Opening the telecoms sector to foreign business is a major step forward for Sierra Leone

For much of the past decade, the information age has largely passed Sierra Leone by. Quite simply, there were more pressing matters to deal with than the development of broadband internet and mobile phones.

Things are changing fast, however. The overhaul of the telecommunications sector has become an integral part of the rehabilitation strategy of the country.

The prolonged civil war caused extensive damage to the communications network and supporting installations, while much of the existing infrastructure in place is old and in urgent need of replacement. It means plenty of scope for enterprising foreign investors.

The government is planning the revival of the sector through new legislation that will open the door to private investment and greater competition. Initial liberalisation measures have already allowed some limited competition in the mobile telephony market with the arrival in 2000 of Celtel, owned by Dutch firm MSI Cellular. It has helped to pioneer GSM coverage across the country even in some of the more remote locations. The privatisation of state firm Sierratel is also high on the agenda.

A new telecommunications bill is in the hands of the Attorney General and is due to be forwarded to parliament shortly. Minister of Transport and Communications Dr Prince Alex Harding says the bill incorporates all the best practices of other successful African states.
“In the bill there is something which is critical for success – the acquisition of a regulatory body that is autonomous from central government,” he says, stressing that the withdrawal of government influence from the industry will encourage private sector operators to enter the country with greater confidence. “Now the whole communications industry is open and anybody can come and invest.”

Officials from Sierra Leone have worked closely with experts in places like Tanzania and Uganda that have made substantial progress in reshaping their telecommunications industries. The government is keen not to make any mistakes. Dr Harding says that the regulatory commission – like the telecommunications bill itself – will create a new look for the sector and rejuvenate the industry. “Without it, whatever strategy we employ, it would be difficult to succeed.”

The arrival of more competition – both foreign and local – is expected to result in greater affordability, efficiency and more employment opportunities for the local population. As well as much-needed foreign capital, it will also generate investment in new technology and skills training – a kind of virtuous circle. Cheaper call rates – especially long distance connections – will naturally be well-received by everyone.

Sierra Leone is already co-operating in regional initiatives to improve connectivity between the various countries of west Africa. Freetown subscribes to most
inter-regional projects led by Ecowas. Dr Harding believes everyone in the country is aware that unity is strength. “Before, everybody was working independently, but now countries are coming together to get the political and economic muscle enabling them to compete more favourably on the higher international level.”

There is still a long way to go. Sierra Leone still faces an uphill battle to achieve what has been done in certain other African states. Stimulating competition and opening up the sector to foreign business, however, is a major step forward. If the government can get the enabling environment right – and the indications are that it is heading in the right direction – then the potential for new investors is immense. “Telecommunications is a business sector, a value sector that needs to be exploited by investors,” says Dr Harding.