I felt we needed this one - based on discussions on the 'opening business' forum, and the fact that most of us on this forum are looking to move back home sooner or later, and would have to deal with this..

It is quite easy to get land, homes, apartments etc in the US, UK, Gambia, etc. but what resources are available if one wanted to develop, sell, buy, or rent properties/land in Salone? Some thoughts /ideas to ponder:

- As mentioned earlier, the demand for real estate far exceeds the supply. It would be in our best interest to pull our resources together on this one. i.e. there must be an open link/medium between the 'suppliers' and 'demanders'.

- The Sierra Leone government should enact and uphold sensible Real Estate and Property Rights laws. How do we attract investors, if basic lender protection, home-owner warranties, etc such as PMI (private mortgage insurance), home inspections don't exist.

- Gambia's real estate development (and tourism) market has been thriving due to the hard work and persistence of firms like http://www.tafgambia.com/ - TAF Holding Company . If anything, those interested in growing our real estate development can set up meetings, discuss lessons learned from TAF's CEO - Mustapha Njie (Very down to earth guy - met him at the Wharton African Business Forum in 2003).

FYI: The following resources were posted in the other topic:

http://www.sonakohomes.com - www.sonakohomes.com

http://www.skysl.net - www.skysl.net

Any other ideas/thoughts/recommendations?

Freetown by its geography, being in a peninsula and bounded by mountains and the oceans make space limited. This gives us some very unique problems, such as distance and terrain. Unlike Bo for example which has boundless space to grow, Freetown does not. Bo can just expand in any direction, while Freetown can only expand lengthwise, i.e. at the extremeties of Waterloo and Goderich, say. This means for example water has to be piped a greater distance. Only a matter of time before Bo becomes the biggest city in size, if not population. Maybe the future is not Freetown, but Bo. Can even be argued that in some ways Bo is more developed, because right now it has better power supply and roads. Has many houses (because land is cheap, people there build mainly bungalows)  in the mid Juba or Spur Road class, such as on the Bo/Kenema  Road  and while it is much smaller, and the city center is not as big or developed, and does not have as much to offer as Freetown in amenities etc. it does not to the best of my knowledge have slums like Mabela, Kroobay and Georgebrook. Places like Reservation looked nice in the day - wonder what it's like now. There was also a hill with the presidents lodge, kinda like Juba Hill. Also less 'pan bodies'. Based on my recollection and conversations with people who visit so someone correct or update me if I'm wrong.

I also think people who want to live close to Freetown should start giving Lungi a long hard look. I get the sense that our real estate market has been doing well on an individual level, i.e people buying land, building houses etc. Right now that may be the way to go, if you have family there you can trust. But on the corporate level, it seems very young. People have told me of a few companies starting to build estates and offer financing etc., but not sure how widespread that is. Maybe those who are there can share. Way I see it, with land being such a problem, is to reclaim East End - from Clock Tower to Up Gun -  promote new developments etc. East End in my opinion is really an eyesore, a classic case of urban decay.

I was recently made an offer for a 2/3 bedroom apartments for $1000/1500 per year in the Hill Station area - so I think we're heading in the right direction.  I agree rent in Ikoyi is ridiculous. I guess you can compare it with what's happening in DC right now - gentrification. So how do we make sure it doesn't happen in Sierra Leone?

BTW - brlliant idea on attracting other West Africans to SL. Hosting short weekend getaways, special occasions like weddings (would love to see some spraying), business conferences are all ways in which they could be lured in...

Couldn't agree with you more. East End, like SE DC, or then NYC (beforeTrump) has true potential. If only the government would stop treating it's residents as step-children. And what about points further east like Wellington, Waterloo, Masiaka (Mile 47), etc.

A Nigerian friend of mine recently went back to help design and sell houses, because they can go for like $250,000 in places like Abuja. But remember Nigeria has a population of 100 million plus. Only a small percent of the population can afford this, but even  if it is 1%, that's still 1 million people, which is a lot. It's one fifth of our population or the population of Freetown.  I think $40 K is a lot for an African country. The economics may not work out, because in F/town if you have land, you can build far more than an apartment for $40k. Even if you spend $10k for land, you still end up ahead. I don't know why people are paying so much in Lagos, but remember the economics have to work out. Over here in the U.S., for example a house is worth how much a buyer will pay for it. In Salone it is mainly worth how much it would cost to build it from scratch. People don't sell their houses that much, and the minute you quote that figure to people in Sierra Leone they are going to do the numbers in their head. In short estate development must offer them some economic advantage over them building on their own.

I don't think money is the problem though, priced accordingly. People pay for shelter anyway. Let me give you this quote by a minister:

Dr Boima thinks that ordinary people could afford their own homes if they had access to the right financing schemes. “Thousands of people in this country have got mobile phones. The mobile phones cost £6.25 per month to maintain. That is exactly the money you would pay to a mortgage firm per month for 10 years to own a house. I think a system like that would work wonders in this country.”

http://www.pmcomm.com/sierraleone/ - http://www.pmcomm.com/sierraleone/  (Click on infrastructure)

This idea has been discussed a lot among Sierra Leoneans worldwide and I am all for it. 
However, if it is not done with careful planning we will get back to same problem that Freetown has... over population.

I don't think people should be allowed to just keep building houses anywhere.  Therefore if we now have people who "specialize" in estate development, they should be encouraged to develop estates that cater to different income brackets.  These estates don't all have to be "palace like" or very costly.

Just want to make a few points regarding the real estate debate... Certainly, I'm the first to admit that I know very little about this subject but were all in agreement that there is a dire need for decent housing accomodation throughout S/L... This is where one would welcome a real estate developer that might provide low to moderately priced apartment complexes in around F/T.. say in the Bay area for instance, with basic self contained amenities like a kitchen, bathroom, etc. And to ensure that tenants take the necessary care for these buildings, it could mean demanding a security deposit with very strict rental agreement terms that could lead to people forfeiting their money and ejection if necessary.. But this would require having state sponsored laws that provide protection for both the real estate folks and renters as well. 

