By Giles Elgood

LONDON, Jan 29 (Reuters) - Sierra Leone is looking for investment from the international community to help it recover from a decade-long civil war, its president said on Tuesday.

Sierra Leone is in a "very terrible situation" after the civil war that ravaged the West African nation from 1991 to 2002, Ernest Bai Koroma said during a visit to London.

Despite abundant natural resources such as diamonds and other minerals, 60 percent of its 5 million population live below the poverty line, 70 percent are illiterate and 60 percent of young people are unemployed, he said.

Koroma, who won a close election last September, said he was seeking more aid from donor countries and also wanted to increase foreign investment.

"Sierra Leone is now poised for investment. The investment climate has increased and improved substantially," Koroma said at London's Chatham House think-tank.

"There is now a determination on the part of the government to move the country forward ... Sierra Leone has huge investment opportunities.

"This time round the political leadership has the will and the capacity to take the decisions that will make a difference."

Koroma, a 54-year-old former partner with accountants KPMG, was elected on a promise to heal political and social divisions. Sierra Leone would rise "like the phoenix" from the ashes of war, he said at his inauguration.

Koroma met British Prime Minister Gordon Brown on Monday and was due to hold talks with business leaders on Tuesday.

To make Sierra Leone more attractive to investors, Koroma said the government's anti-corruption commission was being given better resources to investigate and prosecute offenders.

Britain, the country's single largest donor, agreed during Koroma's visit to spend 16 million pounds ($32 million) to support the National Revenue Authority, which raises funds for public services, and 20 million pounds ($40 million) to boost electricity generation.

"It should provide a sustainable electricity supply to the one million residents of Freetown," British international development secretary Douglas Alexander said.

London-based Africa experts said Koroma's pledges to improve the business climate and boost investment were clearly what needed to be said. But success would depend in part on whether he can tackle corruption, and educate and train thousands of young men who have grown up knowing only fighting. (editing by Robert Woodward)

AlertNet news is provided by