The Mineral Wealth fund (MWF) to be wound up as the Government moves toward a stronger Sovereign Wealth Fund; the State retains full ownership of Tonkolili North
Freetown, Sierra Leone — President Julius Maada Bio has taken decisive action to strengthen national control over Sierra Leone’s mineral resources, directing the orderly wind-up of the Mineral Wealth Fund Sierra Leone Limited (MWFSL) and initiating a transition toward a more robust, nationally anchored sovereign wealth framework designed to secure lasting benefit for the people of Sierra Leone.
Under policy directives issued from State House this week, the President has ordered the termination of the existing corporate and contractual arrangements associated with the MWFSL, including its participation in the Tonkolili North Iron Ore project under the current framework.
The government has made clear that these decisions do not alter the ownership or ultimate management of the Tonkolili North asset, which remains fully vested in the State through the Sierra Leone Mines and Minerals Development and Management Corporation (SLMMDMC). The asset remains held in trust for the people of Sierra Leone.
A Strategic Reset, Not a Retreat
Officials have emphasised that the President’s action represents a strategic reset—not an abandonment—of Sierra Leone’s sovereign wealth ambitions.
“This is a change of vehicle, not a change of vision,” 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 Sierra Leone’s long-term economic and governance objectives. The review cited concerns regarding governance architecture, efficiency, transparency, and integration with national fiscal policy.
Tonkolili North: State Ownership Preserved
As part of the directive, the 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, Government officials stress that these actions do not diminish Sierra Leone’s ownership or sovereign control over the Tonkolili North resource.
The President has directed that a competitive bidding process be undertaken to identify a suitable development partner for the asset, while 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.
Toward a Stronger Sovereign Wealth Fund
Looking ahead, the Government will move to establish a Sierra Leone Sovereign Wealth Fund (SLSWF) as the country’s apex investment vehicle. The proposed fund will be legally grounded, professionally governed, and aligned with international best practice, including the Santiago Principles.
Unlike the existing arrangement, the new framework is expected to be more closely integrated with Sierra Leone’s public financial management system, support economic stabilisation, and ensure disciplined savings for future generations, alongside carefully governed investments that support national development.
The Ministry of Mines’ memorandum underscores a core national reality: Sierra Leone’s mineral resources are finite. Once extracted, they cannot be replaced. The State’s responsibility is therefore to convert this wealth into enduring assets that continue to serve the nation long after the minerals are gone.
A Patriotic Commitment to National Benefit
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. This transition is about ensuring that our wealth works for our people—now and in the future.”
The wind-up of the existing fund will proceed in accordance with applicable law, while work continues on the design and legal establishment of the new sovereign wealth framework. Further details will be communicated in due course.
For now, the message from State House is unambiguous: 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 benefit for generations yet unborn.