What an interesting topic? this is going to be a learning experience for me.... So guys continue FIRING away!

makosa welcome  onboard!

Ssoulsistaa - I am definitely interested in becoming part of this action. You mentioned that you'd like to be privately contacted to express such interest. How can one contact you regarding this real estate action ( email or otherwise)?

Stoneman,

You can contact Ssoulsistaa via the VSL private messenger, she will then give you more details as to her personal contact details etc.

Lungi will definately be a better option than Bo or any other location as a second city/capital..

Many advantages over Bo.

Flat land, sparcely populated, airport already in place, short distance from FT, Lots of beaches for recreation etc, i can name a hundred.

Only thing we need is level headed politicians and city planners and it could be done in a generation.

About the issue of Real Estate development, like some has said, our economy is not gear towards that right now and need a few things in place to even get anything of that nature off the ground.

Laws, education, sensitization etc. It is a capital intensive industry but it is not too hard to do if the right things are put in place.

Foremost, a National Identification Number. How to Identify one Sorie Bangura from another Sorie Bangura.

Decentralized political system. I know the present government is working towards this but it is not happening fast enough and i dont think they are doing it the right way. These should be states, counties, bourroughs, cities. Raising their own revenue, own courts, own prison, own works systems. Central Gov should only be responsible for defence and general trade and foreing affairs.

A truly decentralized administrative system will take care of a host of our ills. Aberdeen can tell NPA to shove it and contract electrical supply to anyone. City Gov can tell Guma that they will be taken to court if they dont cover any holes they dig. Roads can be fixed in city of Aberdeen by locally generated funds, business positive rules can be put in place that are different than rules that govern the whole country. Local post offices, development banks, schools, community colleges, Motor Vehicles Administration and police forces.

Host of employment opportunities all by local funds. With these in place, we can see high rises on wilkinson road, local hospital at lumley, yellow taxis plying the routes, Communities at Murray town and congo town, Avis at Juba, American Express West African HQ at spur road,  in 10 years.

Salone has a lot of potentials, but we will have to work hard to realize them. We are the first good size English Speaking country on the whole west coast of Africa. That by itself should have taken us to another league. We have the whole of America to Exploit, we should have gained almost all the business from the UK to Africa. From transhipments to multinationals, a good size should have had thier African operations HQ in salone.

I for one will keep the dream alive. We will get there or close one day, i do hope it will happen before i pass through this earth to the beyond.

Excellent points Saloneboy!!!!!

Why are most peeps on the bandwagon of relocating the caiptal of SL. Or re-inventing a new city-- There' are tons of infrastructural blue-prints and plans that will need to be reviewed in detail - orelse we'll just get another case of -current freetown. U nar no say we lek sweet... how does one  prevent everyone from say- now moving to Bo or Lungi? --

YES! mah-D i have also officially joined the action planning group --

This is going to be uncharted waters for me!

SaloneBoy, totally agree. Lungi would have my vote as well for the capital over Bo for some of the reasons already mentioned. While there may be many considerations for deciding the capital city, an important one in my opinion is it should be a well connected city. Access to international and local flights, ports and marine life, etc. Bo does have a port and it might take a huge amount of money to construct another airport, which Lungi already has. It would be more financially prudent to renovate the existing airport to something more modern and at the same time it is easily accessible to the port in F/T. If what I've heard about the plan to construct a bridge across to lungi from f/t is true, that would serve as catalyst towards realizing such feat.

Also, more consideration should be given to the impacts and opportunities that will result from this new strategy of moving the capital from F/T.   It is a fact that such city must position itself to perform a specialize role a in broader spectrum of things from political governance to social-economic in which tourism would have to play a huge part in the case of S/L.

Other key points would include the possibility of a direct link between the Lungi and F/T or to other parts if the country and strategies to provide more affordable housing to meet the needs of a growing residential population in the city. I believe, there are already such infrastructural development going on in Lungi as we speak and Lungi provides an area large enough to sustain a possible population growth that may result.  

Moving the capital from F/Town isn't likely to happen (personally don't favor it, right now) and don't know of any plans to do so. Moving a capital is also a political act. Even in Nigeria moving the capital to Abuja was very controversial. Nigeria's population is exploding and I wonder how long it is before Abuja faces the same issues that caused the relocation from Lagos. Better strategy is to examine policies that make Freetown a magnet. Mainly about jobs, opportunity and social amenities. Decentralization was definitely a step in the right direction, and more devolution must happen, as the institutional capacity of local government increases. Eventually all real estate matters should really become the responsibility of local governments. I think Bo will be the city of the future in size if not anything else, for the simple reason that it has room to grow. It doesn’t necessarily need to have the capital for this to happen. Lungi will likely become a major satellite town, as more people are considering it when thinking of buying land.

A friend and I were discussing estate developments and we both agreed that certain laws would have to be passed to protect investors from the risk of land fraud before it can become really viable. Not sure what is being done, though the minister seems to be a very dynamic person. Last I heard a Land Policy workshop was convened, but not sure if they have produced a working document I know the Govt. also had a program that allowed Sierra Leoneans in the diaspora to write to the Ministry to request land. Land would then be leased, but it would have to be developed within two years. I think the program has been suspended pending review or whatever, but you can ask. What I can tell you is this: It’s going to be almost impossible to accomplish much unless you are there in person or have very trustworthy people on the ground.

Been meaning to ask...how's the filfth problem, any better?

(Also what's that structure with the red roof, flanked by two other box like buildings, bottom left,  in the pic of Aberdeen on your homepage??)

