Private Sector Development and Export Promotion in Sierra Leone. Wednesday 22 nd September

Transcription

1 Private Sector Development and Export Promotion in Sierra Leone Wednesday 22 nd September

2 Sierra Leone as a Nation

3 Sierra Leone is a nation... With a great tradition of religious tolerance, education and achievement Where peace and stability are fully restored Democracy is alive and thriving Economic stability has been achieved Corruption is being tackled The investment climate is being transformed Where opportunities for investment and export are significant

4 Blessed with Significant Natural Assets Most land is arable but uncultivated Amongst highest levels of rainfall on earth Solar power and bio-fuels expanding rapidly West Africa s premier tourism assets Wealth of minerals, metals and hydrocarbons

5 ...and with Strategic Access to Markets Natural deepwater harbour at nexus of global trade routes Largest English-speaking population west of Ghana Closest African country to Latin America Duty-free & preferred access to: - ECOWAS 225 million people - EU via EBA - USA via AGOA 2hrs 4hrs 6hrs 8hrs

6 Led by a Fiscally Responsible Government... Ranked in the top 7% for fiscal policy by the Millennium Challenge Corporation` Inflation Brought Under Control Average Annual Consumer Price Inflation Currency Holding Strong During Volatile Time Indexed Trading Range - Currencies vs. USD 100 = Rate vs. USD at June 30, 2007 Inflation stabilised in low teens, high single digits IMF predicts decrease to mid single digit inflation The Leone has shown less volatility than other currencies

7 Overseeing a Stable, Growing Economy GDP projected to grow at 2x the African average, according to the IMF Growth Across Sectors, Unaffected by Economic Cycle GDP in USD Billion By Sector and Projected (IMF Estimates) 10% CAGR5% CAGR Industry Agri Services

8 Proactive Government Working to Dispel Myths and to Unblock Barriers

9 Taking a Multi-Pronged Approach The Government of Sierra Leone has taken a multi-pronged approach to dispel myths and to unblock barriers to investment and export Effective Promotion: Trade & Investment Forum Sugar & Oil Palm Leading Policy Reformer Public Private Partnership (PPP) Energy policy unbundling Fiscal incentives Infrastructure Development: Improving roads, ports, and other key binding constraints

10 The Sierra Leone Trade & Investment Forum was an unprecedented success! The Sierra Leone Trade & Investment Forum generated an amazing response from all attendees, and is now considered one of the most successful African investment forums Post TIF Investment Projects Other Infrastructure Fisheries Tourism Mining Agriculture SLIEPA s pipeline of interested investors increased 240% since last November!! 0 Pre-TIF Post-TIF

11 Targeted approach to Sugar and Oil Palm beginning to show results As seen through our investment outreach program related to sugarand oil palm, the best companies in the world are now showing interest...

12 GoSL has worked tirelessly against deadlines to pass numerous reforms Done 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 Approved by Cabinet Investor Incentives Policy Energy Policy ICT Policy Public Private Partnership Policy Intellectual Property Rights Legislation Credit Reporting Legislation In Process Financial Sector Reforms Leasing Finance Framework Collateral Registry SEZ Policy Double Taxation Treaties

13 We are being recognized as one of the leading reformers in Africa! #1 reformer in Africa for Governance Mo Ibrahim Africa Governance Index Change in Rank Over Past 2yrs #2 globallyin government voice and accountability reform WB Voice & Accountability Indicators Change in Rank Top 3 Reformers in Africa Regional Peers Sierra Leone is no more on the conflict and fragile state list. Top 3 Reformers Globally Regional Peers

14 Doing Business rankings continue to improve World Bank Doing Business Rankings Rank has Improved 20 places in last 2 years!

15 Significant infrastructure development should improve commerce flows 1 Port Privatization Ongoing port privatisation process (Ballore Group announced as winning bidder) provides access to one of the best natural harbours in the world at a strategic fulcrum location of global trade routes with no pinch-points, creating enormous potential for a trans-shipment hub 2 Airport Government is currently evaluated several proposals for the redevelopment of Lungi International Airport and for the construction of a new airport closer to the Freetown peninsula 3 Roads Infrastructure construction and management is a +$1bn market in Sierra Leone, with significant committed donor funding currently over $900mm in road construction projects alone ($499 million already with committed funding)

16 Significant Export Opportunities Abound

17 Untapped Opportunities Sierra Leone is blessed with an abundance of natural resources, most of which remains untapped and undeveloped Specifically, Sierra Leone has competitive advantages across several sectors including: 1 Agri-business 2 Extractive Industries 3 Fisheries 4 Oil

18 Agri-Business Most of 5.4 million hectares of cultivable land is undeveloped Ideal growing conditions for a wide range of staple and cash crops Plentiful rainfall and irrigation potential Private sector promotion to provide an enabling environment for investments Investors can acquire long term leases throughout the country, with potential for multiple extensions Significant infrastructure development such as feeder roads, irrigation, and post harvesting facilities for processing, storage and marketing Proven grower and exporter of: sugar (and ethanol), oil palm, rice, cassava, livestock, cocoa, coffee and cashew

