By Mahmud Tim Kargbo
Once hailed as a panacea for economic development, neoliberalism—the policy of market liberalisation, deregulation, and reduced state control—has increasingly been criticised for deepening inequality and eroding national sovereignty. Across Africa, it has paved the way for the rise of Special Economic Zones (SEZs) and Freeports: territories within a state where laws on taxation, labour, and land are often suspended to favour investors.
In Sierra Leone, these developments are not theoretical. The country’s economic history is replete with failed mining deals, broken land promises, and one-sided contracts. Now, under new guises such as SEZs and Freeports, similar patterns are re-emerging.
According to a legal scholar at Fourah Bay College, SEZs in their current form risk reproducing extractive, colonial economic models that marginalise citizens in favour of foreign capital. This investigation draws from more than two dozen interviews with legal experts, civil society organisations, and community leaders, alongside a review of public records, mining contracts, and international legal frameworks.
Is Sierra Leone Introducing SEZs and Freeports?
Yes. Sierra Leone is actively pursuing the establishment of SEZs and Freeports. In 2020, the Ministry of Trade and Industry introduced a national SEZ strategy as part of a broader effort to attract foreign direct investment. The Cabinet subsequently approved this framework, and various sites have been earmarked for development, including Koya (Port Loko), Pujehun, and areas along the Freetown Peninsula.
One flagship initiative is the proposed Bintumani Coastal Free Trade Zone, promoted as a blue economy investment hub. However, environmental groups such as Green Scenery and NMJD have expressed concerns over lack of transparency, absence of Free, Prior, and Informed Consent (FPIC) from affected communities, and environmental degradation.
These projects are marketed through agencies such as the Sierra Leone Investment and Export Promotion Agency (SLIEPA) and the National Investment Board, often offering:
Up to 25-year tax holidays
Exemptions from labour and environmental regulations
Customs-free status for imports and exports
A confidential source within the Ministry of Finance disclosed that many SEZ-related contracts are negotiated without parliamentary oversight, raising accountability concerns.
Legal and Constitutional Considerations:
- Violations of the 1991 Constitution of Sierra Leone
Section 21: Protection from Deprivation of Property
Land acquisition without FPIC or fair compensation contravenes this section.
Section 7 & Section 8: Economic and Social Objectives
These provisions mandate equitable economic participation and social welfare. SEZs offering preferential treatment to foreign investors at the expense of local industries breach these objectives.
Section 18: Freedom of Movement
Restricted access to SEZs may infringe this right, particularly when movement is barred for host communities.
- SLPP Commitments
The 2018 SLPP “New Direction” manifesto pledged to:
Reduce excessive tax exemptions
Promote equitable employment
Enhance transparency
Empower youth and women in the economy
Several SEZ and PPP contracts appear to contradict these pledges, as they prioritise investor protections over citizen participation.
- Procurement and Anti-Corruption Frameworks
The Public Procurement Act (2004) requires competitive, transparent bidding. Closed-door SEZ deals may breach these provisions. Similarly, the Anti-Corruption Commission Act (2008) prohibits abuse of office, which may be applicable where state officials grant incentives without public benefit.
- Regional and International Legal Obligations
ECOWAS Protocol on Democracy and Good Governance (2001) requires transparency in public administration.
African Charter on Human and Peoples’ Rights – Article 21 guarantees community control over natural resources.
Universal Declaration of Human Rights – Article 17 affirms the right to property.
International Covenant on Economic, Social and Cultural Rights upholds fair working conditions and a decent standard of living.
Evidence from the Ground: Displacement, Debt, and Disillusionment
Sierra Leone’s mining and land-based projects reveal how SEZ-like structures can foster exclusion and exploitation.
Addax Bioenergy
Backed by European finance, this biofuel project collapsed amid accusations of land grabbing, false job promises, and environmental harm. Oxfam’s 2019 report identified over 13,000 affected farmers.
