by Fatima Babih, EdD
On November 23, 2024, the illegitimate president of Sierra Leone, Julius Maada Bio (Bio) launched Sierra Leone’s first iron rod manufacturing factory in Songo, a village in Port Loko District, northern Sierra Leone. This event has been widely celebrated and promoted by Bio’s regime as a significant stride by his government toward industrialization and the nation’s economic self-reliance. However, beneath the surface of these accolades lies a complex reality that demands Sierra Leoneans’ critical attention.
Not a Government Achievement
Contrary to the prevailing narrative propagated by the Bio regime, the iron rod factory is not a government enterprise. It is operated by Odhav Multi Industries SL Limited, a private foreign company whose Chief Executive Officer is listed as Nikhil Chandra. This steel manufacturing company was established in 2015 in the industrial zone of Massaya, Dubreka, near Conakry, in the Republic of Guinea, West Africa. The company intends to expand throughout West Africa.
While the government’s role in facilitating such investments is crucial, the factory’s establishment is mainly based on the company’s expansion efforts in West Africa. Therefore, solely attributing the factory to Bio and his cabal overlooks the contributions and motivations of private investors like Odhav. This distinction is vital, as it underscores the need for transparency regarding the government’s involvement and the benefits it negotiated on behalf of the people of Sierra Leone.
Environmental and Social Concerns
As much as we look upon the establishment of this factory as a move in the right direction for the country, we cannot afford to turn a blind eye to the significant environmental and social concerns it raises. The Environmental and Social Impact Assessment (ESIA) for Odhav Multi Industries (SL) Ltd., steel manufacturing and processing factory, even though conducted by a Bio loyalist, Andrew Keili’s CEMMATS Group Ltd., it highlighted several potential negative environmental and social impacts associated with the project’s construction and operational phases.
Environmental Impacts
- Air Quality Degradation: Construction activities may generate dust and emissions from machinery, leading to increased particulate matter in the air. During operations, emissions from steel manufacturing processes could release pollutants, including particulate matter and gases, affecting local air quality.
- Noise and Vibration: The use of heavy machinery and equipment during construction and operations is expected to produce elevated noise levels and vibrations, potentially disturbing nearby communities, and wildlife.
- Water Pollution: Potential contamination of surface and groundwater resources may occur due to improper handling of construction materials, accidental spills, or discharge of untreated effluents during operations.
- Soil Erosion and Degradation: Land clearing and excavation activities can lead to soil erosion, loss of vegetation cover, and degradation of soil quality, impacting local agriculture and natural habitats.
- Waste Generation: Both construction and operational phases are anticipated to generate solid and hazardous wastes, including scrap metals, slag, and chemical residues, which, if not properly managed, could pose environmental hazards.
- Biodiversity Loss: The project site development may result in habitat destruction, leading to the displacement or loss of local flora and fauna species.
- Social Impacts
- Community Health and Safety Risks: Increased traffic from construction vehicles and operational transport can elevate the risk of accidents. Additionally, emissions and noise pollution may adversely affect the health and well-being of nearby residents.
- Increased Pressure on Local Infrastructure: The influx of workers and associated activities may strain existing local infrastructure, including roads, healthcare facilities, and water supply systems.
- Land Use Conflicts: The acquisition and development of land for the project may lead to disputes or dissatisfaction among local landowners and communities, especially if land rights and compensation issues are not adequately addressed.
- Cultural and Social Disruption: The introduction of a large workforce from outside the local area could disrupt traditional lifestyles, potentially leading to social tensions or cultural dilution.
- Economic Displacement: Local businesses and livelihoods, particularly those dependent on natural resources, may be adversely affected by environmental changes or restricted access to land and resources due to the project’s footprint.
Keep in mind, the ESIA was prepared by a Bio regime loyalist, therefore, these social and environmental impacts should be considered baseline. An assessment by a neutral company may have given us a more realistic report. Also, even though the report emphasizes the importance of implementing comprehensive mitigation measures to address these potential impacts, there is no system in place to ensure that the project’s operations proceed in an environmentally sustainable and socially responsible manner. Therefore, the effectiveness of these strategies are uncertain, especially in the context of Sierra Leone where regulatory enforcement is severely lacking.
