Sierra Leone WT/TPR/S/143 
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IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. In the short period since the termination of its ci vil conflict, Sierra Leone has sought to revive 
key sectors of the economy, such as agriculture and mining.  
2. Sierra Leone's labour-intensive agriculture sect or seems to be recovering progressively from 
the damages of the civil conflict (1992 to 2002) a nd maintains its pre-conflict dominant role in the 
economy, accounting for almost half of GDP.  Despite some improvement, in particular, in cereals production, Sierra Leone is now a net food-importer and food-aid recipient.  Government intervention 
concentrates on a few policy instruments.  At the border, average applied MFN tariff protection for 
primary/unprocessed agricultural products is so mewhat higher than the average overall tariff 
protection level.  The availability of support, in the form of free distribution of seedlings and other 
inputs, is important in determining the surface area planted.  Domestic rice production is protected at the border with a relatively high tariff (15%) and re ference value.  Domestic support has also been 
granted through tax incentives, in addition to t hose available to other sectors, and a local-content 
requirement on agri-processing activities (Chapter I I(7) and Chapter III(4)(ii)).  Export taxes have 
been levied on a few commodities (coffee, cocoa).  Special permits for the production, transport, and 
exports of fuel wood and/or charcoal are used ag ainst deforestation, which has progressed rapidly in 
recent years.  
3. Sierra Leone's vast mineral resources and reserves remain among the key elements in its 
development prospects.  Diamonds continue to be  the main export commodity and foreign-exchange 
earner, accounting for more than 90% of total e xports (mainly to Belgium).  Since 2000, mandatory 
certificate-of-origin requirements have been implemented (Kimberley process certification scheme as from 2003) with considerable effect on the register ed diamond trade and fiscal revenue.  During 2002 
and 2003, higher diamond export-licence fees were charge d to foreigners than to nationals, in order to 
encourage participation of the latter in the sector;  these taxes were replaced by a flat rate as from 
2004.  An export performance incentive reducing th e 3% export tax rate has been in place for 
diamond exports as from 2003.  Ad hoc  tax concessions have been granted for restarting the mining of 
rutile.  As from 2001, a Diamond Area Community Development Fund has re-allocated diamond-related revenue to mining communities.  
4. In light of Sierra Leone's fragile economy,  its dependence on increasingly expensive oil 
imports for, inter alia,  electricity production and transportation, constitutes, to some extent, a 
developmental constraint.  The National Power Au thority, a state monopoly, is responsible for 
electricity generation, transmission, and distribution;   a hydroelectric power plant is to be operational 
by the end of 2006.  Electricity tariff differentia ls penalize industrial consumers, who are charged 
rates up to 30% higher than other consumers. 
5. Manufacturing, composed mainly of small and medium-sized enterprises, remains under-
developed.  Border protection, is confined to ta riffs, which attain their highest levels on processed 
food, beverages, textiles, furniture, non-me tallic mineral products, and other manufactures. 
6. Services account for one quarter of Sierra Le one's GDP.  Sierra Leone has comprehensive 
GATS commitments;  an MFN exemption is in for ce with respect to its sub-regional preferential 
arrangements.  The introduction of prudential requi rements, independent supervision and rural bank 
reforms have marked the finance sector since 2000.   In telecommunications, two private operators 
have run the mobile telephony netw orks since 1990.  Since 1999, Sierra Leone has participated in the WT/TPR/S/143 Trade Policy Review 
Page 58 
 
 
Yamoussoukro Initiative on the gradual implementati on of an “open skies” agreement in order to 
liberalize air transport of passengers and cargo. 
(2) AGRICULTURE , FORESTRY AND FISHERIES  
(i) Features 
7. During the decade of civil unrest and conflict (1 991-02), agricultural activities were disrupted 
throughout Sierra Leone.  Between 1995 and 2003, d espite fluctuations in output, labour-intensive 
subsistence agriculture maintained its dominan t role in the economy and in 2003 it accounted for 
47.9% of GDP (Table I.3)1, and provided work for three quarters of the total labour force.2  T h e  
sector's share in total exports was 3.2% in 2003,  (3.3% in 2002 and 1.1% in 2001) (Chart I.2).3  
8. The sector is predominately rain-fed; the main food crops are rice, maize, sorghum, millet, 
and benniseed (small oval seeds of the sesame plant).  Agricultural activity is carried out mainly by 
small, family farms, which use traditional methods with few inputs and a low degree of mechanization.
4  Out of a total of 5.24 million hectares of arable land, only about 12-15% is under 
crop production.5  Farmers depend on the Government and non-governmental organizations (NGOs) 
for their supply of seeds;  the surface area planted is  largely determined by the assistance capacity of 
these agencies. 
9. According to the Food and Agriculture Organiza tion, there has been a strong recovery since 
2000 in food crops such as cassava, sweet potato, and groundnuts.6  The resettlement of the displaced 
farming population is expected to continue, thus su pporting the recovery trend in food production.  
Self-sufficiency and food security issues 
10. Sierra Leone, which was almost in self-suffici ent food before 1990, has become dependent on 
imports and food aid.  Food imports consist largel y of processed food items, i.e. rice and animal and 
vegetable oils.7  The continued decline in output has had drastic effects on food prices and rural 
incomes.  Production costs for basic food items  rose more than four-fold between 1991 and 2001 due 
to high inflation, the fragile economy, and a weak exchange rate.8  
11. The overall situation in food security has im proved progressively since 2001, as stability has 
allowed the return of displaced farmers to their old homes.9  Overall self-sufficiency in cereals 
increased from 30% in 2001 to 43% in 2003; and by the end of 2004, do mestic production was 
                                                      
