Policy paper

Memorandum of Understanding between the Government of the Republic of Sierra Leone and the Government of the United Kingdom of Great Britain and Northern Ireland on Trade and Investment Dialogues

Published 16 May 2023

This was published under the 2022 to 2024 Sunak Conservative government

This Memorandum of Understanding (MoU) is entered into between the Government of the Republic Sierra Leone, and the Government of the United Kingdom of Great Britain and Northern Ireland (“the UK”), together the “Participants” and each “a Participant”.

Recognising the importance of trade and investment between Sierra Leone and the United Kingdom;

Having regard to the Participants’ commitment to promoting the benefits of free trade and the economic development of Sierra Leone;

Acknowledging that a transparent, predictable investment climate alongside trade-led growth is crucial for job creation and promoting agricultural development, food security, industrialisation and structural economic transformation across Sierra Leone;

Have reached the following understanding:

Scope of cooperation

This MoU sets out areas of cooperation between the Participants, namely establishing annual joint Sierra Leone – UK Trade and Investment Dialogues and deepening the trade and investment partnership. This will strengthen the bilateral economic relationship and the long-term prosperity of both countries.

Sierra Leone: UK Trade and Investment Dialogues

1. The Sierra Leone – UK Trade and Investment Dialogue is established and will provide a framework in which high-level trade, investment and economic development discussions may take place. This aims to:

a. strengthen bilateral discussion on growth, investment and jobs

b. increase shared understanding of the growth sectors that require investment and expertise and how UK partners can support these, including through the UK’s development programming

c. identify constraints to economic growth and work collectively to address them

d. decide joint activities to unlock long-term economic development in Sierra Leone

2. These for the Trade and Investment Dialogue may include:

a. investment facilitation. Increase UK direct investment to Sierra Leone, to promote job creation and economic diversification including in the renewable energy, agriculture, agro-processing and tourism industries

b. deepening Sierra Leone – UK trade links. This includes enabling Sierra Leone to make better use of the UK Developing Country Trading Scheme (DCTS) through targeting specific sectors for export to the UK and connected investment including agriculture, services, agro-processing and light manufacturing. Strengthen cooperation between Sierra Leone and the UK on multilateral trade policy issues of mutual interest under the World Trade Organization (WTO)

c. addressing trade and investment barriers. Working collectively to improve the investment climate to support sustainable growth and unlock investment deals. This includes addressing concrete barriers that existing businesses and new investors face, including the regulatory and administrative environment when exploring, importing and starting a business

3. governance of the Trade and Investment Dialogue. The Dialogue will aim to meet annually either in Sierra Leone or in the UK. It will drive structured discussions on a wide range of joint longer-term objectives, with concrete progress against each theme noted in a communique and addressed at the following dialogue. If desired, separate working groups or business forums led by the private sector can be set up to further drive specific progress.

Sierra Leone-UK trade and investment partnership

4. Beyond the annual high-level Trade and Investment Dialogue, Sierra Leone and the UK will also endeavour to build on and deepen their existing partnership by:

5. Supporting Sierra Leone to make better use of existing trade partnerships such as the UK’s DCTS, African Continental Free Trade Area (A:fCFTA), ECOWAS, Mano River Union and through the WTO. The DCTS constitutes the formal trade relationship between the Participants, which will come into effect in 2023. Under the DCTS’s Comprehensive Framework, Sierra Leone will have access to:

a. duty free quota free access to the UK market on all goods except for arms and ammunition; and

b. simplified and liberalised rules of origin to produce goods using components from 95 other countries without losing duty-free status

The Participants can cooperate to address the opportunities and challenges of implementing the DCTS, including through knowledge dissemination efforts to promote awareness amongst exporters, clearing agents and customs officials; and targeted support to key export sectors such as agriculture, tourism and light manufacturing to support diversification of Sierra Leonean exports to the UK.

6. Promoting direct investment to Sierra Leone underpinned by the Bilateral Investment Treaty (BIT) between Sierra Leone and the UK. This includes promoting a transparent and predictable investment climate to support investor confidence and to incre1.se responsible investment; and deepening engagement with British International Investment (BIi) and the Bil-led African Resilience Investment Accelerator of all G7 Development Finance Institutions with a view to facilitate further responsible investment to Sierra Leone. Specific focus will be on reducing investment barriers and promoting sectors that lead to economic diversification and job creation, such as renewable energy, agro-processing and light manufacturing.

7. Collaborating on deepening trade and investment facilitation. This includes strengthening Sierra Leone – UK trade and investment through the UK’s Official Development Assistance programmes. It also includes accessing the Growth Gateway, the UK’s business support system for supporting 2-way trade and investment between African and UK businesses.

8. Creating networks for businesses to collaborate. The Participants aim to support networks and organisations that allow UK and Sierra Leonean businesses to exchange views and best practice. This can be done through the British Chamber of Commerce in Sierra Leone (BCCSL), whose mandate is to promote the commercial interests of its members and encourage the development of trade, commerce and investment between Sierra Leone and the UK.

9. Progress on the trade and investment partnership, including successes and outcomes of events can be reported against at the annual Trade and Investment Dialogues.

Financial arrangements

10. Unless otherwise agreed, each Participant will bear the cost and expenses for its participation in activities under this MoU. The capacity of each Participant to carry out activities under this MoU will be subject to the availability of funds, personnel, and other resources.

Information sharing and confidentiality

11. Participants recognise that to facilitate the objectives of this MoU, information may pass between them. The sharing of information under this MoU is subject to the following conditions:

a. the Participants may only use the information for purposes to further the objectives of this MoU

b. the Participants may only disclose any part of the information to a third party if the Participant wishing to disclose the information seeks and obtains prior written consent from the other, except in circumstances described in the subparagraph below

c. in circumstances where either Participant is legally obliged to disclose any information related to this MoU under applicable legislation, by court order or for another reason, it will inform the other Participant before doing so

Consultation and dispute settlement

12. The Participants are committed to acting in good faith. Any disagreement that arises between the Participants concerning the interpretation or application of this MoU will be settled amicably through consultation and cooperation between the Participants and will not be referred to any third party, court, or tribunal.

Amendments

13. Any amendment or revision to the text of this MoU will be done in writing by mutual consent of the Participants. Such amendment or revision shall come into effect upon its signing.

Status of this MoU

14. This MoU is not an international agreement or treaty and as such does not create legally binding rights or obligations under domestic or international law, but represents the expressions of firm intentions of closer bilateral cooperation between the Participants.

Entry into operation, validity and termination

15. This MoU will come into operation on signature and will continue in operation for 5 years unless terminated by either Participant by giving 3 months’ written notice to the other Participant. It can be renewed for further 5-year terms by mutual agreement of the Participants.

Either Participant may terminate this MOU at any time by giving the other Participant 6 months prior written notice.

The foregoing record represents the understandings reached between the Government of the Republic of Sierra Leone and the Government of the United Kingdom of Great Britain and Northern Ireland and the upon the matters referred to therein.

16. Signed in duplicate in Freetown on the 9th March 2023 in the English Language.

Signed by David J Francis for the government of the Republic of Sierra Leone and James Cleverley for the government of the United Kingdom.