Saloneman, they're new housing developed by a new team of developers in town Econ...  By the way I hear there are units available for purchase/rent if you're interested. See below for more detailed pics..

Also to me the filth was far less (out west) than in December.  I recall leaving Ol' Skool one night at about 2AM - after the Admin left me stranded - and saw TH's cleaning truck/workers doing a fantastic job at the Spur Rd 'dottybox' - u know the one that u pray u don't hit when driving home drunk

http://www.alystaconsulting.com/bureh/ - >> More Pics

Y? U wan take di contract nah im an. Ay Saloneman - no pun intended. 

Ha! Makosa, NGO's won't be there forever. I'm sure there are some Salone peeps who will buy. SS me nor wan' da contract dey.....good to hear the 'dorty' is less though. 

Yeah those houses are very expensive and as makosa said more aimed at the NGO''s, a good condo for singles, couples or biz execs, but for those prices I think I'd build my own water front weekend pad.

Ssoulsistaa our own vsl admin lef you nar treet, sontem im bin tire for dance  

Well many invested in these grand houses, but now the kids have all moved abroad, and sometimes don't upkeep the houses. Build a cute medium sized crib is what I say. Think the City should start fining people for not upkeeping their houses.

What??, after all your contribution and promise of action you are yet to join the yahoo action group SS started for the real estate development. Well I hope you'll take active action as SS needs more soldiers

Wait till you see the ones being constructed up Hillstation! u go wator!

Well CR now you have to tell me more. Who is behind them?

Do you think there is any way such developments will ever take place in the east, to reclaim it from urban blight? 

In this ten years of war it seems amazing the amount of construction that has or is going on. I sometimes see these pictures and I'm like, what structure is that, it doesn't look familiar... ee look lek say Saloneman don wile' for buill.

Nah, not quite THAT bad.  Not that I joined - I was recruited by SS and given some tasks.  She's been pestering me to get a move on and with recent posts on condos and housing estates I really need to.  As for soldiers, I'm not so sure I want to be a part of SS's army.  I hear she's a bit of a slave driver. 

makosa...u en all!! SS judging by this and the other "opin call" comment on the other thread atink say makosa wan fen blaba oh, or sontem nar big talk normor. Makosa...SW en CR nor go protect you when SS ready for disarm pan u oh,  and you know admin needs to say neutral.

The Milton Keynes Development worked out very well in the U.K.

They took a large section of land and divided it up into plot sections. They then sold these smaller off to developers who in turn built on the land with the agreement that a percentage of the house's built would be given to the local council - 10% I think.

This way the entire area was redeveloped, new homes for sale and via the local council for those who could not afford to buy and a Co-ownership scheme - you buy half of your house today and the other half in 5 - 10 years time.

The sale of the plot sections paid for the infrastructure and everybody got what they wanted / needed.

The same thing could be done in Sierra Leone if the land could be aquired, perhaps Mahera is the best place to start to look.
It's very close to the airport and a new bridge is planned to cross the water to Freetown in the next few years.

Of course this is a major development project but funding could come from the EEC / World bank etc.

Milton Keynes has been built on a grid plan so it's very easy to get around, good schools, shops & hospital with the M1 motorway passing right by for transport links.

A Job Well Done.

Well I have to say a company like Regimanuel coming to town is indeed an excellent sign.  As you said Saloneman these guys do make an excellent product and from what I have been told are the standard-bearers in Ghana.  I would expect the next phase would be to implement some kind of homelink financing scheme to sustain the necessary growth not unlike what is already being done in Zim and Ghana.  Good news indeed.

We do have our own Regimanuel Gray's, Econ i believe is one of them, they built the place right next to the aberdeen bridge.

What salone needs is a bigger and affluent and disposable cash middle class, and a way established to fund housing payments tru a mortgage scheme, not foreign builders and contractors. We can build it ourselves, if there where more people ready and waiting to buy the houses in the 20-30-40 K range.

But in salone, they are few and in between and the estate housing industry cannot be sustained on that.

SB, you really have been gone, we beat this up on pages 3-4....

Mah- D

Back to my point of establishing and sustaining an afluent middle class. Dont see how a bank losses money on real estate in a growing economy like ours IF we have people waiting to buy and can afford it. The house is just forclosed and resold to another willing buyer. Defaulter loss.

Soulsis

Just referencing it on a related discussion. Dont want to go back and post on static threads and wanted the discussion to flow onto active, current topics.

Yeah, I'm working on gaining wait and got research going into how I can turn monopoly money into Leones.

You cant be that hopeless, can you?

Is it that impossible to encourage sustained growth and employment, especially at the middle manager level?

Has the middle class in SL not been steadily growing over the past 4-7 years?

How did Ghana manage to improve thier plight (toothpaste/toothbrush sharing and all) and we cant?

Why is everyone running back home and companies hiring middle managers (have a few friends making in the 30-60K range)?

I thought things where headed in the right direction? Ignorant me.

http://news.bbc.co.uk/1/hi/business/4558213.stm - http://news.bbc.co.uk/1/hi/business/4558213.stm

SB, nah $$$ dawan dae. If nah dat, u nor hook me up so, bcoz me don ready for go lon lon tem...

Firstly, I wouldn't put TOO much stock in that BBC report.  These folks seem to qoute different figures and moods depending on how grey and rainy a day it is in London.

I agree that there has been a growth in the middle class in the past few years but primarily by importation.  It would be more significant when we are able to locally grow a middle class. This may be happening currently but it's painfully slow (as it should be).

We need clear pathways for upward mobility (read wealth creation). As of now, the most notable paths are: lottery/corporate competitions, some govt hook-up.

Folks moving back and assuming middle management positions is a step below locals going through the univ system and the daily grind and then been hired into middle management.  Now if those of us returning are creating opportunities for locals then we are talking.

