India-Sierra Leone Relations: A Flourishing Partnership
Hon. Dr. Richard Konteh
Hon. Dr. Richard Konteh
Chief of Staff
Sierra Leone:
Sierra Leone:
Africa’s New Investment
Africa’s New Investment
Destination for Indian companies
Destination for Indian companies
Office of the President
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9
th
CII EXIM Bank Conclave
•
1998: visit of Sierra Leonean
Minister of Trade and Industry
•
2003: visit of Parliament delegation
led by the Speaker
•
2005: visit of the Minister of Foreign
Affairs and Minister of Trade and
industry in the CII Africa conclave
•
2011: Visit of MTI to CII in Mumbai
Long standing relationship
Long standing relationship
between Sierra Leone and India…
between Sierra Leone and India…
Examples of Visit of Sierra Leonean
Government to India
Support of India during critical
time
•
Deployment of 4000 Indian
contingent military during the Civil
War
•
Donation of 200 military barracks
•
Supply of 40 000 tonnes of rice in
2008 to meet SL’s urgent
requirements
..which goes beyond diplomatic
..which goes beyond diplomatic
relationship
relationship
•
540 Indian community members residing in Sierra
Leone
•
Presence of a Hindu temple in Freetown
•
Choithram Trust runs a charity hospital
•
Sierra Leone joined the Pan-African e-Network
-
136 Sierra Leonean students are enrolled in
courses from Amity University and University of
Madras
•
Modernisation and expansion of Sierra Leone
National Telecommunication Netwrok (SIERRATEL)
•
Restoration and rehabilitation of six potable water
projects
•
Line of credit for Solar Street Lighting Projects
India has also provided concessional
India has also provided concessional
loans to SL worth $74 m
loans to SL worth $74 m
Projects financed by the concessional loan
Indian companies have started to
Indian companies have started to
grasp business opportunities
grasp business opportunities
•
Take over of Zain
•
$1.3 Bn investment in Oil Palm Plantation
•
~$200M investment in Steel plant
•
Discovery of 321 million bauxite deposit
•
Solar street lights
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Sierra Leone is a nation...
Sierra Leone is a nation...
With a great tradition of religious tolerance,
education and achievement
Where peace and stability are fully restored
Where democracy is alive and thriving
Where economic stability has been achieved
Where corruption is being tackled
Where the investment climate is being
transformed
Where opportunities for investment and
export are significant
Only 11% of
arable
land is cultivated
Amongst highest levels of
rainfall
on earth
(2500 mm/yr)
Solar
power and
bio-fuels
expanding rapidly
West Africa’s premier
tourism assets
Wealth of
minerals
,
metals
and
hydrocarbons
Blessed with significant natural assets
Blessed with significant natural assets
4hrs
2hrs
Natural deepwater
harbour
at nexus of global
trade routes
Closest African country to
Latin America
Transit hub:
proximity to EU, North and
Latin Americas
Duty-free & preferred access to:
-
ECOWAS
– 225 million people
-
EU
via EBA
-
USA
via AGOA
6hrs
8hrs
With strategic access to markets
With strategic access to markets
Flight duration (hours)
Large investments landed in agri-business,
Large investments landed in agri-business,
hotels, construction…
hotels, construction…
…with similar scale in Mining and
…with similar scale in Mining and
Infrastructure….
Infrastructure….
