[{"bbox": [96, 152, 1135, 259], "category": "Text", "text": "remained almost the same as in 2018. With support of donors, some progresses have been made in the simplification of registration of companies and other operational changes which do not challenge powerful vested interests. Deeper and fundamental business environment reforms where there is political will are required in order to create an enabling investment climate."}, {"bbox": [96, 284, 1135, 390], "category": "Text", "text": "In September 2022, the National Investment Board (NIB) Act was adopted. NIB is singular authority to attract, co-ordinate and regulate investments in Sierra Leone. According to the Act, Sierra Leone Investment and Export Agency (SLIEPA), Corporate Affairs Commission (CAC) and Public Private Partnership Unit (PPP) are under NIB's umbrella."}, {"bbox": [96, 417, 1135, 552], "category": "Text", "text": "EU companies operate in key sectors of the country's economy such as agriculture, telecommunications, transportation, digital services, logistics and beverages. However, in the last few years, major companies have divested from Sierra Leone. As a result, in 2020 and 2021, the EU Direct Investment Outward flows were negative. EUR - 9 million and EUR - 63 million, respectively¹⁰. This suggests that Sierra Leone should further improve its business, trade and regulatory environment in order to reverse this negative trend and attract EU investments."}, {"bbox": [96, 576, 1135, 737], "category": "Text", "text": "In 2022, Sierra Leone mainly exported to the EU minerals and agricultural commodities equivalent to EUR 254 million. Sierra Leone mainly imports food products from the EU. Due to the war in Ukraine and the sharp increase in food prices, for the first time since more than 5 years, the country has a trade deficit with the EU (EUR 53 million). In this challenging economic context, it has become even more urgent to further strengthen the local production and exports as well as to improve the national quality infrastructure and system in order to facilitate the access to regional and international markets."}, {"bbox": [96, 762, 1135, 1002], "category": "Text", "text": "This programme aims to apply a holistic (ecosystem) approach to create an enabling investment climate. It is aligned with the EU Political priorities in Sierra Leone which include Promoting a sustainable, inclusive economic and social transformation as well as Strengthening good governance and accountability. It will contribute to achieving SDG 1 \"No Poverty\", SDG 8 \"Decent Work and Economic Growth\" and \"SDG 12 \"Responsible Consumption and Production. The programme is also in line with the Global Gateway Agenda which requires to provide enabling environment to ensure that projects deliver, by offering attractive investment and business friendly trading conditions, regulatory convergence, standardisation, supply chain integration and financial services. In line with the green and clean principle of the Global Gateway, the Action will also promote sustainable consumption and green investments."}, {"bbox": [96, 1026, 1135, 1161], "category": "Text", "text": "The programme will also contribute to the priorities stated in the New Consensus on Development by improving economic governance and business environments, fight against corruption and engagement with the private sector. This action contributes to the TEI \"Green Pact with Sierra Leone\" developed with Ireland, Germany and France. These three Member States focus respectively on support to education, development of clean energies and protection of biodiversity."}, {"bbox": [85, 1201, 342, 1233], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1273, 989, 1302], "category": "Text", "text": "As LDC and fragile country, Sierra Leone faces several significant challenges for doing business:"}, {"bbox": [96, 1326, 1135, 1461], "category": "Text", "text": "Firstly, local private sector is underdeveloped. MSMEs account for 98.5% of businesses, 84% of employment and 70% of GDP in Sierra Leone. However, the vast majority of these MSMEs are informal. Most of them are located at the lower end of the global value chain, selling primary commodities with little investments in the transformation process. Of the economically active women population, around 70% participate in micro and small business enterprises."}, {"bbox": [96, 1486, 1135, 1593], "category": "Text", "text": "Secondly, access to finance is among the biggest challenges for start-ups as well as women and young entrepreneurs to scale up their businesses. In most cases, such nascent entrepreneurship endeavors are supported by donors in a form of grants. These grants are not sufficient to allow companies in acceleration phase to raise enough capital. Therefore, it is necessary to further capacitate the existing public and private BDS providers and"}, {"bbox": [85, 1623, 562, 1646], "category": "Footnote", "text": "¹⁰ Statistics collected from DG TRADE Intranet in March 2023"}, {"bbox": [1027, 1679, 1145, 1706], "category": "Page-footer", "text": "Page 5 of 24"}]