In a report dated 6th July 2022 and titled, “Flash Report on a Case of Unlawfully Possession of Weapons” sent by the Crime Officer of Lunsar Division, D/ASP Jimmy J Momoh, to the Local Unit Commander of the Lunsar Division it was mentioned that following reports of Aggravated Robberies in Lunsar, one Osman Kamara {alias Fabulous} was on Tuesday 5th July 2022, during the evening hours, arrested as there was a Warrant of Arrest for him and his colleagues.
The report continued that upon interrogation, the said Osman Kamara {alias Fabulous} informed the Police that his colleagues at Port Loko were in possession of certain weapons.
Further stated was that at about 04:30 hours of Wednesday 6th July, him as Crime Officer lead a Team of personnel for Port Loko in search of Osman Kamara’s colleagues on board SLP 151 and AQA 373 respectively.
He said they arrived at the Port Loko Divisional Headquarters where they made their presence known and two personnel were added to their strength.
According to the Crime Officer, Alias Fabulous led them to the Kamaranka area where the latter identified a house where, he said, one Joseph Kamara {alias Ice} whom he alleged owns two guns resides.
The Crime Officer informed that they woke alias Ice while he was sleeping with his fiancée, Mariama Blango {alias Star Zie}. He said they asked alias Ice for the alleged weapons and he told them that the weapons were with his colleague, Ibrahim Koroma { alias Garbon} who resides at No. 2 Kambia Road, Port Loko.
He said they left alias Ice premise for one alias Effort’s house at the same Kamaranka Area where they arrested Bai Kargbo {alias Effort} with his girl friend, Haja Bangura, who also told them that, alias Gabon is in possession of two guns.
The Crime Officer said they left alias Effort’s house for Kambia Road where they arrested alias Garbon and asked him for the guns and he led them to where he kept the guns under his bed in a black pack bag.
He mentioned offloading the bag and discovered two guns ;One NP 18, 9×19 mm with S/N: SL/SLP 14/13501813-9 with one {1} live round, and One AK 47 riffle with S/N: 13632934 with thirteen {13} live rounds.
The Crime Officer said the weapons are now with the Divisional Armourer {PC 17340 KANU Ibrahim} for safe keeping and an investigation is in progress.
In a Press Release issued by the Sierra Leone Police, dated 6th July, 2022, it was stated that the public will recall that during the weekend of 2nd and 3rd July 2022, social media were awash with video, audio, and text messages about planned demonstrations in Sierra Leone that were scheduled for Monday 4th July, 2022.
The Sierra Leone Police continued that it is no secret that some of the text, video and audio messages were laced with threats of killing drivers, motorcyclists, Police Officers and soldiers.
It furthered that following from the above, its Management published a Press Release which clearly stated that no person or group was granted permission to embark on demonstrations on the said date.
The press release, according to the Police, further noted that organizing or participating in any unauthorized demonstration contravenes provisions of the Public Order Act 1965.
The Sierra Leone Police (SLP) said it would like to inform the public that despite the Press Release from the Police, some protesters were out in the streets of Freetown, Lungi, Port Loko, Mile 91 and Magburaka, on Monday 4th July 2022, whereby police officers arrested a total number of fifty seven (57) of those protesters.
It added how the arrests were contingent on the following: a) the protesters never had permission from the Inspector General of Police to demonstrate, and b) to preserve their (protesters) safety; as it was likely that hoodlums and miscreants could have infiltrated and hijack the demonstrations, given the fact that serious threats of killings of people were already distinctly made on social media, in respect of same.
Also stated was that Madam Femi Claudius Cole and Dr. Dennis Bright were arrested and detained for incitement at the Criminal Investigations Department (CID) on July 3, 2022.
The Police underscored that their arrest came against repeated cautions from the Police to be law abiding and to also maintain the peace at all times.
It said for the records, during the Mid-Term Census, they were both publicly involved in inciting people not to participate in the process for which they were invited to the CID for interrogation but they were later cautioned and released.
