In a decisive move to reshape the nation’s approach to managing its mineral riches, President Julius Maada Bio has ordered the dissolution of the Mineral Wealth Fund Sierra Leone Limited (MWFSL), clearing the path for the establishment of a new sovereign wealth fund designed to meet international standards of transparency and governance. The announcement, made public on January 8, 2026, by the Ministry of Information and Civic Education, marks a significant pivot in the administration’s strategy to ensure that the wealth extracted from Sierra Leone’s soil translates into lasting prosperity for its people.
The directive effectively winds up all existing arrangements under the MWFSL, including its role in the strategic Tonkolili North Iron Ore project. The government was quick to clarify that this action represents a change in administrative and financial vehicle, not a dilution of state ownership. All mineral assets remain firmly vested in the state-owned Sierra Leone Mines and Minerals Development and Management Corporation (SLMMDMC), ensuring the nation retains full control over its natural resource endowment.
Positioned as a cornerstone of ongoing resource governance reforms, this shift is described by officials as a necessary step to replace previous structures with a more robust and credible framework. The envisioned Sierra Leone Sovereign Wealth Fund is pledged to be aligned with globally recognized benchmarks, specifically the Santiago Principles, which promote transparency, independence, and sound investment practices. This alignment is intended to rebuild trust, attract responsible investment, and shield the fund from political manipulation.
The core vision, as articulated in the public notice, remains steadfast: to transform finite mineral resources into perpetual intergenerational wealth. By channeling revenues through this new mechanism, the government aims to mitigate the boom-and-bust cycles typical of resource-dependent economies, foster greater macroeconomic stability, and create a savings pool that will benefit future generations of Sierra Leoneans. The move is widely seen as a response to longstanding critiques about the management of mining revenues and a bid to ensure that the nation’s diamond, iron ore, and mineral wealth directly contribute to sustainable development.
While the specific architecture, funding sources, and governance details of the new sovereign wealth fund are yet to be unveiled, the announcement signals President Bio’s intensified focus on fiscal discipline and accountable stewardship. The government has promised that additional operational details will be released in the coming weeks. This restructuring builds upon a series of reforms within Sierra Leone’s mining sector, reflecting a broader ambition to not only harness natural resources for immediate gains, but to leverage them as a foundation for enduring economic security and equitable growth.