1 For 2000, the regional average level for sub-Saha ran Africa was 16.7%.  See Sierra Leone Central 
Statistics Office (2001) online information.  Available at: http://www.sierra-leone.org/cso2001- 
nationalaccounts.html [23 April 2004]. 
2 Statistics Sierra Leone (2001);  and Earth Trends (2003).  
3 Ministry of Finance (2004), Table 2. 
4 According to the authorities 75%, of the farms ha ve less than 3 ha (Ministry of Trade, 2004). 
5 FAO (2002), Special report "crop and food supply situation in Sierra Leone",  February.  Available at:  
http://www.fao.org/DOCREP/004/X4425E/X4425E00.HTM, [28 May 2004].  
6 Ministry of Finance (2004) . 
7 Ministry of Finance (2004) . 
8 Ministry of Development and Economic Planning (2001). 
9 The World Food Programme (2004a). Sierra Leone WT/TPR/S/143 
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expected to cover 54% of national needs.10  During 1998-00, net cereal imports and food aid 
represented an annual average of 50.2% of total consumption.11 
12. Between 1994 and 2003 Sierra  Leone received 556,200 tonnes of food aid (cereals and non-
cereals).12  In 2003, the FAO implemented a rehabilitati on programme that delivered 54,537 tonnes of 
assorted food commodities (53,642 tonnes in 2002 at a cost of US$29.8 million), mainly from the 
United States (76.5%), Japan (8.9%), and the EC (6.4%).13  During 2004, 128,673 tonnes of assorted 
food commodities were imported under the United Nations World Food Programme (Protracted 
Relief and Development Food Aid), to ensure food assistance to refugees, returnees, and internally 
displaced persons (IDPs).  
13. According to the United Nations World Food Pr ogramme, in 2003 the main risks to food 
security in Sierra Leone were:  (i) deforestation,  caused by over-harvesting of timber, expansion of 
cattle grazing, and slash-and-burn agriculture;  (ii) lack of substantial foreign aid to revive the 
agriculture sector, particularly smallholder agricultu re;  (iii) lack of tools and maintenance services, 
and low-quality planting seed;  (iv) inadequate support for seed  multiplication activities and other 
planting materials;  (v) inadequate access to food ma rkets as a result of poor road infrastructure, other 
marketing limitations such as lack of storage capacity, processing facilities, coupled with low 
purchasing power and inadequate credit facilities for fa rmers;  (vi) delay in shipping and ruptures in 
the food pipeline; and (vii)  sandstorms and dust storms.14  The authorities aim to secure the delivery 
of basic food for the entire population by 2007, through the following policy objectives:  (i) increasing and diversifying domestic food prod uction;  (ii) increasing agriculture productivity, rural income, and 
employment, while ensuring adequate protection of the environment;  and (iii) maximizing foreign 
exchange earnings from the agriculture sector.
15   
14. According to the authorities, Sierra Leone do es not maintain strategic stockpiles for basic 
foodstuffs. 
(ii) Main policy issues  
Objectives 
15. As stipulated in its 2001 Interim Poverty Reduction Strategy Paper (IPRSP)16 (Chapter I(2)(i) 
and Chapter II(4)), Sierra Leone's overall objective is  to promote sustainable growth of agricultural 
output so as to restore food security and generate tradeable surpluses.  The strategy consists of 
increasing farm accessibility and productivity; im proving farm incentives and security in the 
countryside; improving access to land, farming impl ements, and inputs; facilitating access to credit; 
increasing private participation;  rehabilitating pa rtially developed inland valley swamps;  and 
providing returnees and IDPs with basic agricultural inputs and services. 
 
  
                                                     
 
10 The World Food Programme (2004a).  
11 This ratio indicates whether the country is able to produce sufficient grain for domestic consumption, 
it is calculated by dividing net imports by total cereal consumption (production plus imports minus exports). 
12 World Food Programme (2004b). 
13 See also World Food Programme (2004a). 
14 World Food programme (2004a). 
15 FAO (2004a). 
16 Ministry of Development and Economic Planning (2001). WT/TPR/S/143 Trade Policy Review 
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(a) Border measures 
Average nominal tariff protection 
16. The average applied MFN tariff for the agricultu re sector is 15.1% (the effective applied 
MFN tariff, including the excise tax and ECOWAS levy, for the sector is 15.6%)17;  this is higher than 
the average MFN rate for all products, which is 13.9%  (Chart IV.1).  Sierra Leone bound tariffs for 
agricultural products at a ceiling rate of 40%, ex cept for some items at rates of 30% and 80% 
(Chapter III(2)(iii)(b)). 
Non-tariff border protection 
17. Imports of agricultural products/inputs (plants,  seeds, soil other than sterilized peat and 
special rooting compost, and any material mixed with  any type of soil) have been subject to special 
import-licensing requirements for health, safety a nd environmental reasons (Chapter III(2)(v)).  
Export taxes 
18. Sierra Leone applies an 2.5% export tax on certain commodities (cocoa and coffee products) 
(Chapter III(3)(ii)).  
Export restrictions 
19. Sierra Leone regulates the export of certain commodities (plants and charcoal (section (2)(iv)) 
through special permit requirements. Exports of perishable goods require 
phytosanitary/fumigation certificates (Chapter III(3)(iii)). 
(b) Domestic support measures 
20. The sector has benefited from domestic support in the form of additional tax incentives (e.g., 
corporate tax breaks) compared to other sectors;  incentives also available to other sectors include 
duty and tax concessions on imports of raw materials,  plant and machinery, etc. as well as loss write-
off (Table II.1).  Agriculture and forestry activities are exempt from the corporate tax, for a ten year 
period (Table II.1, Chapter II(7), and Chapter III( 4)(iii)).  Free seedlings and other inputs and 
equipment have been distributed to farming communities (section (2)(i)).  To benefit from tax incentives, agri-processing activities should meet a 60% local input or value-added requirement.  
Sierra Leone has made no notifications to  the WTO Committee on Agriculture to date. 
                                                     
 
17 This tariff average, which is ba sed on the two-digit ISIC category, is lower than that indicated in 
Table III.1 due to different product classification;  the average of 16.5% in Table III.1 is based on the HS nomenclature. Sierra Leone WT/TPR/S/143 
 Page 61 
 
 
05101520253035404550
Agriculture and
hunting
Forestry and logging
Fishing
Coal mining
Crude petroleum &
natural gas
Metal ore mining
Other mining
Food, beverages and
tobacco
Textiles and leather 
Wood and  furniture
Paper printing and
publishing
Chemicals
Non-metallic mineral
products
Basic metals
Fabricated metal
prod. & machinery
Other manufacturingPer centChart IV.1
Tariff averages by 2-digit ISIC category, 2004
Note:
Source :Effective applied rates include excise taxes and ECOWAS taxes.
WTO Secretariat calculations, based on data provided by the authorities of Sierra Leone. MFN Effective a pplied MFN
Average effective
 applied MFN
(14.9%)Average MFN
(13.9%)
 
(iii) Selected crops 
Rice  
21. Rice is the most important food crop in Sie rra Leone and accounts for 82% of the population's 
food intake.18  Domestic rice production meets 70% of domestic requirements. According to an FAO 
survey on food production, between 2000 and 2002, the rice acreage expanded by 47%.  In 2003, rice fields covered some 180,000 ha. and annual production was about 200,000 tonnes, with an average 
yield of 1.3 tonnes/ha.
19  Domestic rice is protected at the border with a relatively high tariff (15%) 
and reference value (Chapter III(2)(ii)(b)).   
22. According to the FAO, sustainable rice pr oduction will depend seemi ngly on greater support 
for input supply and output marketing, and deve lopment of lowland (Inland Valley Swamp) rice 
production.20  
23. Since 1988, private traders have been allowed to import and market rice on the domestic 
market;  until then, rice imports and marketing, were  the monopoly of the now defunct state enterprise 
Sierra Leone Produce Marketing Board (SLPMB).21  
                                                      