The Sierra Leone Police stated that on another occasion, Dr. Dennis Bright was invited to the CID, where he was interrogated, cautioned and released, after a video surfaced of him addressing some marshals (a group that has been outlawed and banned from operating in Sierra Leone) during the run up to the Ward 156 Koya bye-election.
It pointed out that similarly, Madam Femi Claudius Cole was seen in the company of several women, preparing placards, rehearsing songs and issuing out threats against the Police and military, if they disallowed their unauthorized July 4 planned demonstrations.
According to the Police, despite all of those, the Management of the SLP agreed to caution and unconditionally release all protesters arrested on Monday July 4, as they are considered to be first time offenders, an action it said has been done and to also release Madam Femi Claudius Cole and Dr. Dennis Bright, but they should be warned to be reporting at the CID Headquarters, until otherwise rescinded or any other determination that could be made.
The Sierra Leone Police concluded by stating that everyone is therefore encouraged to be law abiding, peaceful and to go about his or her normal lawful business and be assured that the Sierra Leone Police will continue to serve him or her better.
It must be noted that the release of all fifty four (54) suspects came on the day they were expected to appear in Court on allegations of riotous conduct and illegal procession, contrary to the laws of the land.
Before their release, the Inspector General of Police (IGP) Ambrose Michael Sovula informed that they have been profile and were to be charged to court following the completion of investigations into their conducts.
His duties, he said, are not guided by political ideologies as alleged by some sector of the public but by the dictates of the 1991 constitution, the police laws and his conscience.
He said the Police do not investigate Political parties but criminals and went on to inform them that they have right to protest but it must be done following the due process of the law.
The Inspector General encouraged them to go back home and help in their own ways to contribute to nation building and desist from being used by politicians.
The question many people are asking lately is whether the Government of Sierra Leone is benefiting at all from the many betting licenses being issued to a number of new betting companies operating in Sierra Leone and/or is in partnership with the Sierra Leone State Lottery Limited.
A research by our investigative team into the method of operation of betting companies revealed massive irregularities and shortcomings perpetrated by a certain foreign national who is also involved in supermarket operations with whom Government of Sierra Leone signed contract with for the provision of Betting Services in Sierra Leone.
Our investigations further revealed with dismay that the said foreign national has turned himself as an Agent for Government and is issuing license all over the place without the consent of Government and the Ministry of Finance who has the mandate to issue such licenses to potential betting companies.
What is happening to monies generated from providing these licenses including taxes due and payable to Government by these many betting companies is the subject of our investigation and if these monies are remitted to Government coffers.
Current investigation further revealed that the foreign national (to be named in our subsequent editions) DOES NOT have the financial and management clout or capacity to efficiently and effectively run betting companies.
Readers will be shocked at the number of betting licenses that has been issued by the foreign national to companies at huge costs such as Betsalone, Big Winners, Easy Bet, PMU and lately to Elephant Bet. What is happening to license fees issued to all of these companies is the crux of this investigation.
This awkward arrangement and manner of issuing such licenses is causing huge loss to Government and needs to be checked and urgent attention paid to it by the relevant stakeholders which has the potential to expose Government to potential litigation if not urgently addressed and controlled.
Sources say this individual is now posing as the official betting and license issuer in Sierra Leone and all license fees are being paid directly to him instead of to the Government purse at the Bank of Sierra Leone.
Is it that anyone with money can now walk into the country and open a betting company through this individual without going through the relevant authorities and without proper verification process?
More on this in our subsequent editions as we continue to unfold the ugly cartel in the issuance of licenses to betting companies in Sierra Leone.
Tony Morgan Deputy Commissioner-General -EXPO Dubai
By: Tony Morgan (Deputy Commissioner-General -EXPO Dubai )
Re-denominating the Leone is a stroke of genius on the part of the Government. It has a positive effect on the currency’s reputation. The Leone now has prestige globally. The Bank Governor, Prof. Kelfala M Kallon, should also look into creating a Financial Zone like the special economic zone in Dubai established in 2004, (Dubai International Financial Centre – DIFC) which acts as a financial hub for the Middle East, Africa and South Asia markets.
