By Stephen V. Lansana
The Sierra Leone Local Content Agency (SLLCA) stepped in on Tuesday, October 1, 2024, to mediate a growing dispute between the Association for Clearing and Forwarding Agencies Sierra Leone (ACFA-SL) and foreign shipping companies. The mediation session, held at the SLLCA’s office in Freetown, aimed to address complaints from ACFA-SL that foreign shipping companies were encroaching on local clearing and forwarding services, thereby undermining Sierra Leonean businesses.
The dispute began when ACFA-SL accused foreign companies of handling clearing and forwarding, roles traditionally reserved for indigenous businesses under the Sierra Leone Customs Act of 2011 and the Customs Regulation of 2015. In response, the SLLCA, which is tasked with ensuring compliance with the Local Content Agency Act of 2016, convened a meeting to hear from both sides.
During the mediation, SLLCA Director General Fodeba Daboh highlighted the agency’s mandate to protect Sierra Leonean businesses. He emphasized that the Local Content Agency Act requires preference be given to local companies and that the SLLCA is committed to investigating and resolving complaints about foreign companies infringing on local sectors.
Daboh stressed the importance of dialogue over conflict and urged all parties to operate with transparency. He reassured ACFA-SL that any violation of the Act would be addressed. The Director General also advised the association to thoroughly vet the membership of foreign companies involved in clearing and forwarding.
ACFA-SL Secretary General Saidu Abass Dumbuya expressed frustration over foreign companies allegedly taking their clients by offering services at the cargo’s point of origin, undermining the local industry. Dumbuya admitted that the association had mistakenly registered some foreign shipping companies and is now working to correct the oversight.
Representatives from foreign shipping companies, including EHS Logistics, Sea and Lands Services Limited, and DHL, defended their practices. They argued that they were not infringing on local business operations, with many claiming to outsource their clearing and forwarding work or collaborate with local companies. EHS Logistics’ representative, Frank Socrates, emphasized that their company has been registered in Sierra Leone for 15 years and primarily focuses on international clients, not local ones.
In conclusion, the Director General of the SLLCA urged ACFA-SL to revise its membership criteria and to screen foreign companies more rigorously. He also promised to schedule another dialogue session to continue resolving the matter.
This mediation marks a crucial step in balancing the interests of local businesses and foreign entities in Sierra Leone’s shipping and logistics sector. Both sides now await further developments as the SLLCA continues its efforts to protect local industries and ensure compliance with national laws.