GDP projected to grow at twice the African average, according to the IMF
10% CAGR
12% CAGR
Due to operations of the Mining sector and thriving private sector
Growth is Projected at ~50% in 2012
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Among top 4 countries in Africa selected for
a Compact grant allocation
•
Grants between $100-700 million
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Top 3 reformers in Africa for
this indicator
Regional Peers
Mo Ibrahim Africa Governance Index:
Sustainable economic opportunity indicator
Change in Rank ‘06 – ‘09
Top reformer in Africa for providing
Sustainable Economic Opportunity
Improved 25 places in the
Doing Business Rankings in 4 years
World Bank Doing Business Rankings
Overall rank position Sierra Leone
Leading reformer of the private sector
Leading reformer of the private sector
2011 Index results highlights
•
Ranked 14/53 in Personal Safety
•
Ranked 29
th
/53 in Business environment
•
Moved from 33
rd
to 30
th
overall ranking between 2009 and 2010
Energy Policy
ICT Policy
Public Private
Partnership Policy
Intellectual Property
Rights Legislation
Credit Reporting
Legislation
SME fund
Local content policy
Financial Sector Reforms
Leasing Finance
Framework
Collateral Registry
SEZ Policy
Double Taxation Treaties
Industrial policy
Competition law
Streamlined Business
Registration Process
Mortgage Finance Act
Goods & Services Tax
Anti-corruption Act
Companies Act
Bankruptcy Bill
Payment Systems Act
Minerals Act 2009
Model Bilateral Investment
Treaty
Investor Incentives Policy
Continually updating policy environment
Continually updating policy environment
Offering incentives to investments
Offering incentives to investments
Promotion of
exports
Capital items and
inputs duty free
Corporate tax
Investment
allowance
•
All new investments shall also benefit from investment
allowance of 20%
•
All Plant, Machinery and Equipment (PME) would be eligible for
duty free imports for five years of operations. Companies would
be allowed to elect
the five years
when they would be eligible
for the duty free importation
•
All agricultural inputs imported at duty free rates
•
Expenses which are aimed at promoting exports and the supply
of goods overseas will be eligible for 100% deduction from
profits and up to the extent of profits.
•
Corporate tax exemptions for certain types of investments
Opportunities for investment
Opportunities for investment
Tourism sector overview
Tourism sector overview
•
One of
Lonely Planet’s Top 10
Worldwide
Destinations in 2009
•
West Africa’s most
stunning and
undeveloped
beaches
•
Wealth of
eco-tourism
sites across 31
protected areas
•
Heritage sites linked to
rich cultural past
•
Easily accessed
by European and West
African tourists – International Hub.
•
T he Cape Sierra Hotel will be refurbished
into a
5-star hotel
under a partnership
with the Hilton Hotel Group
Underdeveloped vs. Peer Destinations
Annual Tourist Arrivals
Tourism –
Tourism –
investment opportunities
investment opportunities
•
Significant
domestic and regional
demand
for power
•
400 MW
Hydo-power Bumbuna project
under way
•
16.5mw thermal plant built up at
Blackhall road, 6mw plant built in
Makeni
•
A 400 MW project and a 89MW hydro
project at Bicongo
•
The government just signed a
1000 mw
thermal
BOT project to be built over the
next 5 years
•
An electricity penetration of only 10%
Unmet Existing Domestic Demand for Power
Installed Power and Estimated Demand (MW)
Energy sector
Energy sector
overview
overview
Energy -
Energy -
Investment opportunities
•
$2 bn+
infrastructure construction
and management market
•
Privatization of Freetown
port
has
been completed on one of the
world’s
largest natural harbors
•
Highway
to connect major cities
(Makeni, Bo, Kenema, Conakry) have
been rehabilitated
•
Upgrade of Freetown international
airport under way
•
Construction of a
new airport
on the
mainland
Value of Road Construction Projects ($MM)
$913
$499
Infrastructure sector overview
Infrastructure sector overview
Infrastructure –
Infrastructure –
investment opportunities
investment opportunities
•
Most of
5.4 million hectares
of cultivable
land
is
undeveloped
•
Ideal growing conditions for a wide range
of staple and cash crops including
Cocoa
and Coffee ( Transma and Euroma group)
•
Significant opportunity to grow sugar
(
~$200m investment by Addax)
, oil palm
(~$2 bn investment by Siva Group
), rice,
rubber pineapple and other agricultural
products for both
food and fuel supply
•
Agro-processing
(fruit juice company Africa
Felix exporting Mango and Pineapple Juice)
Agri-business sector overview
Agri-business sector overview
C
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2
%
Agri-business Is Growing Sharply
A
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G
D
P
(
$
M
M
s
)
Crops
Livestock
Forestry
Fisheries
Under-utilization of Arable Land
%
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-
v
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e
d
C
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v
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t
e
d
•
Significant regional
demand
for fish,
estimated at ~$800 Million
•
Amongst the most
productive
oceans in
West Africa
•
Access to EU market
with Hygiene
standards being upgraded
•
Government currently modernizing legal
framework to
prevent illegal fishing
and
work with US coast guards
•
Fish landing sites
built at Bonthe, Shenge,
Tombo and Goderich
•
Opening of a
Marine Training school
underway
•
Fishing revenues tripled
between 2007
and 2010
Unmet Regional Demand for Fish
Est. Current Domestic Supply of Fish ($MM)
$
7
0
5
$785mm Opportunity:
$80mm undersupply in
domestic market + $705mm
of regional demand.