Going back to redenomination analysis, according to a January 2020 publication in the International Business Research (Impact of Currency Redenomination on an Economy: An Evidence of Ghana) the conclusion was: “There is significant improvement in the performance of GDP, Inflation, Balance of trade, foreign direct investments and globalization … the study concludes that the 2007 currency redenomination exercise has helped the Ghanaian economy by all standards. ” Based on the above conclusion, it is most certain Sierra Leone will follow the same positive trajectory.
All indications points to the next commercial revolution emerging in Africa. In preparedness Sierra Leone requires a solid foundation; hence Human Capital development is essential. In a global world with countries vying for investments, redenomination makes our currency attractive and more competitive.
Most analysts emphasized the problem is not redenomination, but how it is implemented. The banking system is usually the main player in distributing new cash and withdrawing old ones from the system. This will take time in Sierra Leone because the black economy is thriving (“Black economy” as used in this report is not intended to be derogatory, but to highlight the part of a country’s economic activity which is unrecorded and untaxed by its Government). So the Government will have to be innovative and flexible in the system it decides to adopt.
Politics is a social reality and it is no surprise that some unscrupulous individuals play it dirty for political gains. Several video and audios spreading fake news about the new currency are already trending. Fortunately these actions were anticipated by the team involved and a robust plan is in place to deal with these and other distractions.
Coming back to the issue of Sierra Leone’s creation of a Financial zone, it has the potential to be a great source of income. The idea is to attract top banks and financial service providers with very low to zero tax. These zones are associated with very good locations, at this time I recommend it should be located in the new modern day eco-friendly city to be built in Sherbro Island. The airport constructed on Sherbro Island will be state of the art, with Sherbro Island converted to one of the most beautiful new cities in recent times. With advances in building technology the infrastructure required can be constructed under 5 years. It will be a touristic masterpiece as well as a financial hub.
Concerning development, most financial economists are armchair philosophers, but the Bank Governor Prof. Kelfala M Kallon took the bull by the horns and dragged the bull kicking and screaming in the right direction. No one said redenomination will be an easy task, but to properly position Sierra Leone for the next commercial revolution, the Central Bank has a major role to play, and the Bank Governor has shown he is ready to do what is necessary. Our Bank Governor had the genius and will to re-denominate the Leone under trying conditions, I am positive, Prof. Kelfala Kallon will look into generating revenue for Sierra Leone by creating a domesticated Financial free zone for Sierra Leone.
Housemates Salone Season 3 is Getting Hotter & Tantalizing
By Amin Kef-Ranger
It is worthy of note that whenever there is an imminent eviction in the ongoing Housemates Salone Season 3 with the slogan “Di Game Get Yagba, If You Nor Able Na for Pull Hand”, naturally all the Housemates become very apprehensive, although some are confident of going through it. However, it is a day of reckoning as it cuts short an amazing journey for some were as, on the other hand, those who survived thank their stars and keep on wishing that it will be like that to the ultimate end when the ultimate winner will be announced.
It was indeed a somber moment to see those evicted last Sunday escorted out of the House as they were in tears with the shattering of their dream of winning and dislocation of plans of what they intend spending the Le250M prize, going on a round trip to Dubai and owning a brand new car to be offered by Zarlux Car Rental.
For those who survived the eviction, they now have to step up on how they comport themselves and put up performances that will woo likes from members of the public watching or interested in the Reality TV Show.
As of now as there are ten remaining in the House, the Reality TV Show is getting hotter and tantalizing.
It must again be noted that after the latest eviction the Housemates will be uncoupled by the Chief of the House for a new coupling. They will be given the opportunity to choose someone whom they will be comfortable with for the week and performer their different tasks to win points.
However, it must be borne in mind that the fate of any of the Housemate is determined largely by the public through voting. Members of the public could vote as many times as possible for their favourite Housemates.
To do so, the organizers of the Reality TV Show, AYV and Africell SL , have made it easy for members of the public via AFRIMONEY by simply Dialing: **161*10* plus the NUMBER of an Housemate from an Africell line.
Voting could also be done via PayPal or Scratch card from Sierra Leone Commercial Bank (SLCB) website, at: www.slcbvote.com.
