By Mabinty M. Kamara
After years since train transportation phased out in Sierra Leone in 1974, Arise IIP as part of its investment package is set to reintroduce passenger train service in the West African country.
Speaking at the launch of the company’s Special Industrial Zone (SIZ) on Thursday 26 April this year in Koya chiefdom Port Loko district, the Logistics Value Chain Director, ARISE IIP Jesper Boll said that the train is already on its way to Sierra Leone.
“An industry needs people. This is why we are bringing a passenger train into Sierra Leone that would transport passengers and the workforce between the provinces. The train is ready and it’s on the way to Sierra Leone,” he said.
He added that it is only by integrating the rail network with the Pepel Port and Koya SIZ that Sierra Leone will uncover its true potential.
Explaining the investment plan, Boll said the Special Industrial Zones will be producing goods locally to replace the expenses of import for the benefit of all. He added that the country has potential for agriculture not only for subsistence purposes but also export. Therefore, he said the zone in Koya will facilitate the transformation of agricultural products and transform the lives of farmers.
The Zone according to the Logistics Value Chain Director covers one thousand six hundred hectares when fully built up. He said the construction of the first three factories comprises a pharmaceutical unit to produce capsules and injectables, ceramic tiles manufacturing unit, and a nonferrous metal recycling centre.
The factory, he said will be powered by 100 percent sustainable energy.
He urged Sierra Leoneans to embrace the project, emphasizing that the journey to the country’s industrialization starts now.
In his statement, The President of Afrexim Bank Professor Benedict Oramah expressed optimism that the initiative will not only be beneficial for Sierra Leone but that the Special Industrial Zone will be a new economic hub for Africa.
He therefore encouraged African leaders to promote structural and industrial economies.
Samalia Zubairu, the Chief Executive Officer of Africa Finance Cooperation, noted that the challenges with the economy of Sierra Leone and most other African countries are due to the fact that the economies are yet to transform, saying that “we still have primary focus economies with a lot of import of physical raw materials as well as significant imports of good that should be produced here in the country”.
He noted that their focus is on industrialization, value addition and retention, and import substitutions
The CEO added that Sierra Leone will not benefit from initiatives such as the African Continental Free Trade, and the ECOWAS free market if the country cannot produce goods locally.
He also acknowledged that Sierra Leone is naturally endowed with different minerals that are boosting the world today.
In his statement, Sierra Leone’s Minister of Trade and Industry, Edward Hinga Sandy PhD said that the zone will host about 30-50 factories. He noted that the initiative is one with a substance that has the prospect to transform the country’s economy.
He noted his strives to revitalize the industrial wing of his ministry while highlighting the achievements made such as the signings of about 30 agreements ranging from food and beverages, construction, agro-processing, oil and gas, to steel manufacturing, and support towards SMES.
Dr. Sandy noted that the country has various natural resources which have a comparative advantage and are instrumental to the development of SEZ
Speaking at the event and beaming with smiles, President Julius Maada Bio said that in his 2018 manifesto, he observed that it is possible to increase the manufacturing sector share of GDP from less than 2% (where it was then) to at least 5% in 5 years.
“We, therefore, zoomed in on this in our national development plan. With germane policy actions detailed in both our manifesto and national development plan, including improving the environment for manufacturing industrialisation, we have exceeded the 5% target we set ourselves and we are now closer to double-digit figures. With agro-value addition over the last five years, Sierra Leone is now a net exporter of vegetable oil and also exports margarine and other palm-oil-based products,” he said.
However, he acknowledged that the constraints around improving infrastructure and providing finance for entrepreneurs persist but that his government is determined to build a diverse economy by significantly increasing the contribution of a competitive manufacturing sector to GDP.
With that, he said foreign direct investments can increase, stimulate two-way trade, increase demand for locally-produced goods, create more jobs, broaden the tax base, transfer know-how, and develop robust trade infrastructure and communities, among others.
The President noted the Special Economic Zones (SEZ) policy which harmonises the needs of all stakeholders, provides an attractive, fair, predictable, stable, and sustainable ecosystem; provides for local skills development, technology transfers, and supply chains; supports the full concentration of feeder micro-entrepreneurs at the supply and local marketing ends; and, ensures that the zones operate in accordance with international best practices.
He said the Legislation will be laid in the next parliament.
“I expect that it will provide for such important issues as gender in the labour force, occupational health and safety, labour issues, sustainability, and climate change responsibilities,” he said.
He added that the investment demonstrates great investor confidence in the Sierra Leone economy.
President Bio said that the initial $300 million US Dollar investment in the Koya SIZ will be in addition to the almost $500 million US Dollars ARISE will invest in the port and rail network.
He added that it is expected that the immediate net impact of the investment is the creation of 9,000 direct jobs in the Koya area in addition to the 5,000 new jobs that the company will create in the extended port and rail network.
However, he encouraged the community people to own the investment, saying that they should avoid practices that will discourage the investors from further investment in the country.
The President also urged them to embrace education and ensure they are capacitated enough to meet the workforce needs for the different factories that will be established.
Copyright © 2023 Politico (03/05/23)