Yes, we are heading in the right direction and yes, I AM that hopeless.

SS

Of course nar $$$....They hooked themselves up, i had nothing to do with that, just happy for them. Also depending on what the employment market is looking for in salone. Its not every day and every skills that are in high demand.

Makosa

Don't usually take reports i read as gospel. I know African economies are growing because i have witnessed it.

You are right about the university and the hierarchical path to middle class, we all agree it should be home grown, but most of the time like me and you sitting in our cozy western 15th floor cubes/offices, Salone graduates also have aspirations. To be well respected and recognized in most West African economic and Gov circle, you need that degree from Uncle Sam or HRH. Thats why most of them (potential middle class) leave. And those are the ones you call importation.

Saloneboy hope you have cleared your work backlog, so you can resume contributing. Hope you are well rested from your trip.

Perhaps you can tell us more about Econ. We can have more than one company, the more the merrier. But discussions here said that Econ flats were for the 'NGO' market, not the 'common' man.

If someone pays $1,000 a year in rent, for a 30 yr. mortgage that is $30,000. Say $10,000 in interest over that period (too lazy to look up Mortgage Calc. accounting students help me here) so this may be payment for say a $20,000 house.

Regimanuel house http://www.regimanuelgray.com/locations/default.asp?id=8 - RG-1 costs $27,000 in Ghana. It is a semi-detached expandable two-bedroom. Perhaps this could be sold in Salone for $20,000 say. Well within the range of the family that pays $1,000 for rent a year, or $83 a month.

Many middle class people like teachers, nurses, bank workers, new graduates and low level civil servants could know that when they retire they will have a place to call their own. And I'm sure it will be salebale just like here, so you can sell and trade up, as you earn more. Maybe the odd 'fambul'' abroad can help with say $2,000 down payment.

Best part, it is expandable, so as you prosper, you can expand it, as as some people have done at Low Cost, Kissy.

I was assuming a family with two working parents. But man I hope the economy improves fast so people can earn a better wage.

Thanks for your kind comments, good to have you back.

The housing or should I say the rental market in Salone has been a bit unrealistic in the past 4/5 years because of the influx of expats supporting UN troops and all that goes with it, who are willing to pay a lot higher than the market rate to secure good properties. I believe rents will adjust themselves in the next couple of years now that most of them have left..

Its great to see new developments cropping up in Salone. Everything still rests with the government in making it conducive to invest in Salone.. As long as they continue with the current rotten infrastructure nothing much will change. No point building a nice development if your residents need a tank to get there cos the roads are buggered, then have to wash with a bucket and read by candlelight cos gov has not provided the basics.... roads, electricity and water!!!

Salone is very much a cash economy and if you want to build or buy a house you cant exactly go to the bank and secure a loan!! You have to pay cash! This of course makes it very  limiting for those without cash stashed under their beds...

I think there needs to be more and more intensive pressure on the government to provide these basic things. They will cry poverty but that excuse is long worn out... more like, if they learnt how to manage the resources properly things would be a lot different.. thats another story however....

Thing is I do know people who have taken Bank loans to finish their houses. Also sure Ghana is a cash economy, maybe less so, but I doubt by much. That's the advantage of having a West African company, they would have faced similar challenges. People are paying rent anyway, the thing is to have those rent payments become a mortgage. $100 a month is $100 a month, whether it is mortgage or rent. Regimanuel is investing a lot of money, so they must have done their homework, let's wait and see.

It is my experience in salone that nothing comes down. I have not witnessed once in all my years when price for anything went south. I might be wrong with real estate.

I have asked this question before and will ask it again. Should the Gov spend 2-10 million dollars on rehabilitating NPA when Bumbuna is supposed to come online in 07?

As to the roads, i would think developers would find and use land that have good access to roads and water. Building up at regent or hill station or a good portion of land at wellington offers good roads. The Government dosent provide everything for developers in most countries, they would have to use private contractors to pull water from the mains or even build roads to the development if thats what needed. Most of the time goverment provide these service and go the extra mile because they know the money would be recovered from real estate and property taxes, plus the more people you have living in your state/county/councilship, the more sales taxes etc and the trickle down effect would be realized by the said gov. But i dont think it is law to provide water to every home if you are not the developer.

Thats so rear in salone, i think more people buck den foot pan 5 carat diamond last year while walking down the road nar kono.

I hope it too. Its an uphill battle but we are doing better now than 4-5-6 years ago, hope it continues that way.

The government doesnt provide ANYTHING!! Of course they should spend whatever it takes to service the industrial and private sector in the form of infrastructure development. Electricity is a MUST. NPA power station should be fully refurbished and if Bumbuna comes on line in 07 then great, another source of power... I cant recall a time when there was constant electricity for more than 7 consecutive days in the past 15 years in SL... that is an absolute disgrace on the part of government!!

Water being a scarcity in a country where it rains torrentially for 6 months of the year is another disgrace...

Why??- complete lack of infrastructure and planning.. Freetown is not designed to accomodate a million plus people with the existing networks of road, power grid and water supply.. the war obviously made the population almost triple with mass urban migration where people were looking for work to survive and also freetown being relatively safer than the rest of the country...

I dont think any developer will have the unrealistic expectation of government to build a tarmac road to their estate but at least a decent main road to start with would be welcome by most people... this all adds value to the properties, the land and its surroundings and then people dont mind paying taxes... If you tax people and dont even provide them with the absolute basics then thats called 'taking the piss"

I google Bumbuna now and again. There is certainly a lot of work going on. You find new papers on it, the last one as recent as last month, on the World Bank http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pid=P086903&ptype=advSrch&pcont=results - website . There are plans to relocate people, in Freetown and parts of the North, because of the power lines, and areas to be flooded. http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2005/03/10/000090341_20050310102717/Rendered/INDEX/RP2930v30RAP1Fina0Report.txt - In some parts of Makeni so many people will need to be relocated that instead one  plan is to raise the height of the lines. The route of the transmission line includes a ROW (right of way ie. boundary) that is 30 m wide (15 m either side of the centerline).