18 Annually consumption of rice in Sierra Leone is 530,000 tonnes.  Information available at:  
http://web. idrc.ca/en/ev-35670-201-1 -DO_TOPIC.html [7 June 2004]. 
19 According to the FAO, the target of achieving pre-war subsistence production levels fell short in 
2003 due in part to limited funding support in 2003  (FAO, 2004a). 
20 FAO (2004b). WT/TPR/S/143 Trade Policy Review 
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Cocoa and coffee 
24. Cocoa and coffee are the main export crops, toge ther representing 2.8% of total exports in 
2003.  In 2003, cocoa and coffee production rose to 2,750 tonnes, (350 tonnes in 2002) and 540 tonnes (520 tonnes in 2002) respectively.  The produc tion and export levels remain lower than those 
recorded in pre-war years.
22  An export tax of 2.5% is levied on these products (section (2)(ii)(a)).  
25. Sierra Leone signed the 1980, 1986, and 1993 Inte rnational Cocoa Agreements.  It is not a 
member of the International Coffee Organization a nd does not participate in the International Coffee 
Agreement.23  
(iv) Forestry 
26. Since 1990, deforestation has progressed rapidly in Sierra Leone as a result of increased 
demand for farmland and fuel wood24, along with pressure from the timber industry;  from 1990 to 
2000 the annual average deforestation rate was at 2.9%.25  In 2003 forest covered 20% of 
Sierra Leone's land area, down from more than 75% ten years ago.   
27. Forestry policy aims primarily to develop and c onserve forest areas for the protection of soil 
and water resources.  It is implem ented through the 1988 Rural Area Act.26  The Forestry Division of 
the Ministry of Agriculture, Forestry and Food Security is responsible for the forestry sector.   
28. Since 1 July 1990, two mandatory special permits have been required  (issued by the Ministry 
of Agriculture, Forestry and Food Security).  A mandatory special permit valid for a period not exceeding one year, concerns the transportation of  more than 100 kg. of fuel-wood or 50 kg. of 
charcoal in a single load.
27  The second permit applies to the production and export of charcoal 
(Chapter III(3)(iii)(a)). The export restriction on plan ts and charcoal is to minimize deforestation and 
to prevent the extinction of tree species used for charcoal production.   Some of these tree species 
might be used as medicinal plants to cure vari ous diseases in Sierra Leone.  According to the 
authorities, a reafforestation fund was created, and in 1985 a national tree planting day (5 June) was 
established.28  
(v) Fisheries  
29. Fisheries accounted for around 11% of Sierra Leone's GDP in 2003.  The main catch 
comprises shrimp, cuttlefish, tuna, and spiny lobster.   Although some exports are registered, estimated 
at US$13.6 million in 199829, fishing is essentially at subsistence level;  frozen shrimps constitute the 
highest foreign-exchange earner amongst marine pr oducts.  Since 1995, small-scale traditional fishing 
provides more than 70% of fish consumed locally and employs around 30,000 persons. 
                                                                                                                                                                     
21 FAO (1997). 
22 Ministry of Finance (2004) . 
23 Information available at:  http://www.icco.org /members.htm, and http://www.ico.org/frameset/ 
icaset.htm [19 October 2004]. 
24 Fuel-wood means any part of woody plants used as a source of energy for purposes such as cooking, 
heating or power production.  
25 Information available at: http://www.fao.org/for estry/foris/webview/forestry2/index.jsp?siteId= 
5081&sitetreeId=18308&langId=1&geoId=2 [7 June 2004]. 
26 The Forestry Act No. 7 of 19 88, Public Notice No 17 of 19 90, published 31 December 1990. 
27 The Forestry Act No. 7 of 19 88, Public Notice No 17 of 19 90, published 31 December 1990.  
28 The Forestry Act No. 7 of 19 88, Public Notice No 17 of 19 90, published 31 December 1990.  
29 FAO (2000). Sierra Leone WT/TPR/S/143 
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30. The sectoral strategy is to increase the supply of fish for domestic consumption as well as to 
enhance the availability of fish protein and expor table marine products through small-scale traditional 
fishery programmes.30  According to the authorities, the main  regulatory chang es in the fisheries 
sector since 2000 have been the enactment of a comp rehensive fishery policy covering in part the 
small-scale sector, industrial fisheries and inland  fisheries/aquaculture;  the introduction of 
responsible fishing practices;  and limiting access through increased licence fees. 
31. Sierra Leone's policy against depletion of mari ne resources consists in protecting juvenile 
stages of fish species, by:  (i) delimiting inshore exclusion zones (average of 8 km from the shore 
line); (ii) setting minimum mesh sizes;  (iii) banning undesirable fishing gear;  and (iv) controlling the 
number and size of fishing vessels.  
32. Industrial fishing is mainly carried out under jo int-venture agreements between Sierra Leone, 
China, and the Republic of Korea.  Sierra Leonean s do not own vessel but act as agents for overseas 
boat-owners.  The agreement stipulates that all vessels must be licensed by locally registered 
companies.  The Ministry of Fishery is not usua lly involved in the agreement between the agent and 
the overseas partner.  Licences are issued by the Mi nistry for a maximum of 12-months;  licence fees 
and royalties are paid to the Ministry by the boat-o wners.  In 2004, 13 enterprises were involved in 
fishing activities in Sierra Leone's territorial waters.   
33. Between 1995 and 2000, the industrial catch ro se by 13.5%;  however due to the lack of 
adequate facilities in Sierra Leone, the catch is processed in and exported from Dakar (Senegal) or 
Las Palmas (Canary Islands).31  According to the authorities, plans are under-way to construct a fish-
processing establishment.  
34. An EU import ban on Sierra Leone's fish a nd fish products came into effect in 2000.  
According to the authorities, they have never receive d formal notification of this ban.  The Sierra 
Leone Standards Bureau is developing standards and codes of conduct in compliance with the EU 
directives on sanitary certification for fish and fish products.  In 2002, a request was made to the EU 
for technical assistance, to enable Sierra  Leone to comply with EU standards.32   
(3) MINING AND ENERGY  
(i) Mining  
(a) Features 
35. Sierra Leone's diamonds-driven mining sector c ontributed 15.4% of GDP in 2003 (Table I.3); 
it dominates exports and employs about 17% of the labour force.33  Traditional (artisanal) mining 
accounts for 100% of the production.  Sierra Leone 's abundant mineral resources comprise diamonds, 
rutile (titanium dioxide), gold, bauxite, and platinum .  Sierra Leone has one of the largest and under-
explored rutile reserves in the world, and was the world's largest producer of this mineral before the 
conflict. 
                                                      
30 Ministry of Development and Economic Planning (2001) . 
31 FAO (2000);  and Statistics Sierra Leone (2001). 
32 This technical assistance would provide:  consultant services, basic laboratory testing equipment, 
training of staff, and other sanitary infrastructure.  
33 Ministry of Finance (2004). WT/TPR/S/143 Trade Policy Review 
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(b) Main policy issues 
36. As stipulated in the 2001 Interim P overty Reduction Strategy Paper (IPRSP)34, the sectoral 
objective is to improve the welfare of the return ing mining population and make activities more open 
and transparent.  The 1996 Mines & Minerals Act provides the legal framework for this sector.35  
Mining rights and exploration licence are granted on a first-come first-served basis.  According to the 
authorities, the main objectives of the Core Mineral Policy (CMP)36 (November 2003) are to:  (i) 
review and amend the laws and re gulations governing the mining and marketing of minerals;  (ii) 
strengthen the institutions that administer, regulate,  and monitor the mining sector;  (iii) develop and 
strengthen human resources;  (iv) attract private i nvestment;  (v) ensure that Sierra Leone's mineral 
wealth supports national economic and social de velopment;  (vi) improve the regulation and 
efficiency of artisanal and small-scale mines;  (vii) minimize and mitigate the adverse impact of 
mining operations on health, communities, and the environment;  (viii) promote improved 
employment practices;  and (ix) add value to mi ning products and facilitate  trading opportunities. 
37. The sector has benefited under the 1969 Non-Citizens (Trade and Business) Act from 
domestic support in the form of tax incentives (Cha pter II(7)).  The sector continues to benefit from 
domestic support, under the Investment Promotion Act,  2004.  According to the authorities the main 
reasons for granting domestic support in this sector are to encourage investors, promote employment 
in the sector, and increase production.  
38. According to the IMF, the granting of tax concessions for rutile, bauxite, and kimberlite 
mining has so far been rather ad hoc  without an overall guiding fram ework for medium-term revenue 
mobilization objectives, desirable developments, and social expenditures.37  To restart rutile mining 
operations, the authorities have granted significant tax concessions to investors.  It is estimated that 
over the period 2004-16 the cumulative tax reve nue losses resulting from these concessions will be 
US$98  million.  In return for these losses the Government  of Sierra Leone will receive an equity stake 
of Sierra Rutile Limited (SRL)38 projected to reach 30% once proven reserves are exhausted.  The 
Government of Sierra Leone is expected to receive around US$5 million to US$10 million per year 
for the first five years in form of an equity stake.39 
39. Since 2001, a Diamond Area Community Develo pment Fund (DACDF) has ensured that 
communities in the mining areas derive direct benefits from mining activities.40  Each community's 
share is proportionate to the number of diamond-mini ng licences issued in the region.  The funds have 
been increasing steadily, at a rate of 60% fro m 2001 to 2002 (from US$195,165 to US$312,988), and 
                                                      
