Hotel World is Smith's second novel, and has already featured on the Orange Prize shortlist.
This year marks the first time that the shortlist includes two previous winners of the Orange Prize.
BBC: Hilary Mantel and Zadie Smith up for women's fiction prize
The Women's Prize for Fiction - formerly known as the Orange Prize - is now in its 18th year.
Her book, which is shortlisted for the Orange Prize, is about friendship and war in the troubled West African state.
The British and Australian literary giants are joined by Impac prize winner Andrew Miller, Ghostwritten author David Mitchell, Orange Prize nominee Ali Smith and newcomer Rachel Seiffert.
The Orange Prize was set in 1996 by a group of journalists, publishers and writers who were dismayed when the 1991 Booker prize shortlist contained no women writers.
The Clothes On Their Backs - a story about survival and how garments inform who we are by Orange prize-winner Linda Grant - also makes it into the longlist.
Her novel Beyond Black, about a medium who is tormented by her acquaintances, both the living and the dead, was shortlisted for a Commonwealth Writers Prize and the Orange Prize for Fiction.
"We were concerned at the idea that many of the biggest literary prizes often appeared to overlook wonderful writing by women, " according to Kate Mosse, co-Founder and honorary director the Orange Prize.
Nick Laird who is married to the Orange Prize for Fiction winner Zadie Smith makes the shortlist for his novel Utterly Monkey, although he had also entered a short book of poetry, To A Fault.
The announcement that a sponsor has been secured follows the news in October that the Women's Prize for Fiction - formerly known as the Orange Prize - would by funded privately in 2013 while the search continued for a new sponsor.
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