Many are now watching the Reality TV Show live, on a 24/7 basis, on AYV Entertainment Channels 34 & 33 and AYV on DSTV Channel 399.
Viewers now have a wide variety of platforms through which they could enjoy the Reality TV Show.
Housemates Salone Season 3 is socially considered to be a Youth Empowerment platform which is succeeding both Seasons 1 & 2. As it has been realized the boarding of twenty-two Housemates under one roof , for a specific length of time, giving them the opportunity to interact on a daily basis will exposure the innate potentials they possess that could be harnessed and tapped for productive ends.
They are expected to perfect assignments delegated to them by the Chief who is controlling their moves and actions as well as grading them as and when the show progresses. Along the way the Housemates are learning new skills from their co competitors in the House, displaying coping mechanisms under various conditions and learning how to comport themselves when they find themselves in any public arena or gathering.
These Housemates are taught or learning by themselves how to prop up their self esteem, to be courteous, courageous and control their ego under stressful conditions.
They are given the platform to express themselves publicly, respond to questions, to play certain roles in real life situations. In addition, some corporate institutions are using the platform to teach or school the Housemates and by extension the watching public what types of service deliveries they could offer, how to go about performing certain tasks and anything else that has to do with empowering their minds towards cultivating positive mindsets.
Members of the public must realize that indeed time flies and what seems to be far is getting nearer. Therefore, if decisions have been made to vote for favourite aspirants they believe will make the entertainment show truly entertaining then they need to shrug off the procrastination attitude and vote now through the various channels.
Time is of an essence and therefore one should make wise use of it instead of later on nursing regrets.
NP-Sierra Leone Limited has been rated as a business entity that is first in terms of customer care. Dealing in various petroleum products, the company has been widely acclaimed for the cordial, smart, and efficient manner in which it is treating its numerous customers in different parts of the country.
The company has become very endearing simply because their dedicated staffs are trained to respond to the needs of customers. Giving satisfaction to customers forms a cardinal objective of NP and from what was learnt it has been maximizing that very well.
Investigations mounted revealed that one of the secrets behind the success of NP-SL is the fact that the entity has been blessed with dedicated shareholders and successive capable Management teams that have been injecting fine initiatives that are yielding fruitful dividends.
The selflessness and commitment of the shareholders have made it possible for the company to empower many Sierra Leoneans and at the same time put it at a vantage position to continue to open more filling stations across the country.
NP has cordially maintained a good business relationship with its numerous customers’ right across the sub-region where it exists and most have confessed that they are realizing optimum satisfaction in dealing with NP.
The company deals with individuals and various sectors of society, always ensuring that its various petroleum products are available and are sold at affordable prices. This keen symbiotic relationship with its customers has been paying huge dividends, always resulting in a win-win situation, making NP very endearing to all and sundry.
NP-Sierra Leone is also known for offering Sierra Leoneans affordable NP Gas cookers of various sizes, which are safe and very user friendly . NP Gas cookers could be purchased at all their filling stations across the country and the very gas is also sold to replenish those that have been used.
When we talk of the steady and effective implementation of the Local Content Policy, NP stands out tall as it is truly has 100% indigenes, particularly in Sierra Leone, as workers. This is one of the factors that have made the company to become a success story.
“I always carry my NP Smart Card with me just in case my car’s fuel gauge will show red and I may not exactly have the required amount of money to refill or even if I have it such could have been put aside for another purpose. With my card, I can just breeze into any NP Filling Station and by using my card the attendant will pump the quantity of petrol I need,” Felix Sesay, an engineer intimated adding how the card’s security features are unique and could not be easily falsified.
“When I first heard of ‘Your fuel on Smart Card’ I thought it was a joke but only realized its efficacy when I started making use of it,” he furthered saying he is really finding it very convenient in doing so and as such prevent him from withdrawing big cash from his bank account for purchasing fuel adding how it as well helps in also saving him time.
Holders of NP Smart Cards only need to be regularly crediting their cards in other words topping it up with the money. As long as they contain credits the holders are at liberty to use them at Filling Stations to get the amount of fuel required without exchanging cash with the pump attendants.