19 Extractive Industries Plentiful resource base, multitude of precious metal, base minerals and metals Characterized by security of tenure, respect for the rule of law Strong commitment from GoSL to employ international best practices in governance and policy Ambitious legal / regulatory reforms Proven deposits of: Bauxite, Chromite, Diamonds, Gold, Ignite, Ilmenite, Ironore, Platinum, Rutile

20 Fisheries Significant regional demand for fish Unmet Regional Demand for Fish Est. Current Domestic Supply of Fish ($MM) Amongst the most productive oceans in West Africa Consequences of illegal fishing still repairable Improved sector regulation will facilitate the entry of responsible industrial fishing operations Hygiene standards being upgraded to facilitate direct export to the $100bn+ EU market $785mm Opportunity: $80mm undersupply in domestic market + $705mm of regional demand. $705

21 Oil Major oil fields discovered in offshore West African which points to a significant potential of new hydrocarbon supplyand Sierra Leone is central to this new discovery Two (2) exploration wells have been drilled and oils show encountered in both wells (illustrated the potential for significant reservoirs in deep waters) Seven (7) offshore petroleum blocks were demarcated in 2004 and were marketed successfully to international companies Three (3) new blocks have been demarcated based on additional exploration data and investor interest

22 Sierra Leone National Export Strategy

23 Launch of the First National Export Strategy (NES) of Sierra Leone The 1st National Export Strategy was launched by the President of the Republic of Sierra Leone in June NES gives guidance to development of Sierra Leone s export potential over the next five years Its objectives are: 1. To increase the export sector s contribution to GDP 2. To reduce the balance of trade deficit 3. To increase the export sector s contribution to overall employment generation 4. To achieve greater diversification of the export base

24 How was the NES developed? The NES was developed within the context of three (3) criteria: 1. Suitability the need to formulate a framework under which a coordinated export development effort is underpinned by the numerous opportunities that Sierra Leone has in terms of good agricultural land, suitable climate, beautiful beaches, a good harbour and the country s location, that provides ready accessibility to the large ECOWAS and EU Markets 2. Feasibility NES is about strategic choices, and for these choices to be appropriately made, there is need for: i) Collaboration and partnership between government and the private sector; ii) Sectors to be prioritised and strategies appropriately formulated; and iii) Government to provide resources for the strategy s implementation just like any other national undertaking 3. Acceptability benefits to stakeholders from the process must be evident otherwise their support cannot be guaranteed

25 NES Objective and Vision NES Objective NES Vision To improve the international competitiveness of a country leading to enhanced export performance. The ultimate result is the raising of incomes and standards of living of the people. Transform Sierra Leone into a flourishing country through a globally competitive exportdriven economy

26 Supporting Real World Outcomes NES Goals Strategic Objectives Strategic Objectives Goals #1: Promote pro poor growth by raising quality and value added productivity in agriculture and fisheries Goal #2:Promote human resources development through the provision of improved social services To improve productivity and enhance value addition To diversify current export products To strengthen the human and financial capacity of all stakeholders along the value chain Increasing the export sector s contribution to GDP Reducing the balance of trade deficit Increasing the export sector s contribution to overall employment generation Achieving greater diversification of the export sector

27 Where we want to be and How we will get there Where we want to be: To achieve the NES vision, key sectors of the economy and cross cutting issues have been identified for strategic intervention using a prioritisation criteria. These priority sectors include: Agriculture, Fisheries, Mining, Tourism How will we get there: There are firstly a number of strategic challenges that must be addressed if it is to be successfully implemented. Theseinclude the following: 1. Reconciling stakeholder interest 2. Fostering governance and all stakeholder participation in implementation 3. Releasing the implementation funds

28 Policy Implications The NES initiative is not a stand alone initiative. It supports the National Vision contained in the Agenda for Change. It complements existing Government Development Initiatives like the PRPS 2, the NSADP, the Fisheries Strategic Plan, the Tourism Master Plan and the Minerals Policy. Four priority sectors of the economy and six cross cutting issues affecting the national export performance were selected for strategic intervention. The priority sectors of agriculture, fisheries, mining and tourism were selected on criteria relating to their current contribution to exports, GDP and employment. The six cross cutting issues identified were Trade Finance, Quality Management, Trade Facilitation, Export Competence Development, Export Packaging and Trade Information Services.

29 Financing and Delivering the NES Financing: The total indicative cost for financing the NES is US$590 million over a four year period. The annual cost over the period is about US$150 million with the agriculture sector requiring about 65% of the financing. TheNES will be jointly funded by the Government of Sierra Leone, the private sector and development partners Implementing the Strategy: The implementation of the National Export Strategy was coordinated by the National Steering Committee, Sector Working Groups and Sector Task Forces through a National Implementation Workshop.

30 Key policy questions 1. Striking the right policy balance liberalization vs. regulation: rights and obligations of the state and investors 2. Critical interfaces between investment and development between FDI and poverty and national development objectives 3. Alignment with international investment policies as well as regional agendas 4. The question of local content linkages etc 5. Protecting local industries or better still enhancing their growth possibilities in the face of sophisticated competition

31 Una all bohku bohku tenki Thank you all very much