Unctad sl fdi statistics 2006

Sierra Leone

A. Definitions and sources of data

The Bank of Sierra Leone and the International Monetary Fund (IMF) collect foreign
direct investment (FDI) data on Sierra Leone. The data provided by the Bank of Sierra
Leone are based on the guidelines of the IMF 4th edition balance-of-payments (BOP)
manual. Efforts are underway in Sierra Leone for the adoption of the guidelines of the
5th edition BOP manual for the compilation of statistics for BOP and international
investment positions. FDI in the country is mainly concentrated in the country's
extractive industries.

The Government of Sierra Leone is actively working to revive the interest of private
investment in the country, ex-post major civil conflicts. As a result, the Government
in 1994 established the Sierra Leone Export Development and Investment
Corporation and enacted the Income Tax Amendment Act of 1994. Other legislations
that are supposed to facilitate private sector activities and investment are also in place.
These include the Tourism Act 1990, Mines and Minerals Decree 1998, and the
Fisheries Management and Development Decree 1994. These Acts revise the legal
framework and regulate the activities and procedures of the private sector.

Sierra Leone has made effort to integrate into the global production system and has a
wide export market access. It is a member of the Mano River Union (MRU). The
main aim of the MRU is economic and trade cooperation, in the following areas:

• The elimination of obstacles to the movement of people and goods.
• A common policy of development in the areas of fishing and forestry.
• A common programme for developing transport, communications and energy.
• The promotion of good relations between the member states.
• Common investment policies.
• A common monetary policy.
• Common policies on health, arts, sport, culture and international trade.

Sierra Leone also belongs to the Economic Community of West African States, the
African Union, New Partnership for Africa's Development and the Multilateral
Investment Guarantee Agency. Its trade policies are harmonized with the countries of
the wider world while its membership of the latter organization provides non-
commercial risk coverage for foreign investors in the country.

The country enjoys large preferential access to world markets under a number of
special access and duty reduction programmes. Among these are the generalized
system of preferences for the least developed countries, the Everything But Arms
initiative by the European Union and the United States' market access initiative for
African countries - the African Growth and Opportunity Act.

Posting date: November 2006

B. Statistics on FDI and the operations of TNCs

UNCTAD WID Country Profile: SIERRA LEONE Page 3 of 12

Table 1. Summary of FDI
(Millions of dollars)

Variable Inward Outward
1. FDI flows, 2002-2005 (annual average) 14.5 ..
2. FDI flows as a percentage of GFCF, 2002-2005 (annual average) 10.7 ..
3. FDI stock, 2005 107.6 ..
4. FDI stock as a percentage of GDP, 2005 9.0 ..
Source: Based on tables 3a, 4a and UNCTAD, FDI/TNC database.


Table 3a. FDI flows, by type of investment, 1980-2005

Inward investment Outward investment
Intra- Intra-
Reinvested Reinvested
Equity company Total Equity company Total
earnings earnings
Year loans loans

