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Ministry of Trade & Industry Invest in Sierra Leone.

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1 Ministry of Trade & Industry Invest in Sierra Leone

2 Ministry of Trade & Industry 2 Contents Country overviewKey sectorsContacts

3 3 Welcome to Sierra Leone! Founded as a symbol of hope, freedom and excellence across West Africa A proud cultural heritage… Tradition of tolerance, education and achievement The “Athens of West Africa”, home of Africa’s first university History of cultural and religious tolerance …in a land blessed with endowments… Unmatched and untapped mineral resources 402 km of pristine and spellbinding coastline 25,600 sq km continental shelf teeming with unexploited biomass – one of the few places remaining in the world with strong and healthy fish-stocks Unparalleled agricultural fertility, abundant rainfall and opportunities for irrigation Ideal growing conditions for high value cash crops and staple foods Significant under-utilisation of land, with vast acreages available for development … and empowered by freedom and civil liberties Top 20% in Africa for Freedom, according to Freedom House (on par with Turkey and better than Nigeria, Tanzania, Gambia and Kenya,) High personal safety with minimal crime (Comparable to such tourist destinations as the Bahamas, Dominican Republic or Mozambique)

4 Sierra Leone – We are a Nation... With a great tradition of tolerance, education and achievement Of both great need and boundless opportunity… we have “no business being poor” Well on our way to recovery: Peace and stability are fully restored Democracy is thriving Proven macroeconomic stability Tackling corruption and transforming the investment climate

5 Blessed with a Proud Cultural Heritage Freedom for slaves and symbol of hope and excellence across West Africa Educational Heritage Fourah Bay College, Civil Servants leading West Africa History of cultural and religious tolerance Muslim population and world-class interfaith relations

6 With Unmatched Potential Significant Potential in Agriculture Ideal growing conditions for high value cash crops and staple foods Abundant rainfall and opportunities for irrigation Significant under-utilisation of land, with vast acreages available for development Potential for further mechanisation and method modernizing to drive material enhancements of current yields Underdeveloped Tourism Sector West Africa’s most spectacular white sand beaches Unique historical heritage Prime locations remain untouched and available for development Easy access to key population centres, with direct short haul flights to Nigeria and medium haul flights to Europe Vibrant Fishery Stocks One of the few places remaining in the world with strong and healthy fish-stocks Estimated to be able to produce US$ m p.a. on a sustainable basis Untapped Mineral Resources Significant iron-ore deposits Large-gem diamond deposits Opportunities in mineral sands, bauxite and gold Government dedicated to improving the investment climate of the industry Uniquely Positioned to Become a Hub for Transportation The world’s 3rd largest natural port Strategic location between the key markets of South America, North America, Nigeria and Europe

7 7 A Safe and Lucrative Home for Your Capital Africa’s most strategically located country Uniquely positioned between Europe, Africa, Latin America and North America Providing preferred (duty free) access to the world’s most lucrative markets Attractive & supportive business climate Pro-business regime – private sector growth & FDI at core of government’s growth strategy Extensive investment climate reforms already bearing fruit Gaining in international indicators and Doing Business rankings Demonstrated positive economic trends Consistently above average GDP growth, poised to grow faster All macro indicators are headed in the right direction: controlled inflation, sharply growing export sector, increasing flows of FDI Proven track record of nurturing business Rapidly expanding roster of multinational firms including concerns from UK, USA, Netherlands, South Africa, Norway, China, Lebanon, Nigeria, Cote d’Ivoire and others Numerous Italian companies already call Sierra Leone home Investment opportunities represent significant untapped potential for early movers despite recent growth

8 8 Superior Investment Opportunities Investor friendly government Doing business ranking (World Bank survey) consistently improved over the last three years Stable macro-economic environment Stable 5yr average exchange rate. Real GDP growth of 5-7% Untapped mineral resources Significant untapped iron-ore potential Diamond deposits (large gems) Other opportunities in mineral sands, bauxite and gold Under- developed Tourism On Lonely Planet Top 10 tourist destinations 400+ km of coastal stretch - West Africa’s most spectacular beaches combined with unique historical heritage Prime locations still available. Direct flights from Lagos (3 hours) and Europe (5 hours) Significant potential in agriculture Perfect growing conditions for high value cash crops and staple foods 5.4million hectares of arable land – less than 20% utilised Investment incentives: easy access to land and tax break Estimated to be able to produce US$ m p.a. on a sustainable basis Opportunities in infrastructure Need to rebuild infrastructure after 10 years of civil war. A key priority of the government Significant hydro potential Natural port, ideally located with strong local and transit demand

9 9 Your Gateway to West Africa Largest natural harbour in West Africa (3rd largest in the world) provides excellent access and opportunity for trade & export

10 10 6hrs 4hrs 2hrs Brussels Beirut London Accra Monrovia Lagos FREETOWN Casablanca Beijing Madrid Paris Rio De Janeiro Tunis 8hrs Buenos Aires Miami New York Mexico City 10hrs Dubai Nairobi Johannesburg Caracas Bogota Istanbul Mumbai Karachi Los Angeles Toronto Sierra Leone – At The Centre of the World… 6 Hours to Rio De Janeiro, Paris and London. Less than 8 Hours to Beirut, Nairobi, Johannesburg & Brussels

11 11 Mano River Union Union between SL, Liberia, Guinea and Ivory Coast Commitment towards internal market liberalization ECOWAS Economic Community of West African States Adopt common external tariff Create common market Create a monetary union Harmonize national policies ACP-EU Partnership Unilateral duty free access for industrial and processed agricultural products originating from the 77 ACP countries AGOA African Growth & Opportunity Act Export to US with preferential treatment on customs duty and quotas (products eligible include ginger, cashew, garments, and textiles) … and the Nexus of Opportunity

