Digital Divide Threatens Sierra Leone’s Informal Economy, Survey Shows

By Christian.conteh@awokonewspaper.sl

Freetown, SIERRA LEONE – A groundbreaking survey by the Ministry of Finance has exposed a stark digital divide in Sierra Leone’s informal sector, with 52% of small businesses operating without any technological tools, potentially limiting their growth in an increasingly digital economy.

The nationwide study reveals:

• Only 45.6% of informal businesses use mobile phones – the most basic technology
• A mere 0.8% utilize software or visual media tools
• Over half (52.3%) operate completely without technological assistance

“This digital exclusion threatens to leave our informal sector behind as global commerce moves online,” warned an economist at  one of Freetown’s Universities.

The survey uncovered surprising attitudes about technology’s impact on employment:

• 6% of business owners were uncertain about technology’s effects
• Only 1.3% feared job losses from digital adoption
• 5% believed employee numbers would remain unchanged

“These responses suggest many don’t realize technology can create efficiency and new opportunities rather than eliminate jobs,” explained an industry watcher.

Economic Implications
The technology deficit poses multiple challenges:

• Reduced competitiveness against digital-ready businesses
• Limited access to broader markets and financial services
• Inefficient operations and record-keeping
• Barriers to government support programs

The informal sector, which accounts for nearly 60% of Sierra Leone’s economy according to World Bank estimates, risks falling further behind regional competitors without intervention.

Experts recommend:

1. Digital literacy programstargeting small business owners
2. Affordable technology solutionstailored to informal operations
3. Public-private partnershipsto subsidize basic digital tools
4. Success storiesdemonstrating technology’s benefits

“The solution isn’t just giving out smartphones,” cautioned Mohamed Jalloh, a mobile banking specialist. “We need comprehensive training showing how technology solves real business problems.”

The Ministry of Finance is reportedly developing initiatives to address the gap, with details expected in the upcoming National Budget. Potential measures include tax incentives for tech adoption and mobile payment integration training.

As Sierra Leone works toward its digital transformation agenda, bridging this technology divide in the informal sector may prove critical for inclusive economic growth and job creation in the coming years. CC/7/4/2025