Illustrative

Agribusiness & Food SystemsAFC-AGR-0036

Sierra Leone Palm Oil

Sierra Leone · NationwideAgro-processing · Palm oil, estates, milling and refining

Rehabilitation and expansion of 40,000 hectares of oil palm in Sierra Leone, with 40 community mills, eight medium integrated mills and four refineries, serving domestic, ECOWAS and EU markets, for an estimated c. USD 285.7m.

Project cost

c. USD 285.7m

Estates, mills, refining, finance¹

Capacity

40,000 ha

Capital sought

USD 285.7m

Capital sought

Timeline

At feasibility

Feed Salone priority, 2023–28

Rationale

Palm oil is Sierra Leone's second-largest agricultural export, about 50,000 t of crude oil a year worth about USD 50m,¹ while ECOWAS imports about 1.5 million tonnes a year. About 70% of smallholder output already flows informally to Guinea, and the 2022 Customary Land Law eases land access.

Estates: 40,000 ha rehabilitated or expanded
Processing: 40 community mills, 8 integrated mills, 4 refineries
Markets: Domestic, ECOWAS and EU buyers
Stage: Greenfield, at feasibility

Investment opportunity

Transaction structure

Private and PPP components of a government-prioritised investment plan, open to estate, milling and refining investors.

Use of funds

Estates USD 123.2m; community mills USD 80.0m; integrated mills and refineries USD 80.0m; finance windows USD 2.5m.¹

Revenue basis

Crude and refined palm oil sold to domestic, ECOWAS and EU buyers.

The ask

Investors in estate development, outgrower schemes, milling and refining capacity, through private or PPP structures.

Why it is bankable

Established base.

About 50,000 t of crude palm oil a year, worth about USD 50m, from 18,000 ha of estates and 32,000 ha of smallholdings.¹

Regional deficit.

An ECOWAS import gap of about 1.5 million tonnes; about 70% of smallholder output already flows informally to Guinea.

Land and policy.

The 2022 Customary Land Law eases land access; Feed Salone (2023–28) prioritises import substitution and value addition.

Investor traction.

Sierra Leone palm oil businesses have recently raised USD 7m and USD 20m from agribusiness and development finance investors.

Data and evidence · Sector base and regional market

50,000 t/yr

Crude palm oil produced

18,000 ha

Existing estates

32,000 ha

Existing smallholdings

1.5 Mt

ECOWAS palm oil import gap

70 %

Smallholder output sold to Guinea

Project readiness and timeline

OriginationGreenfield
FeasibilityCurrent stage
StructuringTo follow
Financial closePost-diligence
ConstructionTo follow

Key risks and mitigants

Offtake

Not contracted; domestic, ECOWAS and EU demand, with about 70% of smallholder output already sold into Guinea.

Land

Estate land access plans are released under NDA; the 2022 Customary Land Law eases access.

Deforestation and E&S

Expansion must avoid forest loss; E&S and deforestation safeguards are in the Tier 2 data room.

Transaction terms

Offtaker: Domestic and regional buyers; about 70% of smallholder output already exported to Guinea
Contract status: Not contracted
Structure: Private and PPP components within a government investment plan
Technology: Estate rehabilitation and expansion; 40 community mills, 8 integrated mills, 4 refineries
Capacity: 40,000 ha rehabilitated or expanded, across 52 processing sites
Location: Bo, Kambia, Port Loko, Pujehun and Kailahun; sites under NDA
WAIIS pillar: Agribusiness & Food Systems

Development impact

Social

29,421 direct and 176,500 indirect beneficiaries, with per capita income up USD 270.¹

Economic

Ends palm oil imports (about USD 2.7m in 2024) and lifts export earnings by 2032.

Smallholders

400 Farmer Field Schools and 800 km of feeder roads alongside the estates.¹

Climate

Net balance of about –3.59 million tCO2-e over 20 years (FAO EX-ACT tool).