1980 -5.8 0.1 -13.0 -18.7 .. .. .. ..
1981 7.5 .. .. 7.5 .. .. .. ..
1982 1.5 20.6 -17.4 4.7 .. .. .. ..
1983 0.2 5.6 -4.1 1.7 .. .. .. ..
1984 .. 7.1 -1.2 5.9 .. .. .. ..
1985 .. -27.2 -3.8 -31.0 .. .. .. ..
1986 -0.02 -133.9 -6.4 -140.3 .. .. .. ..
1987 -1.9 39.8 1.4 39.4 .. .. .. ..
1988 .. -20.4 -2.7 -23.1 .. .. .. -0.2
1989 .. 21.1 1.3 22.4 .. .. .. -0.1
1990 .. 32.5 0.0 32.4 .. .. .. 0.1
1991 .. 11.4 -3.9 7.5 .. .. .. ..
1992 .. -5.4 -0.2 -5.6 .. .. .. 0.3
1993 .. -7.5 0.0 -7.5 .. .. .. 0.1
1994 .. -3.2 0.3 -2.9 .. .. .. 0.2
1995 .. 4.3 3.0 7.3 .. .. .. 0.6
1996 .. 0.7 -0.1 0.7 .. .. .. ..
1997 .. 1.9 -0.1 1.8 .. .. .. ..
1998 .. 0.1 .. 0.1 .. .. .. ..
1999 .. 1.5 -1.0 0.5 .. .. .. ..
2000 .. 1.4 37.5 38.9 .. .. .. ..
2001 .. 0.4 9.4 9.8 .. .. .. ..
2002 .. 1.6 .. 1.6 .. .. .. ..
2003 .. 3.1 .. 3.1 .. .. .. ..
2004 .. 9.3 16.8 26.1 .. .. .. ..
2005 .. 9.6 17.5 27.2 .. .. .. ..
Source : UNCTAD, FDI/TNC database.
Note : FDI inflows: IMF for 1980-1989 and Bank of Sierra Leone for 1990-2005. FDI outflows: Proxy based on
investments reported by the following economies: 1988 France, 1989 Belgium and Luxembourg and France, 1990 and
1992 Belgium and Luxembourg, 1993-1995 China.


Table 4a. FDI stock, by type of investment, 1980-2005

Inward Investment Outward Investment
Intra- Intra-
Reinvested Reinvested
Equity company Total Equity company Total
earnings earnings
Year loans loans
1980 .. .. .. 79.3 .. .. .. ..
1981 .. .. .. 86.8 .. .. .. ..
1982 .. .. .. 91.5 .. .. .. ..
1983 .. .. .. 93.2 .. .. .. ..
1984 .. .. .. 99.0 .. .. .. ..
1985 .. .. .. 68.1 .. .. .. ..
1986 .. .. .. -72.3 .. .. .. ..
1987 .. .. .. -32.8 .. .. .. ..
1988 .. .. .. -55.9 .. .. .. ..
1989 .. .. .. -33.6 .. .. .. ..
1990 .. .. .. -1.1 .. .. .. ..
1991 .. .. .. 6.4 .. .. .. ..
1992 .. .. .. 0.8 .. .. .. ..
1993 .. .. .. -6.7 .. .. .. ..
1994 .. .. .. -9.6 .. .. .. ..
1995 .. .. .. -2.3 .. .. .. ..
1996 .. .. .. -1.6 .. .. .. ..
1997 .. .. .. 0.2 .. .. .. ..
1998 .. .. .. 0.3 .. .. .. ..
1999 .. .. .. 0.8 .. .. .. ..
2000 .. .. .. 39.7 .. .. .. ..
2001 .. .. .. 49.6 .. .. .. ..
2002 .. .. .. 51.1 .. .. .. ..
2003 .. .. .. 54.3 .. .. .. ..
2004 .. .. .. 80.4 .. .. .. ..
2005 .. .. .. 107.6 .. .. .. ..
Note : FDI inward stock: Estimated by accumulating inflows since 1970. FDI outward stock: Not available.


Table 6. FDI flows in the host economy, by geographical origin, 1991-2004
Economy 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
France .. .. .. 0.2 .. .. .. .. .. .. .. .. .. ..
Germany .. 1.3 .. .. .. .. .. .. .. .. .. -1.9 .. ..
Sweden 0.1 0.2 0.0 0.1 .. .. .. .. 0.8 -0.9 0.1 0.4 0.2 ..
United States .. .. .. .. .. .. .. -1.0 1.0 4.0 1.0 1.0 2.0 3.0
Source : UNCTAD, FDI/TNC database
Note: Data are based on information reported by the economies listed above

Table 9. FDI flows abroad, by geographical destination, 1993-1999
Economy 1993 1994 1995 1996 1997 1998 1999
China 0.09 0.2 0.6 .. .. .. ..
Czech Republic .. .. .. .. .. .. 0.1
Note : Data are based on information on FDI originating from Sierra Leone as reported by the economies listed above