If I had to bet, based on all this I'd say it would be finished, perhaps 2006, and it isn't as people think, all just http://www.worldbank.org/energy/energyweek2005/presentations/14%20Maffia/Bumbuna.pdf - talk .

Thanks for the tip on Bumbuna... an interesting article and does look positive about the electricity situation. This would certainly increase ones optimism for Salones future if we have constant electricity flow countrywide.... Inshallah by the end of 2006 "light go cam all sie"

So this all goes back to illustrate my earlier point 'bout why a developer like a Regimanuel or Manet homes coming to Salone is exciting news.  First off their is a big difference between the large (i.e. greater than 100 homes) developments built by someone like a Regimanuel and the 7 or so home development in Aberdeen.  The model in Aberdeen is definitely not scalable for a couple simple reasons.  Those houses from what I was told when I was in town are selling for upwards of 350kUSD  and all cash no mortgage!!  I'm sorry but I just don't see there being too much of a market for that type of model.  Now compare w/ a builder like Regimanuel or Trasco Valley.  These guys invest up to 50 million USD to build extensive sub-divisions with as many as 1000 homes where the high end could be in the 300+k range.  To make such a model sustainable in Salone or any other sub-saharan African country less South Africa, there has to be some kind of home-link mortgage scheme targeted towards the folks in the diaspora who long to go back home.  So basically if you look at the real estate markets in places like Ghana and Zim, a lot of these homes are being bought by returning folks from the US, UK etc who can qualify for these mortgage schemes.  Now by tapping into the real-estate buying power of that expatriate market the builders are able to gain the necessary growth to sustain such large and expansive investments and the trickle down economic effect leads to the much needed expansion of the middle and upper middle classes.  Even over here in the US the only thing that has kept the economy going the past few years has been the booming real estate market and its trickle down effect. 

Having said all that though Teejay is correct in that all this will not be sustainable if the government doesn't start doing its job of providing basic infrastructure services such as good roads, power and water.  However I am getting the feeling that though they might be moving slower than I for one would like, someone in the government does understand these things and indeed as has been stated these things will be resolved soon enough to make this investment viable.

Are we talking here about the current, past and maybe future governments? Is the current Gov to blame for all the ills of salone? Are all things wrong with Salone SLPP created or manhandled?

This can be said of every gov in the world. In Iraq, the 3rd largest reaserve of oil in the world, people are queing for petrol, same goes for Nigeria. In America, the richest country in the world, where the trash has more nutritional value than Atsons supermarket, people go hungry.

The salone gov is caught in a catch 22 in more ways than one. We want paved roads all over in a country where the Ministry of Works annual budget is less then $400,000? Hospitals when the Health Ministry cant come up with $2 Million? Not all countries have benefactors that can just get up and write 80 billion dollar a year suplemental budgets in thier honor.

In salone what i see is an improvement from last year, and that was better than the year before. We can build on that and thats where we should focus.

Brilliant SB   So VSL, how do we stay focused and keep improving?

The rebuilding of Sierra Leone is a gradual process and we are all impatient. The incumbent government did inherit a lot of problems, from previous regimes but that is not really an excuse for the status quo.... I dont want to digress to much from the initial subject matter of Real Estate that we are discussing here...... I know the Gov does'nt have $80billion to play with... I would be surprised if they even had $8 million... BUT thats not really the issue... . Having electricity for more than 24hrs should not be a "novelty"

I dont expect a quantum leap in development in the country but watching it deteriorate to such a point where we get excited at the thought of having a working telephone is quite sad...when we know that things can be a hell of a lot better..

Real Estate development in Salone is quite an interesting subject because as most people can buy a piece of land and build their own house its something that will take a while to develop. Government needs to have a "Vision" of how they want that particular market to develop. Unless the government encourages major developers to come in and invest in their development "vision" I see the real estate issue as something in the distant future... Key Question:- "Why would anyone pay $350,000 in cash for a house/apartment in an untried n untested market in a country with a history of instability, both economic and social???"

Tell it like it is. I don't ask to see every problem being solved, but progress being made, and that is what I see.

- Economy growing at 7.5% double the avearge for W. Africa.
- New investments being announced regularly in millions of dollars
- Food production up steadily
- Electricity solution on track
- Massive social investment in schools, roads, clinics, and NASSIT.
- Literacy and school enrollment up.
- Diamond exports last year were $125 Million compared to less than $25 million in 2002.

Fact is every indicator of development in Salone is heading in the right direction. Can read the recent Financial Times article, which I will email upon request. 'Den say' and the cost of a bag of rice are not how you measure development.

In 1998 the cost of a barrel of oil was $10. Today it is $50. Of course it affects the cost of living, from freight for importing stuff, to local transport costs. I'm sure the Govt. is also responsible for that.

Infrastructure takes time to repair. Studies and design alone can take a year or most often even more, let alone construction. Even America with her billions still hasn't fixed Iraq's infrastructure problems.

People say most of the donor money has been stolen, despite the fact that donors such as DfiD, UNDP, USAID, or GTZ administer their own funds, and when you ask for a road or school that wasn't built because of such theft you can't get a single example. Not saying there isn't corruption, but while I know personally of quite a few instances of kickbacks or cutting corners I have been unable to find any evidence of such outright embezzlement. If you have any, please share.