Fisheries
Fisheries
Fisheries sector overview
Fisheries sector overview
Other projects key to the President
Other projects key to the President
1.
RAIL:
rehabilitation of the railway
network
2.
RETAIL:
creation of the first modern shopping mall
3.
STEEL:
production of steel for the West Africa region
(SAMSHI Steel company about to invest $100 million)
4.
Tripartite project
: new airport + new bridge + new city
Thank you
Thank you
...
...
and welcome to Sierra Leone
and welcome to Sierra Leone
India and Sierra Leone's relationship goes beyond diplomacy, encompassing economic, cultural, and educational ties. Indian companies have made significant investments in Sierra Leone, indicating a growing business interest. Sierra Leone offers a stable environment for investors with opportunities in various sectors. The collaborative efforts between the two countries have led to advancements in infrastructure, healthcare, and education, enhancing the overall development of Sierra Leone.
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9th CII EXIM Bank Conclave Sierra Leone: Africa s New Investment Destination for Indian companies Hon. Dr. Richard Konteh Chief of Staff Office of the President Republic of Sierra Leone
Long standing relationship between Sierra Leone and India Examples of Visit of Sierra Leonean Government to India Support of India during critical time 1998: visit of Sierra Leonean Minister of Trade and Industry Deployment of 4000 Indian contingent military during the Civil War 2003: visit of Parliament delegation led by the Speaker Donation of 200 military barracks 2005: visit of the Minister of Foreign Affairs and Minister of Trade and industry in the CII Africa conclave Supply of 40 000 tonnes of rice in 2008 to meet SL s urgent requirements 2011: Visit of MTI to CII in Mumbai
..which goes beyond diplomatic relationship 540 Indian community members residing in Sierra Leone Presence of a Hindu temple in Freetown Choithram Trust runs a charity hospital Sierra Leone joined the Pan-African e-Network - 136 Sierra Leonean students are enrolled in courses from Amity University and University of Madras
India has also provided concessional loans to SL worth $74 m Projects financed by the concessional loan Modernisation and expansion of Sierra Leone National Telecommunication Netwrok (SIERRATEL) Restoration and rehabilitation of six potable water projects Line of credit for Solar Street Lighting Projects
Indian companies have started to grasp business opportunities Take over of Zain $1.3 Bn investment in Oil Palm Plantation ~$200M investment in Steel plant Discovery of 321 million bauxite deposit ABG group Solar street lights Angelique + large number of Indian businessmen and women
Sierra Leone is a nation... With a great tradition of religious tolerance, education and achievement Where peace and stability are fully restored Where democracy is alive and thriving Where economic stability has been achieved Where corruption is being tackled Where the investment climate is being transformed Where opportunities for investment and export are significant
Blessed with significant natural assets Only 11% of arable land is cultivated Amongst highest levels of rainfall on earth (2500 mm/yr) Solar power and bio-fuels expanding rapidly West Africa s premier tourism assets Wealth of minerals, metals and hydrocarbons
With strategic access to markets Natural deepwater harbour at nexus of global trade routes Closest African country to Latin America Transit hub: proximity to EU, North and Latin Americas Duty-free & preferred access to: - ECOWAS 225 million people 2hrs - EU via EBA 4hrs - USA via AGOA 6hrs 8hrs Flight duration (hours)
Large investments landed in agri-business, hotels, construction Palm oil: SOCFIN: Committed $1.2B investment SIVA GROUP: Committed ~$300M investment Sugar Cane and bio ethanol: ADDAX: Raised more than $300M in loans to invest in its operations in Sierra Leone. Production to start by 2013 Agri- business Hotels: THE HILTON GROUP: to redevelop the Cape Sierra hotel into an international 5* hotel with 200 rooms REZIDOR S RADISSON BLU: taking over the Mammy Yoko Hotel in Freetown Cement: DANGOTE: Committed $45M investment in cement factory Hotels & Building Materials
