Private Sector development is central to Sierra Leone’s post-conflict economic recovery programmes. Therefore, it is critical that Sierra Leone align its legal and regulatory frameworks with international best practices, standards, and norms in the areas of Corporate Governance, Banking, Insurance, Securities and Pensions. In this regard, the country has ratified most of the ILO Conventions, the Basel Core Principles for Banking Supervision and the Core Principles for Insurance Regulation. It has also adopted the International Standards on
Accounting and Auditing.
Overall, Corporate Governance in Sierra Leone is still in its infancy. Most public sector enterprises, Small-and Medium-sized Enterprises (SMEs) and informal sector businesses have neither the capacity nor resources to adopt International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). In addition, Sierra Leone has so far not taken any measures to adopt the IFRS for Small-and Medium-sized Enterprises, issued by the International Accounting Standards Board (IASB) in 2009. Another major constraint consists of the limited skills of the accounting profession in the country, in both the private and public sectors.
Efforts are being made by the Government and several business associations to set customised Standards and Codes to improve the situation.