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Analysis and Studies - Country Analysis

Sierra Leone: a look at the market

By SkyMinder Sales Enablement Team November 22nd 2024

Sierra Leone's history is characterized by the impact of European exploration, the transatlantic slave trade, and colonialism. Initially populated by various ethnic groups, the region gained attention in the late 15th century, leading to increased trade, particularly in slaves. A significant development occurred in 1787 when British abolitionists established Freetown as a settlement for freed slaves, marking a turning point for the nation. Throughout the 19th century, Sierra Leone evolved as a British colony, facing both economic growth and resistance to colonial rule, and following independence in 1961, the country experienced political instability, including a coup and a devastating civil war from 1991 to 2002, which resulted in significant societal disruption. Since the war's end, Sierra Leone has focused on recovery and rebuilding, though it still grapples with challenges such as corruption and economic difficulties.

The flag consists of three horizontal stripes of equal size, with light green at the top, white in the middle, and light blue at the bottom. Light green symbolizes Sierra Leone's agriculture, mountains, and rich natural resources, while the white band represents unity and justice among its people. The light blue stripe at the bottom stands for the sea and the natural harbor of Freetown, which plays a vital role in the country's identity and economy.

Sierra Leone has a high level of specialization in Titanium Ore ($221M), Niobium, Tantalum, Vanadium and Zirconium Ore ($30.2M), Aluminium Ore ($51.4M), Rough Wood ($74.2M), and Cocoa Beans ($38.4M).

 

 

In 2022 Sierra Leone was the 159th in the world in terms of total exports, with a trade of $1.15B, and the 168th in total imports, with a trade of $1.72B.

In 2022 the most exported product was Iron Ore, with a trade of $477M, followed by Titanium Ore ($221M), Diamonds ($101M), Rough Wood ($74.2M), and Aluminium Ore ($51.4M), exporting mostly to China (54.3%), Belgium (11.9%), United Arab Emirates (5.64%), Germany (4.16%), and Netherlands (3.77%).

We can observe both opportunities in resource exports and challenges linked to market dependence. The graphic shows that the exports are heavily dominated by mineral resources, with iron ore leading and being primarily exported to China, highlighting a significant dependency on this single market.

The country also exports titanium ore, which sees a more varied distribution with key buyers including Belgium and Germany, indicating an effort to diversify its trading relationships. Meanwhile, diamonds are predominantly destinated to the United Arab Emirates and Belgium, reflecting the vulnerabilities tied to luxury goods. Rough wood is also solely exported to China, further emphasizing reliance on this market, whereas aluminium ore shows better diversification, with notable exports to Ireland, China, and Romania.

  1. Iron Ore (41.6%): 100% China
  2. Titanium Ore (19.3%): 43.5% Belgium, 19.9% Germany, 8.11% Japan, 6% China, 5.35% Kazakhstan, 4.41% Malaysia, 3.64% France,78% United Kingdom, 1.88% Netherlands
  3. Diamonds (8.82%): 58.4% United Arab Emirates, 37% Belgium, 1.97% United States, 1.4% United Kingdom
  4. Rough Wood (6.48%): 100% China
  5. Aluminium Ore (4.49%): 39.1% Ireland, 21% China, 20.8% Romania, 19.1% India

Whereas the most imported product was Rice, with a trade of $161M, ahead of Refined Petroleum ($58.1M), Vaccines, blood, antisera, toxins and cultures ($51.9M), Packaged Medicaments ($48.1M), and Cars ($47.1M), importing mostly from China (33.4%), India (11.7%), Turkey (9.12%), United States (5.81%), and United Arab Emirates (5.06%).

We can observe that the country’s import landscape is characterized by a strong emphasis on essential goods, with rice being the most significant import, which is sourced from India and China, highlighting a dependence on these nations for food supplies.

 

Refined petroleum follows, mainly imported from Belgium, which underscores Sierra Leone's reliance on international markets for energy resources. The healthcare sector also plays a crucial role, particularly with vaccines and medical supplies, sourced largely from Belgium and the United States: this reliance reflects the importance of international partnerships for healthcare needs. While packaged medicaments, primarily imported from India and China, further demonstrate Sierra Leone's dependency on foreign pharmaceutical sources. Lastly, cars are predominantly imported from the United States, indicating a demand for vehicles within the country.

  1. Rice (9.35%): 49.4% India, 37.4% China, 7.95% Uruguay, 2.22% Brazil
  2. Refined Petroleum (3.39%): 62.5% Belgium, 10.7% Turkey, 9.71% China, 4.64% Greece, 3.33% United Arab Emirates, 2.65% India, 1.6% Senegal
  3. Vaccines, blood, antisera, toxins and cultures (3.03%): 50.9% Belgium, 14.6% United States, 12.9% Italy, 5.72% Netherlands, 3.69% China, 3.05% Germany, 1.86% India, 2.81% South Korea
  4. Packaged Medicaments (2.8%): 61.5% India, 25.6% China, 2.37% Germany, 1.85% United Kingdom, 1.01% Netherlands
  5. Cars (2.75%): 51.6% United States, 21.6% United Arab Emirates, 7.15% United Kingdom, 5.66% India, 4.13% Germany, 3.46% Belgium

Between 2021 and 2022 the fastest growing exporter was China, with an increase of $292M, followed by India ($21.8M) and Ireland (20.7M).

 

 

 

  1. China: from $330M to $622M
  2. India: from $14.7M to $36.5M
  3. Ireland: from $440k to $21.1M

China was also the country with the fastest growth in imports, with an increase of $91.5M, ahead of South Africa ($34.1M) and Turkey ($23.1M).

 

 

 

  1. China: from $481M to $573M
  2. South Africa: from $32.1M to $66.2M
  3. Turkey: from $133M to $156M

 Sources: 

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/