with similar scale in Mining and Infrastructure . Iron ore LONDON MINING: Raised hundreds of millions of dollars on London Stock Exchange AFRICAN MINERALS: investing $1.3B and have started exporting Gold CLUFF: Scaling up investment to $200M Mining Port: BOLLORE : Port container terminal privatization Fiber optic: : Fiber optic cables landed in Freetown to be in operation by Jun-2012 Mobile phone: AIRTEL: Acquired Zain in 2010 & working with IBM to enhance network Special Economic Zone: Special economic zone offering infrastructure and tax incentives Infra- structure
The GDP of Sierra Leone is expected to grow at 12% in next 5 years, with a ~23% growth in 2012 Overseeing a stable, growing economy GDP projected to grow at twice the African average, according to the IMF Due to operations of the Mining sector and thriving private sector Growth is Projected at ~50% in 2012 GDP in USD Billion IMF estimates 12% CAGR 4.2 10% CAGR 3.9 3.7 3.7 2.6 2.1 2.0 1.9 1.9 1.7 1.4 1.2 1.1 1.0 0.9 0.8 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Efforts of Sierra Leone to develop its economy has been recognized by the MCC Among top 4 countries in Africa selected for a Compact grant allocation Grants between $100-700 million
Leading reformer of the private sector Top reformer in Africa for providing Sustainable Economic Opportunity Improved 25 places in the Doing Business Rankings in 4 years Mo Ibrahim Africa Governance Index: Sustainable economic opportunity indicator Change in Rank 06 09 World Bank Doing Business Rankings Overall rank position Sierra Leone 168 11.9 11.6 11.1 163 156 5.4 4.6 2.7 143 141 Regional Peers Top 3 reformers in Africa for this indicator 2007 2008 2009 2010 2011 2011 Index results highlights Ranked 14/53 in Personal Safety Ranked 29th/53 in Business environment Moved from 33rd to 30th overall ranking between 2009 and 2010
Continually updating policy environment Done Approved by Cabinet In Progress Streamlined Business Registration Process Energy Policy Financial Sector Reforms ICT Policy Leasing Finance Framework Mortgage Finance Act Public Private Partnership Policy Collateral Registry Goods & Services Tax Intellectual Property Rights Legislation SEZ Policy Anti-corruption Act Double Taxation Treaties Companies Act Credit Reporting Legislation SME fund Local content policy Industrial policy Bankruptcy Bill Competition law Payment Systems Act Minerals Act 2009 Model Bilateral Investment Treaty Investor Incentives Policy
Offering incentives to investments All Plant, Machinery and Equipment (PME) would be eligible for duty free imports for five years of operations. Companies would be allowed to elect the five years when they would be eligible for the duty free importation All agricultural inputs imported at duty free rates Capital items and inputs duty free Expenses which are aimed at promoting exports and the supply of goods overseas will be eligible for 100% deduction from profits and up to the extent of profits. Promotion of exports Corporate tax exemptions for certain types of investments Corporate tax All new investments shall also benefit from investment allowance of 20% Investment allowance
Tourism sector overview Underdeveloped vs. Peer Destinations One of Lonely Planet s Top 10 Worldwide Destinations in 2009 Annual Tourist Arrivals West Africa s most stunning and undeveloped beaches 910k 880k 790k Wealth of eco-tourism sites across 31 protected areas Heritage sites linked to rich cultural past Easily accessed by European and West African tourists International Hub. 130k 25k T he Cape Sierra Hotel will be refurbished into a 5-star hotel under a partnership with the Hilton Hotel Group
Tourism investment opportunities Former tourist resort with a great beach location close to Freetown. Local joint venture partner/site owner looking to partner with investors. $5 million Lakka Sunshine 200 bungalows resort on the most beautiful beaches along Peninsula $25 million Bureh town resort On one of the best beaches of Western Peninsular, presented as 4 star international standard with extensive facility mix (spa, 18 holes golf course, indoor sports facility, extensive water sports and pier for direct boat access to Lungi Airport). Greenfield project. $15 million Tokeh Resort 75 bedroom Hotel in Freetown under refurbishment looking for equity participation and management support $3 million Kimbima Hotel Beach resort with 15 bungalows and 8 rooms to expand to 50 rooms, looking for equity participation $2 million Eaden park Other projects: greenfield land to acquire in the peninsula, PPP management of national parks in the province, promotion of eco-tourism, tourism school
