By Shadrach Aziz Kamara
Sierra Leone’s Minister of Finance, Hon. Ibrahim Fantamadi Bangura, on Tuesday 22nd July 2025, presented two key financial instruments to Parliament for ratification, marking a pivotal moment in the country’s economic governance and investment portfolio.
In his address to Members of Parliament, Minister Bangura laid out the framework for a debt-to-equity swap agreement between the Government of Sierra Leone and Sierra Maira Holding 1 Limited, the parent company of a major bauxite mining operation straddling Bo and Moyamba districts. The agreement, originally signed in July 2012, grants mining and exploration rights for a 20-year period, renewable under Sierra Leone’s mining laws.
Citing the significant contribution the company has made to employment and national revenue generation through its export of iron oxide, the minister explained that Sierra Maira Holding had experienced financial stress during the COVID-19 pandemic and global economic disruptions. As a result, the company accumulated significant tax arrears.
To address this, the company proposed converting these outstanding liabilities — amounting to approximately $14 million — into government equity in the company. Following technical assessments by the Ministry of Finance and relevant agencies, it was agreed that Sierra Leone would receive a 10% equity shareholding in exchange for the tax obligations due up to December 2024.
“This is a valuable and strategic decision,” said Minister Bangura, highlighting how the move not only gives the government a stake in a key mining operation, but also provides relief and operational flexibility to the company during a period of recovery.
As part of the updated agreement, the Minister requested Parliament to ratify limited tax exemptions for a three-year period, including relief on Goods and Services Tax (GST) — excluding purchases from supermarkets, hotels, and restaurants — while retaining all obligations under import inspection fees, environmental licenses, and the Community Development Fund.
“Surface rent, environmental monitoring fees, and other statutory obligations will remain in line with existing laws,” the Minister clarified.
He emphasized that the goal is to revitalize investment in the bauxite sector, which had slowed in recent years, while ensuring job retention, increased local economic activities, and a more inclusive ownership structure.
In a second major development, Parliament was also presented with a resolution to ratify Sierra Leone’s membership in the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) a member institution of the Islamic Development Bank (IsDB) and part of the Organization of Islamic Cooperation (OIC).
“This is a strategic move to strengthen Sierra Leone’s investment climate and boost trade,” said Minister Bangura.
He explained that ICIEC offers political risk insurance and export credit coverage, key instruments that can help attract foreign direct investment and support domestic businesses expanding into global markets. ICIEC membership also facilitates access to affordable development financing, supports public-private partnerships (PPPs), and enhances supply chain resilience.
“This aligns perfectly with our national priorities of financial resilience, export-led growth, and trade competitiveness,” he noted.
Minister Bangura formally moved a resolution seeking the ratification of:
1. The Debt-to-Equity Swap Agreement — amending the July 16, 2012 agreement with Sierra Maira Holdings.
2. The Articles of Agreement for the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
He urged Parliament to approve both agreements in order to boost investor confidence, diversify economic participation, and strategically position Sierra Leone for sustainable economic growth.
