The Government of Sierra Leone has outlined significant financial and operational challenges facing state-owned telecom operator Sierratel, while unveiling a new private sector partnership aimed at revitalising the struggling company.
Officials say the operator is weighed down by legacy debt, ageing infrastructure, and mounting staff liabilities, issues they trace back to years of structural decline and technological obsolescence.
The government stated that when it assumed office in 2018, Sierratel was already in severe financial distress, with debts owed to employees, suppliers, and international creditors. Among the liabilities is more than $35 million owed to two Ex-Im banks, a debt now being serviced by the state.
Additional obligations include salary arrears, end-of-service benefits, leave allowances, union dues, and supplier payments. Staff-related liabilities are estimated at approximately $6.3 million.
Authorities also pointed to a failed technological transition, noting that Sierratel’s earlier shift to CDMA infrastructure—once considered competitive—became obsolete as the global telecom industry moved to GSM standards. The shift led to a rapid loss of customers, declining revenue, and worsening financial instability.
Officials acknowledged the impact on workers, including delayed salary payments and growing hardship among staff and their families.
In response, the government has announced a private sector partnership designed to relaunch Sierratel under a modernised and commercially viable model. The Ministry of Communication, Technology and Innovation says the agreement is aimed at restoring efficiency, improving service delivery, and repositioning the company within Sierra Leone’s evolving telecom sector.
As part of the transition, an initial $2 million payment will be made toward settling outstanding staff liabilities, a move the government describes as critical to restoring confidence and stabilising operations.
The initiative is expected to focus on infrastructure renewal, improved service delivery, and long-term sustainability in the national telecommunications sector.