12 12 Attractive & Supportive Business Climate Pro-business government committed to transparency and business friendly reforms Passed Africa’s toughest Anti-Corruption act requiring public servants to declare assets Enacted all new Companies Act, Bankruptcy Bill and Payment Systems Act Approved Commercial Court for expeditious dispute resolution Implemented enhanced procedure for land registration (more land reforms envisaged) Government willing to intermediate in land leases to mitigate risk for international investors Protections against expropriation built into law – no historical instance of expropriation Launched Sierra Leone Stock Exchange Reform initiatives actively being pursued by Government (to pass in 2009): Mineral sector reform (drafted) Transparent streamlined incentives package Policy for Public Private Partnerships (PPP) Land reforms Financial Sector Reforms  Leasing Finance framework  Credit reference bureau and implementation  Special Economic Zone (SEZ) policy  Securities and Collective Investment Law (drafted) Efforts are bearing fruit: Gained in World Bank’s Doing Business rankings three years in a row. Easiest place in West Africa to register a business in 2009

13 13 Steadily Climbing in Investment Climate Rankings Benchmarking Sierra Leone against West Africa Sierra Leone’s ranking in the Doing Business Rankings Rose 7 places in the ease of doing business review last year. Recent reforms should further boost ranking this year. Already the quickest and easiest place in West Africa to start a business!

14 14 Government Accountability Improvements Being Lauded Source: WGI, World Bank Ranked 2 nd highest by the World Bank in improvement in Government Accountability!

15 15 Labour Rates are Among the Lowest in West Africa Avg. Annual Gross Salaries in Food Processing (thousands of USD) Labour costs for both skilled and unskilled labour represent considerable comparative advantage as compared to other West African nations

16 16 Economic Indicators are positive and getting better! GDP has grown at approximately 6% annually for over 6 years GDP growth rate expected to remain steady at 6% in 2009 despite worldwide economic weakening Inflation and exchange rate (vs. USD) relatively steady, despite sharp swings in crude oil prices Recent years have seen considerable increases in FDI, with FDI (as percentage of GDP) exceeding Ghana, Guinea, Niger and Senegal Exports have been the real success story growing 80% over the past three years (a). Non- Mineral exports nearly tripled over this period led by Cocoa and Coffee Multilateral Investment Guarantee Agency (MIGA) insurance for Sierra Leone cheaper than Kenya reflecting political stability and confidence in government’s commitment to business Note: Based on latest available data, ending 2007

17 17 Our Economy is Growing Agriculture 44% Agriculture 44% Industry 24% Industry 24% Services 32% Services 32% Split of GDP and exports (2007) Split of GDP by industry Diamonds 71% Diamonds 71% Rutile 29% Rutile 29% Split of Mineral Exports Real GDP ($ millions) GDP - US$ bn Real GDP growth % Population - mm GDP per capita - US$ PPP Inflation % Current account balance % Key economic stats ’04 to ’11 CAGR = 6.7% GDP (and government revenue) continue to show positive momentum! GoSL – total government revenues (US$ mm)

18 18 Private Sector is rewarding GoSL’s policies Foreign Direct Investment (% of GDP) Exports from Sierra Leone Exports have grown 21% annually over the last 3 years. Excluding diamonds, export growth has been over 100%/ year. Sierra Leone’s FDI growth has led the region over recent years

19 19 Trade Balances with EU Improving (but widening deficit with Italy) Sources : ITC calculations based on COMTRADE statistics Sierra Leone’s Trade with EU ($000s) Sierra Leone’s Trade with Italy ($000s) Imports from Italy, considerably exceed exports to Italy Preferential access to markets and robust exports of coffee, cocoa, minerals, rubber etc. have resulted in a healthy trade balance with the EU Considerable trade deficit with Italy due mainly to imports of a variety of goods from machinery to meats. Only export of note to Italy, in 2008, was Coffee

20 20Strictly confidential Imports/ Exports to EU & Italy Sources : ITC calculations based on COMTRADE statistics Sierra Leone’s Exports Sierra Leone’s Imports

21 21 Opportunities abound in all sectors of the economy Mobile Telecommunications Banking Sector Industry statistics: # bank accounts: 197k Industry assets: $353mm Industry net loans: $74mm Industry deposits: $265mm Industry statistics: # bank accounts: 197k Industry assets: $353mm Industry net loans: $74mm Industry deposits: $265mm Bank Account Penetration Mining Sector Value of Mineral Exports Mineral Potential In: Iron ore Gold Bauxite Rutile Mineral Sands Mineral Potential In: Iron ore Gold Bauxite Rutile Mineral Sands West Africa Penetration Benchmarking Agriculture Agriculture GDP (USD millions) Agricultural Potential In: Rice Palm oil Cassava Cocoa beans Coffee Ginger Cashew Agricultural Potential In: Rice Palm oil Cassava Cocoa beans Coffee Ginger Cashew Tourism Tourism Potential: West Africa’s most spectacular beaches combined with unique historical heritage Prime locations still available. Direct flights from Lagos (3 hours) and Europe (5 hours) Tourism Potential: West Africa’s most spectacular beaches combined with unique historical heritage Prime locations still available. Direct flights from Lagos (3 hours) and Europe (5 hours) Annual Tourist Arrivals

22 Resulting in many Italian companies coming to Salone…

23 23 … Along with multinationals from around the world CompanySectorCountry of origin Access BankBankingNigeria AfricellTelecommunicationsLebanon Celtel (Zain)TelecommunicationsKuwait ComiumTelecommunicationsLebanon EcobankBankingCôte d ’ Ivoire HeinekenBeverageNetherlands Koidu (Holdings)MiningSouth Africa LeocemCement ProductionNorway and Germany London MiningMiningUnited Kingdom Regimanuel-GreyConstructionGhana Sierra RutileMiningUSA/ EU Standard Chartered BankBankingUnited Kingdom TigoTelecommunicationsChina UBABankingNigeria ZenithBankingNigeria