Table 12. FDI stock in the host economy, by geographical origin, 1992-2004
Economy 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
United Kingdom 1.5 .. 3.1 .. .. .. .. .. .. .. .. .. ..
United States .. .. 4.0 .. .. 32 2 6 10 11 12 15 18
Source : UNCTAD, FDI/TNC database

Table 15. FDI stock abroad, by geographical destination, 1993-1999
Economy 1993 1994 1995 1996 1997 1998 1999
China 0.1 0.2 0.6 .. .. .. ..
Czech Republic .. .. .. .. .. .. 0.1

Tables 23, 30, 35, 40, 45 and 50. The number, assets, employees, wages and salaries, sales and value added of foreign
affiliates of United States' TNCs in Sierra Leone, 1990-2003
(Number, thousands of employees and millions of dollars)
Table no. Variable 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
23 Number 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 .. .. .. 1.0
30 Assets 143.0 154.0 180.0 164.0 .. .. .. .. .. .. 8.0 9.0 9.0 ..
35 Employees .. .. .. 2.2 .. 0.1 0.1 0.1 0.1 .. 0.2 0.2 0.2 ..
40 Wages and Salaries .. .. .. 6.0 .. 1.0 1.0 1.0 .. .. 2.0 2.0 2.0 ..
45 Sales 116.0 119.0 108.0 81.0 .. 9.0 11.0 11.0 9.0 .. 7.0 7.0 7.0 ..
a
50 Value added .. .. .. .. .. 7.0 8.0 9.0 7.0 .. 1.0 1.0 1.0 ..
Source: UNCTAD, FDI/TNC database.
Note: Data are based on information reported by the United States
a
Majority-owned affiliates of United States TNCs.


Table 88. Largest affiliates of foreign TNCs in the host economy, 2004
(Millions of dollars and number)

Company Home economy Industry Sales Employees

A. Industrial

.. .. .. .. ..

B. Tertiary

a
Celtel Kuwait Telecommunications .. 200
a
Marz Chemicals United Kingdom Wholesale trade .. 20
a
Interwest Trading United Arab Emirates Transport and storage .. 5
BT Limited United Kingdom Telecommunications .. ..
Group 4 Falck Security Support
Services Ireland Other business activities .. ..
Maersk Sierra Leone Denmark Transport and storage .. ..
Peterson Zochonis Sierra Leone United Kingdom Other services .. ..
Sierra Leone Plastics United Kingdom Other services .. ..
Wackenhut United Kingdom Other business activities .. ..

C. Finance and Insurance Assets Employees

Guaranty Trust Bank Nigeria Finance .. ..
Standard Chartard Bank Sierra
Leone United Kingdom Finance .. ..
Sources: The Banker's Almanac , 2003 (London, Reed Information Services Ltd, 2003); Thomson Analytics
(http://analytics.thomsonib.com/);Who Owns Whom database (https://solutions.dnb.com/wow).
a
Estimate.


C. Legal Framework for Transnational Corporations

Sierra Leone had adopted and signed on to a number of national, bilateral and multilateral legal
instruments to enable an efficient regulation of transnational corporations and foreign direct investors.
The following key instruments are applicable in the country:

I. National framework

Development of Industries Act No. 6 of 23 September 1983; effective on 17 November 1983.
Repealed by Development of Industries (Repeal) Decree 1993
Source: Sierra Leone Gazette of 17 November 1993.

Non-Citizens (Trade and Business) Act No. 9 of 1969; effective on 21 August 1969.
Source: Legislation of Sierra Leone 1969, Chronological Index of Acts and Public Notices of 1969, p.
A35.
Amendments: Act No. 5 and 6 of 1970, effective on 20 March and 24 September 1970, respectively.
Source: Legislation of Sierra Leone 1970, Chronological Index of Acts and Public Notices of 1970,
pp. A9 and A93.

