MANUFACTURING SECTOR
Sierra Leone’s manufacturing sector has been on a decline since its peak of 9.5% of value added to the country’s GDP. As off 2019, the total value added to the GDP by the manufacturing sector is 1.8%.
The manufacturing sector in Sierra Leone is developing, and has great potential. This sector is currently concentrated in the following areas: Rubber/Plastic with companies like Milla Group, Shankerdas and Sons. Chemical, confectionery and most recently Agro based product such as juices. Manufacturing at the moment plays an important role in adding value to the above stated areas, with high demand for locally produced goods, regional and International markets are accessible for product manufactured in Sierra Leone, owing to its membership to some key International and regional organization.
Organizations such as the Economic Community of West African States (ECOWAS – Market size of 220 Million People), EU-Everything But Arms – EBA (Market Size of 456 million People), U.S African Growth & Opportunity Act (AGOGA – Market Size of 310 Million People) and the Mano River Union (MRU).
Looking Forward
The Government of Sierra Leone (GoSL) has taken notice of the gap in its manufacturing sector, and has also seen this gap as a sign of hope for the coming years. To be certain of a functional and self-sufficient manufacturing sector, the GoSL has established Special Economic Zones (SEZs) and Export Processing Zones (EPZs). These zones are in strategic locations, locations such as Newton near the capital city, Freetown. These zones are expected to attract corporations and also help ease their daily and vital business activities. The GoSL has also out in place Fiscal and Financial incentives. Incentives such as:
Export licenses are not required for locally produced goods (except gold, diamonds, and a few other goods designated by the government) - The sales tax is zero for plants and machinery, while others are 15 percent at entry and production.
Opportunities
The GoSL has highlighted a few key investment possibilities in the Manufacturing sector.
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Promote manufacturing industries for the production of farm implements and medical equipment.
Design developments of electronic products -
Manufacturing and supplying spares for the agriculture sector
Processing and manufacturing of rice and other products Processing of oil palm to produce cosmetics products Packaging of various products - Manufacturing of vehicle spare parts
For more information, visit website: https://www.sliepa.org
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