 50.0 
38 Miscellaneous chemical products  81 14.0 5-20 47.3 
39 Plastics and articles thereof  140 8.3 5-20 50.0 
40 Rubber and articles thereof  94 13.9 0-20 50.0 
41 Raw hides and skins (other than furskins) and leather  37 16.4 5-20 48.6 
42 Articles of animal gut (other than silk -worm gut)  24 17.9 10-20 50.0 
43 Furskins and artificial fur; manufactures thereof  12 18.3 10-20 45.8 
44 Wood and articles of wood; wood charcoal  77 15.5 5-20 50.0 
45 Cork and articles of cork  11 5.0 5 50.0 
46 Manufactures of straw, of esparto or of other plaiting materi als; 
basket ware and wickerwork  12 20.0 20 50.0 
47 Pulp of wood or of other fibrous cellulosic material; recovered 
(waste and scrap) paper and paperboard  21 5.0 5 50.0 
48 Paper and paperboard; articles of paper pulp, of paper or of 
paperboard  107 9.1 5-20 50.0 
49 Printed books, newspapers, pictures and other products of the 
printing industry; manuscripts, typescripts and plans  22 9.5 0-20 43.6 
50 Silk 12 11.3 5-20 47.5 
51 Wool, fine or coarse animal hair; horsehair yarn and woven 
fabric  48 10.3 5-20 47.7 
52 Cotton  145 13.1 5-20 49.2 
53 Other vegetable textile fibres; paper yarn and woven fabrics of 
paper yarn  23 8.0 5-10 47.4 
54 Man-made filaments  77 10.9 5-20 50.0 
55 Man-made staple fibres  117 10.7 5-20 50.0 
56 Wadding, felt and nonwovens; special  yarns; twine, cordage, 
ropes and cables and articles thereof  35 16.3 5-20 50.0 
57 Carpets and other textile floor coverings  21 20.0 20 50.0 
58 Special woven fabrics; tufted textile fabrics; lace; tapestries; 
trimmings; embroidery  45 19.7 5-20 50.0 
59 Impregnated, coated, covered or laminated textile fabrics; 
textile articles of a kind suitable for industrial use  24 16.3 10-20 50.0 
60 Knitted or crocheted fabrics  43 20.0 20 50.0 
61 Articles of apparel and clothing accessories, knitted or crocheted  106 20.0 20 50.0 
62 Articles of apparel and clothing accessories, not knitted or 
crocheted  113 20.0 20 50.0 
63 Other made up textile articles; sets; worn clothing and worn 
textile articles; rags  53 18.0 5-20 50.0 
64 Footwear, gaiters and the like; parts of such articles  27 18.1 15-20 50.0 
65 Headgear and parts thereof  10 20.0 20 50.0 
66 Umbrellas, sun umbrellas, walking -sticks, seat -sticks, whips, 
riding -crops and parts thereof  6 20.0 20 50.0 
67 Prepared feathers and down and articles made of feathers or of 
down; artificial flowers; articles of human hair  8 20.0 20 50.0 
68 Articles of stone, plaster, cement, asbestos, mica or similar 
materials  51 18.8 10-20 50.0 
69 Ceramic products  30 18.0 5-20 50.0 
70 Glass and glassware  70 18.6 5-20 50.0 
71 Natural o r cultured pearls, precious or semi -precious stones, 
precious metals, metals clad with precious metal, and articles 
thereof; imitation jewellery; coin  53 12.4 5-20 50.0 
72 Iron and steel  167 5.6 5-10 50.0 
73 Articles of iron or steel  131 16.6 5-20 49.7 
74 Copper and articles thereof  53 7.6 5-20 50.0 
75 Nickel and articles thereof  17 6.8 5-20 50.0 WT/TPR/S/303 /Rev.2  • Sierra Leone  
 
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  HS Description  No. of 
lines  Average 
(%) Range  
(%) Final 
bound 
average 
(%) 
76 Aluminium and articles thereof  41 9.4 5-20 50.0 
78 Lead and articles thereof  8 6.9 5-20 50.0 
79 Zinc and articles thereof  9 6.7 5-20 50.0 
80 Tin and art icles thereof  5 5.0 5 50.0 
81 Other base metals; cermets; articles thereof  48 5.0 5 50.0 
82 Tools, implements, cutlery, spoons and forks, of base metal; 
parts thereof of base metal  66 9.7 5-20 35.0 
83 Miscellaneous articles of base metal  36 17.1 5-20 50.0 
84 Nuclear reactors, boilers, machinery and mechanical appliances; 
parts thereof  510 6.3 0-20 43.3 
85 Electrical machinery and equipment and parts thereof; sound 
recorders and reproducers, television image and sound 
recorders and reproducers, and part s and accessories of such 
articles  265 14.4 5-20 47.9 
86 Railway or tramway locomotives, rolling -stock and parts 
thereof; railway or tramway track fixtures and fittings and parts 
thereof; mechanical (including electro -mechanical) traffic 
signalling equipm ent of all kinds  23 5.0 5 50.0 
87 Vehicles other than railway or tramway rolling -stock, and parts 
and accessories thereof  157 10.8 5-30 55.7 
88 Aircraft, spacecraft, and parts thereof  15 5.0 5 47.3 
89 Ships, boats and floating structures  21 8.1 5-20 50.0 
90 Optical, photographic, cinematographic, measuring, checking, 
precision, medical or surgical instruments and apparatus; parts 
and accessories thereof  153 8.1 0-30 48.0 
91 Clocks and watches and parts thereof  51 19.6 10-20 50.0 
92 Musical instruments ; parts and accessories of such articles  17 13.5 10-20 50.0 
93 Arms and ammunition; parts and accessories thereof  20 19.5 10-20 50.0 
94 Furniture; bedding, mattresses, mattress supports, cushions 
and similar stuffed furnishings; lamps and lighting fittin gs, not 
elsewhere specified or included; illuminated signs, illuminated 
name -plates  48 17.2 5-20 50.0 
95 Toys, games and sports requisites; parts and accessories 
thereof  31 18.1 5-20 50.0 
96 Miscellaneous manufactured articles  48 18.5 10-20 49.8 
97 Works of art, collectors' pieces and antiques  13 13.1 5-20 50.0 
Note:  Calculations of averages are based on national tariff line level (HS 8 -digit).  
Source:  WTO Secretariat estimates, based on data provided by the authorities, and WTO CTS database . 
 
 
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