The Minister of Trade and Industry, Ibrahim Alpha Sesay said on Tuesday January 9th, 2024 that local content is a driver of industrialization aimed at promoting the utilization of domestic resources as inputs along value chains thereby achieving the objectives of increasing average local content levels, capacity utilization, and manufactured exports.
He made this comment when delivering a keynote address at the Local Content Workshop organized by Sierra Rutile Limited (SRL) at the New Brookfields Hostel in Freetown. The workshop was well attended by the Director General of Sierra Leone Local Content Agency, including other Heads of Ministries Departments and Agencies (MDAs), staff of the Sierra Rutile Limited (SRL), local suppliers, contractors, and service providers.
He added that the mandate of the Sierra Leone Local content Agency is to promote Sierra Leonean content development by strengthening the domestic private sector and to promote a friendly investment climate that supports local supply chains and build a competitive workforce, adding that the 2016 Act is a legal regulatory mechanism in ensuring that local content provisions are implemented.
“Similarly, companies should understand it is their responsibility to give preference to qualified local businesses, especially those within the environment where the company is operating,” he said.
He said the Government will continue to encourage mining companies such as SRL to build the capacities of local businesses so they can deliver quality services and to operate fair and transparent procurement and employment policies which allow indigenous Sierra Leonean businesses and Sierra Leoneans to gain procurement contracts and employment.
He pointed out that Sierra Rutile should also be committed to regular engagement and communication with local suppliers to ensure they understand what SRL want and can easily navigate their contracting and procurement processes and be part of a transparent supply chain.
He encouraged all beneficiaries of this workshop to treat it with the seriousness that it deserves, noting that as local contractors, suppliers and service providers, such platforms do not only increase your knowledge and capacity in conducting business with multi-national companies, but also broaden your network and provide increased business linkages for you.
The Director General of Sierra Leone Local Content Agency, Mr. Fodeba Daboh said that Sierra Rutile Limited has been around forever and so much is expected of them when it comes to Local Content delivery. “And for them taking the lead in having this Local Content workshop, tells us their strong show of commitment, and we look forward to more other companies not only within the mining sector, but other productive sectors to emulate same. Rest assure the Agency is always ready to give its support where applicable,” DG Daboh added.
He encouraged the Local Suppliers to know that Local Content is about competitiveness, value addition and more. “Thus, we do not settle for substandard. Local Suppliers also have to understand their obligations when it comes to service delivery. In order to ensure there is utilization of Sierra Leone goods and services, preferential margins of 10% is given to domestic suppliers by virtue of Sierra Leone Local Content Agency Act of 2016,” he said.
He pointed out that another aspect he must not leave out is, the perception about Local Content which have been considered far too long as, ‘highly complex, rigid and defined as too harsh.’ “However, it may interest you to know the Sierra Leone Local Content Agency Act 2016 is materially less harsh than comparable regulation in a number of other African countries where Local Content is a high-profile public policy,” he disclosed. “I tell you ladies and gentlemen; we have been more of facilitators than regulators of the 2016 Act. Therefore, it can be argued that, the provisions on local content in the 2016 Act is positioned as an incentive in terms of the limited restrictions to market access for foreign suppliers, the realistic targets for hiring Sierra Leonean citizens and the achievable objectives for encouraging raw material inputs to manufactured products compared to other African countries.”