SIERRA LEONE Trends and Developments 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
Sierra Leone continues to position itself as an emerg - ing investment destination in West Africa. Mining, energy, oil and gas, technology and agriculture remain at the centre of corporate activity, supported by ongo - ing Government of Sierra Leone (GoSL) policies aimed at attracting foreign direct investment and expand - ing critical infrastructure. Corporate transactions are now approached with greater documentary discipline, reflecting recent regulatory and institutional reforms and a clearer emphasis on compliance, structuring and formal process than in previous cycles. Although the market remains relatively small and opportunity-driven, it is increasingly underpinned by Sierra Leone’s resource base and infrastructure needs. Transactions are now conducted within a more formal - ised and institutionally grounded framework, signal - ling a maturing corporate and regulatory environment. Mining Mining continues to anchor Sierra Leone’s economy as the primary source of export earnings and foreign currency inflows. Iron ore, rutile, bauxite and, increas - ingly, battery minerals continue to attract both strate - gic and financial investors. The regulatory framework under the Mines and Minerals Development Act 2022 is now firmly embedded in transaction practice, with the National Minerals Agency (NMA) maintaining over - sight of licence transfers, renewals and change-of- control approvals. Regulatory engagement therefore typically begins at an early stage of any proposed acquisition, particularly where shareholding thresh - olds or indirect transfers may trigger consent require - ments.
In mining transactions, investors generally begin with a careful assessment of licence tenure stability, environmental management obligations, community development agreement implementation, royalty com - pliance and the scope of any stabilisation provisions. Environmental and community-related exposure increasingly influences valuation, risk allocation and indemnity negotiations as deals progress. Recent project-level financing activity illustrates this more structured and disciplined approach to mining investment and how capital is now being deployed. A major gold project reached financial close on a USD330 million senior debt facility arranged by a consortium of development finance institutions, repre - senting one of the largest structured mining financings in Sierra Leone to date and signalling renewed lender confidence in well-structured, bankable projects. At the domestic level, a leading commercial bank mobi - lised approximately USD65 million to support mining operations, including financing for processing relo - cation works at a long-established mineral producer and a USD25 million loan facility for a separate min - ing operation. In the battery minerals segment, a new entrant obtained a lithium mining licence and moved to structure local operating partnerships to advance lithium extraction. Taken together, these transactions show a market that is increasingly comfortable with structured finance, early regulatory engagement and partnership-driven project development. Energy and Power Infrastructure Energy development remains central to Sierra Leo - ne’s economic agenda. Government policy continues
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