Background
Sierra Leone still suffers from persistent fragility and poverty after the end of the civil war in addition to the deadly Ebola epidemic and the COVID-19 pandemic that further threatened the achieved positive economic dynamics and progress in SDGs implementation. Sierra Leone has highly concentrated export baskets and the current trade structure makes the country highly exposed to external shocks, notably with the global economic fluctuations. The country is still facing low productivity as it relies mostly on exporting of unprocessed raw products and the growth generated has translated only into modest improvement in poverty and inequality reduction as well as employment creation. Sierra Leone continues to rely mostly in exporting primary products while the industrial and manufacturing sector that should be at the core of the transformation process, given their forward and backward linkages, remains weak.
More efforts are required towards achieving productive transformation characterized by economic diversification with the creation of new products, knowledge-based and higher value-added production, the improvement in productivity and the creation of decent jobs. Product diversification is of paramount importance as it makes strong predictions about future GDP growth. It is widely recognized that increased productivity is achieved in countries that were able to modernize their activities and creating advanced export goods.
The country faces challenges affecting trade, especially, intra-Africa trade/cross border trade, due to persistent and cumbersome trade barriers that drive trade into informality and contributes to lower levels of tax collection and enforcement of regulations. Traders across borders and regional markets face identical challenges - high tax rate, unfair tax system, poor services at border posts. These issues have been the major obstacles for diversification and economic transformation in the country. Firms in Sierra Leone need to be competitive in light of the changing continental and global contexts e.g. digitalisation, rapid urbanisation in Freetown, raising demand in urban food markets from middle-income class and demographic growth, new financing models for development, new partnerships from emerging economies. This will therefore require that the country reinforces capabilities and the business environment to produce and export more sophisticated and high-value products.
Sierra Leone could promote private sector development and leverage regional complementarities by developing Specialised Economic Zones (SEZs) and industrial clusters to improve competitiveness, business linkages and productivity of local firms, leveraging on the presence of international firms. In 2013, the Government of Sierra Leone established a tax-free economic zone in an attempt to opening up the country for investments. A 54-acre site was secured outside Freetown with three-year tax holiday, duty- and tax-exemptions on imported goods, and guaranteed supplies of electricity and water for all companies in the zone. At present, the Ministry of Trade and Industry is developing an industrial policy for the country in which the re-establishment of SEZ is a key feature to attract and maintain foreign direct investments into the country. SEZs can facilitate new production and marketing networks and create linkages among domestic and foreign firms and investors in the country, and hence increase firms’ abilities to expand their business into new markets. Efficient SEZ are expected to improve and expand the manufacturing and services sectors for more value addition and job creation and contribute to sustainable and inclusive economic growth, reducing the environmental impact of productive activities at the national level. Despite these potential benefits, SEZs require a strong and stable governance structure to thrive. The creation of SEZs should be based on objective criteria and in fragile context like Sierra Leone, with a narrow fiscal space, SEZs should not fall captive to vested interest among others or over rely on fiscal incentive
The SEZs need to adapt to the evolving context of global trade and investments and align with the AfCFTA strategy in order to better contribute to regional integration and stimulate trade in Sierra Leone.
Objective and Scope of Work
This study will examine patterns and drivers of economic diversification and sophistication in Sierra Leone, the prospects for industrialisation, and the crucial role that can be played by SEZs. It aims to propose actionable policy recommendations for the Government to unlock productive transformation and contribute to unleash the full potential of the Continental Free Trade Area (AfCFTA) for Sierra Leone’s productive transformation.
Adequate infrastructure and an attractive regulatory framework represent two key pillars on
which the attractiveness of the SEZs is based. Developing them up to international standards require expertise, resources, and institutional capacity. This study will review the SEZs policy and recommend concretes actions to identify the capabilities and conditions required to set up efficient SEZs in the country.
The study will inform on how the SEZs, production networks and value chain development can accelerate enhance the ability of Sierra Leonean firms to tap rapidly evolving local and competitive global international markets
Duties and Responsibilities
The specific responsibilities of the National Consultant are as follows:
The consultant will work closely with the UNDP and Ministry of Trade and Industry team, under the supervision of the UNDP Economic Advisor, in collaboration with the Chief Director at the Ministry will do the following:
- Brief overview of the state and strategies for diversification and sophistication in Sierra Leone building on the revised Industrial Policy
- Identify the structure, facilities and features needed to build successful and integrated Special Economic Zones (SEZs)
- Conduct an evidence-based analysis to ascertain SEZ location selection using multiple and robust criteria (economic, environmental, financial, social, sustainability, multiplier effect, infrastructure, capabilities required, investment climate, market size, geography and other factors)
- Engage with potential investors and different groups of relevant stakeholders, including the Government, collect and understand their insights and perceptions on SEZ location choices, opportunities, constraints and other characteristics
- Explore and recommend funding models for the various forms of SEZs
- Propose public policies for promoting the development of the private sector through SEZs and identify priority sectors/value chains
- Evaluate the opportunities, challenges and risks associated with the SEZs in Sierra Leone and territorial realities
- Provide recommendations on the creation of spaces for mutual learning, partnerships and exchange of best practices, especially to scale-up innovative business ideas and increase the competitiveness of local firms in Sierra Leone.
