Finance Ministry, UNDP Chart Path for Formalising Informal Businesses

The Finance Ministry and UNDP convened private sector stakeholders Thursday. Atlantic Lumley Hotel hosted this policy roundtable. Discussions targeted formalising informal enterprises. Such efforts enhance domestic revenue mobilisation, strengthen private sector development, and drive economic transformation.

Lead Facilitator Alieu Sesay outlined key objectives during opening remarks. These included identifying registration barriers, reducing formalisation costs, exploring incentives, improving finance access, and strengthening trade readiness. He urged participants to propose practical, cost-effective solutions and agree on priority actions.

UNDP Deputy Resident Representative Kelvin Petrini commended the Ministry and its Research and Delivery Unit for facilitating the dialogue. He stressed that a resilient private sector remains vital for addressing economic uncertainties, attracting investment, creating jobs, and promoting innovation. He added that achieving the Sustainable Development Goals—particularly in youth employment, economic diversification, and digital transformation—requires strong collaboration among government, partners, and businesses.

Delivering the keynote address, Acting Director of the Research and Delivery Unit, Alhaji Abu Kommeh, thanked UNDP for its partnership. He noted that while informal enterprises sustain livelihoods across markets, farms, and fishing communities, they face severe constraints. These include limited capital, inadequate infrastructure, weak market connections, and restricted access to business support.

Citing the World Bank’s 2025 Sierra Leone Economic Update, Mr Kommeh disclosed that approximately 75 per cent of enterprises remain unregistered, 85 per cent lack formal financial records, and only 5 per cent access formal finance. He highlighted that the country needs at least 75,000 new jobs annually but currently generates only about 41,000. He stressed that formalisation must go beyond simple registration to create productive businesses capable of accessing finance and expanding operations. This aligns with the Medium-Term National Development Plan (2024–2030) target of creating 500,000 jobs, with the private sector expected to generate 70 per cent.

The roundtable featured presentations on the evidence of informality and pathways to formalisation, alongside findings from UNDP’s Private Sector Assessment. The first panel included representatives from the National Revenue Authority, National Investment Board, Freetown City Council, International Labour Organisation, Aurora Foundation, informal sector businesses, and Fourah Bay College.

A second session, moderated by Betts Firms, focused on strengthening private sector capabilities, finance access, and trade readiness. Panellists included representatives from the Ministry of Trade and Industry, Sierra Leone Chamber of Commerce, Industry and Agriculture, Sierra Leone Importers Association, and the National Tourist Board.

The engagement concluded with a question-and-answer session. Participants identified priority actions and agreed on a roadmap to advance business formalisation, improve competitiveness, and support Sierra Leone’s economic transformation.