Ten of Sierra Leone’s sixteen internet service providers (ISPs) failed to submit required financial statements in 2024, depriving the Universal Access Development Fund (UADF) of crucial revenue meant to expand broadband access, according to the Auditor General’s 2024 report.
The report reveals a major compliance gap in the telecom sector, which auditors say undermines efforts to extend affordable internet to underserved regions. “We observed that 10 of 16 ISPs did not submit their financial statements for the period reviewed,” the report said. “As a result, these 10 ISPs did not pay the Universal Access and Service Levy for the period reviewed.”
The UADF collects the levy to fund nationwide digital infrastructure initiatives, particularly in rural and remote communities, where commercial incentives for connectivity are weak. Missing contributions from major providers risk slowing progress on government and donor-backed internet expansion projects.
Auditors further criticized enforcement mechanisms, noting “no evidence was provided to confirm that penalties or sanctions were imposed on the defaulting ISPs for failing to submit their financial statements and paying the Universal Access and Service Levy.” The report urged the UADF Chief Executive Officer to “ensure that penalties are promptly imposed on all defaulting ISPs that failed to submit their financial statements.”
In response, UADF officials said they had sent reminder letters to non-compliant ISPs, adding that only SAB Technologies had submitted its financial statements and paid the required levy of NLe17,310. “We are still awaiting submissions from the remaining ISPs for invoicing,” UADF officials said.
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Auditors dismissed these efforts as insufficient. “The reminder letters to the 10 ISPs were submitted during audit verification. However, only one ISP, SAB Technologies, submitted its financial statements and made payment, leaving nine ISPs still outstanding,” the report said. “Therefore, the issue remains unresolved.”
Industry experts warn that non-compliance not only deprives the UADF of vital resources but also sends a negative signal to the wider telecom sector about accountability and regulatory enforcement. Sierra Leone’s digital economy, they note, depends on reliable internet infrastructure to support e-commerce, digital finance, and government services.
“This is a wake-up call for regulators and policymakers,” said a telecommunications analyst in Freetown who requested anonymity. “If ISPs can bypass levy payments without consequences, it undermines efforts to bridge the digital divide and threatens long-term sector sustainability.”
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The Auditor General’s report comes amid growing public scrutiny of Sierra Leone’s digital transformation agenda. Broadband penetration remains limited, particularly outside urban centers, with affordability, infrastructure gaps, and inconsistent regulatory oversight cited as key obstacles.
SAB Technologies’ compliance contrasts sharply with its peers, highlighting uneven enforcement. The report underscores the need for a structured framework that links levy compliance to licensing, renewal, or access approvals, ensuring that ISPs contribute fairly to national connectivity goals.
The UADF has pledged to escalate enforcement measures in 2026, including stricter penalties and potential suspension of licenses for persistent defaulters. “We are committed to ensuring that all ISPs meet their obligations so that the fund can finance projects that benefit the entire country,” a spokesperson said.
As Sierra Leone aims to strengthen its digital economy and expand internet access under national and regional development plans, ensuring that ISPs pay their levies is considered a critical first step. Without timely contributions, initiatives to provide affordable connectivity, particularly in rural communities, could be delayed, undermining broader goals for economic inclusion and technological advancement.
The audit signals a broader challenge for regulators across Africa, where rapid telecom growth often outpaces governance frameworks. For Sierra Leone, enforcing compliance and accountability in the sector will be essential to sustain momentum in its digital transformation and meet universal access objectives.
