By Ibrahim Sesay
The Government of Sierra Leone has announced a decisive policy shift in the management of the country’s mineral assets, following directives issued by President Dr Julius Maada Bio aimed at strengthening national oversight and ensuring lasting benefits from the country’s natural resources.
In a public notice issued on January 8, 2026 by the Ministry of Information and Civic Education, the President directed the orderly wind-up of the Mineral Wealth Fund Sierra Leone Limited (MWFSL), the termination of its associated management arrangements and the cessation of the Fund’s participation in the Tonkolili North Iron Ore project under its current structure.
According to the notice, the transition is being implemented strictly in accordance with established laws and Government procedures and does not affect the State’s ownership or custodial management of Sierra Leone’s mineral assets. The underlying assets remain vested in the Sierra Leone Mines and Minerals Development and Management Corporation (SLMMDMC), held in trust on behalf of the people of Sierra Leone.
Government officials underscored that the decision represents “a change in vehicle, not a change in vision.” The administration, they said, remains firmly committed to establishing a robust, transparent and nationally anchored sovereign wealth framework aligned with Sierra Leone’s broader economic policy objectives and international best practice.
President Bio’s directive follows a strategic assessment that a stronger and more integrated framework is required to ensure Sierra Leoneans derive enduring value from the country’s finite natural resources. Under the new approach, work will advance toward the establishment of a Sierra Leone Sovereign Wealth Fund as the country’s apex investment vehicle.
Officials explained that the proposed framework will be legally grounded, professionally managed and guided by globally recognized standards, including the Santiago Principles, while operating in harmony with existing statutory institutions responsible for the ownership and management of state mineral assets.
“This is a strategic reset, not an abandonment of our sovereign wealth ambitions,” a senior Government official said. “The President is ensuring that Sierra Leone’s mineral wealth is managed through a structure that is transparent, cost-effective and firmly aligned with the national interest.”
A policy review by the Ministry of Mines and Mineral Resources concluded that the existing Mineral Wealth Fund framework was no longer best suited to advance the country’s long-term economic and governance objectives, citing concerns related to governance architecture, efficiency, transparency and integration with national fiscal policy.
As part of the directive, MWFSL has been instructed to end all further participation in the Tonkolili North Integrated Mining and Infrastructure Project under its Framework and Supplementary Agreements with China Overseas Engineering Company (COVEC). The Attorney-General and Minister of Justice has also been directed to terminate the associated management services agreement.
Crucially, the Government has emphasized that those actions do not diminish Sierra Leone’s ownership or sovereign control over the Tonkolili North asset. The resource remains fully vested in the State through the SLMMDMC and held in trust for the people.
The President has further directed that a competitive bidding process be undertaken to identify a suitable development partner for the project. In the interim, a project company or special-purpose vehicle, established under the chairmanship of the Minister of Mines and Mineral Resources, will advance the project on behalf of the State and under the continued authority of the SLMMDMC.
Looking ahead, the Government plans to establish a Sierra Leone Sovereign Wealth Fund (SLSWF) designed to support macroeconomic stability, long-term development and intergenerational equity. The proposed fund is expected to be more closely integrated with Sierra Leone’s public financial management system, enabling disciplined savings for future generations alongside carefully governed investments that support national development priorities.
The Ministry of Mines’ memorandum accompanying the reforms highlights a core national reality: Sierra Leone’s mineral resources are finite. Once extracted, they cannot be replaced. The State’s responsibility, therefore, is to convert this wealth into enduring assets that continue to serve the nation long after the minerals are exhausted.
Government officials have framed the President’s decision as an act of patriotic stewardship and national responsibility. “Sierra Leone’s minerals belong to Sierra Leoneans,” one official said. “They must be managed transparently, responsibly and in a way that strengthens national sovereignty and long-term prosperity.”
The wind-up of the existing Mineral Wealth Fund will proceed in accordance with applicable law, while work continues on the design and legal establishment of the new sovereign wealth framework. Authorities have assured the public that further details regarding the structure and operationalization of the new system will be communicated in due course.
For now, the message from State House is clear: Sierra Leone is retaining full ownership of its strategic mineral assets, strengthening national oversight and reaffirming its commitment to ensure that the country’s natural wealth delivers lasting benefits for generations yet unborn.
