Sierra Leone : Investment Climate Policy Note

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Washington, DC

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This Investment Climate Policy Note (ICPN) for Sierra Leone evaluates the country's business environment by: (i) analyzing barriers to private sector investment and growth and how they vary among different types of firms; (ii) benchmarking Sierra Leone's investment climate and firm performance to that of other countries; and (iii) providing recommendations to promote and strengthen the private sector. The ICPN is supported by the statistical analysis of a 2009 enterprise survey of 150 formal, manufacturing and service firms with five or more employees based in Western Area/Freetown and Kenema, two of Sierra Leone's major urban centers. The ICPN is organized as follows. Chapter one provides context for Sierra Leone's business environment. Chapter two discusses the performance of Sierra Leone firms, with a focus on labor productivity. Chapter three examines how investment climate constraints cost businesses money and time, discusses main bottlenecks to conducting business as identified by managers of Sierra Leone firms, and reviews obstacles related to electricity supply, tax rates, informality, corruption and access to land. Chapter four analyzes data on how firms access and use finance, and chapter five discusses exports and internationalization in Sierra Leone. Chapter six concludes and provides policy options to improve the investment climate.

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ACCEPTABLE COLLATERAL, ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO EDUCATION, ACCESS TO FINANCE, ACCOUNTING, ADMINISTRATIVE BARRIERS, ADVISORY SERVICES, APPLICATION PROCEDURES, BANK CREDIT, BANK DEPOSITS, BANKING SECTOR, BANKS, BRIBE, BRIBES, BRIBING, BUSINESS ASSOCIATION, BUSINESS ENTRY, BUSINESS ENVIRONMENT, BUSINESS ESTABLISHMENTS, BUSINESS OPERATIONS, BUSINESS PEOPLE, BUSINESS REGISTRATION, CAPITAL FINANCE, CAPITAL FORMATION, CAPITAL STOCK, COLLATERAL, COLLATERAL REQUIREMENTS, COMMODITY, COMMODITY PRICES, COMPETITIVE MARKET, COMPETITIVENESS, COMPETITORS, COMPLIANCE COSTS, CORPORATION, CORRUPTION, CPI, CREDIT GUARANTEE, CREDIT INFORMATION, CREDITOR, CREDITOR RIGHTS, CREDITWORTHINESS, CURRENCY, CUSTOMS, DEVELOPING COUNTRIES, DISTRIBUTION NETWORK, DIVERSIFICATION, E-MAIL, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIES OF SCALE, EDUCATION LEVEL, EDUCATION LEVELS, ELECTRICITY, ELECTRICITY GENERATION, EMPLOYMENT, EMPLOYMENT GROWTH, ENFORCEMENT OF CONTRACTS, ENTERPRISE SURVEY, ENTERPRISE SURVEYS, ENTREPRENEURSHIP, EQUIPMENT, EXCHANGE RATE, EXCHANGE RATE MOVEMENTS, EXPANSION, EXPLOITATION, EXPORT GROWTH, EXPORTER, EXPORTERS, FINANCIAL INFORMATION, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCIAL STATEMENTS, FIRM PERFORMANCE, FIRM SIZE, FIRM SIZES, FIRMS, FISCAL POLICY, FISHERIES, FISHING, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN FIRMS, FOREIGN INVESTMENT, FORMAL ECONOMY, GENERAL POPULATION, GOVERNMENT CONTRACT, GOVERNMENT CONTRACTS, GOVERNMENT POLICIES, GROSS DOMESTIC PRODUCT, GUARANTEE SCHEME, HIGH INTEREST RATES, HUMAN DEVELOPMENT, ICT, IMPACT ASSESSMENTS, INCOME TAX, INFLATION, INFLATION RATES, INFLATIONARY PRESSURES, INFORMAL ECONOMIC ACTIVITY, INFORMATION ASYMMETRIES, INFORMATION INFRASTRUCTURE, INNOVATION, INTEREST RATES, INTERMEDIATE INPUTS, INTERNAL FUNDS, INTERNATIONAL COMPARISON, INTERNATIONAL COMPARISONS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL STANDARDS, INTERNATIONALIZATION, INVESTING, INVESTMENT CLIMATE, JOB CREATION, JUDICIAL SYSTEM, LABOR COSTS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR PRODUCTIVITY, LACK OF COMPETITION, LACK OF INFORMATION, LAND MARKETS, LAND REFORMS, LEASING, LICENSE, LICENSES, LICENSING, LIMITED LIABILITY, LIMITED LIABILITY CORPORATION, LINE OF CREDIT, LINES OF CREDIT, LLC, LOAN, LOAN APPLICATION, LOAN APPLICATIONS, LOCAL CURRENCY, MACROECONOMIC ENVIRONMENT, MACROECONOMIC INSTABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MANUFACTURER, MANUFACTURERS, MANUFACTURING, MANUFACTURING ENTERPRISES, MARGINAL TAX RATES, MEDIUM ENTERPRISES, MINES, MOVABLE PROPERTY, NATURAL RESOURCE, NATURAL RESOURCES, NEW BUSINESS, OIL, OIL PRICES, OUTREACH, OVERDRAFT, OVERDRAFT FACILITIES, PARTIAL CREDIT, PERFORMANCE INDICATORS, POLITICAL ECONOMY, POLITICAL STABILITY, PRIVATE INVESTMENT, PRIVATE PARTNERSHIPS, PRIVATE SECTOR, PRIVATE SECTOR CREDIT, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR INVESTMENT, PRODUCERS, PROPERTY AS COLLATERAL, PROPRIETORSHIPS, PUBLIC FINANCES, PURCHASING POWER, PURCHASING POWER PARITY, REAL EXCHANGE RATE, RECEIPTS, RECESSION, RELIABILITY, RESULT, RESULTS, RETAINED EARNINGS, RETURN, RULE OF LAW, SALE OF GOODS, SALES GROWTH, SAVINGS, SAVINGS ACCOUNT, SAVINGS ACCOUNTS, SCALE ENTERPRISES, SIZE OF FIRMS, SMALL BUSINESSES, SMALL FIRM, SMALL FIRMS, SOURCES OF FINANCE, STANDARD FORMAT, STORAGE FACILITIES, SUPPLIER, TAX, TAX BURDEN, TAX COLLECTION, TAX EXEMPTIONS, TAX LEGISLATION, TAX POLICIES, TAX POLICY, TAX RATE, TAX RATES, TAX REGIME, TAX SYSTEM, TAXATION, TELEPHONE, TELEPHONE CONNECTION, TELEPHONE CONNECTIONS, TRADING, TRANSACTION, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSMISSION, TRANSPARENCY, UNION, URBAN AREAS, USERS, USES, VALUE CHAIN, VALUE OF COLLATERAL, WAGES, WORKING CAPITAL

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