NP-Ltd is doing exceptionally well in Guinea, Liberia, Ivory Coast and The Gambia where it is functioning and indeed there are prospects for further expansion.
The company gives preferential treatment to indigenes in terms of employment in Guinea, Liberia, Ivory Coast, and The Gambia not to talk of here Sierra Leone where NP has a presence and operates vibrantly.
Besides, the company is one of the largest taxpayers to the Government and meaningfully rolled out its Corporate Social Responsibility.
It can therefore be justifiably asserted that NP-SL Limited is the country’s reliable fuel provider as it always ensures that its stockpile is always at an appreciable level.
Afrimoney Partners with Liccsal Business College to Digitalize Fees Payment
By Foday Moriba Conteh
During a well-attended ceremony held on Wednesday 6th July, 2022 at Liccsal Business College Campus on Wilberforce in Freetown, a partnership agreement was officially signed by Afrimoney and Liccsal Business College to digitalize the payment of fees.
In his statement, the Head of Afrimoney, Martison Obeng-Agyei, said Afrimoney cares so much about communities and in that light is ensuring that they are financially included through digitalized means underscoring how the world is changing very fast and it s necessary for institutions to be brought up to speed.
He informed the gathering that with the launch of the partnership between Afrimoney and Liccsal Business College students do not need to travel long distances to pay their school fees and other university fees but rather will sit in the comfort of their homes and do their payments through Afrimoney.
“In making payments a student should input all his or her relevant information given to him or her by the college administration regarding the necessary payments that he or she will be making through the Afrimoney fees payment, including identification details,” he added.
Martison said that he is sure that every student has an ID to identify them so that the administration will easily identify students that have made payments. “I am encouraging students who do not have Africell SIM cards to get one and be activated for Afrimoney and those who have but are not yet activated to do so,” he emphasized.
The Board Chairman of Liccsal Business College, Donald M.S Madlay, commended Afrimoney for sealing the partnership with Liccsal Business College in order to digitalize fees payment which he described as a laudable venture towards making fees payment easy for students.
He called on students to make good use of the opportunity which he said will definitely help them greatly in making their fees payment at the comfort of their zones.
Launching the Afrimoney fees payment, the Principal of Liccsal Business College, Cecilia A. Bangura expressed gratitude to Afrimoney and Africell for making fees payment easier and comfortable for their institution.
“I am extremely delighted to see that our institution is one of the beneficiaries of this facility which she said has given the opportunity to students to make fees payments and all other payments easier,” she maintained.
The Principal disclosed such will reduce the stress on the Management of the institution in vetting students’ bank receipts and is with the strong conviction that students will take advantage of the opportunity in order to make their payment using Afrimoney at the comfort of their zones.
“On behalf of the Board, Management, Staff and students of Liccsal Business College I want to official launch the Afrimoney Fees payment,” she concluded.
In his presentation as to how the system operates, the Head of Business Development and Partnership at Afrimoney, James Tommy Beah, explained that all the students need to do is become activated for the Afrimoney system to access the service.
He said that all they need to do is dial star, one-six-one- harsh and choose option two which is pay bills and that after choosing option two they should now select option eleven from the drop down menu which will take them to two options and they should choose fees payment.
James Tommy Beah furthered his presentation by saying after choosing fees payment they will now be directed to two other options tertiary and schools for which they should choose tertiary which comprises of Universities, Colleges and TVETS.
According to him since the institution is a college they should choose option two which will take them to another dropdown menu with Liccsal as the only option.
“When they choose option one which has Liccsal the students will now see an instruction to enter their student identification numbers,” he said expressing the conviction that they all have one.
He concluded that students should then follow the necessary instructions to finally do their payments maintaining that the system is easy to use.
Explaining their ordeals before the system was launched, the President of the Student Union Government lamented that it had been challenging for them to travel long distances to pay their fees, adding that sometimes it is risky for them to move around with their fees in order not to end up in the company of thieves.
He used the opportunity to commend Afrimoney for the gesture which he said as students they are very happy for the partnership continuing that as students they don’t need to pay transport fares in order to pay fees at the bank but they could stay at home and do so pay at the comfort of their zones.