34 Ministry of Development and Economic Planning (2001). 
35 Organized mining in Sierra Leone only began after the promulgation of the Minerals Act in 1927, 
which was amended by the Revised Mineral Act in 1960. 
36 According to the authorities, the strategy, objectives, and principles outlined in the CMP will 
determine the activities that will be integrated into a comprehensive programme for the development of the 
mining sector in Sierra Leone.  
37 IMF (2004a). 
38 MIL (investment) SARL and US Titanium own 100% stake in SRL.  SRL owns the world's richest 
rutile deposit and has historically been the world's leading producer of natural rutile.  The company is 
refurbishing its plant and equipment as part of its plan to re-establish its position as a key supplier of titanium 
dioxide.  Information available at:  http://www.finda rticles.com/p/articles/mi_m0EIN/ is_2003_Sept_22/ai_ 
107991822 [20 October 2004]. 
39 According to the authorities, 400 jobs have been  created already and when SRL starts exporting 
again, over 1,000 jobs will be created. 
40 Government Gold and Diamond Office (2003). Sierra Leone WT/TPR/S/143 
 Page 65 
 
 
82% from 2002 to 2003 (US$569,773).  For the first half of 2004, the funds raised were 
US$458,884.41  The funds are used on community infrastructure projects.42  
40. The Ministry of Mineral Resources (MMR) is r esponsible for formulating the mining policy. 
41. The main investment impediments in mining are access to land, funds, and capital.  The 
authorities recognize the need to introduce specific re forms in order to attract investment.  Future 
reforms are to include the introduction of a new national mineral development policy.43  P l a n s  f o r  
strengthening the current mining policy's provi sions on the development of small-scale mining44, 
organizing miners into cooperatives, and preparing a set of rules for expanding private involvement 
are still under consideration.  
Diamonds  
42. Sierra Leone is the world's eleventh largest and the continent's eighth largest producer (2002) 
of diamonds.45  Diamonds are Sierra Leone's main foreign- exchange earner.  In 2003, they accounted 
for more than 90% of total exports (91% in 2001 and 85% in 2002)46, with a record export value of 
US$75.97 million, an increase of 82% over 2002 (Table  IV.1).  The authorities estimate exports at 
US$100 million during 2004.  The trend may largely be  explained by:  (i) the recent introduction of 
export certification procedures (Box IV.1);  (ii) the return of large numbers of people to the mining 
areas, due to better security, resulting in intensifica tion of mining activities;  (iii) a new "Supplier of 
Choice", marketing strategy used by De Beers diamond mining company47;  and (iv) the continuing 
UN ban on diamond exports from Liberi a, the traditional smuggling route.48 
43. Since 1956, the Alluvial Diamond Mining Scheme (ADMS), which was introduced 
essentially to regulate the rush of traditional and small-scale miners into diamond mining, has governed the licensing of mining plots and diamond tr ading.  The DACDF was created to support the 
diamond-mining communities.   
Table IV.1 
Diamond exports under the certification regime 2000-04 
(U.S. dollars)  
 2000a 2001 2002 2003 2004b 
Value 6,533,134.59 26,022,492.27 41,732,130.30 75,969,753.32 68,282,702.49 
Carats 50,281.51 222,519.83 351,859.23 506,723.37 396,132.37 
a Exports from October to December. 
b Exports from January to June. 
Source:  Government Gold and Diamond Office (2003), 2003 Report.  
                                                      
41 Government Gold and Diamond Office (2003);  and Gold and Diamond Department (NRA) (2004). 
42 According to the authorities the funds could be used to fund community development projects like: 
road/bridge construction and maintenance;  small-scale electricity supply;  construction and maintenance of 
community centres;  scholarships funds to deserving students from such regions;  provision of clean water 
supply;  provision and improvement of health facilities;  transport and communication.  
43 State House of Sierra Leone (2003). 
44 Ministry of Development and Economic Planning (2001). 
 45 MBendi Information Services online information.  Available at:  http://www.mbendi.com/indy/ming/ 
dmnd/p0005.htm  [26 July 2004]. 
46 Ministry of Finance (2004). 
47 De Beers accounts for 45% of annual global diamond production.  Information available at: 
http://www.debeersgroup.com /homePage/dbHomePage.asp [19 October 2004]. 
48 Gold and Diamond Department (NRA) (2004) . WT/TPR/S/143 Trade Policy Review 
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44. Since 2000, the Security Council of the United Nations has prohibited the direct or indirect 
importation of all rough diamonds from Sierra Le one unless the rough diamonds are first controlled 
by the national authorities through a mandatory Certificate of Origin regime.49  This measure was 
established initially for a period of 18 months (until 5 December 2002), and was extended until 
5 June 2003.50  
45. As from 1 January 2003, the "Kimberley Pro cess Certification Scheme" (KPCS) has been 
mandatory for the export of rough diamonds.  Si nce 1 January 2004, Sierra Leone has exported 
diamonds only to countries that are Kimberley participants51;  these are the only countries from which 
rough diamonds may be legally imported or expor ted, and account for over 98% of the world's 
diamond trade.  Belgium is the main destination for Sierra Leone's diamonds  (90% of total diamond 
exports). 
46. In 2003 a waiver was adopted by the WTO Ge neral Council with respect to the measures 
taken to prohibit the export and import of rough diamonds to non-participants in the KPCS.  The 
waiver covers Articles I:  1, XI:  1, and XIII:  1 of the GATT 1994 are waiv ed from 1 January 2003 to 
31 December 2006.52  The Members concerned are:  Australia, Brazil, Canada, Israel, Japan, Republic 
of Korea, Philippines, Sierra Leone, Thailand, United Arab Emirates and the United States. 
47. To encourage local participation in the diam ond sector, in 2002 and 2003, the fee charged for 
an exporter's licence was higher for foreign nationals than for domestic citizens (five were issued to 
foreigners and 38 to domestic citizens in 2003).  The downside of this policy was that some Sierra 
Leoneans apparently abused this opportunity by ac ting as a front for foreign citizens and companies.  
As from 2004, there is a flat rate on all export licen ces.  Increased participation from local and foreign 
investors in the industry resulted in higher diam ond prices in the local market, reducing the incentive 
for smuggling.53 
48. A 3% tax is levied on all diamond exports (Cha pter III(3)(ii)).  Under the Mineral Policy of 
1998, revenue from this tax is shared  among five destinations/recipients.54 
                                                      
