(Ecofin Agency) - Sierra Leone imported $78 million of iron and steel products in 2023. The country, home to one of Africa's largest iron mines and a significant exporter of metallurgical goods, seeks to enhance its role within its production chain.

Sierra Leone has inaugurated its first iron bar factory, owned by Odhav Multi Industries (SL) Limited, a Guinean company specializing in steel manufacturing. This announcement was made public through a communiqué from the Presidency on November 23, 2024.

Authorities assert that the plant will significantly reduce the country's iron bar import costs–between $250 million and $500 million–and decrease reliance on foreign currency. The project should also create jobs, foster industrial self-sufficiency, and stimulate economic growth.

The plant's annual production capacity is projected at 120,000 tonnes. It will also manufacture nails, wire mesh, binding wire, and industrial gases such as oxygen and nitrogen. This initiative aligns with the government’s vision of prioritizing the industrial sector and attracting foreign investment.

“This launch marks a new era of industrial take-off for Sierra Leone. We are committed to unlocking opportunities for foreign investments, and our policies are tailored to support sustainable industrial growth. The presence of Odhav Multi Industries underscores our readiness for industrial transformation,”  declared President Julius Maada Bio.

Rich in natural resources such as rutile, bauxite, iron, gold, and diamonds, Sierra Leone is home to one of Africa's largest iron ore mines at Tonkolili, which has an annual output capacity of 20 million tonnes. While the extractive sector accounts for 7% of the nation's GDP and represents 80% of its goods exports, it employs only about 2.84% of the working population, according to the IMF. 

This heavy reliance on mineral exports leaves Sierra Leone vulnerable to fluctuations in global prices, compounded by the underdevelopment of local processing industries. In 2023, Sierra Leone imported $78.05 million worth of iron and steel products, according to data from TradeImex.

Lydie Mobio (intern)