Youth Alliance for Democracy and Accountability Sierra Leone (YaDA-SL),
By Amin Kef-Ranger
In celebrating International Day of Democracy 2022, which is celebrated in September every year as an opportunity to review the state of democracy in the world, the Youth Alliance for Democracy and Accountability Sierra Leone (YaDA-SL), a registered non-governmental youth led Civil Society Organization working towards the promotion of democracy, accountability, human rights, good governance and peace in order to bring long term change and sustainable development in the county is poised to host its 1st National High-Level Youth Driven Dialogue Conference on the “Consolidation of Democracy 2022”.
The Two day Conference ,which is scheduled to take place on the 14th & 15th September, 2022, is geared towards supporting the Government of Sierra Leone to strengthen institutions and processes that are more responsive to the needs of ordinary citizens, including the poor, as well as to promote sustainable development.
Speaking to this medium, the Executive Director of Youth Alliance for Democracy and Accountability Sierra Leone (YaDA-SL), Foday Moriba Conteh, revealed that the conference is an important opportunity for past and current leaders, institutions and civil society activists to collectively renew their commitment and efforts to build democratic constitutional rule and importantly to counter democratic backsliding in the country.
He maintained that the upcoming event will include current and former political leaders, representatives, civil society activists and academics, who will be engaged in discussions on how to support and have respect for constitutional rule across the country and how to strengthen political discourse in favor of strengthening democracy in the country.
He pointed out that the high level dialogue on the consolidation of democracy will stimulate debate on the topic among politicians, diplomats, representatives of civil society organizations and the media especially on how to strengthen democracy in the country.
The Executive Director disclosed that beneficiaries of the conference will include: Democracy Experts, Politicians and Practitioners, Diplomats, Current and Former Political Leaders, Civil Society Activists, Religious Leaders, Women Leaders, Disabled Groups, the Media, Academics, University Students etc. and they will be drawn from the 16 districts of the country.
He concluded that as part of their preparation for the conference they are pleased to announce that the organization has officially launched its online delegates registration for members of the public who intend to attend the conference.
A panel discussion, which took place on the 21st June, 2022 at the Sierra Palms Hotel in Freetown, on the topic: “Economic Reforms for a Quick Recovery from COVID-19”, was moderated by Dr. Yakama Manty Jones nee Marah, an Economist, Researcher, Lecturer, Entrepreneur and Philanthropist who is the Director of Research and Delivery at the Ministry of Finance.
The panelists included Sheku Bangura – Deputy Minister of Finance,
Dr. Ibrahim Stevens– Deputy Governor of the Bank of Sierra Leone,
Sheika Sannoh – Head, SME Development Agency (SMEDA) and
Mahmoud Idriss – CEO, Smart Systems Limited, Sierra Leone.
Discussions bordered on the World Bank ‘s recent launch of the Sierra Leone Economic Update which dealt with the country’s economic performance, outlook, risks.
During the panel discussion session, when Dr. Yakama Manty Jones nee Marah, asked the Deputy Governor of the Bank of Sierra Leone, Dr. Ibrahim Stevens that just when the economy began to recover, the war in Ukraine caused new disruption through sharply higher food and fuel prices and what is the Central Bank doing to cushion the impact of high inflation?
In his response, Dr. Ibrahim Stevens said at a practical level they have done quite a lot as a central bank since the COVID-19 outbreak and after its spread was checkmated in order to make the nation grow again, but stated that unfortunately the Ukraine war came and the war brought its own consequences.
He continued that policies were implemented to ensure that we could import the necessary essential commodities stressing how they have been doing that but said even that in itself is insufficient.
The Deputy Governor said there has to be other actions that the Ministries of Finance, Trade and Agriculture should be implementing in order for the country to produce more, maintaining that if we could reduce the country’s import bills then the nation will be able to address the challenges especially that of generating Forex all the time. He furthered that we should not only focus on agriculture but we should also think about industrialization.