49 The signatories of the Certificate were the Govern or of the Bank of Sierra Leone, the Minister of 
Mineral Resources, the Commissioner of Ex cise and the Director of the GDDO. 
50 Resolution 1306 was adopted by the Security Council on 5 July 2000, in order to improve the 
transparency of the international diamond trade.  Resolution 1446 was adopted on 4 December 2002. 
51 In 2004, there were 43 countries were Kimberley pa rticipants:  Angola, Armenia, Australia, Belarus, 
Botswana, Brazil, Bulgaria, Canada, Central African Re public, China, Democratic Republic of Congo, Cote 
d'Ivoire, Croatia, European Community, Ghana, Guinea, Guyana, India, Israel, Japan, Republic of Korea, 
Democratic Republic of Lao, Lesotho, Malaysia, Maur itius, Namibia, Norway, Romania, Russian Federation, 
Sierra Leone, Singapore, South Africa, Sri Lanka, Switzer land, Tanzania, Thailand, T ogo, Ukraine, United Arab 
Emirates, United Sates, Venezuela, Vi etNam and Zimbabwe.  On 10 July 2004, Republic of Congo was also 
removed from the list.  Information available at:  http://www.kimberleyprocess.com:8080/site/?name= 
participants&PHPSESSID=9085abb4a0c8186c152ee8f869d17c74. 
52 WT/L/518, 27 May 2003. 
53 Government Gold and Diamond Office (2003). 
54 The monitoring fee (US$240,353 in 2003) is allocat ed for training monitors in the Kimberley process 
certification scheme.  Government Gold and Diamond Office (2003), 2003 Report . Sierra Leone WT/TPR/S/143 
 Page 67 
 
 
Box IV.1:  The Kimberley Process Certification Scheme 
Following pressure, mainly from non-governmental organizations (NGOs), for international measures to 
curb the use of so-called "conflict" or "blood" diamonds as a means for funding revolution and war in 
Africa, action was taken in the context of the United Nations in 2001 with the formulation of the 
Kimberley Process Certification Scheme (KPCS).  Th e Kimberley Process brought together the industry, 
represented by the World Diamond Council, in association with large-scale producers and the exploration industry;  governments of producing countries;  governments with an economic interest in the diamond 
trade;  and NGOs intent on ensuri ng the efficacy of the system.   
The KPCS seeks to implement a Global Certification System for rough diamonds, supported by industry 
self-regulation, which should assure  buyers that they are purchasing legitimate diamonds.  The Kimberley 
Process was fully initiated in November 2002, with implementation to be phased in through the first 
quarter of 2003. 
Prior to the introduction of this process, as much as 20% of rough-diamond output was considered to be 
unregulated and therefore available for money laundering or arms dealing.  Sierra Leone, Angola, and the 
Democratic Republic of Congo, all with difficult-to-re gulate alluvial/artisanal mining, bore the brunt of 
criticism.  All three countries suffere d internal conflicts, but both Angola and Sierra Leone had moved to 
formulate a certification process well before the internationally agreed Kimberley Process system was in place.  Sierra Leone's certification scheme from 2000 to  2002 proved successful;  it has been replaced by 
the KPCS.  
Sierra Leone is a founding member of the Kimberley Process.  It is hoped that full implementation of the 
Kimberley Process will bring further im provement in official diamond exports  (Table IV.2).  To assist in 
the implementation of diamond certification controls in the diamond fields, the Government of the United 
Kingdom, through its international development wing (DFID), has provided the services of a consultant to 
work with the Sierra Leone Government to establish the best way forward.  In  addition a World Bank team 
is looking, not just at diamonds, but also at ways to move forward the whole mining industry. 
 
Source : State House of Sierra Leone (2003), Sierra Leone Ready for Business  [Online].  Available at:  
http://www.statehouse-sl.org/sierrale one.pdf [26 April 2004];  and Government Gold and Diamond Office, 
2003 Report . 
49. The 1996 Mines & Minerals Act was amende d in 2003 to create a performance incentive 
scheme only for diamond exports.  For diamond export s over US$10 million, a tax break, set at 0.50% 
of the 3% tax, was granted on all subsequent expor ts for the rest of the year;  in 2003, Hisham 
Mackie, the largest (foreign) diamond exporter, was the sole beneficiary from this incentive.55   
50. Diamond exporters have to be licensed by th e MMR (Chapter III(3)(i) and (3)(ii)).  The 
Government's Gold and Diamond Office (GGDO)  handles the certification procedures for all 
diamonds exported legally from Sierra Leone. 
51. Smuggling has been the main obstacle to progr ess in the diamond industry.  The adoption of 
the KPCS has had a positive impact in this sector, making it difficult to trade diamonds outside the scheme.
56  Although difficult to quantify, the MMR indicates a declining trend in diamond smuggling;  
it was estimated to be around US$30 million to US$40 million in 2003, and US$20 million in 2004.57  
Steps that need to be taken to discourage smugglin g are:  (i) licensing of all exporters, miners and 
                                                      
55 The 3% export tax was split between Hisham Mackie (income tax (0.40%);  the MCD Fund (0.75%), 
the Valuation Fee (0.75%);  the Independent Valuer Fee (0.40%);  and Monitoring Fee (0.20%) totalling 2.5%  
(Government Gold and Diamond Office, 2003) . 
56 Government Gold and Diamond Office (2003);  and Gold and Diamond Department (NRA) (2004).   
57 These figures are based on a total export potential of around US$120 million to US$130 million.  WT/TPR/S/143 Trade Policy Review 
Page 68 
 