24 24 Including large established manufacturers Sierra Leone Brewery Joint-venture between Heineken (83% ownership), Guinness (11%), PZ Cussons and local investors (6%) to serve the Sierra Leonean market Key products: Star, Maltina, Heineken and Guiness Leocem 100% owned by Heidelberg Cement Grinding plant in Freetown with 90 employees Sierra Bottling Co. Owned by the Equatorial Coca Cola Bottling Company. Capacity of 4 million cases per annum Started operations in 1907 as a butchery and ice factory. Now focusing on soft drinks only. Portfolio of 10 brands, which include Coca-Cola brands, Vimto and Parrot range of mixers Seaboard West Africa Only manufacturer of flour. Production capacity of 35,000 metric tones. Capacity utilisation below 40% Established in 1964 with a 99.9% ownership by Seaboard Corporation and 0.1% by the Government of Sierra Leone

25 Ministry of Trade & Industry 25 Key sectors Agribusiness & FisheriesTourism MiningInfrastructure & Energy

26 26 Developing Agribusiness is a key priority for Government Ideal Growing Conditions Plentiful aquatic resources, tropical climate and soils of Sierra Leone provide ideal growing conditions for both upland and lowland crops Diverse agricultural base, has potential for significant increase in current production of staple foods (rice cassava, vegetables), cash crops (sugar, cocoa, coffee, ginger and cashew) and tree crops (oil palm, coconut) Large Amounts of Available Land Total arable land of 5.4 million hectares, less than 20% of which is under cultivation Communal/chiefdom land tenure system and strong government facilitation makes land easy to obtain Secure long-term leases available Unique Opportunity in Bolilands Nearly 1.5 million hectares of boli lands in Northern Region of country Ideal for rapid establishment of large scale mechanized commercial farming (eg, for rice or sugar) Generally located in areas supported by high quality road network within close proximity to ports Rapidly Developing Biofuels Sector High growth sector receiving material commitments of foreign capital Opportunities for integrated production and refining of ethanol (sugar) and bio diesel (oil palm) Proximity and trade status ideal for export to European markets Close Proximity to Export Markets International export supported by one of the largest natural harbours in the world Centrally situated on global trade routes for rapid access to West African, European, Middle Eastern and North and South American Markets Development of commercial agricultural potential is government’s #1 priority, strongly supported by investment incentives and government facilitation of land access.

27 27 Agriculture Sector Overview Sector overview Land area7.2m hectares Uplands: 6m hectares (84%) Lowlands: 1m hectares (16%) Arable land area5.4m hectares (74% of total area) Uplands: 4.3m hectares (59%) Lowlands: 1.2m Ha (15%) Crops (85% of agric. GDP) Rice, cassava, vegetables, citrus fruits, cocoa beans, coffee, oil palm, ginger and cashew Livestock (15% of agric. GDP) Cattle, piggery, and poultry Average rainfallAvg. of 3,000 mm (2,000 mm in the north / 4,000 mm in the south) Agriculture GDP (millions of Leones) Drainage & Irrigation Potential Significant irrigation potential on approximately ¼ million Ha of land Dense drainage pattern, with nine major rivers and a series of minor coastal creeks and tidal streams River levels show considerable seasonal fluctuations Over half of the irrigable area is in the Southern Region (especially in Bonthe and Pujehun Districts) In the North, areas of Tonkolili and Port Loko are best suited for irrigation Despite low irrigation suitability in areas of Bombali district (due to drying Tabai River), it is very strategic in terms of location and access Climate Dry Season runs from mid-November to May Wet (Rainy) Season from May to mid-November. Mean rainfall can be divided into three climatic belts: Coast to 80km Inland 80km – 190km190km – Border >3,300mm (recorded high as 8,100 mm) 2,540 – 3,300mm1,900 – 2,500mm

28 28 Opportunity: Commercial Development of Bolilands Boliland Characteristics Seasonal flood plains found mostly in the north of Sierra Leone ‘Bolilands’ is from the Temne word ‘boli’, meaning lands that are flooded in the rainy season and dry and hard in the dry season Generally clay soils, characterized by low water retention Dramatic underutilization minimizes need for population relocation in order to establish larger projects Best suited for mechanized farming projects – limited overgrowth drastically simplifies the process of land clearing Majority of lands located in areas supported by high quality road network, in close proximity to two seaports for potential export Soil and climate support rice, sugar, cassava, potato and vegetables production Current rice yields of 12 bushels/acre would be 20 bushels/acre with fertilization and 25 bushels/acre with irrigation) Strong track record of attracting investment – recipient of over $200 million in pledged investment for the commercial development of rice, sugar, bioethanol production and electrical cogeneration Boliland Distribution Across Sierra Leone (000s Ha) Highlights for Commercial Development of Bolilands

29 29 Opportunity: Comm. Development of Upland Tree Crops Upland Tree Crop Characteristics Production areas mostly in the South and Eastern regions Generally more loamy soils Better for water retention Nutrient rich from larger amount of decaying organic material (substantial deciduous overgrowth) Indigenous palm trees of Sierra Leone internationally recognized for the production of extremely high quality red palm oil Imported palm trees best for commercial production Capacity to support 60 trees per acre (148.3 trees per hectare), generating a peak per hectare yield of approximately 5 MT of FFB (Fresh Fruit Bunch), or approximately 1 MT of palm oil Highlights for Commercial Development of Tree Crops Opportunity for integrated growth/production of bio diesel from oil palm High growth sector receiving material foreign capital commitments Cogeneration facilities at southern / eastern locations well situated to access West African power grid Strategic geographic location and beneficial trade status ideal for export to Europe and other international marketplaces History of oil palm production ensures existing expertise for labour-intensive aspects of production and harvesting Opportunity for production of unique local red palm oil for export to high end / organic food markets in Europe and beyond

