Sierra Leone’s socio-economic status is still lagging, despite the government’s efforts to improve the manufacturing industry. The country is facing numerous constraints in improving its infrastructure and financing its entrepreneurs, which have hampered the development of a competitive manufacturing sector. Although the government has exceeded its target of increasing the manufacturing sector’s share of GDP from less than 2% to 5%, it is still far from the double-digit figures desired. While agro-value addition has allowed Sierra Leone to become a net exporter of vegetable oil and palm oil-based products, there are still many challenges ahead.
The government’s plan to build a diverse economy is commendable, but it needs to focus on developing a competitive manufacturing sector. It needs to attract foreign direct investments, stimulate two-way trade, create more jobs, broaden the tax base, transfer know-how, and develop robust trade infrastructure, and communities, among others. However, the government’s lack of transparency, essential elements, enabling policies and legislation, and a fair, predictable, stable, and sustainable ecosystem may hinder the success of the Special Economic Zones (SEZ) policy, as seen in the failure of the last government’s botched special economic zone initiative.
The Country can leverage regional and international trade opportunities and markets, such as the Ecowas Trade Liberalisation Scheme and the African Continental Free Trade Area. The government needs to ensure that the SEZs operate in accordance with international best practices, with a comprehensive masterplan for efficient land use and development, on-site and off-site infrastructure, and other essential elements to attract the highest calibre of private investors.
Sierra Leone’s natural resources, such as consumer products, minerals, timber, cocoa, coffee, palm oil, coconuts, ground nuts, arabica coffee, natural honey, cassava, and fruits, provide a tremendous comparative advantage agro-processing and fisheries processing. Processing these products into finished products and strong product brands that will attract premium prices from foreign markets could have a great multiplier effect on local farmers, local suppliers, and local economies.
Therefore, while the government’s efforts are commendable, many constraints must be addressed to build a competitive manufacturing sector and take advantage of natural resources. A transparent and enabling ecosystem, essential elements, and infrastructure are needed to attract foreign direct investments, stimulate two-way trade, create jobs, broaden the tax base, transfer know-how, and develop robust trade infrastructure and communities.
