SIERRA LEONE Trends and Developments Contributed by: Gelaga King, Eku Williams, Robert Koroma and Valentina Coker, GPKLegal
to prioritise expanded generation capacity, stronger transmission networks and greater integration of renewable energy into the national grid. The proposed expansion of the Bumbuna Hydroelectric Power Sta - tion forms part of broader generation targets aimed at significantly increasing installed capacity over the next decade. Policy objectives also extend to grid expan - sion, mini-grid deployment and distributed renewable solutions, particularly in underserved areas. Energy transactions are closely linked to project bank - ability. Investors typically engage local counsel early to assess the enforceability of power purchase agree - ments, tariff adjustment mechanisms and payment security structures, and the strength of sovereign or state-backed counterparty obligations. Equity partici - pation is often negotiated alongside concession terms and structured in parallel with project finance, reflect - ing the capital-intensive and risk-sensitive nature of the sector. Parliament recently ratified a landmark offshore bulk handling concession agreement designed to strength - en maritime and logistics infrastructure. The project reflects a more structured public–private approach to large-scale infrastructure implementation, with clearer allocation of concession rights, operational obliga - tions and long-term investment commitments. At a regional level, Sierra Leone has secured partici - pation in a multibillion-dollar, Africa-wide electricity access initiative led by the African Development Bank and the World Bank Group, reinforcing its integra - tion into regional energy expansion frameworks and alignment with multilateral-led infrastructure financ - ing models. Sierra Leone is also implementing the Enhancing Sierra Leone Energy Access Project with the World Bank Group, aiming to expand grid connec - tivity, scale up mini-grids and deploy standalone solar systems nationwide, particularly in underserved and rural communities. In parallel, the GoSL has adopted a National Energy Compact targeting approximately 78% electricity access by 2030 under the Mission 300 framework. Collectively, these initiatives demonstrate a more co-ordinated and target-driven approach to sector reform, combining multilateral support with domes -
tic policy commitments to accelerate electrification. Clear concession rules and support from multilater - al investors now guide energy sector development, making projects more predictable, reducing risk and increasing investor confidence. Oil and Gas Sierra Leone continues to advance offshore oil and gas development through structured licensing and state participation frameworks. Following the fifth offshore licensing round, which awarded exploration acreage to a regional upstream operator, the GoSL has planned a new upstream licensing round by Octo - ber 2025, with the stated ambition of commencing crude production within the next two to three years. The Petroleum Directorate actively engages with both international and regional operators, while plans to establish a National Oil Company are ongoing, to for - malise state participation in exploration licences and strengthen the country’s role in the sector. Oil and gas transactions are largely exploratory and strate - gic, often involving farm-in arrangements and licence positioning, with investors focusing on fiscal terms, state participation and dispute resolution frameworks when assessing viability. In parallel, the GoSL is pursuing downstream initia - tives, including refinery development, to reduce reli - ance on imported fuel and retain greater value within the country. Foreign Direct Investment and Corporate Compliance Sierra Leone’s legislative framework continues to support foreign investment, allowing capital repatria - tion, protecting foreign ownership and offering fiscal incentives in priority sectors. Qualifying agricultural projects, for example, benefit from income tax exemp - tions, customs duty relief and employment-based incentives. Corporate compliance oversight has strengthened. The National Investment Board closely monitors statutory filings, director and shareholder records and beneficial ownership disclosures, and transac - tion preparation increasingly includes verification and rectification of corporate records. Tax compliance,
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