30 30 Project NameBrief DescriptionAdditional Info 1. Torma Bum Rice Fields  51,300 hectares suitable for mechanical cultivation.  Located in Bonthe District, Southern Province, 62 miles from Bo, the provincial Capital  150 tons/day capacity mill now broken down  31,800 gallons capacity under-ground tanks available for fuel storage  Vegetable 2. Gbondapi Rice Fields  41,000ha suitable for mechanical cultivation located in Pujehun District  Southern Province  60 miles from Bo, the provincial capital  Big rice store available  1 mechanical workshop available  31,800 gallons capacity under-ground tanks available for fuel storage 3. Cocoa & Coffee Processing  75,000ha of coffee and 40,000ha of cocoa in the two provinces. Southern and Eastern provinces  For now, the raw materials are exported, processed abroad and the finished products brought back into the country.  Virgin area for private investment 4. Oil Palm Plantations – Gambia/ Mattru Oil Palm Estate  More than 5000 hectares located in Bonthe District, Southern Province,54 miles from Bo  Several other available plantations  Palm Kernel Oil (PKO)  Other ancillary products (soap, CPO etc) 5. Rapidly Developing Biofuel Sector  High growth sector receiving material commitments of foreign capital  Opportunities for integrated production & refining of ethanol (sugar, Cassava) & biodiesel (oil palm)  Similar palm estates (good for bio- diesel) present in all districts, representing expansion possibilities 6. Sugar Plantations  Excellent growing conditions  Opportunities for both consumable and ethanol  Opportunity to satisfy local consumption demand (currently 50% local demand met through imports) as well as import to EU & West Africa Representative Investment Opportunities

31 31 Tremendous Potential in Industrial Fishing Lengthy Coastline and Inland Waterways Sierra Leone has 402 km of coastline and a continental shelf of 25,600 square kilometers The country’s rivers, estuaries, and tributaries, with their extensive mangrove vegetation, provide ideal conditions for sheltering and nursing shrimp, fish, and oyster Wide Variety of Export Quality Fish Surface dwelling species such as tuna, barracuda, herring, cuttlefish and octopus Bottom dwelling species such as snapper, catfish, grouper, shrimp, octopus, squid, lobster, and crab Approximately 100 species of freshwater fish Vast Untapped Potential The industrial fishing fleet today is a sixth of pre-war levels Industrial production declined 70% from 1991 due to the conflict and a ban on industrial fishing (which has been repealed) Regional and domestic demand alone were estimated to be $14-18 Million in 2003 Quality and quantity of biomass in Sierra Leone’s oceans is almost unparalleled in the world

32 32 Our Waters are Teeming with Fish, Shrimp & Shellfish Sierra Leone’s domestic market is small (est. $14-18 million), but there is tremendous regional demand Nigeria alone imports $450 million of fish annually Prior to the war, our fisheries were producing 3x the amount of fish currently being extracted by local fisheries Lack of focus and investment has depleted fishing fleets and extractive abilities Biomass estimates indicate vast resources of fish (over 100 varieties), shrimp and shellfish Significant investor opportunity Less than $14MM of fish was exported by local firms, while ~$29MM was illegally captured by large foreign vessels fishing in our waters (a) Regional and Domestic Markets Present Unique Prospects Large total oceanic biomass not being leveraged because of lack of infrastructure and development of Fisheries industry Source: (a) Environmental Justice Fund estimates

33 33 Fishing Industry Experienced Steep Decline During Conflict Onset of conflict in 1991 caused a precipitous decline in the industrial fishing fleet and, as a result, in fisheries production Ban on industrial fishing lifted in Limit had been instated to protect local fishermen Recent assessments suggest that production and exports of fishery products, are well below potential Overview Fisheries Production (’91 to ’07) in Metric Tons Industrial Fishing Fleet 1981 to 2007 Fishing fleet & industrial production declined sharply after 1991 due to the conflict and a ban on industrial fishing (which has been repealed)

34 34 Oceanic Biomass is Significantly Underleveraged Lack of investment in fishing assets, has led to decline in fish exports (alongside production), despite an abundance of fish, shrimp and shellfish Fisheries Exports ($ MMs) 2001 to 2006 Fisheries Exports ($ MMs) 2001 to 2006 Fisheries Exports ($ MMs) 2001 to 2006 Fisheries Exports ($ MMs) 2001 to 2006

35 35 The Fisheries Industry – Administrative Policies Fishing in Sierra Leone All industrial fishing vessels, applying for licenses, must be registered with the Sierra Leone Maritime Administration before their applications can be considered A completed application form for each vessel should be submitted along with certified ship documents, containing vital specifications of the vessels Prospective fishing companies are required to: Produce evidence of an offshore account in Sierra Leone Employ 45 % Sierra Leoneans as crew members on each licensed vessels Pay relevant annual feels and royalties for licenses. Licenses Landing Obligations Type of VesselProduct% of Total Catch Shrimp and Cephalopod trawlersFish60% Shrimp and Cephalopod trawlersShellfish5% Fish trawlersFish30% Fish trawlersShellfish3% Tuna vesselsBy-catch10% Small pelagic vesselsBy-catch10%

36 36 Representative Investment Opportunities Manufacture of Fishing Equipment Nearly all fishing and processing equipment is imported The artisanal fleet has grown by 15% since 2003 and continues to grow giving rise to a vibrant domestic market for fishing nets, vessel maintenance and fishing gear Storage and Preservation Facilities in the Artisanal Sub-Sector Ice is not typically used nor are refrigerated units available to preserve the catch and bring fresh fish to market. This results in significant losses Fresh fish fetches a significant premium over preserved fish. As such, the returns to investment in refrigerated storage and transport facilities are promising (four fishing jetties with refrigeration equipment are currently being built) Growing African Market for Small Pelagic Fish The West African market continues to expand rapidly in concert with populations growth of nearly 3% per year, and continued reliance on imports to match fish demand means significant export possibilities Nigeria, for example, imports fish valued at US$ 450million (600,000 tons) Premium for fresh fish over smoked implying prospects for investment in refrigeration Domestic Processing facilities for Industrial Fish A dedicated fish port is planned. When this is in place, it will provide opportunities to establish industrial scale processing facilities to serve the large and growing domestic market