Non Citizens (Trade and Business) Order 1971.
Source: Sierra Leone Gazette, No. 10 of 12 February 1972

Non-Citizens (Interest in Land) Act No. 30 of 1966.
Source: Sierra Leone Gazette, No. 27 of 22 September 1966
Amendment: Decree No. 7 of 1968 (N.I.C.); effective on 8 February 1968
A15.

Tourist and Hotel Development Act No. 61, effective on 14 January 1965. As amended by
Development of Tourism Act, 1990.
Source: Sierra Leone Gazette, No. 4 of 14 January 1965.

Mining (Mineral Oil) Regulation No. 8 of 1958.
Source: Sierra Leone Gazette, No. 3 of 14 January 1960.
Supplemented by Mines and Minerals Decree, 1994.
Source: Ministry of Industry and Mines, 1994.

Diamond Protection Act No. 28 of 1956; effective on 22 November 1956.
Source: The Laws of Sierra Leone, cap. 199, vol. IV, Revised Edition 1961, p. 2094.

Companies Act No. 18 of 1937, as amended by Act No. 6 of 1978.
Source: The Laws of Sierra Leone, cap. 249, vol. V, Revised Edition 1960, p. 2676.

Business Registration Act No. 17 of 1972.
A67. Amendment: Act No. 13 of 1983.
Source: Sierra Leone Gazette, No. 76 of 22 December 1983.

Diamond Industry Profit Tax Ordinance No. 23 of 1935; effective on 25 November 1935.
Source: The Laws of Sierra Leone, cap. 200, vol. IV, Revised Edition 1961, p. 2097.

Copyright Act No. 28 of 1965; effective: 6 August 1965.
Source: Sierra Leone Gazette, No. 62 of 12 August 1965 (Supplement).


Regulations of Wages and Industrial Relations Act No. 18 of 1971; effective on 15 December 1971.
Source: Sierra Leone Gazette, No. 76 of 10 December 1971.

Patents: Patents Act No. 21, Chapter 247, of 1924, 10 of 1932, 31 of 1932, 9 of 1957, as amended by
the Laws (Adaptation) Act No. 29 of 1972.
Source: WIPO (http://www.wipo.org).
Patent Fees, Design Fees and Trade Mark Fees, December 1979.

Trade Marks: Merchandise Marks Act No. 7, Chapter 245, of 1889, 12 of 1889, 2 of 1908, 32 of
1908, 39 of 1908, 24 of 1955, as amended by the Laws (Adaptation) Act No. 29 of 1972.

Trade Marks Act No. 17, Chapter 244, of 1913, Sec. 30 of No. 12 of 1924, 10 of 1940, as amended by
the Laws (Adaptation) Act No. 29 of 1972.

Trade Marks (Certificate of Registration) Order, O. in C. No. 1 of 1915, as last amended by the Laws
(Adaptation) Act No. 29 of 1972.

Patent Fees, Design and Trade Mark Fees, December 1979.

Industrial Designs: United Kingdom Designs (Protection) Act No. 17 of 1936, as amended by the
Laws (Adaptation) Act No. 29 of 1972.

Patent Fees, Design Fees and Trade Mark Fees, December 1979.

Appellations of Origin / Geographical Indications / Indications of Source:

Merchandise Marks Act No. 7, chapter 245, of 1889, 2 of 1908, 32 of 1908, 39 of 1908, 24 of 1955,
as amended by the Laws (Adaptation) Act No. 29 of 1972.

II. International Framework

A. Sierra Leone is a party to the following multilateral and regional instruments:

Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900,
Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967,
and as amended in 1979). Signed in 1994.

Convention on the Settlement of Investment Disputes between States and Nationals of other States of
1965. Entered into force on 14 October 1966

Convention Establishing the Multilateral Investment Guarantee Agency of 1985, entered into force on
12 April 1988.

Marrakesh Agreement Establishing the World Trade Organisation of 15 April 1994. Entered into
force on 1 January 1995.
Agreement on Trade-Related Investment Measures.