A Closer Look at Promises of Local Employment
Odhav Multi Industries has promised to create approximately 1,200 jobs over the next decade, which calculates to about 120 jobs per year. While any job creation is positive, this figure for a multimillion dollar enterprise must be scrutinized against the backdrop of Sierra Leone’s high youth unemployment rate as well as the Sierra Leone Local Content policy that is supposed to protect citizens.
Sierra Leone has a predominantly youth population with 75 percent below the age of 35. This population currently faces challenges such as limited access to quality education and vocational training, which contribute to unemployment, underemployment and engagement in low-paying, informal jobs and criminal activities. With thousands of young people entering the labor market annually, Odhav’s offer of 120 jobs per year is insulting to Sierra Leoneans as they struggle to address the pressing youth unemployment issue facing the country. Moreover, there is no guarantee that even the 120 jobs per year will materialize as promised, nor is there clarity on the quality, wages, or working conditions associated with these positions.
Sierra Leone Local Content Agency Act 2016
According to the World Bank, the Sierra Leone Local Content Agency Act 2016 (Section 6.3.4.4) requires all foreign enterprises operating in any sector of the economy, to employ Sierra Leonean citizens at specific percentages across different job levels:
- Management positions: At least 20% of management positions must be held by Sierra Leoneans at the start of operations, increasing to 60% within 5 years (Section 6.3.4.4)
- Intermediate positions: At least 50% must be held by Sierra Leoneans at the start, increasing to 80% within 5 years
- Junior/unskilled positions: 100% of these positions should be held by Sierra Leoneans, unless there is proof that such skills are not available locally
- The law also requires companies to submit a detailed employment and training plan showing how they will achieve these local content targets over time
- A foreign company that partners with Sierra Leonean firms will be granted preferential treatment when competing against companies with no percentage of equity share ownership by Sierra Leonean firms or citizens. (Section 6.3.5)
- 20% of the equity shares of every registered foreign entity in Sierra Leone should belong to Sierra Leoneans. (6.3.5.5)
Unfortunately, none of these Local Content requirements are enforced in the foreign companies that operate in Sierra Leone. And as we can gather from the miserable offer of yearly jobs to Sierra Leonean citizens, Odhav Multi Industries SL Limited is not going to be an exception.
A Call for Critical Engagement
Mr. Bio loves to be praised, and most often he does not merit nor deserve the accolades with which he is showered. The fanfare surrounding the iron rod factory’s launch has largely overshadowed the critical issues pertaining to its establishment. While Bio’s administration may have played a role in facilitating this endeavor that is neither government nor a public-private partnership, the lion’s share of credit is being directed toward Bio and his government without due consideration of the complexities involved. At this point, instead of praising Bio, Sierra Leoneans must ask a fundamental question: ‘what’s in this factory for Sierra Leoneans’ and seek answers to pertinent questions, including:
- What are the specific agreements that were made between the government and Odhav Multi Industries?
- How will the environmental and social impacts be monitored and mitigated?
- What measures are in place to ensure that the promised jobs are created and that they comply with the Sierra Leone Local Content Act of 2016?
Blindly praising Julius Bio and his cabal without raising such critical questions risks neglecting the potential adverse effects on communities, the environment and the nation. It is imperative for citizens, civil society, and the media to hold both the government and private investors accountable. True progress lies not in unexamined celebrations but in ensuring that industrial developments genuinely benefit the people and preserve the nation’s environmental integrity.
While the establishment of the iron rod factory represents a step toward industrialization, it is not a government-owned achievement but a private investment that gives little to no benefit to the people of Sierra Leone. The environmental and social impact concerns, coupled with the uncertain employment benefits, necessitate a more nuanced and critical discourse. Sierra Leoneans deserve transparency, accountability, and tangible benefits from such developments, and it is their right to demand answers to these pressing questions.
References
Odhav Multi Industries SAU – ABOUT OMISAU
President Bio Appoints Andrew Keili as New EDSA Chairman
THE SIERRA LEONE LOCAL CONTENT AGENCY ACT, 2016
POST REVIEW – YOUTH EMPLOYMENT POLICY BRIEF
LOAN & GRANTS AGREEMENTS PASSED BY THE FIFTH PARLIAMENT 18th May 2021-9th May 2022
SIERRA LEONE LOCAL CONTENT POLICY – WORLD BANK PUBLIC PRIVATE PARTNERSHIP
MAMA SALONE ~ Lioness of the West Coast 