37 Ministry of Trade & Industry 37 Key sectors Agribusiness & fisheriesTourism MiningInfrastructure & Energy

38 38 GoSL is committed to developing the tourism industry Unique tourism potential On Lonely Planet top 10 tourism destination for 2009 Beaches: A coastal line of over 400 kilometers fringed with beautiful and un-spoilt white sand beaches along the Atlantic Ocean World-class game fishing (record setting tarpons) Culture: 18 national heritage sites linked to Sierra Leone’s rich past of slave trade, the foundation of Freetown by the returning slaves and a diverse ethnic heritage Wildlife: 31 protected areas with unique wildlife including pygmies hypos, tarpons, chimpanzees, jungle elephants, and many species of birds Geographic location: 3 hours away by air from Lagos, Africa’s largest city.; 8 hours away from the US (key market for slave heritage segment); 6 hours from Europe Tourism strategy and infrastructure GoSL is committed to enhancing tourist experience by investing in facilitating infrastructure: airport, road, Lungi transfer and power generation Private sector is invited to develop strategic partnerships for the development of the industry First mover advantage Business hotels: no international hotel operator Holiday resorts: only one fishing lodge, operated by local entrepreneurs Unique location and unexploited tourism assets represent significant opportunities for hospitality and tourism investors.

39 39 Tourism industry overview Selected business hotels in Freetown Number of tourists visiting Sierra Leone War UN HotelStarsRoomsOccupancy rate (07) Country Lodge34580% Barmoi33160% Taia Resort332new Bintumani220345% Composition of tourists visiting Sierra Leone Tourism Annual Tourist Arrivals

40 40 Sierra Leone abounds with high quality tourism assets Bunce Island Built in the 17th century, the island was the major collection points for slaves destined for Europe and the Americas The Gullah people of South Carolina are thought to have come from the Mende areas via Bunce Island Other slave heritage sites: Banana island, Plantain island and Sherbro Freetown Founded in 1787 by British philanthropists as the “Province of Freedom”. Freed slaves from Nova Scotia and Maroons from Jamaica traveled to Freetown in 1800 Old Fourah Bay College Building, De Ruyter's Stone, Slave Steps, Railway museum 400+ km of beaches Western Area Peninsula: landscape of tropical mountains with white sand beaches Turtle islands Shebro Island: breeding ground for tarpons Protected Area Outamba Kilimi National Park Tiwai Island Gola forest

41 41 Many opportunities in high-end beach tourism Comments Our coastline presents significant opportunities for high- end tourism lodges, similar to the ones of Northern Mozambique Used to have several high end beach tourism places run by French entrepreneurs prior to the war Current offering is inadequate, providing prospective investors with strong first mover advantage Only one luxury lodge specialised in tarpon fishing in Sherbro Island A number of small hotels / guest houses of various quality across the Western Area Peninsula Coast map and selected pictures Bonthe Holiday Village Located in the town of Bonthe on Sherbro Island. Next to the estuaries of the Sherbro and Kittam rivers, which are well known breeding grounds for tarpons Area object of 12 world records 18 double rooms in six large rondavels Rates ranging from US$400 per day all inclusive except for transfers for the full tarpon fishing package Sites of potential interest Peninsula sites: Mama Beach Bureh Town Tokeh Lakka beach John Obey Hamilton

42 42 Representative Investment Opportunities Project NameBrief DescriptionAdditional Info 1. Beach Resorts  Lakkah Beach Resort: Fantastic beach location; popular with local expatriates. Potential for 2, 3 or 4 star international standard hotel. Local joint venture partners available  Tokay Beach Resort: Spectacular beaches and variety of sports and activity  Bonthe Holiday Village (Game Fishing)  MAPE Resort & Residential Development Project, in partnership with GoSL  Modern style 120 key hotel on 20 acres  minutes from Freetown  Project concept of 58 keys in a low rise, chalet type design  Brand standards suitable for a Radisson, Serena or Movenpick style hotel  About 20 acres of land available  Guaranteed winter sunshine  Key market segment – tour operator generated from Europe 2. Tour Operators  Business travel is currently the most frequent purpose of visit to Freetown but there are no international tour operators  There are 23 hotel facilities in Freetown: however only 3 hotels are three star: Taia Resort, Hotel Barmoi & Country Lodge 3. Business/ Leisure Hotel Opportunities  Cape Sierra Hotel in Aberdeen, on lease to NASSIT (GoSL’s pension fund). IFC hired to structure transaction  Mammy Yoko in Aberdeen (formally site of Sofitel)  Brookfields Hotel. Owned by GoSL  Business market in Freetown is underserved 4. Beach Hospitality (Restaurants, Bars, Guest Houses)  Lumley beach, Goderich beach, Lakka beach, River No.2, Hamilton beach, Sussex beach, York & Bureh Town beach, Kent beach, Mamah beach, Tombo Fishing Village, Russell – A virgin beach  A coastal line of nearly 360 kilometers fringed with beautiful and un- spoilt white sand beaches along the Atlantic Ocean  Game fishing (tarpons), 18 national heritage sites 5. Historical Landmarks/ Islands  Bunce Island, Tacaguma Chimp Sanctuary, Banana Island Chalets, Outamba-Kilimi National Park, Gola forest Reserve, Tiwai Island Wildlife Sanctuary, Turtle Island  31 protected areas with unique wildlife including pygmies hypos, tarpons, chimpanzees, jungle elephants, and many species of birds 6. Airlines Increasing traffic  ARIK adding service between London & Freetown

