This Investment Climate Policy Note(ICPN) for Sierra Leone evaluates the country'sbusiness environment by: (i) analyzing barriers to privatesector investment and growth and how they vary amongdifferent types of firms; (ii) benchmarking SierraLeone's investment climate and firm performance to thatof other countries; and (iii) providing recommendations topromote and strengthen the private sector. The ICPN issupported by the statistical analysis of a 2009 enterprisesurvey of 150 formal, manufacturing and service firms withfive or more employees based in Western Area/Freetown andKenema, two of Sierra Leone's major urban centers. TheICPN is organized as follows. Chapter one provides contextfor Sierra Leone's business environment. Chapter twodiscusses the performance of Sierra Leone firms, with afocus on labor productivity. Chapter three examines howinvestment climate constraints cost businesses money andtime, discusses main bottlenecks to conducting business asidentified by managers of Sierra Leone firms, and reviewsobstacles related to electricity supply, tax rates,informality, corruption and access to land. Chapter fouranalyzes data on how firms access and use finance, andchapter five discusses exports and internationalization inSierra Leone. Chapter six concludes and provides policyoptions to improve the investment climate.