Freetown, Sierra Leone – In a significant move aimed at strengthening Sierra Leone’s economic base and global investment profile, Parliament on Tuesday, July 22, 2025, ratified two major financial agreements presented by the Minister of Finance, Ibrahim Fantamadi Bangura.
The first agreement concerns a debt-to-equity swap between the Government of Sierra Leone and Sierra Maira Holding 1 Limited, the parent company of a major bauxite mining operation in the Bo and Moyamba districts. Originally signed in July 2012, the mining agreement grants the company 20 years of mining and exploration rights, renewable under national laws.
Minister Bangura explained to Members of Parliament that the company had accumulated tax arrears of approximately $14 million due to the economic fallout from the COVID-19 pandemic and global supply chain disruptions. To resolve the issue, the company proposed converting its tax debt into equity for the government.
Following detailed assessments by the Ministry of Finance and other relevant agencies, the government agreed to accept a 10% equity stake in the company in exchange for the liabilities owed up to December 2024.
“This is a strategic move that gives the state a meaningful stake in a key mining venture while allowing the company to regain operational stability,” Bangura said.
As part of the revised agreement, limited tax exemptions were proposed for a three-year period, including relief on Goods and Services Tax (GST)—excluding purchases from supermarkets, hotels, and restaurants. The company will still be required to pay import inspection fees, environmental licenses, and contributions to the Community Development Fund.
“All existing legal obligations regarding surface rent, environmental fees, and community benefits will remain in force,” the minister assured.
The second agreement ratified by Parliament was Sierra Leone’s membership in the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a financial institution under the Islamic Development Bank and the Organization of Islamic Cooperation (OIC).
According to Minister Bangura, ICIEC membership will provide the country with access to political risk insurance and export credit coverage—tools that can attract foreign direct investment and support Sierra Leonean businesses in international trade.
“This aligns with our economic goals of resilience, diversification, and competitiveness,” he said, noting that ICIEC membership also opens doors to more affordable development finance and strengthens the environment for public-private partnerships.
The Finance Minister formally moved for the ratification of:
1. The amended Debt-to-Equity Swap Agreement with Sierra Maira Holding 1 Limited.
2. The Articles of Agreement for Sierra Leone’s accession to ICIEC.
Lawmakers were urged to support the resolutions as part of the government’s broader strategy to spur inclusive growth, improve investor confidence, and solidify Sierra Leone’s position in the global financial system.
By Feima Sesay