Guess that's why Africa is so unstable. People never acknowledge progress, but want a magic button. They blame their leaders for everything, even when the rains don't fall, and seek change, by arms or otherwise and end up worse off. I see the same among even Nigerians, and Ghanaians.

Hello, I was passing and I got lost now i found myself here. Nar pass ar dae pass ho ar nor cam congosa so do ya who nar nor gi me bench.

This Saloneman fellow is making lots of sense, I think I should take him with me to salone. 

Amazingly its the very donors that are asking for evidence of the projects & getting frustrated and not just sierra leoneans throwing accusations left right and centre. Maybe one should ask why is it in the last few years the donors have been administering funds directly to projects and why most aid is now tied or funds are giving in proportion after the donors have seen evidence and progress of step 1. Evidence of corruption ranges from tiny contracts and projects to major ones that can not be found on the internet, some are visible others are not, unless you are privy to such information, just like everywhere else....even in Europe.

We all acknowledge the little progress we see as the years go by, but if only the above figures reflected the on going reality. Unfortunately what we see on paper, read in long speeches and grand headlines is not always a true picture....thats the game of politics!!

I think it's called Risk which is big in real estate investment as your property is always subject to natural disasters/wars etc.. no matter where you are in the world.
There is also comprehensive insurance to recover losses should the unexpected happen... right?

Some Carribean/South American countries have similar issues to Sierra Leone but for whatever reason face much less "scrutiny" and bad mouthing and therefore have a thriving tourism industry.
It's all about perceptions and WE have to change that. Thanks to VSL admin et al, the word is getting out there again.  Sierra Leone is really not as bad as it is presented most of the time.  

On a slightly different note, i'm very happy Sierra Leone is not on any of these lists.  It says a lot about how far we have come in the last couple of years.
http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html - http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html
http://www.forbes.com/lifestyle/2004/03/24/cx_cv_0325featslide_11.html?thisSpeed=6000 - http://www.forbes.com/lifestyle/2004/03/24/cx_cv_0325featsli de_11.html?thisSpeed=6000

I could not agree with you more on that.  http://www.halliburtonwatch.org - Halliburton  or not, other nations continue to bring out the best in their countries, respect their leaders and "give the devil it's dues."

And how are you in a position to know they don't, without other independent sources of data? Anyway thread is on real estate, will continue somewhere else, if at all.

"Risk" - There is risk and there is risk... Risk requires a degree of security for the investor which is hedged against the insurance any company will offer you.... Of course there are acts of war, natural disasters etc all over the world, but the probabilities of these happening in salone are greater than say in London, given the history of 3 coups in the past decade in Salone, and none in London in the past 150 years.... I jointly invested in Salone in a factory employing 50+ people only to see it completely emptied by vandals with no insurance willing to cover anything... I went back again a couple of years ago and invested in a computer business, tried to expand it to include high speed internet in the I-cafe, only to be hit with unreasonable taxes and "laws" stifling innovation!!... ..Go to HSBC with a business plan and say you need a loan of $350,000 to build a house in Salone...check EIU reports on Salone.. someone mentioned growth of the economy at 7.5%..its commedable of course but i would like to see that quantified in monetary terms.... 

Of course I have faith in Salone country otherwise I would not have put any money into it in the first place... the problems I see emanate from a stagnant political system with the same old people being recycled over and over again... their ideas are ancient, their eyes are still closed to the fact that we are in the 21st century... ..

Im sorry if I come across as abrasive but I keep thinking that we are so used to lack of progress that whenever the tiniest things happen, when this should be "the norm" we get overexcited... its almost like they have indoctrinated us to feel grateful for giving us water and light for more than 24hrs....

Sierra Leones Tourism (a good money spinner) could develop at a rapid pace if 1) There were regular flights to Freetown... and the airport was hassle free... I mean its 50quid for a visa to Salone to start with... its FREE to go to Gambia... Gambia and Salone... no comparison.. SL is 150 times more beautiful...but Gambia has 200 times more tourists... why?? Simple answers.. its more accessible in many diff ways.. think about it... I know Cecil SLTB is trying his hardest to get things going and I wish him the best of luck...he needs the support of the establishment though...

How far has Sierra Leone come??...not very far.. we may be off the Travel Advisory list of the US State Department but there is less and less money circulating in the local market which means theres less and less to go round for everyone... not a good sign... especially as most people are living on daily subsistence ("han to mot")... solutions solutions!!!

Sorry to hear that this mix up in Sierra Leone has caused you some losses.  I see your point to some extent but apples to apples would really mean comparing Sierra Leone to another third world country and not London.
E.g Nigeria, (no need to go into their history) but they have their issues and have oil, Sierra Leone has had it's share of issues and has diamonds.
Mismanagement? I'm sure we're talking more Nigeria but isn't Branson investing in Nigeria.

I think that has to do with how he perceives Nigeria ...

in the US for e.g if the last 5 yrs has had it's toll on you (lost a job or two and not found one/ lost a loved one in 911/ lost money in stocks, etc...) You will argue that the US economy and security is going downhill.  (Whole topic not for VSL)   Lot's of folks have stopped "believeing" in the US and have gone home.  Many more are on their way.  Anyway truth is US investors lost billions of dollars in stock markets and the .com bubble.  Now they're into real estate.  When the real estate market slows down, they will jump into the next best alternative.  

Why?  Perceived Value.

That's investment... it's just risk.  There is high, moderate or low risk and investing in Sierra Leone right now is being presented as a high risk opportunity.  The opportunity is there and the risk is there.  It then becomes a personal decision as to what level of risk one is willing to take.  If people don't know about the opportunity, they won't make the venture.  Once the information get's out there about how great the real estate opportunity is in Sierra Leone, the high risk takers will come to invest. 

