By Stephen V. Lansana
The Sierra Leone Local Content Agency (SLLCA) in collaboration with GIZ, a German Cooperation, and its partners on Wednesday, November 2, 2022, concluded a three-day stakeholders’ workshop on the review of the Local Content Agency Act 2016 in Freetown.
The review process is supported by GIZ under the Regional Intergovernmental Organization (RIGO) system strengthening. The workshop brought together stakeholders from Ministries, Departments, and Agencies (MDAs), multinational companies, Sierra Leone Brewery Limited, and other private sector players, among others.
Explaining the purpose of the review, the Director General of SLLCA, Fodeba Daboh said that the review of the Act was a manifesto promise by President Maada Bio. “In 2017, even though there was a Local Content Act, but its implementation was weak because it was not in line with government priority for Sierra Leone. So, President Maada Bio promised Sierra Leoneans that once he is elected, he will ensure that this Act is reviewed to reflect the needs of the private sector,” he said.
He explained that in last year’s Regional Conference held in Freetown, the whole thought process was to find out why private sector development is huge in Guinea for instance and not so much in Sierra Leone, noting that the outcome of that conference also recommended a review of the Act.
“Over the years, most stakeholders in the private sector have suggested to us that we need to review this Act, so that it cannot be seen as an impediment for growth and development here in Sierra Leone,” he disclosed. “So, as a listening government, we thought it fit to review this Act and most importantly to fulfill President Bio’s manifesto promise.”
Daboh said, “Our work is all encompassing. Our work is at the service end. We are mindful of the fact that lack of loan facilities to SMEs have been killing small businesses in terms of ridiculous high interest rate,” he added.
He said that what has been lacking in the past was linking the small businesses with multinational companies, noting that his Agency has been able to create business linkages between the local entrepreneurs and the multinational companies.
He pointed out that after the review, the Law Officers Department will do the drafting instructions and then the bill will be submitted to the minister of Trade to be table in Parliament. “We hope at the end of this process, we will have the Local Content Agency Act 2022/ 023 as amended,” he said.
Highlighting the areas of review, the Lead Consultant, Daniel Gbondo Esq. said, “If you look at local content promotion efforts in other countries, they are sector specific, but the Local Content in Sierra Leone cut across every sector.”
He said that the broad scope of the Act is one of the constraints in the implementation.
He said that the current Act made provision for harsh penalties. “This Act made provision for companies who violate the Act to be fined, sentenced, or to pay both fines and custodian sentences,” he said. “If you look at Local content promotions in Africa, it shows that only Sierra Leone and Ghana have these restrictive or harsh penalties.”
He pointed out that such restrictive penalties will not create good investment climate. “No Company CEO would like to invest in a country where they will go to jail just because they breached some employment or financial rule.”
He said that when investors want to make investment decision, they look at the laws that will impact their business and decide to go to countries where the operating climate is friendlier, and they try to avoid countries where they have harsh penalties.
“This review is to create a friendlier investment climate that would attract foreign direct investment which will give opportunities to Sierra Leoneans to be able to participate to the growth of the economy either as employees, or as producers,” he said.