43 Ministry of Trade & Industry 43 Key sectors Agribusiness & fisheriesTourism MiningInfrastructure & Energy

44 44 Mining industry has tremendous exploitable potential Vast, Proven Natural Endowment Blessed with a multitude of resource deposits including precious metals, base minerals and metals and potentially deep sea oil Proven deposits of diamonds, rutile, bauxite, ilmenite, gold, chromite, platinum, lignite, and clays Proven base metals deposits include copper, nickel, molybdenum, lead, and zinc Currently undergoing exploratory drilling for deep sea oil Diamond Mining and Finishing Comprehensive regulatory reform including Kimberley Process implementation — ensures illicitly mined diamonds do not reach export markets Estimates of alluvial diamond production range from 250,000–400,000 carats a year for the next 5–10 years. Expertise in cutting and polishing diamonds has yet to mature. Finishing represents a considerable value-added investment opportunity Large Scale Mining Mining operations have resumed, but investment in infrastructure required to fully capitalize on mineral resources Government estimates suggest that by 2010, exports could reach $160 million for diamonds, $119 million for rutile, $50 million for bauxite, and $6 million for ilmenite Reforms have set the stage for investors to fully capitalize on exceptional opportunities

45 45 Diamonds and gold are only a small part of the story Mineral Map of Sierra Leone Diamond deposits lie all across the Northern and Southern provinces while alluvial diamonds lie along the Sewa River near the cities of Bo, Makeni and Koidu One of the largest known deposits of rutile in the world, located in the Southern province Possibly one of the world’s largest iron ore finds (>10 billion tonnes), located in the Northern province near the city of Makeni Gold is found in the western side of the country near Koidu Bauxite deposits located in the eastern side of the country Regional Mineral Deposits

46 46 Production is booming with the return of investment Mineral Exports in $ Mil. (1981 – 2007) Mineral Production (2007) Minerals exports accounted for more than 70 % of the country’s foreign exchange earnings in the ’60s and ’70s The war ceased production. Sierra Leone was producing 25 percent of the world’s rutile when its major mines closed in 1995 Diamond exports have recovered most quickly, but bauxite, rutile, and gold (which require more investment to exploit) are also trending upward Estimates suggest that by 2010, exports could reach $160MM for diamonds, $119MM for rutile and $50MM for bauxite Sector is Seeing a Sharp Recovery

47 47 First Mover Advantage: African Minerals Overview African Minerals (AMI) is a mining exploration company holding exploration licenses for Iron Ore in Sierra Leone. An early investor in Sierra Leone, AMI resumed operations in 2003 following the civil disturbance AMI’s efforts led to the discovery of vast resources, including some of the world’s largest iron ore deposits in Tonkolili and Marampa 5.1 Billion tonne JORC compliant Mineral Resource reported for Numbara, Simbili and Marampon Geophysics and reconnaissance drilling over a strike length of 20km at Kasafoni indicates potential for a further 5 Billion tonnes to increase the total magnetite resource to ~10 Billion tonnes The company’s investment in developing this find has resulted in the creation of $860 million of shareholder value for AMI’s shareholders over the last 3 months Note: All data from African Minerals website and publicly available news sources. GoSL has not independently verified any data on this page. AMI Market Cap ($ millions) AMI Stock Price Chart (Share Price in GBP) 3 month Increase: +392%

48 48 Key Mining Sector Companies in Sierra Leone 1. Iron-ore African Minerals (Market cap: US$1,078M)  Currently holds prospection, exploration and mining licenses on 57% of territory  Two iron-ore deposits – Tonkolili and Marampa. Signed lease agreement with GoSL on railway and Pepel port London Mining (Market cap: US$240M)  Holds mining license on Marampa deposit 2. Bauxite - Vimetco (Market cap: $189M) acquired bauxite mine from Titanium Resources for US$40mm in July Gold - Cluff Gold (Market cap: US$3.14B)  Gold exploration project in Baomahun  Recently granted mining license. Mineral resource of 1.4mm Oz 4. Diamonds  Koidu Holdings. Wholly-owned by BSG Resources (Market cap: US$8.43M ). Operates Koidu Kimberlite project in the Kono District. Exploration licence for the Tongo diamond field 5. Mineral Sands  Titanium Resources (Market cap: US$20.2M) – locally known as Sierra Rutile. One of the largest natural rutile deposits known in the world, accounted for c. 23% of world’s annual supply Source: company websites, Ministry of Mineral Resources (www.slmineralresources.org)

49 49 Comprehensive regulatory reform is enabling investment New Mines and Minerals Act about to go to parliament New License Categories for Mineral Rights Draft bill makes it easier to engage in mining operations in Sierra Leone. Annual Charge for Mineral rights and Royalties of: 5% for precious stones 4% for precious metals 3% for all other minerals Exemption on customs duties for equipment used exclusively for exploration. Taxation: 37.5% Corporate Tax Licenses for Dealing and Exporting Reconnaissance: Non-exclusive rights for 1 year to 10,000 sq. km. Renewable for one additional year. Exploration: Exclusive rights to explore for all minerals over 400 sq. km. for 4 years. Renewable for 3 more years with a 50% relinquishment of area; 2 years further renewal possible. Artisanal Mining: Maximum area of 2 hectares and limited to Sierra Leonean citizens. Duration of 1 year and renewable 3 times for 1 yr periods. Small Scale Mining: Max. area of 1 sq. km. 25% local ownership required. Duration of 3 years, but can be renewed in 3 year increments after that. Large Scale Mining: Maximum area of 200 sq. km. No restriction on nationality. Duration of 25 years and is renewable for 15 year periods after that.

