By Aminata Abu Bakarr Kamara
Business owners in Sierra Leone are grappling with the sharp rise in container clearance costs at the Sierra Leone Ports Authority, following the recent implementation of increased import duties. Industry insiders reveal that clearance fees have surged from approximately SLe 150 million–170 million to SLe 240 million–270 million, placing significant financial strain on importers and logistics companies.
The steep rise in costs is a direct result of the Finance Act 2024, signed into law by President Julius Maada Bio, which introduced a range of fiscal measures aimed at increasing government revenue. These measures include a 5% import duty on rice, which is set to double to 10% by 2025, a 20% tax on cement, and a 10% tax on iron rods. While the government argues that these taxes will boost national income, business owners and clearing agents warn that the changes could lead to widespread business closures, job losses, and increased consumer prices.
Businesses Struggling Under the New Tariffs
Mohamed Sesay, Deputy Manager of Samosa Clearing and Forwarding Company, describes the challenges his clients now face. “Previously, clients paid their clearance fees in full, but now many are forced to pay in installments. This delays operations and affects the entire supply chain,” he explained.
Importers and logistics firms are feeling the pressure, with many struggling to adjust to the rising costs. Some business owners fear they may be forced to downsize or shut down completely, leaving hundreds of workers unemployed.
Calls for Government to Reconsider Increases
In response to the financial strain, the business community is urging the Ministry of Finance, Port Management, and the Importers Association to reconsider the magnitude of the tax hikes. Many suggest a phased or reduced increase, proposing adjustments to 20%, 30%, or 40%, rather than the current sharp jumps, to allow businesses to adapt while still contributing to government revenue.
Stakeholders are now awaiting the authorities’ response to these concerns. If no adjustments are made, experts warn of serious economic repercussions, including a downturn in trade activities and inflationary pressures on essential goods.
Sesay and other industry leaders caution that if the tax increases remain unchanged, Sierra Leone may witness mass layoffs, disruptions in the import sector, and rising costs for consumers. As the debate continues, business owners remain hopeful that the government will reconsider its stance to support economic stability.