 
dealers;  (ii) incentives to exporters who achieve si gnificant levels of performance;  (iii) penalties for 
defaulters and those who consistently fail to pe rform, including expulsion from the sector;  (iv) 
creation of a data base on exporters, dealers, and mine rs and their activities, to complement the efforts 
of mines monitors;  (v) provision of training and equipment to mines monitors;  (vi) communication 
network between stakeholders;  (vii) maintaini ng accurate production and export figures to monitor 
the trend in the sector;  and (viii) de portation of foreign defaulters.   
(ii) Energy 
(a) Hydrocarbons 
52. Since 2001, petroleum has represented around 20% of total imports.58  In April 2002 the 
authorities opened bids for the explora tion of oil reserves believed to exist.59   
53. The regulatory framework for this industry was l ast updated with the promulgation in 2001 of 
the new Petroleum Act.60  A Petroleum Resource Unit, under the supervision of the Office of the 
President of Sierra Leone, was also cr eated in 2001 to administer the Act.61  The Petroleum Unit was 
established as an independent coordinator betw een the Government, donors, institutions, and the 
petroleum industry to ensure fair pricing (reflecti ng international oil prices) and an uninterrupted 
supply of petroleum products.  According to the authorities, the statutory framework of the 
downstream sector is being prepared by the Law Officers Department for the transformation of the Petroleum Unit into the Petroleum Regulatory Agency.   
54. A price adjustment formula for petroleum produc ts has been in place.  According to the 
authorities, price change is based on a trigger m echanism set within a band of plus and minus 5%. 
55. Petroleum products are subject to internal taxes (petroleum fund, except on fuel oil)
62, a road 
user charge (except for fuel oil and kerosene), and a 30% excise duty (Chapter III(2)(iii)(e)).  These 
represent up to 36% for petrol, 32% for diesel oil, 11%  for kerosene and 7% for fuel oil of the pump 
price.63  An uninterrupted supply of petroleum products has been seemingly ensured since July 1992.  
In May 2004, as a consequence of a rise in world ma rket prices, fuel prices were increased by 16.5%.  
According to the authorities, pump prices are revised on average three times a year.  
56. According to the authorities, the importation a nd distribution of petroleum products is no 
longer a state trading operation.  The downstream petroleum industry is now liberalized and funded by the private sector.  Refinery operations we re discontinued in 1993.  Four companies National 
Petroleum (49%), Mobil (24%), Safecom Petroleum (24%), and Leon oil (3%) participate in this 
sector. 
                                                     
 
58 Ministry of Finance (2004). 
59 By June 2003, three firms had submitted bids.  The authorities granted permission to three firms 
(Respell (Spain), Oranto Petroleum (Nigeria) and Investment  (United States)) for exploitation of oil fields in the 
southern coast of the country.   
60 State House of Sierra Leone (2003).  
61 In October 2002, the Government approved the transformation of this unit into a self-financing body.  
62 This fund (Le 15 per gallon) was created to  fund the operations of the Petroleum Unit. 
63 Government of Sierra Leone (2003). Sierra Leone WT/TPR/S/143 
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(b) Electricity 
57. The electricity sector contributes 0.5% (2000) to GDP64;  less than 15% of the population has 
access to electricity.65  Sierra Leone's total installed gene rating capacity (45.54 MW) allows for an 
available capacity of 28.3 MW (100% thermal).  In 2003, imports of petr oleum products accounted 
for over 60% of the operating expenses of the Natio nal Power Authority (NPA).  A hydroelectric 
power plant (with a capacity of 50 MW), which has been under construction at Bumbuna in the north 
of the country since 1990, is to be operational by th e end of 2006. The dam is to provide electricity to 
a large part of the country, including rural areas.  According to the NPA, technical and non-technical 
losses account for 33% of the units available for sale.66   
58. The National Power Authority (NPA), wh ich was established in 1982, is the de jure state firm 
responsible for electricity generation, transmission,  and distribution in Sierra Leone, except for the 
Districts of Bo and Kenema, which are served by its autonomous subsidiary , the Bo Kenema power 
services (BKPS).  There are no other electricity supp liers/distributors in Si erra Leone outside the 
jurisdiction of the NPA.  The BKPS is a semi-aut onomous body, with strong affiliation with the NPA, 
under the supervision of the MOEP.  A management contract for NPA is being prepared through the 
Sierra Leone Power and Water Project as a first step  towards its privatization.  According to the 
authorities, imports of diesel oil bought by NPA ar e subject to the normal charges (petroleum fund 
road and user charge) and excise duty, and oil imports are subject to customs duties. 
59. In August 2003, electricity tariffs for the sev en consumer categories were raised by 40%67 
(Table IV.2).  The electricity tariff for industr ies is 30% higher than the tariff for residential 
consumers and 11% higher than the rate for commercial activities.68  Residential users consumed 
49%, commercial customers 16% and industrial customer s 35% of all electricity produced in 2002.  
According to the NRA, tariffs take into consider ation the cost of production, with the exception of 
domestic consumer tariffs;  and ar e not often revised, even with ch anges in the cost of fuel.   
Table IV.2 
Electricity tariffs, August 2003  
Tariff category- consumer type Units (watt) Tariff (Leone) 
T1 – Residential 0-30 
31-150 Above 150 Minimum charge 287 
410 545 
8,600 
T2 – Commercial 0-30 
31-150 
Above 150 Minimum charge 501 
601 
651 
15,015 
T3 – Institutions All units 
Minimum charge 601 
25,025 
T4 – Industries All units 
Minimum charge 
KW demand 724 
91,000 
1,114 
Table IV.2 (cont'd) 
                                                      
64 Statistics Sierra Leone (2001). 
65 National Power Authority (2004). 
66 These power losses are mainly due to illegal ab straction, illegal connections/reconnections, and 
under/non-reading of energy meters (National Power Authority, 2004).  
67 According to the NPA, the raise was due mainly to a 38% increase in the fuel oil price, which 
increased fuel costs by Le 700 million (around US$259.000) per month.  The previous increase in tariff was in 
October 2000. 
68 National Power Authority (2003) . WT/TPR/S/143 Trade Policy Review 
Page 70 
 
 
Tariff category- consumer type Units (watt) Tariff (Leone) 
T5 – Street light All units 
Minimum charge 609 
20,475 
T6 – Temporary supply All units 
Minimum charge 700 
8,680 
T7 –Welders All units 
Minimum charge 764 
27,300 
Source:  The Sierra Leonean authorities.  
(4) MANUFACTURING  
(i) Features 
60. Manufacturing, which consists mainly of sma ll and medium-scale enterprises and informal 
activities69, accounted for 3.2% of GDP in 2003 (Table I.2) .  The sector's share in total exports was 
around 5% in 2003 (6.7% in 2002 and 5.6% in 2001).70  The sector is characterized by a low level of 
development due, inter alia,  to insufficient foreign-exchange resources for importing equipment and 
spare parts, as well as shortages of electricity su pply and other essential inputs.  Small-scale activities 
include cottage and handicraft units using a mix of  traditional and simple technologies.  Their output 
is mainly for local consumption (raw materials, be er, plastic footwear, confectionery, salt, cement, 
soft drinks, and soap).  There are 1,744 enterp rises operating in production-related activities, and 357 
in services;  60% of the enterprises employ up to  four workers and 26% between five and nine 
workers.  
61. Under the Interim Poverty Re duction Strategy Paper (IPRSP)71 of 2001, and the National 
Recovery Strategy of 2002-03, the sectoral objec tive consists of the revitalization of the economy 
based on small and medium-scale industries.  Accord ing to the authorities, Sierra Leone has never 
developed an industrial policy, but during 20 04, the MTI was seeking to develop one.  
62. The average applied MFN tariff for processed food, beverages and tobacco;  textiles and 
leather, wood and furniture;  non-metallic minera l products and other manufacturing (up to 22.6% 
maximum) exceed the overall average applied MFN rate by four to eight percentage points (Chart IV.1) and are the highest among all activities.  Sierra Leone applies a 30% excise tax (included 
in calculations of the effective applied MFN rate s) on imports of alcoholic beverages, petroleum 
products, tobacco products, fireworks and pyro technic articles, and arms and ammunition 
(Chapter III(2)(iii)(e)). 
63. Sierra Leone bound the tariff for non-agricultural products at a ceiling rate of 50%, except for 
some products bound at ceiling rates of  30% and 80% (Chapter III(2)(iii)(b)). 
64. The state-owned enterprise, For est Industries Corporation is on the list of entities to be 
privatized (date/plan unspecified) (Table III.2).  
                                                     
