Freetown, 10th November 2025- Sierra Leone continues to face structural challenges in its business environment, ranking below several regional peers in key areas of insolvency resolution, financial services, and market competitiveness, according to the World Bank’s October 2025 edition of the Sierra Leone Economic Update (SLEU).
The country scored 50 out of 100 in business insolvency, well behind Rwanda (69), Botswana (67), and Togo (64). This score reflects limited efficiency in resolving bankruptcies, weak creditor protections, and underdeveloped legal frameworks for business recovery. The implications are serious: without robust insolvency systems, struggling businesses face prolonged uncertainty, and investors remain wary of entering high-risk markets.
Sierra Leone also scored 42 in financial services, placing it on par with Togo (42) and Côte d’Ivoire (41), but behind Rwanda (61) and Botswana (60). This low score signals limited access to credit, underdeveloped financial infrastructure, and weak integration of financial services into broader economic activity.
In terms of market competition, Sierra Leone scored 48, again trailing Rwanda (66), Togo (59), and Botswana (58). The score suggests a business landscape marked by limited regulatory enforcement, dominance of a few players, and barriers to entry for new firms.
Other areas show mixed performance: Business entry: Sierra Leone scored 48, behind Rwanda (70) and Botswana (72), indicating bureaucratic hurdles and slow registration processes.
Utility services: At 61, Sierra Leone performs relatively well, matching Rwanda and Togo, and surpassing Ghana (55) and The Gambia (41). Labor: With a score of 69, Sierra Leone leads all peers, suggesting relatively strong labor market flexibility and employment regulations.
International trade: Sierra Leone scored 61, matching Rwanda and Togo, and ahead of Ghana (55) and The Gambia (41). Taxation: Sierra Leone scored 49, behind Rwanda (66) and Botswana (64), pointing to inefficiencies and complexity in the tax system.
Dispute resolution: At 60, Sierra Leone ranks mid-tier, behind Rwanda (89) and Botswana (81), but ahead of The Gambia (55) and Ghana (75).
The data, compiled from regional benchmarks, underscores the need for targeted reforms in insolvency law, financial sector development, and competition policy. Experts argue that improving these areas is essential for attracting investment, supporting entrepreneurship, and building economic resilience.
“Without a functioning insolvency framework, businesses are trapped in limbo, and capital remains locked. Sierra Leone must prioritize legal reform and financial sector modernization to unlock growth.” Said a financial analyst.
As the government continues to implement its Medium-Term Revenue Strategy and broader economic reforms, these scores offer a roadmap for where progress is most urgently needed and where Sierra Leone can learn from its regional peers.
