By zainab.joaque@awokonewspapersl.com
Freetown, Sierra Leone – Tax exemptions have long been a subject of debate in Sierra Leone, with many questioning their necessity and impact. Abu Bakarr Conteh, Deputy Director of the Revenue and Tax Division at the Ministry of Finance, recently shed light on the rationale behind these incentives during a panel discussion following the launch of the Budget Advocacy Network (BAN) report.
Conteh clarified a common misconception: it is the government of Sierra Leone, not the Ministry of Finance, that grants tax incentives. “The Ministry of Finance acts on behalf of the government, but the decision to grant these incentives comes from the government itself,” he explained.
At the heart of Sierra Leone’s tax exemption strategy is the goal of stimulating investment and economic expansion. “These incentives reduce the tax burden on investors, freeing up resources they can reinvest into the economy, create jobs, and drive GDP growth,” Conteh noted. However, he cautioned that tax incentives alone are not enough to attract foreign direct investment (FDI). Other macroeconomic factors—such as political stability, infrastructure, and external debt levels—play significant roles in making Sierra Leone an appealing destination for investors.
Conteh emphasized that Sierra Leone operates in a highly competitive investment landscape. “We are not the only country vying for investors’ attention,” he stated. To stand out, the country must offer a predictable and stable tax environment. “Frequent changes in tax laws create uncertainty, which can deter investors. Predictability is key in shaping long-term investment decisions.”
Beyond tax incentives, Sierra Leone must address other investment barriers, including infrastructure, electricity, transportation, and ease of doing business. “A tax break alone won’t bring in investors if they face logistical and operational hurdles,” Conteh stressed. He highlighted that incentives should work in tandem with broader economic policies to create a conducive business environment.
While tax exemptions are designed to attract investment, they must be balanced against the government’s need to generate revenue. Conteh acknowledged the challenge of maintaining this equilibrium, ensuring that tax policies benefit both investors and the broader economy.
Sierra Leone’s approach to tax incentives aims to foster economic growth, attract investment, and maintain competitiveness in the global market. However, as Conteh pointed out, success depends on a stable, well-structured tax regime complemented by strong economic policies. “We need to create an environment where investors see long-term opportunities, not just short-term tax breaks,” he concluded.
As the country continues to refine its tax policies, ensuring transparency, consistency, and strategic alignment with broader economic goals will be crucial in positioning Sierra Leone as an attractive investment hub. ZIJ/1/4/2025