 
69 Since independence and up to the 1980s, industrialization was based on the strategy of import 
substitution.  In response to this policy, a few indust ries were established mainly to produce consumer goods 
such as beer, cigarettes, and confectionaries (UNIDO, 2004). 
70 Manufacturing data estimated by the WTO Secretar iat, based on data provided for two categories: 
others, and domestic exports (Ministry of Finance, 2004), Table 2. 
71 Ministry of Development and Economic Planning (2001). Sierra Leone WT/TPR/S/143 
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(5) SERVICES  
(i) Features 
65. The share of services in GDP increased from 18. 2% in 1995 to 25.1% in 2003 (Table I.3).  
Trade and tourism, transport and communication, banking and finance, and government services were 
the leading services activities in Sierra Leone in 2000.72  In 2004, exports of commercial services 
represented 21.9% of total exports of goods and non -factor services, and 26.8% of total imports of 
goods and non-factor services (Table I.5). 
(ii) Overall commitments under the Genera l Agreement on Trade in Services 
66. Sierra Leone's GATS commitments, both ho rizontal and sector-specific (business, 
communication, construction and related engineering, educational, environmental, financial, health 
related and social, tourism and travel related, recr eational, cultural and sporting, transport), are quite 
comprehensive.  Commercial presence is subject to certain conditions, in certain sectors (e.g. 
professional, insurance, banking, health and trans port services), while the presence of natural persons 
is unbound in others (professional, communications , construction, educati onal, environmental, 
financial, health, tourism services).  For certain services (environmental, insurance), cross-border 
supply is unbound.73 
67. Under Article II of GATS, Sierra Leone ma intains MFN exemptions with respect to 
arrangements with ECOWAS Members for all sectors (Chapter II(6)(ii)(b) and (c)).  According to the authorities, Sierra Leone will not make any furthe r exemptions for other sub-regional commitments.  
68. Sierra Leone did not participate in the WTO negotiations on basic telecommunications 
services, which ended in 1997, nor in the WTO ne gotiations on financial services, which were 
concluded in 1998.  Concerning the ongoing round of  negotiations, Sierra Leone has not yet submitted 
negotiating proposals to the WTO Council for Trade in Services.  According to the authorities, Sierra 
Leone has not carried out an assessment of its comparative advantage in trade in services, and any impact liberalization will have on the economy.  The MTI is seeking assistance from the EC’s Programme Management Unit for ACP States that are WTO  Members for an impact study on trade in 
services, before it can submit any negotiating propos als to the WTO Council for Trade in Services. 
(iii) Financial services 
69. Between 1995 and 2003, the contribution of fina ncial services (including insurance) to GDP 
increased considerably, from 3.6% to 6.7% (Table I.3).   
Banking and finance  
70. Six banks currently operate in Sierra Leone (three state-owned banks, two private foreign 
banks, and one domestic bank).
74  The state-owned commercial banks (Rokel Commercial Bank, 
Sierra Leone Commercial Bank, Nati onal Development Bank) have been  slated for privatization in 
2005. (Table III.2). 
                                                      
72 Statistics Sierra Leone (2001). 
73 WTO document GATS/SC/105, 30 August 1995. 
74 The non-state-owned banks are the Guaranty Trust Bank (SL), Standard Chartered Bank Sierra 
Leone, and Union Trust Bank. WT/TPR/S/143 Trade Policy Review 
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71. The Bank of Sierra Leone (the Central Bank) is  responsible for monetary policy, the stability 
of the financial system, and the safety and efficiency of the payments system (Chapter I(3)(i)).75   
72. Financial reforms have been undertaken since 2000.  The revised Bank of Sierra Leone Act76, 
and the Banking Acts, provide for:  (i) a more independent and effective Central Bank;  (ii) a 
strengthening of the banking superv ision function;  and (iii) legisl ative guidelines for the financial 
sector as a whole, including revised prudential requirements and increased minimum capital requirements.
77 
73. As from 2003, the Bank of Sierra Leone est ablished community banks to improve the 
financial system, provide institutional support to the Government's micro-financing programme, and 
ensure the availability of formal financial service s to urban and rural communities.  The community 
banks have replaced the rural banks.  
74. As from 2000, Sierra Leone's banking regul ations have required compliance with 
international prudential standards.78  Prudential requirements are set on the basis of the Bank for 
International Settlement arrangements and also pa rtially on the Second Basel Accord.  The capital 
adequacy requirement is 15% of the capital base.   
75. The financial sector suffers seemingly from several  inefficiencies that contribute to the high 
cost of financial intermediation, and limit the av ailability of financing for productive investments, 
especially to small and medium-sized enterprises.79  Legislative and other structural inadequacies 
handicap this sector (e.g. the high level of non-perfo rming loans, inadequate judicial procedures for 
loan recovery, an inadequate credit risk valuati on mechanism, high intermediation costs).  Interest 
rates are set by each individual bank, taking into account  the cost of funds, risk elements, and the cost 
of processing.  The BSL does not set the rate.  The sp read between the average rate of interest charged 
on loans and the rate paid on deposits is indicative of a lack of competition in the banking sector and 
its resulting inefficiency (Chart IV.2).  From 1997 to 1999 the spread rose from 13.96 percentage 
points to 17.3 percentage points;  before falling b ack to 11.58 percentage points in 2003, as risk 
decreased.80  The increase was due principally to:  the extr eme levels of risk;  the non-existence of 
guarantees on loans;  high costs of intermediation;  high costs of the branch network;  and monitoring 
cost of advances, which are extremely high du e to the very high rate of default.   
(b) Insurance 
76. There are currently seven private and thr ee public general insurers, with assets worth 
Le 20 billion.  There are no private life insurers.  The market appears to be dominated by the state-
owned National Insurance Company (N IC)), which is on the list of entities to be privatized (date/plan 
unspecified) (Table III.2). 
77. The Insurance Act 2000 constitutes the legal framework for the sector.81  To improve, 
deregulate, and strengthen the insurance market, the monopolistic advantages retained by the NIC 
were revoked in 1993.82  In 2000 an Insurance Commission was est ablished;  its main function is to 
                                                      
75 Bank of Sierra Leone (2002) . 
76 Act No. 3/2000, The Bank of Sierra Leone Act, 2000, 28 February 2000. 
77 Government of Sierra Leone (2002). 
78 Government of Sierra Leone (2002). 
79 Government of Sierra Leone (2002).  
80 IMF (2004b). 
81 This Act repealed the Insurance Act 1971 and the Insurance Rules 1973. 
82 Decree No. 3:  The Insurance /Compulsory Le gal Cession Act (repeal) Decree, 14 May 1993. Sierra Leone WT/TPR/S/143 
 Page 73 
 
 
ensure effective administration, supervision, regul ation, and monitoring of the business of insurance 
in Sierra Leone.  Among its functions are to:  estab lish standards of conduct for insurers and insurance 
intermediaries;  monitor rates of insurance pr emiums and commissions;  approve standards and 
conditions applicable to the insurance industry;  and register insurers, re-insurers and insurance 
intermediaries who wish to transact insurance business in Sierra Leone. 
0.05.010.015.020.025.030.0
1997 1998 1999 2000 2001 2002 2003Chart IV.2
Nominal interest rates and spreads, 1997-03
Per cent
IMF (2004),  International Financial Statistics, September. Source : Three-month average deposit rateAverage lending rate
 