Responding to her question that after steadfast fiscal management had reduced the fiscal deficit to 3.1 percent of GDP in 2019, the deficit jumped to 5.9 percent in 2021, reflecting a combination of higher expenditure, revenue shortfalls and tax-deferring policies to respond to the pandemic what is Ministry of Finance doing to reduce fiscal deficit and improve fiscal sustainability,the Deputy Minister of Finance, Sheku Bangura, stated that they have been dynamically trying to manage the economy by using various strategies.
He said they have been targeting different beneficiary groups that need to be considered and conducting researches to see how the Ministry can make policies that will be used to respond to certain issues. And one of the things he mentioned was digitization adding that the Government is forward thinking and working on ways to drive efficiency.
Stating that the Report calls for improved financial access for SMEs and how can the Government facilitate that access? What steps have been taken thus far? Sheika Sannoh said it is time for Government to establish Development Banks that will cater for SMEs for medium and long financing. He continued that Sierra Leone lacks sector specifics suggesting that the Government and the Sierra Leone Commercial Bank should develop sector specific SMEs product. Thirdly, he said Government should focus on mechanisms that can add value to SMEs that has growth potentials.
Dr Yakama laid the basis for Mahmoud Idriss, the CEO of Smart system that the Report found that around 88 percent of SMEs reported a decline in sales during the pandemic, often closing operations and laying off staff – which aggravated their pre-existing constraints of access to finance, land, and infrastructure and then asked: How has the private sector and SMEs in particular navigated those shocks/challenges?
Mahmoud Idriss started by saying their survival depended on adaptability and circumvention, by finding ways to navigate and through what he termed as reincarnation.
The panelists also specifically proffered how to leverage SME financing and digitization for inclusive growth.
The responses by the panelists to the current crisis included paths to improve resilience and reducing poverty. What all the panelists agreed on was that as a nation we must be more intentional about private sector development within both the formal and informal sectors.
Some of the measures they proffered included financial literacy and business development support, greater access to finance, women’s entrepreneurship, ecosystems strengthening and value addition, digital financial literacy and inclusion; thinking and working through the last mile, implementation of policies with all parties and above all the aforementioned must be complemented by measures to support macroeconomic stability.
It must be noted that the 2022 Sierra Leone Economic Update stated that the country’s economy had begun to recover from the COVID shock, but it is now faced with renewed uncertainty.
It continued that following economic contraction in 2020, growth had resumed, driven in part by iron ore mining but maintained that the growth outlook now faces renewed uncertainty, against the backdrop of the Russia-Ukraine war, global inflationary pressures, and the continued threat of COVID outbreaks.
The Update also stated that after expanding by 5.7 percent in 2021 (the strongest post-recession recovery in about 80 years), global economic growth is now expected to moderate to 3.2 percent in 2022, and 3.1 percent in 2023 reflecting hikes in critical food and fuel prices caused by Russia-Ukraine war, adding to existing inflationary pressures stemming from lingering supply bottlenecks and over-heating economies.
It further stated how Sierra Leone’s economy grew by 3.1 percent in 2021, after shrinking by 2.0 percent in 2020 and that agriculture contributed over half of total growth followed by services and industry. The Update pointed out that manufacturing was the fastest growing sub-sector, expanding by 12.3 percent in 2021 after contracting by 6.7 percent in the previous year, benefiting from Government’s support to small and medium-sized enterprises (SMEs) through the MUNAFA Fund and Bank of Sierra Leone’s (BSL) SLL500 billion special credit facility, as well as from increased agribusiness investments.
The report said public finances have deteriorated since the onset of COVID-19. It added that after steadfast macroeconomic management had reduced the fiscal deficit to 3.1 percent of GDP in 2019, the deficit jumped to 5.9 percent in 2021, reflecting a combination of higher expenditure, revenue shortfalls and tax-deferring policies to respond to the pandemic.
Also, it went forward to say public debt has risen steadily in recent years to reach 76.9 percent of GDP in 2021, the highest level in Sierra Leone since HIPC debt relief was obtained in 2008. The increase in debt reflects persistent fiscal deficits, currency depreciation, and limited access to concessional sources of financing.