- Determine the capacity requirements (productive capability) for efficient SEZs
- Evaluate and provide recommendations on the required policies, notably clusters policies, and the catalytic investments needed to enhance resilience to vulnerabilities and shocks and increase local productivity by enabling businesses (especially trade and agro-based businesses) to access inputs, notably energy-dependant inputs
- Identify the strategies required and necessary steps to establish high-performing SEZs in accordance with the country’s comparative advantages and harness its natural resources in the today’s global context of volatility
- To perform other tasks relevant to the present assignment as requested
Competencies
Competencies
Corporate:
- Demonstrates integrity and fairness, by modelling the UN/UNDP’s values and ethical standards.
- Promotes the vision, mission and strategic goals of the UN and UNDP
- Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.
- Treats all people fairly.
- Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment.
Functional:
- Strong macroeconomic analytical, financial and statistical skills
- Strong researching skills
- Good knowledge of the development context and investment dynamics in the country
- Proficiency in Microsoft suits (word, excel, PowerPoint and outlook)
- Expertise in gathering and comprehensively analysing country-level data
- Strong communication skills, including ability to produce high quality practical advisory reports and knowledge products
- Good knowledge of the SDGs and financing for development issues
- Ability to network with stakeholders including Ministries, Departments and Agencies
- Good understanding of the country’s current national development plan
- Strong knowledge of the business environment, financial services sector and national development priorities
Client Orientation and Communication
- Strong oral and written communication skills;
- Excellent interpersonal and networking skills and the ability to establish and maintain effective working relations;
- Ability to use information and communication technology as a tool and resource
- Supports and encourages open communication and responds positively to critical feedback and differing points of view;
- Ability to work in a multi-cultural environment and to communicate sensitively across different constituencies and awareness of political, social and cultural sensitivities;
- Builds strong relationships with clients and external actors.
Required Skills and Experience
Education:
Master’s degree in economics, development, finance, accounting, business administration, data science or related field
Experience:
- Minimum 5 years of professional working experience in the public/private sector, academia, development partner’s institutions, international financing institutions and research institutions in the field of analytical research in economic development, development finance, foreign trade, investments promotion and business analysis.
- A previous experience in projects related to the creation of special economic zones is desirable.
- Ability to provide top quality policy advice services on investments and economic issues
- Experience in carrying out assessment and preparing reports on broad development, development finance issues and implementation of sustainable development goals (SDG)
- Familiarity with mixed methods research, particularly the collection and navigation of statistical databases
- Experience in the review and analysis of policy documents, international agreements and conventions; economic and business-related reports and performance indicators
- Experience in liaising with public and private sector stakeholders and engaging with public and private sector stakeholder dialogue activities (interviews, surveys, workshops, round-table, discussions, etc.)
Language Requirements:
Excellent command of English language (written & oral)
Selection Criteria
Upon the advertisement of the Procurement Notice, qualified individual consultants are expected to submit both the Technical and Financial Proposals. Accordingly, individual consultants will be evaluated based on Cumulative Analysis as per the following scenario:
- Responsive/compliant/acceptable, and
- Having received the highest score out of set of weighted technical criteria (70%) and financial criteria (30%). Financial score shall be computed as a ratio of the proposal being evaluated and the lowest priced proposal received by UNDP for the assignment.
Below is the breakdown of scores for the technical proposal on 100% basis, which will be brought to 70%:
Criteria Weight
Academic qualification 15 %
Professional experience as outlined above 40%
Quality of previous work 15%
TOTAL 70%
N/b: Only candidates obtaining a minimum of 70% of the total technical points would be considered for the Financial Evaluation
DELIVERABLES AND FINAL PRODUCTS
NO Deliverable Timeline (weeks) Payment
01 Inception report 1 20%
02 Collection of primary and secondary data 4 50%
03 Production of zero draft report 3
04 Present and discuss the findings of the study with key stakeholders 1 30%
05 Submission of final report 1
DURATION OF ASSIGNMENT, DUTY STATION AND EXPECTED PLACES OF TRAVEL
Duration of Assignment: September 2022 – November 2022 (50 working days.)
Duty Station: Office-based, Sierra Leone
INSTITUTIONAL ARRANGEMENTS
The Consultant will be engaged on a short-term basis 50 working days (September 2022 – November 2022 (50 working days) under the Individual Contract arrangement. The study will be delivered under the direct supervision of the Economic Advisor, in collaboration with the Chief Director of the Ministry of Trade.