(iv) Telecommunications 
78. The number of fixed lines in Sierra Leone's rose from 16,627 in 1995 to 27,000 in 2004, 
equivalent to a teledensity of some 0.5%.  Ther e were 100,000 mobile phone subscribers, equivalent 
to 2.2% of the population in 2003.83   
79. Since 1995, Sierra Leone's telecommunications sector (except for mobile telephone services) 
has been run by the de jure  state monopoly Sierratel84, which is on the list of entities to be privatized 
(scheduled for third quarter of 2004) (Table III.2) .  However, since 1990, a number of licences have 
been granted but only two private entities (Celtel,  Millicom and Mobitel) have been operating in 
mobile telephony.  Mobitel went bankrupt in 2003.  
80. No provisions on the universal services obligation (USO) seem to be in place.85  There is no 
independent regulatory authority other than th e Ministry of Transport and Communication.  
According to Sierratel, a Telecoms  Bill 2004 currently being considered  by Parliament will establish a 
regulatory body and provisions on USO. 
                                                      
83 Standard & Chartered (1999). 
84 Sierratel is the result of the merger in 1995 of Sierra Leone External Telecommunications (SLET) 
International and Sierra Leone National Telecommunications Company (SLNTC). 
85 USO is the obligation of telephone operators to o ffer a telephone connection to any subscriber that 
wants one, at a price that is affordable.  Informa tion available at:  http://www.cordis.lu/infowin/acts/ienm/ 
bulletin/11-1996/uniserv.html [22 July 2004]. WT/TPR/S/143 Trade Policy Review 
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(v) Transport 
(a) Shipping 
81. Maritime transport has been dominated by fo reign shipping firms as Sierra Leone does not 
have a national fleet, except for ferry services, whic h are operated by the Sierra Leone Ports Authority 
(SLPA).86  Ferry services are also provided by private ope rators;  the most recent is from Libya.  A 
freight levy is collected for navigational purposes.  The fee is US$3 per ton for imports and US$2 per 
ton for exports.  Since the resumption of activities in Freetown's port in 2002, container traffic has grown by 24%, from 34,681 TEUs to 35,555 TEUs in 2003.  The average ship turn-around time, decreased from four days in 2002 to three days in 2003.
87   
82. At present all ports are State owned and run by the Sierra Leone Ports Authority (SLPA), a 
semi-autonomous entity listed for privatization (Table III.2).88  The ports of Niti and Pepel are 
currently inactive;  the authoriti es expected to reopen them with the reactivation of rutile-mining 
activities, although no date has been scheduled.89  SLPA is in the process of privatizing/deregulating 
three major activities (ferry services, slipway and port security) under performance-based and 
concession type agreements.  Management of the first- aid and health clinic, situated in the port, is 
currently being reformed.90  
83. In 2001, the regulatory functions previously u ndertaken by SLPA were transferred to the 
public entity Sierra Leone Maritime Administration (SLMA);91  these include responsibility for the 
freight levy and navigational aid. 
84. Harbour dues are 140% higher on imports (contai ners) than on exports.  The authorities 
indicate that as most commodities are imported this measure is aimed at compensating for the lower 
tonnage exported.92  
(b) Air transportation 
85. Sierra Leone has one international airport (Lungi)93, which is state-owned and is on the list of 
entities to be privatized (date/plan unspecified ) (Table III.2).  In 2000, the airport handled 
75,000 passengers and 5,000 tonnes of freight.  Th e state-owned national carrier Sierra National 
                                                      
86 Ministry of Transport and communications (2003b), Port development and Management . 
87 Ministry of Transport and communications (2003b), Maritime administration . 
88 The SLPA was established by the Ports Act 1964, as amended in 1991.  From 1987 to 1997, the port 
was managed under contract by Hamburg Port Consultant.  During this period, it seems that no new investments were made and skill development activities were carried out for the local staff. 
89 The ports of Niti and Pepel were operated by private mining companies until 1995 and 1973 
respectively.  
90 The clinic provides an important service, not only to port staff but also resident s of the eastern part of 
Freetown.  Given the high cost of private health-care providers and insu rers, a more cost-effective solution 
would be for the port to maintain its current manageme nt, but with improved services, in order to provide 
medical attention to non-port patients on a fee-for-services basis.  
91 The SLMA was established with the joint assistan ce of the International Maritime Organization and 
UNDP.  The SLMA has the following functions:  (i) registration of ships;  (ii) maritime personnel certification; 
(iii) training, recruitment, and discharge of sea going personnel;  (iv) protection of the marine environment;  
(v) safety of navigation in te rritorial seas;  (vi) flag-state and port-sta te responsibilities;  (vii) maritime search 
and rescue;  (viii) regulation and development of shipping in inland waterways, maritime and coastal transport.  
92 Ministry of Transport and communications (2003a). 
93 The Lungi airport is situated across the Sierra Leone river, 15 km from Freetown.  As it is very 
difficult to reach by land, passengers to or from Freetown have to use ferryboat or helicopter services. Sierra Leone WT/TPR/S/143 
 Page 75 
 
 
Airlines (SNA), which is also listed for privatizati on, provides a number of services at the airport, 
notably ground-handling ope rations (both ramp handling and passe nger handling, of which it is the 
principal provider);  ticketing;  and limited air-tra nsport service.  Four other foreign carriers operate 
scheduled flights to and from Lungi.94  
86. Airport services are under the responsibility of the Sierra Leone Airports Authority (SLAA).  
No restrictions apply to  foreign firms in this sector.  
87. Sierra Leone signed the 1998 Yamoussoukro Declar ation, and the 1999 Banjul Accord for the 
accelerated implementation of the Yamoussoukro Declar ation.  The latter brings together seven West 
African states95, and establishes a platform for negotiating traffic rights and market access, as well as 
for harmonizing air transport regulations. 
(c) Road transportation 
88. The state-owned Sierra Leone Roads Authority (SLRA)96, handles the construction, 
operation, and maintenance of roads.  The public  road network of Sie rra Leone totals about 
11,000 km.  Maintenance is financed through the Road  Fund, funded by a user levy attached to the 
price of fuel (providing more than 60% of the fund's resources) and fees collected by the road 
transport authority for vehicle and driver licensing and registration.97 
                                                      
94 Ministry of Transport and communications (2003b), Airport development and management . 
95 Cape Verde, the Gambia, Ghana, Guinea,  Liberia, Nigeria, and Sierra Leone. 
96 Created by an Act of Parliament in 1992. 
97 Ministry of Transport and communications (2003b),  Executive summary . Sierra Leone WT/TPR/S/143 
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Bank of Sierra Leone (2003b), Monthly economic review , December, Freetown.  
Barrie, O., and P. Kaindaneh, (undated), An ECOWAS Common External Tariff (CET): Implications 
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Food Programme:  Special Report:  FAO/WFP Crop And Food Supply Assessment Mission To Sierra 
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