Adopts National Investment Board Act, 2022
14 Jul 2022
On 14 July 2022, Sierra Leone adopted a National Investment Board Act that, inter alia, includes new provisions on (i) special incentives, (ii) investor obligations, (iii) investor protection, (iv) transfer of funds and (v) settlement of disputes.
(i) Incentives: The new Act authorizes the Board to permit investment in scarce resources in accordance with the relevant laws relating to such resources, and to promote identified strategic or major investment through new incentives offered under the new Act. In order to qualify for incentives which are earmarked for special investment, an investor must meet the following requirement, among others, (a) minimum investment threshold for the investment set by the Board; (b) engage in any of the priority areas set out by the Board; (c) contribute to tax revenue or other government revenue; (d) adopt value addition in the processing of local, natural and agricultural resources. The Secretariat, in consultation with the Board, issue guidelines and specify priority areas for investment.
(ii) The new Act provides for investor obligations including: compliance with the licence terms and conditions; respect of the laws of Sierra Leone; implementing proposals in accordance with the business plan; keeping financial and accounting records; and keeping data relating to operations of the investment enterprise;
(iii) Investment protection includes (1) right over any property or undertaking forming part of his enterprise, (2) prompt payment of fair and adequate compensation; (3) transfer right subject to any exchange control restrictions; and (c) a right to take legal action in any court of law in respect of any matter arising out of the compulsory acquisition of the property;
(iv) Transfer of funds guarantees relating to the investment through official channels in any convertible currency include (a) dividends or profits (net of taxes) attributable to the investment; (b) payment in respect of loan servicing where it is ascertained by due diligence that a loan has been obtained; and (c) proceeds from a sale or liquidation of the enterprise and any interest.
(v) The New Act provides for settlement of disputes (1) through negotiations; (2) adjudication in Sierra Leone courts, (3) international mechanism including via arbitration; the International Centre for the Settlement of Investment Disputes; or within the framework of any bilateral or multilateral agreement or investment protection to which the Government and the country the investor is from are parties to the agreement.
Finally, the new Act establishes a National Investment Board with sweeping powers over the investment climate under the stated purpose of unifying the regulatory process for investors. The new Act authorizes the Board to create Directorates necessary for the efficient discharge of the functions of the Board, including (a) Business Facilitation Directorate; (b) Public Private Partnership Directorate; (c) Investment and Export Promotion Directorate; and (d) Corporate Affairs Directorate.
The new Act has repealed some provisions of the Investment Act of 2004.
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Type:
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Entry and establishment (Ownership and control)
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Treatment and operation (Nationalizations and expropriations, Capital transfer and FOREX, Dispute settlement)
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Promotion and facilitation (Investment facilitation , Investment incentives)
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Industry:
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