50 Ministry of Trade & Industry 50 Key sectors Agribusiness & fisheriesTourism MiningInfrastructure & Energy

51 51 We are rebuilding infrastructure across Sierra Leone! Airports – Lungi International & Hastings Lungi Int’l: Located 8 km north of Freetown across the Rokel river. Next to Mahera beach Hastings: Small commuter craft appropriate airport located at Waterloo Tourism roads Regent Hill to Grafton and Lumley to Tokeh road in the process of repaving. Quicker access to beaches Repaving of the Mile 91 to Bo and the Kenema to Kailama roads will ensure quicker access to Tiwai and the Gola forest Lungi transfer Road journey can take in excess of five hours during the rainy season (May to October) Repaving of the Lungi to Port Lokko road funded. To be completed by 2010 Water route currently served by hovercraft, helicopter, speed boats, and ferries. Three new transfer services in process of being launched (speed boats, ferry and catamaran) GoSL in the process of finalising funding to: Set-up a regulatory body for the Lungi Transfer to ensure reliability and quality of services Refurbish and renovate passenger terminals Freetown Port Handled 1.2 million tons in ’06 (up 9% from ’02), of which 800,000 tons was dry cargo. Container traffic in ‘06 was 31,718 TEU’s of which 18,353 were full imports and exports containers, with 82% of full containers as imports Port facilities comprise six berths together with a stacking area (paved and unpaved), storage areas (four sheds), together with additional land for terminal development and office space Total paved area of 34,843 metre square with the lean concrete and cobbles area totaling 23,856 and area covered by asphalt amounting to 10,987 metre squares

52 52 Airports & Related Infrastructure Require Rehabilitation Airports Lungi Code 4E runway width of 60 metres (including shoulders), length of c. 3,200 metres Sufficient to enable non-stop flights by modern wide-bodied aircrafts to any point in Africa or Europe, South America and eastern North America Served by BMI from London, SN Brussels from Brussels & Dakar, Royal Air Maroc from Casablanca, Kenya Airways from Nairobi via Accra, Bellview from Lagos and Slok from Banjul, Conakry and Monrovia, TCVM from Cabo Verde via Dakar Key statistics: Total passengers (2007): 183,963 (inc. in transit) Service charge: US$40 per passenger (represents less than 40% of total revenues) World Bank has funded US$9mm runway rehabilitation and provision of new navigational aides National Commission for Privatisation and Ministry of Transportation and Aviation currently reviewing options to invite private sector participation Hastings Runway length c. 1,000 metres, suitable only for general aviation aircraft, Total passengers (2007): 886 No realistic scope for a runway extension at Hastings given surrounding mountains and manrgove swamps Hovercraft: Operated by Diamond Airlines Capacity: c. 90 passengers. Tariffs:US$60 Much of the journey is effectively in Atlantic waters, which are unsuitable for hovercraft Ferry: Three ferries currently operated by three different companies Capacity: c. 75 vehicles / 250 passengers. Tariffs: US$1- 3 depending on class of travel Helicopter: Seven-minute journey to Mammy Yoko Heliport form Lungi airport Operated by UT Air (certificated by the South African Civil Aviation Authority) Capacity: c.20 passengers. Tariffs: US$60 Road: 176 km of which c. 90 km of paved roads Journey can take in excess of five hours during the rainy season between May and October Others: A number of operators operate speedboat for the crossing Transfer from Lungi to Freetown

53 53 Freetown Port Being Prepared for Privatisation Overview The Sierra Leone Ports Authority (SLPA) is a service port situated in the capital city of Freetown at the Queen Elizabeth 11 Quay. The privatisation strategy is to transform it from a service port to a landlord port Concessioning of the container terminal for a proposed period of 25 years Also include licensing of service providers for shore handling of non-container (break bulk and bulk cargo) and privatisation of non core activities SLPA is the only port serving Sierra Leone and also handles some cargo for neighbouring countries in the sub- region. It has the best natural deep water port in West Africa with the potential to become a transhipment hub The Sierra Leone port handled 1.2 million tons in 2006, of which 800,000 tons was dry cargo. Container traffic in 2006 was 31,718 TEU’s of which 18,353 were full imports and exports containers, with 82% of full containers as imports. Port traffic enjoyed 9% annual growth between 2002 and 2006 The port facilities comprise six berths together with a stacking area (paved and unpaved), storage areas (four sheds), together with additional land for terminal development and office space. The port owns a limited amount of container handling equipment and also leases from private sector tractors, reach stackers, forklifts The total paved area amounts to 34,843 metre square with the lean concrete and cobbles area totaling 23,856 and area covered by asphalt amounting to 10,987 metre squares. The SLPA benefited from the proceeds of the IDA credit under the Transport Sector Project and this funding was applied to the paving of the port roads and the Container Terminal The preparation for private sector participation in the ports privatization has reached an advanced stage. It is envisaged that the National Commission for Privatisation will tender the SLPA privatization in 2009

54 54 Executing on strategy to eliminate power shortage Overview National Power Authority (NPA) responsible for generation, transmission and distribution of electricity throughout the country Bo-Kenema Power Station holds zonal responsibility for local generation, distribution and sales Total present active customer base of NPA and BKPS is 44,000 and 9,600 respectively Freetown is supplied with electricity from oil-fired thermal plants at Kingtom power station. Despite steady improvements, Freetown still faces large supply deficit due to insufficient generation capacity Short term Emergency Power Project (Sept 2007) aimed to increase supply from 5 MW to 25 MW, starting December 2007 Bo, Kenema and their environs are supplied with electricity from a combination of oil-fired thermal power plants and a hydropower plant GoSL has identified a number of hydropower sites capable of producing >1,000 MW of electricity China and UNIDO funding mini hydro dam on the Bankasoka River in Port Loko GEF funded project for the Moyamba mini hydro Power Sector Reforms Within 12 months, GoSL expects to have unbundled power generation from transmission GoSL will continue to hold exclusive licence for power transmission Private sector partners are invited to participate in generation and metering Under the regulatory authority & oversight of the NPA, private sector will have the ability to: Supply, install and service power meters Power generation and feeding guidelines will be ready by the end of the year (2009) Chronic power shortage has limited our economic growth. Boosting power generation is critical for both consumers and industry.