It pointed out that increasing reliance on high-cost domestic borrowing has increased the debt servicing burden and crowded-out credit to the private sector. That inflationary pressures have accelerated since mid-2021, driven first by the post-pandemic rebound in consumption, and subsequently by global supply chain disruptions since the onset of the Ukraine war, and depreciation pressures on the Leone. External accounts, as the report claimed, have been cushioned thanks to international aid.
Are the sanctions against Russia useful? Yes, they are already hitting Vladimir Putin and his accomplices hard and their effects on the Russian economy will increase over time.
Since Russia deliberately violated international law by invading Ukraine, the EU has adopted six packages of sanctions against Moscow. Our measures now target nearly 1,200 individuals and 98 entities in Russia as well as a significant number of sectors of the Russian economy. These sanctions were adopted in coordination with the G7 members. Their effectiveness is enhanced by the fact that over forty other countries (including traditionally neutral countries) have adopted them or taken similar measures.
By the end of 2022, we will have reduced our Russian oil imports by 90% and we are rapidly reducing our gas imports. These decisions are gradually freeing us from a dependence that has long inhibited our political choices in the face of Vladimir Putin’s aggressiveness. He probably believed that Europe would not dare to engage in sanctions because of its energy dependence. This is not the most insignificant of the Russian regime’s many miscalculations during this conflict. Of course, weaning ourselves off Russian energy so rapidly also creates serious difficulties for many EU countries and for several economic sectors. But this is the price we have to pay for defending our democracies and international law, and we are taking the necessary steps to deal with these problems in full solidarity.
Some may ask do these sanctions really have an impact on the Russian economy? The simple answer is yes. Although Russia exports a lot of raw materials, it also has no choice but to import many high value-added products that it does not manufacture. For all advanced technologies, it is 45% dependent on Europe and 21% on the United States, compared with only 11% on China.
In the military field, which is crucial in the context of the war in Ukraine, the sanctions limit Russia’s capacity to produce precision missiles such as the Iskander or the KH 101. Almost all foreign car manufacturers have also decided to withdraw from Russia and the few cars produced by Russian manufacturers will be sold without airbags or automatic transmission.
The oil industry is suffering not only from the departure of foreign operators but also from the difficulty of accessing advanced technologies such as horizontal drilling. The ability of Russian industry to bring new wells on stream is likely to be limited. Finally, in order to maintain air traffic, Russia will have to withdraw a majority of its aircraft from circulation in order to recover the spare parts needed to allow the others to fly. Added to this there is also the loss of access to financial markets, being disconnected from major global research networks and a massive brain drain.
As for the alternative offered by China for the Russian economy, in reality it remains limited, especially for high-tech products. To date, the Chinese government, which is very dependent on its exports to developed countries, has not assisted Russia in circumventing Western sanctions. Chinese exports to Russia have fallen in line with those of Western countries.
Will these significant and growing impacts lead Vladimir Putin to modify his strategic calculations? Probably not in the immediate future: his actions are not guided primarily by economic logic. However, by forcing him to choose either butter or guns, the sanctions lock him in a vice that is gradually tightening.
Regarding the impact of these sanctions on third countries, particularly African countries, which depend on Russian and Ukrainian wheat and fertilisers, where responsibility lies in terms of the food crisis is clear. Our sanctions do not in any shape or form target Russian wheat or fertiliser exports, while Ukraine is prevented from exporting its wheat by the Black Sea blockade and destruction caused by Russian aggression. If such issues linked to our sanctions were toarise, we are ready to put in place the appropriate mechanisms to address these. I have informed my African counterparts of this and asked them not to be fooled by the Russian authorities’ untruths regarding our sanctions.
Contrary to what we thought rather naively just a few years ago, economic interdependence does not automatically imply a pacification of international relations. This is why the transition to a Europe as a power, which I have been calling for since the beginning of my mandate, is imperative. Faced with the invasion of Ukraine, we have begun to move from intention to action by showing that, when provoked, Europe can respond. Since we do not want to go to war with Russia, economic sanctions are now at the core of this response. They are already beginning to have an effect and will do so even more in the coming months.