African Minerals Ltd (Tonkolili)
Granted a 25-year lease in 2010, the company operated with generous tax exemptions. Communities were displaced without adequate compensation. EITI flagged irregularities in revenue reporting and unaddressed pollution in Bumbuna.
SL Mining (Marampa Mines)
Suspended in 2020 following a contract dispute. Africanist Press uncovered evidence of missing export revenues and underreported customs declarations. Workers were laid off without severance.
Sierra Rutile Ltd (formerly Iluka Resources)
Under a 2004 lease amendment, Sierra Rutile faced criticism for polluting water sources and evading local taxes. A 2021 Audit Report raised questions about royalty discrepancies.
Octea Mining (Koidu Holdings)
Operating since 2010, Octea owes over Le 3 billion in local property taxes, according to the 2018 audit. Communities report forced relocations and environmental degradation in Kono.
Kingho Mining (Leone Rock Metal Group)
Inherited Tonkolili iron ore operations post-SL Mining. Parliamentarians raised concerns in 2022 over the opacity of the contract, especially the rail and port concessions, and over limited local employment.
Pee Cee and Sons (Agro-Industrial Lease)
Acquired vast land in Sella Limba and Mongo Bendugu in 2022. Chiefs and residents reported no FPIC, unresolved land boundary issues, and a lack of environmental assessment. The agreement has not passed parliamentary scrutiny.
Mining Lease Agreements as SEZ Models
The National Minerals Agency lists at least nine active mining leases, many of which offer:
Tax holidays lasting up to 25 years
Minimal environmental enforcement
Exclusionary land rights
These agreements mirror SEZ frameworks by creating enclaves of deregulated commerce, often insulated from democratic accountability. While not legally designated as SEZs, their structure and impact on governance are virtually indistinguishable.
Global Comparisons: Lessons and Warnings
United Kingdom: Freeports introduced post-Brexit have been criticised for increasing inequality and weakening labour standards.
India: Mass protests over SEZs forced regulatory reform after Supreme Court rulings defended indigenous land rights.
Costa Rica: Rejected aggressive privatisation, instead prioritising universal public services—leading to higher development indicators.
Recommendations:
Immediate Moratorium on all new SEZ and PPP projects until full legal reforms are implemented.
Mandatory FPIC and independent Environmental and Social Impact Assessments.
Parliamentary Ratification of all major land, mining, and SEZ contracts.
Public Disclosure of tax incentives, lease terms, and contract beneficiaries.
Codification of Customary Land Rights, using models like Malawi’s 2022 Land Rights Act.
Creation of a National SEZ Oversight Committee with civil society participation.
Shift from Enclave Economics to value-added, inclusive industrial policy.
Sierra Leone stands at a historic crossroads. The lure of rapid industrialisation through SEZs and extractive enclaves must be weighed against their long-term costs—displacement, environmental harm, and lost sovereignty.
Instead of repeating history, the country must embrace a rights-based, transparent, and people-centred development model. One where land, labour, and natural wealth are tools for national dignity—not bargaining chips for foreign capital.
Sources and References:
Constitution of Sierra Leone (1991)
Public Procurement Act (2004)
Anti-Corruption Commission Act (2008)
SLPP New Direction Manifesto (2018)
Ministry of Trade and Industry – SEZ Strategy (2020)
ECOWAS Protocol on Democracy and Good Governance (2001)
African Charter on Human and Peoples’ Rights, Article 21
Universal Declaration of Human Rights, Article 17
International Covenant on Economic, Social and Cultural Rights
Oxfam International – The Great Land Heist (2019)
EITI Sierra Leone Reports
Audit Service Sierra Leone Reports (2018, 2021)
Africanist Press Investigations (2020–2022)
Green Scenery and NMJD Policy Briefs
National Minerals Agency – Mining Lease Agreements (www.nma.gov.sl)
West Africa Civil Society Institute (WACSI) Policy Brief (2023)
UNDP Human Development Report (2022)
Open Society Foundations – Rights and Remedies in SEZs (2020)