By Emmanuel Abara Benson
As one of the least developed countries in Africa, it is not surprising that Sierra Leone has, for years, suffered unimaginable infrastructure deficits. Years of political instability and civil war have complicated the problem. Unfortunately, this infrastructural shortfall has inevitably restricted the country’s ability to attract investment, thus hindering economic growth.
One area where this infrastructure shortfall was most pronounced was in Sierra Leone’s aviation sector. Until recently, the Freetown International Airport was often criticised for its limited amenities and outdated facilities. It was an eyesore for Sierra Leone and the government needed to upgrade it. Expanding and modernising the airport was not just a matter of ensuring travel convenience, but a critical step toward unlocking the country’s economic potential.
Challenges in Attracting Infrastructure Investment
Attracting the necessary funding needed for the airport upgrade initially proved challenging due to certain factors, including the country’s political instability, economic volatility, and other peculiar risks associated with investing in most developing countries. Despite the challenge, progress was finally made when Summa Turizm Yatirimciligi A.S. (Summa), a Turkish investment and development company, came into the picture. The company secured $150 million from the US International Finance Development Corporation (DFC) according to this statement. The financing deal was facilitated and advised by Delphos.
The capital unlocked for modernising the Freetown International Airport was in furtherance of the work Summa was already doing in Sierra Leone and across the West Africa region. In line with its Build, Operate, and Transfer (“BOT”) concession for the Freetown Airport, the company used the funds to construct and launch a new state-of-the-art terminal at the Freetown International Airport in 2023. It has been described as the first international passenger facility ever built in the country since its independence in 1961.
The arrangement is such that the Turkish company would finance the needed constructions and then operate the airport facilities for a specified number of years before handing ownership back to the Sierra Leonean government. Note that the company also has similar agreements for airports in Senegal and Niger.
Perhaps it is not surprising that Summa chose Delphos to arrange this deal. The financial advisory firm specialises in helping to unlock development capital faster than traditional development finance institutions. The company’s track record is evident across many developing Asian and African countries. Therefore, the continued partnership between the two could only mean one thing for Sierra Leone and more African countries – more development.
More Details about Ongoing Modernisation of Freetown International Airport
It should be noted that apart from the modernisation by Summa, plans are underway for another major project aimed at positioning the airport for excellence. In December 2023, the Sierra Leonean government signed a memorandum of understanding (MoU) with China Road and Bridge Corporation and Atepa Group to build a 5-mile-long bridge connecting to the estuary where the airport is located. The project, estimated to cost a whopping $1.5 billion according to Reuters, is essential because the estuary is only currently accessible by ferries and boats, a journey that could often be daunting. The bridge is expected to ease accessibility.
However, the planned project has faced some backlash from some environmentalists and activists. In his commentary for a local newspaper, lawyer Basita Michael blasted the proposed project and cautioned that the marine environment around the proposed construction site could be impacted negatively. He also recommended that the government must come up with a comprehensive plan on how to dispose of construction waste and ensure that the project does not unleash negative environmental and social disasters.
Construction for the bridge is slated to begin in the fourth quarter of 2024. And even though the government has not responded to any of these concerns, one can only hope that plans are being put in place to mitigate any negative impacts. The fact remains that these projects are necessary for Sierra Leone. And the fact that they are in the pipeline is laudable and should be commended.
The Future of Infrastructure Financing in Sierra Leone
In the meantime, Sierra Leone and more countries in Africa are still in dire need of more funding to develop their aviation infrastructure. According to International Air Transport Association (IATA), Africa faces an airport infrastructure financing gap of $25 billion amid outdated facilities, limited runways, and a lack of modernization.
The expectation is that other stakeholders will step up to the challenge in helping to unlock more financing for development on the continent. Delphos is poised to continue to be a key partner in the region, playing its part in advising and arranging well-structured capital/debts that will further enhance West Africa’s infrastructure landscape.
REFRENCES
- https://delphos.co/new-airport-in-sierra-leone-a-milestone-for-growth/
- https://delphos.co/
- https://www.reuters.com/world/sierra-leone-signs-mou-with-china-firm-freetown-bridge-government-statement-2023-12-01/
- https://cocorioko.net/lungi-bridge-project-nears-reality-but-will-it-be-a-blessing-or-a-burden/