Guatamela: relatively dangerous, poor and has other issues.
http://www.nationmaster.com/graph-B/eco_gdp_rea_gro_rat&int=-1&id=gt&id=sl - http://www.nationmaster.com/graph-B/eco_gdp_rea_gro_rat& int=-1&id=gt&id=sl   Hmm!
But Sierra Leone is on the LDC list. Okay so Sierra Leone has had 3 coups in the last decade; but why was Tanzania on the list of least developed countries but not Guatamela?     Western Perception & Interests...

On the issue of flights to Sierra Leone; anyone been to Liberia lately?  Seen the airport?  Why is the US Embassy fully functional in Liberia but not in Sierra Leone?  Isn't Sierra Leone safer than Liberia? Western perception & Interests...

Sierra Leone is definitely not yet a first world eden and it might take a while to make others believe in us.
Until then, I believe that the Real estate companies who have started their planning etc... are on the right track and doing a good thing. That's probably one of the solutions. "Set the Pace" and others will follow...  Once there is enough competition for the real estate companies, prices might not be sooo crazy.  On the other hand, the market will still thrive if there are many interested buyers. 

Need to add there that overpricing will take us nowhere but is not solely an issue with real estate.  Considering the income of the middle class in Salone, most things are overpriced. 

Boleye,

Good points raised indeed and the phrase "Dare to be Different" comes to mind. As you say if one of the real estate developers decides to make a plunge and take a gamble on Sierra Leone then they may be the Leaders and the Shapers of a new industry. It requires bravado and a certain amount of money of course and I for one would support such a project.

Sierra Leone does get a bad rap not without good reason and I guess we as ambassadors of our own country have to change peoples perceptions. The realities on the ground are of frustration  though and if you can get past the decadence and bureaucracy then you can certainly make big strides. I would love to see the day we are on a Par with the Singapores and Dubais of this world and its a matter of, as I said in previous postings of having a "Vision".... "To Be the Hub of West Africa Providing State of the Art Services to the Industrial, Maritime and Aviation Industries".. now theres a start!! SL should be considered like a large corporation with its citizens the shareholders. Give the citizens a company (country) to be proud of and give them ownership of the development processes and I seriously believe there will be change!!Any good Vision needs a good "Leader" and unfortunately I think we lack that presently.

Real Estate is of course a good start. I have been looking into securing some land to develop a Golf Course and Country Club, say on the Peninsula... sounds like a Pipe Dream yes, but why not... I need 300plus acres and then we can start... there are people out there keen to invest but at the end of the day it needs a start somewhere..Its a major project but well within reach and could start the ball rolling for a no of things...

There is the possibility of building Lodges similar to the ones you find on the exclusive Game reserves in South Africa... made of wood and stone and blends in with the surroundings... why not?? We have wildlife, we have great fishing, we have great beaches... so why would anyone go to Gambia??

Restaurants, Hotels, etc.. why not??

This is exciting and I hope we can realise our dreams before we all get too old...

That's the point I am making. We have to work on changing peoples perceptions. 
How?  As a Sierra leone, just continue to bring out the good in Salone.  "If ose nor sell you, trit nor go buy you."

As for the frustrastion it's so much, you can't turn a blind eye.  The govt is to be blamed really but... now we have people like Mr Johnson et al, who should by encouraged by us Sierra Leoneans to cater to different societal classes.  But no, now we all act like Regimanuel will be the "saviour."  Ay bo!  I'm not against Regimanuel etc... but sometimes I feel like we have double standards.  We want Sierra Leonean investors to progess etc.. but now we say, bring in Ghanians to take over.

Our biggest fight should continue to be with the govt to encourage Sierra Leonean investors.  Once given the chance we can make the difference.

Ok so here is the thing for me it's all about scalable and sustainable solutions that will benefit Salone regardless of who provides the solutions.  I have no problems with Salone real estate moguls developing sub-divisions and providing housing and economic growth solutions to the country.  However as I mentioned there is a big difference between someone like a Regimanuel willing to invest 50million USD over a 5 year period in Salone and assisting to implement the necessary financing scheme to make it viable and someone else building a handful of houses that only affects a tiny % of the population.  Is the problem that the company is Ghanain or foreign?  Because I don't remember anyone complaining when the Aussies and Americans backed by financing from OPIC came back to open Sierra Rutile.  Yeah we could have had several Salone folks open Rutile on a much smaller scale but I'm sure everyone sees the potential economic impact that the OPIC financed venture will provide versus some smaller scale project financed by local tycoons.

Boleye, you make good points. Teejay sorry to hear about your loss, and good to hear about your continued confidence and desire. We can't always just throw our arms up in the air in despair. Sometimes we have to change things. People may be out of step with modern practices, and have that resistance to change, but why should they win? Sometimes it may be nothing wicked, policy makers just need to be shown the light. People can sometimes change when reasoned with. Other times of course it may be.

And we need to realise that there are always vested interests, protecting their own turf. Look at the recent debate in America about taxes on internet sales, and whether VOIP should face tarrifs like traditional lines. You had the states and old school telephone companies like Verizon, baying for squeezing yet more dollars from these new refuges for the burdened taxpayer. Interest groups didn't sit down complaining, they presented their side of the argument together with VOIP providers like VONAGE. If others push, sometimes we have to push back, and not just up, run and whine. People look out for their own interests, and so should we.

That's the thing. CAPITAL and TECHNOLOGY. Foreign investment providing that which is lacking locally or has not been mobilised. I did ask about the Sierra Leone outfit, and people said that they were for the NGO (i.e high-end) market. But even if they're not, it's unlikely they can satisfy all the demand on their own. Regimanuel it seems has provided such service for ordinary Ghanaians, and if they can do the same for ordinary Sierra Leoneans they are most welcome. They're also bringing in new technology, by opening a factory, thus providing jobs for needy Sierra Leoneans. And they have the experience of working in another African country. It's a free market, big enough for both. It doesn't have to be either/or. The more the merrier, hopefully prices will reduce and different packages of solutions will be generated which cater to the diverse needs of all Sierra Leoneans. 

