DFID PSD Programmes Private Sector Development in Sierra Leone Overview of DFID and PEP Africa Programmes Lisa Curtis Private Sector Adviser, DFID 2 nd May 2008

DFID PSD Programmes Reducing Administrative Barriers to Investment Business Start-Up Reducing costs of starting and doing business Streamlining processes Information storage and dissemination procedures Publication of regulations and procedures Land and Locating Information storage and dissemination procedures Land titling procedures published Titling system set up in Land Office Establish framework for cadastre (begin pilot study) Develop planning policy Investment Promotion and Export Agencies Restructuring SLEDIC into 2 agencies Legislative change to support implementation Establish new organisation structures and procedures Capacity-building/training Operations (Tax and Customs) Streamline customs import & export processes Initiate study of effective tax burden Establish HS2002 nomenclature system Publication of tariffs, tax and customs systems and procedures Monitoring & Evaluation Establish key outcome and impact indicators Gather baseline data Set up database and procedures for performance tracking Training and capacity-building to ensure ongoing performance tracking Related Initiatives Informality survey Support for Sierra Leone Private Sector Forum Corporate Social Responsibility Initiatives (mining, tourism) Ministry of Trade & Industry/ FIAS/ DFID The first DFID/FIAS initiative in Sierra Leone started in 2004

DFID PSD Programmes Winding down of RABI in parallel with other project ramp-up RABI Implementation Project Full implementation of new business registration process Finalise implementation of merged work-residence permit procedures Initiate feasibility of special SME registration regime Initiate process of merging tax + business registration numbers Finalise planning policy investor guidelines and procedural manuals Ongoing reforms to improve access to land for investment now under PSD Strategy Programme New SLIEPA Board Senior management now recruited; recruitment of remaining posts ongoing Start of investment and export promotion research and activities Continuing input to tax policy development Introduction of VAT, streamlining customs operations, development of computerisation under NRA programme (DFID) Monitoring & Evaluation Transfer M&E capability fully to MTI Establish interface with private sector for performance feedback Related Initiatives Tourism & Investment Generation Project, Western Peninsula Ministry of Trade & Industry/ FIAS/ DFID Business Start-UpLand and LocatingSLIEPA Operations (Tax and Customs)

DFID PSD Programmes Developing an overall policy framework for long term private sector growth Private Sector Development Programme Policy Development Align sectoral and national PSD objectives Develop national policy document Capacity strengthening for policy unit Consultations Approvals 3-year Implementation Roadmap Legal Reform Define legislation needs to support policy Detailed audit of existing commercial laws Programme of revision and creation of new laws Establish commercial courts Support to ongoing commercial law reforms Priority Programmes National and sectoral initiatives for trade and investment promotion Compliance with international conventions Institutional reform, strengthening, capacity building Investment promotion conferences, other outreach Business Culture Set up consultation forums with private sector groups (managed by SLBF) Capacity building and training(government and private sector bodies) Communications and public awareness Diaspora engagement – support to SLDN MTI website Supporting Activities study of diaspora investment trends access to finance for SMEs (Financial Sector Seminar, Q1 2008)) access to land for investment (Land Seminar, Q1 2008) Ministry of Trade & Industry/ DFID Early Initiatives key commodity value-chain analysis and policy response development reform/rehabilitation of Land Registry

DFID PSD Programmes InvestmentProductivity Entrepreneurship Market Access & FunctioningInternational Linkages Investment Climate Markets (Land, Labour Capital) Policy & Law Instit. Capacit y Physica l Infrast. Support Infrast. Understanding growth drivers as a framework for policy formulation Private Sector Development Programme – Approach Outcomes of Diagnostic exercise: most significant market dysfunctions are in access to finance, access to labour/skills and in supporting infrastructure “soft” impediments to domestic investment include lack of knowledge/confidence in institutional structures (registration, legislation, dispute resolution, taxation) Weak culture of entrepreneurship reinforces assumption that “government will provide”

DFID PSD Programmes Other DFID Private Sector Development Programmes Support to NCP 2 year TA to NCP Secretariat – advisors in power, transport, ports, water, financial services, commercial sectors. Also communications, regulation and legal support Focus in 2008 on financial, commercial and infrastructure sectors Intellectual Property Rights Modernising IPR legislation to comply with TRIPS Institutional change to support implementation of new legislation Final consultations on draft bill during Q Business Development Initiative/ManoCap Technical assistance fund to help make mid-sized businesses “bankable”, leading to direct equity investments from privately-financed PE Fund Assistance with access to debt-finance from domestic lenders New Initiatives in 2008 Support to AFFORD’s SEEDA programme to develop regional resource centres for small-scale entrepreneurs SendMoneyHome – increasing visibility, transparency and reducing cost of remittances

DFID PSD Programmes Sierra Leone Business Forum SLBF is the Private Sector’s, Gov‘t’s and Development Partners platform for: Outreach, public awareness and communication Advocacy and consultation Supporting private sector’s ability to engage with government on economic policy developments Supporting advocacy for reform within government SLBF - a structure for dialogue between private sector and government: Supporting Admin Barriers Reforms Monitoring progress of reforms against targets (MTI M&E framework) Providing technical input on private sector priorities Validating and legitimising collective private sector interests and priorities Maintaining visibility of key issues Advocacy for continuing the reform agenda Supporting communications and public awareness of reform issues and progress Private Sector Development Private sector advocacy on sectoral priorities Consultation on sectoral policies Monitoring progress of reforms against targets (MTI M&E framework) Coordination with SLIEPA on export development and investment promotion priorities Private Sector Initiatives Advocacy for private sector priorities (e.g. access to finance) Promoting visibility of small-scale entrepreneurs and their needs Skills and talent development Alternative Dispute Resolution Energy.. Others to be determined by SLBF and its members Monitoring & Evaluation SLBF to Convene M & E Group – Align PAC members to Working Groups and dovetail with M & E group MTI and Affiliates to Produce Data (Focus on Admin. Barriers in near term) SLBF and PSD to review Quartely reporting commencing June 2007 Joint publication and dissemination strategy

DFID PSD Programmes PSD Strategy Working Groups RABI Working Groups Issues Raised by Private Sector: Working Groups Steering committee Coordinating secretariat National Coordinator + 2 staff Technical Committees Technical Committees Technical Committees How SLBF will support all Private Sector Development activities