• Government signs private partnership to revive Sierratel and restore operations.

• $2 million upfront payment targets employee arrears out of $6.3 million owed.

• Market remains dominated by Africell, Orange and Qcell with 8.2 million mobile subscriptions.

The Sierra Leonean government plans to revive the state-owned telecom operator Sierratel, which has struggled for several years. The government has signed an agreement with a private partner to restore and reposition the company under a new operating model.

Authorities announced the initiative on Tuesday, April 14, during a meeting that brought together company staff as well as representatives from the Ministry of Employment and the Ministry of Communication, Technology and Innovation.

As part of the partnership, stakeholders will provide an upfront payment of $2 million to begin settling employee-related liabilities, which total about $6.3 million. In addition to clearing arrears, the government plans to modernize infrastructure, manage external debt and improve working conditions.

“This relaunch represents an important step to restore Sierratel’s operations, preserve national telecommunications assets, improve service quality and build a stronger and more sustainable sector,” the ICT ministry said in a statement.

Between technological and financial challenges

Authorities attribute Sierratel’s decline to a combination of closely linked technological and financial constraints. When it took office in 2018, the government said it inherited a heavily deteriorated company burdened with debt to employees, suppliers and several international creditors.

These liabilities include unpaid salaries, end-of-service benefits, leave allowances and union contributions, as well as debts to commercial partners and foreign financial institutions. The company owed more than $35 million to two banks in particular, and the state has now assumed that burden.

At the same time, infrastructure obsolescence worsened the situation. Around 2014, Sierratel invested heavily in CDMA technology, which initially improved commercial performance. However, the rapid global shift toward GSM gradually marginalized that technology and rendered the company’s equipment unsuitable.

This technological gap accelerated the company’s loss of competitiveness. Subscriber migration to more efficient rival networks reduced revenue and pushed the operator into a cycle of financial fragility. Sierratel failed to meet its obligations, including regular salary payments, and liabilities accumulated over time.

Beyond financial imbalances, the crisis also produced significant social consequences. Payment delays weakened employees’ living conditions and forced some to struggle with essential expenses, particularly education.

A national market dominated by private players

As Sierratel relaunches, it must compete in a national telecom market dominated by private operators. According to data from the telecom regulator, Africell had 4.46 million mobile subscribers at end-December 2024, representing a 55% market share.

Orange and Qcell followed with 38% and 7% of the national mobile subscriber base, respectively, which totaled 8.2 million. The latest available data for Sierratel dates back to 2019, when it held a 1.95% market share.

In the mobile data segment, Orange leads the market with 2.16 million subscriptions and a 60% share as of end-December 2023. Africell held 27% of the market, while Qcell accounted for 13%.

Nevertheless, the Sierra Leonean government remains confident that Sierratel’s future will depend on bold reforms and strategic investments to regain its position in a rapidly evolving digital environment.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange J.A de Berry Quenum