Saloneman,

You hit the nail on the head there with that one, couldn't agree with you more.  Nothing wrong with having established foreign companies coming in and providing the necessary capital and technology to invest in the country as long as at the end of the day ordinary Salone folks benefit.  In actuality foreign investment in the country is a good thing as it signals to others that Salone is now open for business and I have no doubts that Enterprising Salone tycoons will find ways to compete w/ the larger foreign companies and at the end of the day w/ more competition the consumer wins.  So again I don't see the problem here.  Besides this deal is a joint venture w/ NASSIT anyways so there is already local Salone involvement.

BTW ,the Gulf course community on the Peninsula is an excellent idea Teejay. I for one would be interested in purchasing a home in such a community provided of course you're not asking for $350k cash

Boleye, you could not have said it better.  The Government has to encourage Sierra Leonean Investors, but Sierra Leonean Investors have to bring money to the table.  If the nearly $6M 60/40 Joint Venture between NASSIT and Regimanuel is right, you can reasonably assume that Regimanuel is bringing in $2.6M of their own money into the venture (we assume).  And Regimanuel is planning to invest $50m in the next 5 years (time will tell).  The question then is, did any other Sierra Leonean Investors offer the same terms for the Government's consideration or did they even send out bids?  Afterall NASSIT has been requesting for Investment Proposals in local papers and on their web site for weeks.

It should also be noted that though the ReaL Estate sector is a growth market in Sierra Leone, any investor should be willing to risk their capital to put equipment and physical structures (like Model homes) on the ground before they can expct potential buyers to come lining up.  This is not the type of Investment that Investors wait to get downpayment from potential buyers before they start construction.  In a nutsheel "cash is King" and who ever has it has a leg up.

And of course Regimanuel has some obvious advantages including expereince.  They can say "come to Ghana (or through their web sites) and see how we have been doing this same type of projects for the last 15 years".  Can we say the same about other Sierra Leonean Real estate companies?  I think at this stage, it makes sense for other Sierra Leonean Real Estate Investors to tag-team with the likes of Regimanuael and maybe carve their own nitch in a different segment of the market or even compete in the same market.  However, the Government should help our local Real Estate Investors to secure the acres of property required for such investments because the typical Real estate Investor is used to dealing with individual plots instead of large developments.

It is also interesting to note that Regimanuel's business took off in Ghana after his business got an infusion of cash to the tune of 80% of the Comapany from an American Firm "Gray constructors".  See some excerpts from an article below on Regimanuel's history.

The catalyst for Regimanuel Gray occurred several thousand feet in the air in the late 1980s. Houston real estate developer Passler was sitting next to Representative Tom DeLay on an airplane. The Texas housing market had imploded, and Passler asked the congressman where to go to make money. DeLay turned to him and delivered some advice that company lore has reduced to a simple nugget: "Go to Ghana."

Passler did, and he was impressed. Ghana was one of the few developing countries stable enough to pay back debt to the World Bank, the official language was English, and most people were Christian. He connected with Gray and looked into funding a Ghanaian gold mine, a plan that never panned out.

Passler began prospecting for investments in an industry more familiar to him when he attended a fair in 1990 held by the Ghana Real Estate Developers Association. Two of the featured developers were Regina Botchwey and husband Emmanuel, the owners of Regimanuel Limited. Their exhibit showcased an affordable home conceived to grow with a family through easy additions. "It was designed to meet the demands of the average Ghanaian," Regina says. "You have somewhere to rest your head, somewhere to live, and if you want to later, you can expand."

Gray jumped on the new idea, and by the next year, 80 percent of the funding for the rechristened Regimanuel Gray began to come from Houston. But money wasn't the only export. Gray knew the company needed an experienced Houston developer, so he sent the newly single Ohrt.

The entitre article is worth reading at http://www.houstonpress.com/issues/2003-11-20/news/feature_print.html - http://www.houstonpress.com/issues/2003-11-20/news/feature_p rint.html

I agree with many of these points especially ....

Part of my argument was that we should sell our country as an opportunity to foreign investors and like I said before, I'm not against Regimanuel coming in.  Just than they will be taking some potential market away from the Econs etc... and then how will the Econs. etc.. ever have enough marketshare, money or have you to become a leader / compete.  I guess they have to pay their dues.

In summary

Well this just in..Butressing me and SM's many points.

"YPP says the National Executive members have agreed to form an Alliance with the SLPP. "Prior to the 2002 elections, the YPP has been taking the SLPP to task for not properly executing their policies. But now, the party is pleased with their good works, that is, the upgrading of the forces, payment of fees for primary pupils, payment of examination fees for BECE (Basic Education Certificate Exam) and WASCE, (West African School Certificate Exam) building of clinics in rural areas, its open policies to business houses, creation of job facilities and many more", a release from YPP states."

http://allafrica.com/stories/200505240185.html - http://allafrica.com/stories/200505240185.html

A lot of things are been done.. Goverment is just bad at making people know of whats going on.. so says the ones that are there and are living it.. And these are aware people. Hidden agenda and kiss up or not, they cant make up these stories...

Ghana Real eastate.

The buildings look cute, but in my opinion hugely overpriced. Hope we can have some with a more competetive pricing structure in Sierra Leone. Seems like the property development market in Ghana is well established.

http://www.ghanaweb.com/GhanaHomePage/wac_properties/real_estate.php?url=bargain_homes.htm - http://www.ghanaweb.com/GhanaHomePage/wac_properties/real_es tate.php?url=bargain_homes.htm

http://www.wacproperties.com/ - http://www.wacproperties.com/