Investment

Sierra Leone announces Sierratel relaunch 

The government of Sierra Leone has announced the relaunch of state-owned telecom operator Sierratel through a new private sector partnership.

The authorities announced the initiative on Tuesday this week, during a meeting that brought together company staff as well as representatives from the Ministry of Employment and the Ministry of Communication, Technology and Innovation.

The government apparently plans to restore and reposition Sierratel under a new operating model aimed at improving efficiency and long-term sustainability. 

The presence of company staff at the meeting may have been due to money they are owed. As part of the initiative, an advance payment of US$2 million will be made to begin settling the company’s staff liabilities, which total approximately US$6.3 million. In addition to clearing arrears, the government plans to modernise infrastructure, manage external debt and improve working conditions.

By bringing in private sector participation, the government reportedly aims to strengthen operational capacity, drive innovation and ensure the sector’s future growth. However, the potential partners have not yet been revealed.

Sierratel has had problems for a number of years. According to news agency Ecofin, when the government took office in 2018, the company was in bad shape and in debt to employees, suppliers and several international creditors.

Before this, a 2014 investment in CDMA technology had apparently initially improved commercial performance but the rapid global shift toward GSM gradually marginalised that technology and pushed subscribers to rival networks.

Private sector competition is clearly going to be the company’s main challenge. Although up-to-date figures are hard to find, Africell apparently had 4.46 million mobile subscribers by the end of 2024, representing a 55% market share.

Orange and Qcell between them hold most of the rest. Orange leads the mobile data market with 2.16 million subscriptions and a 60% share although these are figures from late 2023. Recent subscriber figures for Sierratel – if indeed it actually has any subscribers – do not appear to be available.



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