By Amin Kef (Ranger)
The rising cost of rice, a staple food in Sierra Leone, has placed a significant strain on households across the country. Over recent months, the prices of various types and brands of rice have skyrocketed, making it increasingly difficult for many families to afford this essential commodity. This worrying trend has been largely attributed to the re-imposition of the 5% import duty on rice, as stipulated under the 2024 Finance Act, alongside other associated charges that have forced importers to increase prices.
In communities across Sierra Leone, the rising price of rice has become a critical issue. For many families, the increasing costs have forced them to cut back on their daily consumption, leading to food insecurity and heightened financial pressure. Previously, the removal of import duties on rice was seen as a measure to alleviate the financial burden on households. However, the re-introduction of the 5% import duty in 2024 has reversed these gains, pushing rice prices to unprecedented levels.
A bag of rice, which was once affordable for the average Sierra Leonean, is now beyond the reach for many. Reports indicate that prices have surged by as much as 30% since the import duty was reinstated, leaving consumers in a precarious situation. Low-income families are particularly affected, as rice is a primary staple in their diets. With their purchasing power already constrained due to economic challenges, these households are finding it increasingly difficult to sustain themselves.
The 2024 Finance Act’s provisions have also placed significant pressure on rice importers and retailers. As a result of the added costs from the import duty and other charges, importers have been forced to increase the prices at which they sell their goods. Retailers, in turn, pass these costs onto consumers, further exacerbating the problem.
For importers, the objective is to sell their stock quickly and maximize profits. However, with the current economic conditions and high prices, sales have slowed down considerably. Retailers are now facing a situation where large quantities of rice are sitting in their shops unsold, contrary to expectations. The limited purchasing power of consumers has disrupted their business operations, leading to reduced revenue and financial strain.
One importer, who preferred to remain anonymous, expressed frustration: “We are in a tight spot. The high taxes and import duties have left us with no choice but to raise prices. But with these prices, people just can’t afford to buy as much as they used to, so our sales have dropped significantly.”
The decision by the Government, through the Ministry of Finance, to re-impose the 5% import duty on rice was primarily driven by the need to generate revenue and protect local rice production. According to officials, the funds from this tax are intended to support the Government’s flagship “Feed Salone” program, which aims to boost domestic rice production and reduce reliance on imports.
The Government has argued that the import duty is a necessary step towards achieving long-term food security in the country. The rationale is that by imposing taxes on imported rice, local farmers will be incentivized to increase their production, thereby reducing the nation’s dependency on foreign rice. However, the short-term impact has been a sharp increase in prices, which has placed immense pressure on the population.
In an attempt to mitigate the impact of rising prices, the Financial Secretary, Matthew Dingie, assured the public that the Government would develop a pricing formula for essential commodities like rice, cement and iron rods. This formula was supposed to help stabilize prices and protect consumers from exorbitant increases. Unfortunately, despite these promises, the plan has yet to materialize. This delay has led many to question the Government’s commitment to addressing the crisis and protecting the interests of ordinary Sierra Leoneans.
Consumer advocacy groups have been vocal in their criticism, arguing that the failure to implement a pricing formula has left the population vulnerable to unchecked price increases. “The Government’s inaction is worsening the situation. People are struggling to feed their families and yet we’re still waiting for a solution that was promised months ago,” said a representative of one such group.
As the crisis deepens, there is a growing consensus that the Government needs to revisit the 2024 Finance Act and consider removing the 5% import duty on rice. Such a move would likely lead to a reduction in prices, providing much-needed relief to households. Additionally, improving the country’s road networks, especially those that link farms to markets, would help reduce transportation costs, which are a significant contributor to high food prices.
Experts have also called for a renewed focus on revamping the agricultural sector. While the “Feed Salone” program is a step in the right direction, more needs to be done to achieve self-sufficiency in rice production. This includes providing farmers with better access to resources such as seeds, fertilizers and modern farming techniques, as well as offering incentives to boost productivity.
The Ministry of Agriculture must play a more active role in ensuring that local production is able to meet the country’s demands. With sustained efforts, Sierra Leone can achieve food security and reduce its reliance on imported rice, thereby shielding the population from global price fluctuations and economic shocks.
The rising price of rice is a major concern for households in Sierra Leone. The reinstatement of the 5% import duty under the 2024 Finance Act, while intended to generate revenue and protect local production has had the unintended consequence of driving up prices, making life harder for many families. Unless urgent action is taken to address the underlying issues, the situation is likely to worsen, leaving even more people struggling to afford this essential staple. The Government must act swiftly to revisit its policies, fulfill its promises, and put in place measures that will ease the burden on both consumers and businesses.
