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How Sierra Leone Can Make Its Mineral Wealth Work for Its People

Decentralisation, local processing, and community consent can transform mining into genuine development.

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Sierra Leone earns nearly 80 per cent of its export revenue from minerals. Yet mining communities in the country remain poor and have lost their land because hurtful decisions are made for them by the government. 

Although mining laws exist in Sierra Leone, enforcement is weak and disconnected from local realities. And because almost all the minerals are shipped abroad raw, the real value leaves with them. To ensure mining supports inclusive development rather than inequality, urgent reform is required. 

This reform entails decentralising mining oversight and linking local processing to community-managed trust funds governed by Free, Prior, and Informed Consent (FPIC), a principle that ensures communities with minerals are properly informed, consulted, and able to give or withhold consent before projects affecting their land or livelihood begin.

Mining is the backbone of Sierra Leone’s economy, but decisions are made far from affected communities, leaving them powerless when land is damaged or agreements are broken. This deepens conflict and poverty, and risks leaving future generations with polluted land and few opportunities.

Decentralising power

The first step to making Sierra Leone’s mineral wealth work for communities is to decentralise oversight of mining. Decentralising mining oversight puts monitoring power in the hands of local authorities and community leaders. 

READ MORE: A Golden Opportunity: Transforming Tanzania’s Artisanal Mining for People and Planet 

Since these local leaders live on the land, they can spot problems early, confront companies directly, and stop harm before it escalates. With proper support, this approach will reduce conflict and force accountability.

Kenya shows how this strategy can work. In the country, county governments include public participation in mining decisions. Communities get a seat at the table to vet investors, and no company can carry out mining activity without local consent. 

It protects land rights and the environment because the people who live there are watching. The county government uses local committees to address complaints related to pollution, land disputes, and safety risks before they escalate into bigger problems. The result is faster action, less tension, and a lot more trust.

Linking processing to benefit

But monitoring alone is not enough. There is a need to change how the money flows. Right now, mining communities in Sierra Leone bear major environmental and social costs, while profits disappear overseas. 

In this regard, the country needs to link local mineral processing to community-managed trust funds governed by FPIC. Under this system, when wealth is extracted from the land, mining companies must process it in-country.

READ MORE: DRC’s Strategic Partnership Proposal to the U.S. And the Quest for ‘Right’ Regional Leadership in East Africa 

This approach has worked in Botswana. The government mandated that mining companies conduct part of their operations within the country. To obtain a licence, mining companies had to agree to cut, polish, and sort diamonds locally instead of sending them abroad. 

As a result, mining companies built factories, created jobs, and retained the diamond value domestically. Sierra Leone can do the same by tying mining licences to binding agreements that require local processing and direct contributions to community funds. 

This way, mining companies can still make profits while the country receives a fairer share of its mineral wealth.

Smart investment incentives

Certainly, Sierra Leone has to be smart about investment incentives. The OECD says tax breaks can attract investors, but only if they are temporary and tied to real economic benefits such as building processing plants, employing local workers, and transferring skills. 

If a company is given a tax holiday, meaning it pays little or no tax for a short period, it should be because it is building processing plants, employing local people, and training workers. 

READ MORE: Africa’s Mineral Exploitation Is Yet to Benefit Africans. But Who’s to Blame?

These deals must be reviewed regularly to make sure mining companies pay their fair share. With proper training, short-term mining jobs can become long-term careers, helping communities stay strong even after the mines close.

Learning from Nigeria

In Nigeria, the federal government announced it will issue mining licences only to companies that agree to process minerals domestically. The country is demanding that the value remain at home. 

Importantly, Nigeria is embedding FPIC, ensuring communities are informed from the outset and have the right to say no. That principle, endorsed by the United Nations (UN), is the foundation of everything. It reduces conflict, builds local ownership, and creates jobs because people are more likely to support a project they helped design.

Taken together, these reforms indicate a mining sector that is fairer, more stable, and better aligned with the realities of local communities. Mining communities would benefit first, but local institutions, public finances, and national planning would also improve. 

Over time, this approach could reduce tension, lower corruption risks, and slow unplanned migration from damaged mining areas. By linking economic gains to accountability and community consent, Sierra Leone can move away from the boom-and-bust cycle of mining and build an economy that supports long-term growth and fosters greater citizen belonging.

Patricia Sia Ngevao is a writing fellow at African Liberty, a U.S.-based think tank focused on advancing individual freedom, peace, and prosperity in Africa. She is available at pngevao@studentsforliberty.org and on Facebook as Patricia Sia Ngevao. The opinions expressed here are the writer’s own and do not necessarily reflect those of The Chanzo. If you are interested in publishing in this space, please contact our editors at editor@thechanzo.com.

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