General Agreement on Trade in Services.
Agreement on Trade Related Aspects of Intellectual Property Rights.

Revised Treaty of the Economic Community of West African States (ECOWAS) 1993.

Fourth ACP - EEC Convention (Lome IV) of 1989, entered into force on 1st March 1990.

Partnership Agreement between the Members of The African, Caribbean and Pacific Group of States,
of the one part and the European Community and its member states, of the other part signed in
Cotonou, Benin on 23 June 2000.

Agreement for the Promotion, Protection and Guarantee of Investment Among Member States of the
Organization of Islamic Conference, of I June 1981; entered into force on 23 September 1986.

Articles of Agreement of the Islamic Corporation for the Insurance of Investment and Export Credit
of 19 February 1992. Entered into force on 1 August 1994.

Unified Agreement for the Investment of Arab Capital in the Arab States of 1982.

Convention Establishing the Inter-Arab Investment Guarantee Corporation of May 1971;
entered into force in April 1974.

B. Bilateral treaties

1. Bilateral investment treaties for the protection and promotion of investments: Germany
1965, United Kingdom 1981, United Kingdom 2000, China 2001.

2. Bilateral treaties for the avoidance of double taxation: United Kingdom 1947, Denmark
1954, Norway 1955, India 1956.


D. Sources of Information

A. Official

Bank of Sierra Leone (www.bankofsierraleone.org).

Sierra Leone Export Development and Investment Corporation (www.slis.cx).

B. Secondary

Collier, Paul and Anke, Hoeffler (1995). "War, peace and private portfolio", in World
Development, vol. 23, no 2, pp. 233-41.

Cooper, Neil (2002). "The role of demilitarisation in promoting democracy and prosperity in
Africa", Chapter 6 in Brauer and Dunne (2000).

Economist Intelligence Unit (2002a). Country Profile 2001/2002: Sierra Leone (London: EIU
Ltd.).

___________________(2002b). Country Report: Sierra Leone (London: EIU Ltd.),
September.

___________________(2005a). Country Profile 2001/2002: Sierra Leone (London: EIU
Ltd.).

___________________(2005b). Country Report: Sierra Leone (London: EIU Ltd.),
September.

International Monetary Fund (IMF) (2003). "Sierra Leone: joint staff assessment of the
poverty reduction strategy paper preparation status report", IMF Country Reports Nos.
03/182-3, June 2003.

___________________(2006). IMF's Sub-Saharan Africa Regional Economic Outlook,
March 10, 2006. (Washington D.C.: IMF).

Sierra Leone Export Development and Investment Corporation, "Trade and investment
opportunities in Sierra Leone" (www.slis.cx), undated.

Soderbom, M. and F. Teal (2004). "Size and Efficiency in Africa Manufacturing firms:
Evidence from Firm-Level Panel Data." Journal of Development Economics, 73. pp
369 - 394.

United Nations Commission on science and technology for development (UNCSTD) (2002).
Panel on linking foreign direct investment (FDI) technology development for capacity
building, and strategic competitiveness: The Sierra Leone situation: Colombo, Sri
Lanka, 15 – 17 October (www.unctad.org/stdev/un/sierraleone.doc).


United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in the Least
Developed Countries at a Glance (Geneva: UNCTAD/ITE/IIA/6).

___________________(2005a). Investor-Disputes Arising from Investment Treaties: A
Review. UNCTAD Series of International Investment Policies for Development
(UNCTAD/ITE/IIT/2005/4).

___________________(2005b). A Survey of Support by Investment Promotion Agencies to
Linkages. Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12).

___________________(2005c). FDI in least developed countries at a glance: 2005/2006
(UNCTAD/ITE/IIA/2005/17).

United States Trade Representative (2006). 2006 Comprehensive Report on U.S. Trade and
Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa
Growth and Opportunity Act: The Sixth of Eight Annual Reports, May 2006.
(Washington D.C.: US Government).

Unctad sl fdi statistics 2006

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