SIERRA LEONE Law and Practice Contributed by: Gelaga King, Eku Williams, Robert Koroma and Valentina Coker, GPKLegal
GPKLegal 32 Bathurst Street Freetown Sierra Leone Tel: +232 7905 2279 Email: Info@gpklegal.com Web: gpklegal.com
1.3 Key Industries The mining and natural resources, agriculture and infrastructure sectors have witnessed the most sig - nificant M&A activity. Sierra Leone’s abundant mineral deposits continue to attract foreign investment, while agricultural projects are expanding due to global inter - est in food security and export potential. Infrastructure and the energy sectors are also attract - ing investment as the government focuses on boost - ing economic development. The government of Sierra Leone launched the “Big Five” project, which out - lines key priorities for the next five years, with agri - culture, technology and infrastructure being among the main focus areas. This initiative has increased foreign investment interest, particularly in agriculture and tech. The UK, EU, Turkey, China and Japan are increasingly involved in the energy sector. The primary techniques for acquiring a company in Sierra Leone include share purchases, asset acquisi - tions and mergers, each primarily governed by the Companies Regulations 2015, with other incidental issues governed by the Companies Act 2009, its amendments and other related regulations. Share purchases are common, in which the buyer acquires a majority or all of the shares of the target company, transferring ownership and control. Asset acquisitions typically involve buying specific assets or liabilities, and are often used when only parts of a business are targeted. Mergers require approval from shareholders and the regulators. 2. Overview of Regulatory Field 2.1 Acquiring a Company
1. Trends 1.1 M&A Market
Sierra Leone’s M&A market has shown modest growth in the past 12 months compared to the previous year. There has been increased interest from foreign com - panies and investors in the country’s natural resources and infrastructure projects. Deal volumes are lower than in more developed markets but there has been a moderate and noticeable upturn in activity in the mining, energy and banking sectors as global inves - tors seek to capitalise on the country’s rich mineral deposits. Economic challenges such as currency instability and regulatory uncertainties have tempered enthusiasm, but government efforts to attract foreign direct invest - ment through various initiatives have generated cau - tious optimism in investors. 1.2 Key Trends In the last 12 months there has been a marked increase in foreign direct investment in renewable energy and mining, especially iron ore and diamonds, as compa - nies seek to secure long-term supply chains. There has also been a rise in public-private partner - ships in infrastructure projects and an increase in regulatory scrutiny of deals involving strategic assets. Digital transformation is also emerging as a trend, with tech start-ups attracting smaller-scale M&A interest. In addition, ESG considerations are gaining impor - tance, which is influencing deal structures and due diligence processes.
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