Sierra Leonean businesses now have new tools to assess their readiness for external investment after Invest Salone introduced a resource suite designed to address persistent gaps in the country’s entrepreneurial ecosystem.
Three tools to bridge the investment gap
The initiative provides an online Investment Readiness Scorecard, a Sierra Leone Investment Toolkit, and a Business Advisor Directory, each serving a distinct but complementary function. The scorecard, accessible through an anonymous online platform, allows businesses to conduct self-assessments without disclosing sensitive information. The evaluation covers dimensions of investment readiness, including governance, financial management, business strategy, operations and regulatory compliance.
The Sierra Leone Investment Toolkit complements the scorecard by offering actionable guidance tailored to the country’s regulatory and economic setting. It breaks down complex topics such as corporate governance into digestible modules, explaining how practices like board oversight and shareholder agreements can influence investor confidence. The toolkit also demystifies regulatory compliance, clarifying licensing requirements, tax obligations, and sector-specific permits that often deter foreign investors unfamiliar with local procedures.
The Business Advisor Directory functions as a curated network of local professionals, including accountants, legal experts, and business consultants who specialize in preparing firms for external funding. The directory offers a starting point for firms seeking specialist support in a market where formal advisory services are concentrated in urban centers like Freetown.
These resources emerged from extensive consultations with small and medium-sized enterprises (SMEs) across Sierra Leone, revealing recurring obstacles such as limited access to market data, weak financial controls, and unclear pathways to investor engagement. The tools adapt global best practices to Sierra Leone’s business environment.
Pooja Melwani of Invest Salone stated the tools help businesses spot weaknesses in their investment plans. “Every business is at a different stage of its investment journey,” she explained. “Knowing where you stand is the first step toward becoming ready for investment.” The scorecard’s structured feedback mechanism addresses a systemic issue in Sierra Leone’s business environment: the absence of standardized benchmarks for investment readiness. Unlike informal assessments, which often rely on subjective criteria, the scorecard provides objective metrics that align with international due diligence standards.
For many entrepreneurs, the challenge isn’t only securing capital but also learning how to attract it. The scorecard divides readiness into measurable categories, such as financial health and legal compliance, offering a clear path for improvement. This granular approach is uncommon in markets where businesses frequently operate without formal business plans or financial projections. By quantifying gaps—the scorecard enables targeted interventions, whether through self-directed learning or professional advisory support.
Structured feedback like this is rare in Sierra Leone, where informal practices often prevail. Many local businesses rely on word-of-mouth referrals or ad-hoc consultations with acquaintances rather than systematic evaluations. The scorecard’s anonymity further encourages participation, as it allows firms to identify vulnerabilities without fear of reputational damage. This is particularly important for family-owned enterprises, which dominate Sierra Leone’s private sector and may be reluctant to disclose operational weaknesses to outsiders.
Support from international partners
Recognized by industry leaders for extensive coverage on African asset management, the project receives backing from the UK Government and British International Investment through the Africa Resilience Investment Accelerator (ARIA), a program co-funded by FMO, the Dutch entrepreneurial development bank, and Proparco, the private sector financing arm of the French Development Agency. ARIA’s involvement reflects a broader trend of development finance institutions (DFIs) shifting from direct lending to capacity-building initiatives, recognizing that many businesses in frontier markets lack the foundational structures needed to absorb capital effectively.
Alex Kucharski, Director of Market Creation at BII Plus, said the initiative matches BII’s aim of improving conditions for businesses in frontier markets. “These resources help firms determine if they’re ready for investment, find suitable investors, and access local advisory support,” he noted. BII’s focus on Sierra Leone aligns with its strategy to deepen engagement in countries where economic potential is constrained by institutional weaknesses. The tools address a critical bottleneck: the mismatch between investor expectations and the operational realities of local businesses. For example, while international investors typically require detailed environmental, social, and governance (ESG) disclosures, many Sierra Leonean firms lack the expertise to compile such reports. The toolkit provides step-by-step guidance on developing policies that meet global standards.
The tools are available online at no cost, removing financial barriers that often exclude micro and small enterprises from professional development opportunities. The resources are built to scale across sectors, from agribusiness and renewable energy to light manufacturing and tech startups. The digital format allows for continuous updates, ensuring the content remains relevant as regulations and market conditions evolve.
ARIA’s co-funders, FMO and Proparco, bring additional expertise to the initiative. FMO’s experience in supporting SMEs in fragile states informs the toolkit’s emphasis on risk mitigation strategies, while Proparco’s work in Francophone Africa has shaped the directory’s approach to vetting advisors. This cross-pollination of knowledge ensures the tools are locally relevant and aligned with the expectations of European investors, who represent a significant source of capital for Sierra Leonean businesses.
The launch arrives as Sierra Leone works to diversify its economy beyond mining and agriculture, sectors that have historically dominated foreign direct investment (FDI) inflows. While FDI has increased in recent years—driven by projects in infrastructure and energy—many local businesses remain ill-prepared to compete for these funds. International investors often cite inconsistent financial reporting, weak corporate governance, and inadequate legal protections as deterrents to engaging with Sierra Leonean firms. The new tools directly address these concerns by providing frameworks for improvement, such as templates for financial statements or checklists for conducting internal audits.
Melwani emphasized that the tools are designed to be practical. They avoid theoretical jargon, instead using case studies and real-world examples to illustrate concepts. For instance, the governance module includes a sample shareholder agreement tailored to Sierra Leone’s Companies Act, while the financial management section features a simplified cash flow projection tool. This hands-on approach is critical in a context where many entrepreneurs lack formal business education but possess deep industry knowledge.
Entrepreneurs can use them without formal training. The scorecard employs a multiple-choice format with plain-language explanations, allowing users to assess their readiness even if they have no prior experience with investor due diligence. The toolkit’s modular structure enables businesses to focus on immediate priorities before tackling more complex issues. This incremental approach reduces overwhelm and increases the likelihood of sustained engagement with the resources.
This approach addresses a key barrier in markets where access to professional advice is limited. In Sierra Leone, business advisory services are concentrated in Freetown, leaving entrepreneurs in regional hubs at a disadvantage. The online tools democratize access to expertise, enabling firms in remote areas to self-diagnose weaknesses and seek targeted support. Additionally, the Business Advisor Directory includes professionals from across the country, ensuring that businesses outside the capital can connect with local experts.
