Why Doing Business in Sierra Leone is not Easy

Sierra Leone is a country full of promise, with abundant natural resources, a rich culture, and a strong drive for entrepreneurship. However, let’s be real: starting and running a business here can be quite challenging.

Local business owners deal with a range of difficulties every day, from frequent power cuts to uncertain government policies. If you're considering starting or expanding a business in Sierra Leone, it’s important to understand the real challenges you may encounter, based on firsthand experiences.

1. No Electricity – You Run Your Business on Fuel or Faith

Let’s start with the biggest headache: power supply. The national grid is unreliable. Many small business owners in Freetown, Bo, or Makeni rely on expensive generators or solar panels. If you can't afford those, your only option is to close early or pray NEPA comes back.

Fuel prices keep rising, and for many, the cost of powering a small shop can eat up most of the day’s profit.

📉 2. An Unstable Economy – Prices Go Up Every Week

Sierra Leone’s economy is fragile. Inflation is high, and prices of goods change almost weekly. It’s hard to plan, harder to save, and almost impossible to project business growth.

Imagine buying a carton of goods for SLL 500 on Monday and being told it is now SLL 650 by Friday. When asked “why?” the reply is always: “Dollar don go up

💵 3. Importation Is Becoming a Luxury

Many businesses depend on imports — from food to electronics to clothes. But with the rising dollar exchange rate, bringing in goods has become nearly impossible for small traders. Customs charges, delays at the port, and currency fluctuations mean that even basic inventory becomes unaffordable.

Dollar rate na die” is more than slang — it's a daily reality.

🚨 4. Security and Safety Concerns

Transporting goods, especially across districts, comes with risks. Armed robberies, road accidents, and theft at storage sites are not uncommon. For traders in places like Kambia, Kenema, or even within Freetown, this is a serious concern.

Every lost shipment means not just lost income, but possibly a lost business.

🏛 5. Too Many Taxes from Every Direction

From the city council to NRA to local trade unions, many entrepreneurs feel like they're being taxed at every turn. Add in informal charges and “under-the-table” fees, and you end up paying more than your fair share.

It feels like the government sees small businesses as cash cows, not development partners.

🏦 6. Getting Loans? Forget It if You Don’t Have Collateral

While there are microfinance options and government-backed programs, most lenders still require land titles, property deeds, or a strong guarantor. This shuts out thousands of qualified entrepreneurs who have good ideas but no formal assets.

A brilliant young woman selling cosmetics in Lumley might make daily sales, but without land documents, she won’t get a loan.

🚧 7. Poor Roads and Internet – Logistics Is a Nightmare

Trying to move goods from the port to the provinces? Be ready for delays, damaged goods, and breakdowns. Roads are either bad or non-existent. In many rural areas, even sending a simple email or doing mobile banking is a struggle due to poor internet.

Logistics alone can destroy a small business’s ability to scale.

📜 8. Policy Instability – No One Knows What Tomorrow Holds

One day, you’re operating within the rules. Next, there's a new government directive, a new license requirement, or a sudden ban on something you import. Business owners are constantly adjusting to sudden changes.

Stability is key for growth, but in Sierra Leone, the rules often change without warning.

💔 9. Customers Are Broke – The Cost of Living Is Just Too High

Finally, even when your goods or services are excellent, your customers often can’t afford them. With high transport, food, school, and fuel costs, most Sierra Leoneans are just trying to survive.

Sales go down, credit goes up, and the stress keeps building.

Conclusion: Resilience is Key

Despite all this, many Sierra Leoneans are still finding ways to survive — and even thrive — through innovation, community support, and sheer grit. But let's not sugarcoat it: doing business in Sierra Leone is not easy.

If you’re already in the game, you deserve respect. If you’re planning to enter, be prepared — have a strong plan, a stronger backup plan, and the resilience of a mountain.

Post a Comment

Please Select Embedded Mode To Show The Comment System.*

Previous Post Next Post

Contact Form