Energy sector overview Significant domestic and regional demand for power Unmet Existing Domestic Demand for Power Installed Power and Estimated Demand (MW) 400 MW Hydo-power Bumbuna project under way 1,000 16.5mw thermal plant built up at Blackhall road, 6mw plant built in Makeni A 400 MW project and a 89MW hydro project at Bicongo 70 The government just signed a 1000 mw thermal BOT project to be built over the next 5 years Current Supply 2020 demand An electricity penetration of only 10%
Energy - Investment opportunities 250 MW hydro project -Bumbuna II Phase I delivered 50 MW to Freetown and surrounding areas Phase II will extend this to 400 MW through expansion of the current site and a new site upstream at Yiben Estimated cost is 520 m Distribution Networks Extension and modernisation of distribution networks (currently only 70 000 grid connections for a 5.8 m population) Estimated cost for Freetown is 150m and $300m across Sierra Leone 300 MW thermal (coal, gas) Power Plant To meet Freetown and other cities growing demand To serve huge demand of mining companies To export excess power to West Africa Power Pool Solar Street Lighting, Biofuels and Mini Hydro Already attracting investment interest, including Addax (biofuels) and InterGroup (solar) 10MW micro hydroproject in Moyamba and 2MW in Port Loko
Infrastructure sector overview Value of Road Construction Projects ($MM) $2 bn+ infrastructure construction and management market 1,000 600 $913 Privatization of Freetown port has been completed on one of the world s largest natural harbors $499 500 800 $414 400 $266 600 Highway to connect major cities (Makeni, Bo, Kenema, Conakry) have been rehabilitated 300 400 200 $499 200 $233 100 Upgrade of Freetown international airport under way 0 0 Projects Funded Projects Construction of a new airport on the mainland Funded Unfunded Contracted Uncontracted
Agri-business sector overview Under-utilization of Arable Land % Most of 5.4 million hectares of cultivable land is undeveloped 100% Not Culti- vated 25% Non A. 89% 50% 75% Ideal growing conditions for a wide range of staple and cash crops including Cocoa and Coffee ( Transma and Euroma group) Arable 11% Cultivated 0% Land Arable Land Agri-business Is Growing Sharply Agriculture GDP ($MMs) Significant opportunity to grow sugar (~$200m investment by Addax) , oil palm (~$2 bn investment by Siva Group), rice, rubber pineapple and other agricultural products for both food and fuel supply $1,000 Livestock Forestry Fisheries $750 $500 Crops $250 Agro-processing (fruit juice company Africa Felix exporting Mango and Pineapple Juice) $0 2002A 2004A 2006A 2008P
Fisheries Fisheries sector overview Significant regional demand for fish, estimated at ~$800 Million Unmet Regional Demand for Fish Est. Current Domestic Supply of Fish ($MM) Amongst the most productive oceans in West Africa $800 $705 $785mm Opportunity: $80mm undersupply in domestic market + $705mm of regional demand. $700 Access to EU market with Hygiene standards being upgraded $600 $305 $500 Government currently modernizing legal framework to prevent illegal fishing and work with US coast guards $400 $300 $200 $400 Fish landing sites built at Bonthe, Shenge, Tombo and Goderich $210 $100 $130 $0 SL Supply SL Demand Est. Imports Opening of a Marine Training school underway Supply Demand Ivory C. + Ghana Fishing revenues tripled between 2007 and 2010
Other projects key to the President 1. RAIL: rehabilitation of the railway network 2. RETAIL: creation of the first modern shopping mall 3. STEEL: production of steel for the West Africa region (SAMSHI Steel company about to invest $100 million) 4. Tripartite project: new airport + new bridge + new city
Thank you ...and welcome to Sierra Leone
