The Government of Sierra Leone has announced a major plan to restore the operations of Sierratel through a private sector partnership, even as the state-owned telecommunications company faces a $35 million debt to EXIM Bank and over $6 million in outstanding staff obligations.

The announcement was made during the weekly press briefing hosted by the Ministry of Information and Civic Education (MOICE), where the Minister of Communication, Technology and Innovation, Salima Monorma Bah, outlined a new strategic agreement between Sierratel and Africell.

Minister Bah stated that the partnership, structured under a Mobile Virtual Network Operator (MVNO) model, is designed to enable Sierratel to leverage Africell’s infrastructure to resume and expand services. She emphasized that the agreement does not amount to privatization, noting that ownership of Sierratel will remain with the Government of Sierra Leone and that the company’s brand will be preserved.

“The partnership will run for 10 years, with an option for a five-year renewal, and it will be reviewed every five years based on performance,” she said. “It is structured to promote affordability and competition while allowing Sierratel to provide voice, data, and mobile money services under a revenue-sharing arrangement.”

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As part of the agreement, Africell has already provided an advance payment of $2 million to address immediate staff-related obligations, including salary arrears and benefits. Minister Bah clarified that the government will reimburse Africell, stressing that the state remains responsible for settling all staff liabilities.

She disclosed that the total financial obligation to 179 Sierratel staff stands at $6.3 million, with efforts ongoing to secure the remaining balance. She added that the revived services will particularly target students and young people, especially those in the digital and creative sectors.

Providing context on the company’s financial challenges, the Minister of Employment, Labour and Social Security, Mohamed Rahman Swaray, said Sierratel’s decline was partly linked to a $35 million loan secured from EXIM Bank during the previous APC administration. According to him, the funds were used to procure CDMA technology, which later became obsolete due to lack of factory support.

“That decision significantly contributed to the collapse of the company’s operations,” Minister Swaray said, while emphasizing the current government’s commitment to adopting innovative solutions to revive the telecom provider.

He confirmed that key labour concerns have been identified, including unpaid salaries, accrued leave allowances, and outstanding union dues. The initial $2 million payment, he noted, will help address some of these issues in line with the Employment Act of 2023.

Meanwhile, Sierratel’s Interim Managing Director, Francis Matturi, attributed the company’s struggles to years of limited reform and continued reliance on outdated technology. He explained that Sierratel was formed through the merger of the Sierra Leone External Telecommunications (SLET) and the Sierra Leone National Telecommunications Company (SLNTC).

Currently, the company’s operations are limited, mainly providing wholesale bandwidth services through fibre and fibre-to-the-home (FTTx) infrastructure.

Mr. Matturi also confirmed that a comprehensive verification of staff liabilities has been conducted in collaboration with the Ministry of Employment, Labour and Social Security. He added that the finalized staff list will be submitted to the Anti-Corruption Commission for review before any payments are made.

The government maintains that the new partnership marks a critical step toward restoring Sierratel’s operational capacity while addressing longstanding financial and labour challenges.