Smuggling Allegations and Tax Loopholes Threaten Fair Competition in Steel Industry

By Sallieu S. Kanu

Freetown, November 24, 2025: Sierra Leone’s steel industry is facing mounting pressure as substandard iron rods continue to enter the market through poorly monitored border points, threatening the survival of the country’s only fully established local iron rod factory. The factory, located in Masiaka, employs more than 600 Sierra Leoneans and technical experts, but its operations are being undermined by the influx of low-quality imports.

Despite a recent government directive ordering all iron rod dealers to clear substandard stock by the end of December—with nationwide raids set to begin on January 1—smuggling operations show no sign of slowing. The situation has exposed serious weaknesses in border control, regulatory enforcement, and the abuse of investment incentives.

Allegations Against Duraplastic and Ferro Fabrik Steel

At the centre of growing scrutiny is Duraplastic and Ferro Fabrik Steel (FFL & Duraplastic), a company operating in Mokolo, Masiaka. The firm reportedly secured duty-free exemptions to import materials for the construction of a new factory. However, sources allege that these duty-free iron rods are being diverted into the open market for sale, in violation of laws governing such concessions.

Industry insiders claim the company’s supply chain operates through three main dealers, creating a distribution network that undermines legitimate businesses that pay taxes, adhere to standards, and employ large numbers of Sierra Leoneans.

Quality Concerns Raise Safety Risks

The quality of the products being circulated has raised an alarm. Rods marketed as ½ inch reportedly measure just 9mm; 5/8 rods are sold as 13mm; and ¾ inch products measure only 7mm. In addition, lengths fall far below the required 40 feet, with some recorded at just 30 feet. Structural engineers warn that such discrepancies pose serious risks to the integrity of building projects nationwide, increasing the likelihood of cracks, early deterioration, and even catastrophic collapse.

Smuggling Activities Reported

Recent activities have further heightened concerns. Duraplastic allegedly brought in five trucks of iron rods from Liberia, with consignments traced to Makeni and Freetown. Eyewitnesses in Bo reported seeing four truckloads entering the country on November 23, two of which carried Liberian plates (H0 117 and H0 4417). According to sources, these consignments were cleared under duty-free exemptions, raising urgent questions about how substandard goods are being approved and why quality checks at border points appear nonexistent.

Economic and Safety Implications

The unchecked influx of inferior products is devastating for Sierra Leone’s business environment. While legitimate manufacturers invest heavily in the economy, comply with regulations, and commit to producing high-quality steel, smugglers exploit tax loopholes to introduce cheaper, substandard goods. This creates an uneven playing field that threatens the survival of the local factory, which has long supported jobs, skills development, and industrial growth.

Beyond economic disruption, experts warn of severe national safety risks as the country expands road works, bridges, homes, and public buildings. Weak and unreliable steel could compromise infrastructure projects, endangering lives and undermining development.

Calls for Government Action

Industry stakeholders are urging swift government intervention, including strengthened border control, strict quality inspections, a review of duty-free concessions, and firm nationwide enforcement. Protecting the integrity of the construction sector and defending legitimate manufacturers, they argue, is essential to national development, public safety, and long-term economic stability.

Mohamed H. Bility, Global Government Relations and Acting General Manager of Dura Plast and Ferro Fabric Sierra Leone Limited, has dismissed the allegations against the company, describing them as an attempt to smear its reputation. He clarified that the company does not sell iron rods in Sierra Leone, noting instead that sales are conducted through its subsidiary in Liberia. Bility stressed that the iron rods imported into Sierra Leone were solely for construction purposes, with video evidence available to show they were offloaded at the company’s facility. He further emphasized that the company’s products have undergone quality assurance and are of superior standard.