The government of Sierra Leone, under the leadership of His Excellency President Julius Maada Bio, and the government of Gabon have acceded to an establishment agreement for the development of industrialization in the two countries through the Afreximbank’s Fund for Export Development in Africa (FEDA).
Since 2018 to date, President Julius Maada Bio’s government has ensured that Sierra Leone offers a range of tax incentives to investors, including tax holidays of up to 10 years for companies operating in certain sectors. The country’s logistic connections in terms of its strategic location with duty-free access to key markets are strong, with air, land, and one of the largest harbors in the world providing access to major end-markets.
Sierra Leone has more than 5.4 million hectares of arable land, emerging industries, and development opportunities that are prime for investment, according to the government. The country’s attractive incentive regime favors fiscal and non-fiscal investment incentives, including reduced tax rates and tax exemptions for key sectors such as agribusiness.
The agreement, which was described as "a significant milestone by the two countries," is expected to "strengthen its ability to provide crucial support to African economies and achieve its objectives effectively," FEDA confirmed.
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For the past three decades, the bank has deployed innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.
Whereas, the Fund for Export Development in Africa is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap needed to transform the trade sector in Africa.
FEDA has announced the accession of the Republic of Sierra Leone and the Gabonese Republic to the fund through the two countries' recent representative signing of the said establishment agreement.
According to FEDA, "the new memberships expand the reach of FEDA’s interventions and reflect the Fund’s unwavering commitment to its mandate of providing long-term capital to African economies with a focus on industrialization, intra-African trade, and value-added exports."
It could be recalled that, in November 2022, FEDA invested in Arise Integrated Industrial Platforms (ARISE IIP) in a significant step deepening the implementation of its mandate of promoting industrialization and value-added exports. According to information, the Gabon Special Economic Zone in Arise Integrated Industrial Platforms (ARISE IIP) is a significant step in deepening the implementation of its mandate of promoting industrialization and value-added exports. According to information, the Gabon Special Economic Zone (GSEZ, which was developed by ARISE IIP and focused on the timber industry, has enabled Gabon to transition from a mere log exporter to a leading global producer and exporter of veneer.
A similar venture was undertaken by the government of Sierra Leone in partnership with ARISE IIP to establish the country’s Special Industrial Zone in Koya, SIZ-Koya, aiming at strengthening FEDA’s objective of promoting industrialization on the continent.
The President of Afreximbank, who doubles as the chairman of the Board of both Afreximbank and FEDA, Professor Benedict Oramah, said, "The signing of the FEDA Establishment Agreement by the Republic of Sierra Leone and the Gabonese Republic is a testament to the long-standing cooperation between Afreximbank and the respective countries."
"These developments establish the foundation for more coordinated intervention in the future. FEDA’s mandate to provide long-term capital, with a focus on industrialization, intra-African trade, and value-added exports makes the Fund a critical force for bringing prosperity to African economies," he assured.
The Chief Executive Officer, CEO, of FEDA, Marlène Ngoyi, confirmed that "FEDA looks forward to a successful partnership with the two countries. We welcome the continued support from the Afreximbank Member States, and we aim to mobilize more countries in due time to support FEDA’s Pan-African outreach and intervention."
"The CEO emphasized that "the recent developments in the Gabon Special Economic Zone and the Special Economic Zone in Sierra Leone, under the Arise IIP investment, are strong demonstrations of transformative investments that are well aligned with FEDA’s investment strategy."
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