55 55 Bumbuna – Stage 2 Bumbuna Stage 2 Regulatory dam to be located 38 km upstream from current Bumbuna reservoir 6x larger than current reservoir Capacity impact: Water level regulation will allow Bambuna 1 to operate at 50Mw max capacity through dry season Addition of two turbines and power houses to Bambuna will boost generation capacity to 100Mw Estimated cost: EUR480 million Currently in design and development – proposals being drawn up by Studio Petrangali Bumbuna hydroelectric project 50 Megawatt water regulation and hydropower facility located on the Seli River near the town of Bumbuna Key stats: 88 meter high, asphalt concrete-faced, rock fill dam 440 meter crest-length Two spillways with associated tunnels Above-ground powerhouse with two 25 Megawatt turbo-generator units Y-shaped reservoir with a width of 30 kilometers and 445 million cubic meters of storage capacity Project cost: US$91.8mm EU funding electrification of 11 provincial towns to enable transmission of power to local communities Bumbuna Stage 1 (50Mw) substantially done, anticipated to be online Aug’09. Stage 2 under design, will double Bumbuna capacity and significantly address power needs

56 56 Power – Current & Projected Generation Capacity Projects in pipeline to boost power generation capacity 20x. Government of Italy has been a key partner to GoSL, with significant contribution to Bumbuna in particular. Total Capacity (Dry Season vs. Wet Season) for Existing and Planned Facilities

57 57 Representative Investment Opportunities Project NameBrief Description Additional Info 1.The Sierra Leone Ports Authority  The Sierra Leone Ports Authority is a service port situated in the capital city of Freetown at the Queen Elizabeth 11 Quay.  Preparation for private sector participation in the ports privatization has reached advanced stage  Concessioning of the container terminal for a proposed period of 25 years  Envisaged that the National Commission for Privatisation will tender the SLPA privatization in H  Comprises six berths together with a stacking, storage areas (four sheds), additional land for terminal development and office space  Only port serving Sierra Leone and also handles some cargo for neighbouring countries in the sub-region. It has the best natural deep water port in West Africa with the potential to become a transhipment hub 2. Freetown Airports  Total passengers (2007): 183,963 (includes passengers in transit) Service charge: US$40 per passenger Service charges.  Code 4E runway width of 60 metres (including shoulders) and a length of c. 3,200 metres, sufficient to enable non- stop flights by modern wide-bodied aircrafts to any point in Africa or Europe, South America and USA 3. Lungi Airport Transfer  Located 8 km north of Freetown across the Rokel river. Next to Mahera beach  Currently served by hovercraft, helicopter, speed boats, and ferries 4. Other Potential Infrastructure Projects  Pepel port Iron-ore railway, Lungi airport Transfer facilities between Lungi and Freetown, Toll-road around the Peninsula Large scale hydro projects, Mini hydros, Solar panels / windmills, Fibre optics links & Conference centre 4. Several Road Projects  Trans West Africa Highway, linking Guinea to Liberia  Opportunities in road construction and equipment leasing

58 Ministry of Trade & Industry Key Sectors Agribusiness Fisheries Tourism Mining Infrastructure & Energy Other

59 The telecoms industry 59 Wireline Monopoly held by incumbent Sierratel with c. 25k lines 100% government owned – on the agenda for privatisation Also holds CDMA license and international gateways for all mobile operators Wireless Six licenses issued and four active operators Operators: Zain – 100% owned by Zain Group. 575k subscribers as at April 09 Africell – subsidiary of Lebanese owned Lintel Group. 350k subscribers as at March 09. Also operates in the Gambia Comium – wholly owned subsidiary of Lebanese owned Comium Group. 290k subscribers as at March 09. Also operates in the Gambia, Liberia and Cote d’Ivoire Millicom – 100% owned by Millicom International Cellular. 109k subscribers Two other licenses were issued in April 2008 to Israel-based Cellcom and Libyan state-backed vehicle LAP Green Networks Overview Millicom 10% Comium 26% Zain 33% Zain 33% Africell 31% Penetration – West Africa benchmarking Number of mobile subscribers

60 The banking industry 60 Key players Rokel Commercial Bank 51% owned by GoSL. Reminder owned by various shareholders and staff. On the agenda for privatisation. Formerly controlled by Barclays, which sold its stake to GoSL and staff in 1999 Second largest bank in Sierra Leone in terms of total book, deposit taking and lending as at 31 December Branch network of 11 and 3 ATMs Sierra Leone Commercial Bank Established in February 1973 with the primary goal of supporting the private sector and small businesses in particular. Wholly owned by GoSL. On the agenda for privatisation Largest bank in terms of total book, deposit taking and lending. 10 branches, 3 of which are in Freetown Standard Chartered 3 branches. Present in Sierra Leone since 1894 Union Trust Bank Largest indigenous institution privately owned. 7 branches Other banks Large presence of West African banks: GTBank, Ecobank, Access Bank, UBA, Zenith Bank Market shares – Dec 2007 Source: Company websites, Bank of Sierra Leone Key regulatory ratios Capital adequacy ratio: 15% Primary capital adequacy ratio: 7.5% Cash reserve requirements: 12% of deposits Liquidity requirements: 40% of demand deposits 20% of time and savings deposits SLCB 27% SLCB 27% Others 14% Others 14% Rokel 23% Rokel 23% StanChart 19% StanChart 19% GTBank 11% UTB 6% Industry statistics: # bank accounts: 197k Industry assets: $353mm Industry net loans: $74mm Industry deposits: $265mm Industry statistics: # bank accounts: 197k Industry assets: $353mm Industry net loans: $74mm Industry deposits: $265mm

61 MTI | Italy | Jul 09 | 61 Be our guests….  Why don’t you come and see for yourself?  A small country which abounds with opportunities  You probably hear this every day but in SL, you will find  some of the warmest people you can ever find in sub Saharan Africa  We will be more than happy to host you

62 MTI | Italy | Jul 09 | 62 Contacts For all investment enquiries or additional information, please contact: The Sierra Leone Investment & Export Promotion Agency (SLIEPA)


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