*Fix The Economy
*Stabilise Exchange Rate
*Control Inflation
Presidential candidate for the main opposition, All People’s Congress (APC) has solemnly declared to solve, within six months, Sierra Leone’s long-standing economic problems. Fixing the economy, stabilising the exchange rate and controlling inflation remainone of Kamara’s key priorities if elected.
Dr Samura Kamara reiterated the pledge during the launch of his manifesto at the Brima Attouga Stadium in Freetown. The promise presents Kamara as one who has placed his life on the knife edge for Sierra Leoneans. “Vote me out if I don’t solve the economic problems within six months,” Kamara placed the bet with Sierra Leoneans.
The APC presidential candidate who has vast knowledge in managing economies in developing countries said he would leave no avenue unexplored to rectify the wrong economic policies of the past government. Although he is yet to show details about how he would go about it, he is clear that he knows where to press when he gets at the hot seat.
Stabilising the economy means Dr Samura Kamara will have to pursue macro and micro-economic strategies to achieve his aim. Macro-economics is about formulating broad economic policies and guidelines that can lift Sierra Leone from the economic meltdown which has badly affected the country.
Kamara also hopes to pursue fiscal and monetary policies to stabilise the economy and improve Sierra Leoneans’ living standards. He promised to create sound investment climate by ensuring good governance that builds and strengthens investor confidence. He promised to restore the rule of law culture, create strong institutions, respect human rights, make trade easier in Sierra Leone and put the youth back to work.
In appointing persons to the civil service, the process, Kamara promised will be merit-based. It will be free from ethno-regional considerations as only competent persons would be employed and retained for better service delivery. Sierra Leone’s overall economic performance is appalling with a projected GDP of just USD25m, one of the least compared to other thriving economies in Africa.
The wrong economic policies of the past SLPP (Sierra Leone People’s Party) government, has landed Sierra Leone into a state where she currently finds herself. Capital flight especially foreign exchange has been attributed to tight, unnecessary restrictions by the government of President Julius Maada Bio. In the pursuance of micro-economics, the forces of demand and supply, consumer behaviour and spending as well as balance of trade deficits among others will be paid attention to.
Although policies which the APC presidential candidate will pursue to fix the economic problem remains unclear, he is quite confident that the economy would be revived. In some of his public addresses, Dr Samura Kamara promised to lure more investors to bring the much-needed foreign currencies especially the US dollar.
He would ensure that mining and manufacturing companies expand on their operations so that royalties could increase tenfold. Sierra Leone will also be properly positioned in the international trade to receive more for her exports through a policy of international competitiveness. He however could not bring out all economic solutions at the moment.
But, he appears certain that he would devise and implement sound economic policies to transform Sierra Leone. It goes without saying that once the exchange rate is normalised, sky-rocketing inflation will be curtailed considerably. It is indisputable that Sierra Leone is more of a consumer than a producer.
She imports almost everything including the staple crop, rice which can be locally grown here .
In external trade, the US dollar is main currency used and not the Leone. Thus, any depreciation of the Leone cause local prices to hike. Under President Julius Maada Bio’s watch, the economy has been badly battered than at anytime in the country’s history in spite of attractive promises made in 2018. The President assured Sierra Leoneans of fixing the economy, lowering prices of commodities, controlling inflation and improving living standards.
These promises were embedded in SLPP’s 2018 manifesto popularly known as the ‘People’s Manifesto.’ Voters were moved by the promises, and Bio became President in the face of high expectation. The President found it difficult to handle the economy well as he was messed up by the runaway Bank Governor, Professor Kelfala Kallon. With wrong fiscal and monetary policies,
a bag of rice today stands at Le700, 000, a price that stuns and shocks every Sierra Leonean either rich or poor, young or old, SLPP or APC. Nobody expected that, under Bio’s leadership, a price for a bag of rice will reach that level.
It has today drastically changed the food or dietary habits of many Sierra Leoneans who are seeking subtitutes or alternatives.
A huge number of Sierra Leoneans now depend on inferior food just to keep life going since they cannot afford rice as usual.
A Freetown resident and mother of three, Adama Conteh says it usually takes them days for them to eat rice. “Since rice is expensive now, I and my kids at home will depend on other food stuff especially ‘foo foo’ and ‘Yebbeh’ (porridge) for home consumption.
We pray that the President who wins this election lower down the price of rice,” Adama prayed to God in sadness and disappointment. She is not alone in the prayers; others are also prayed too. Although Freetownians are badly affected by the hard times, those in the provinces are the worst hit.
Video footages on media platforms show how upcountry men live on cassava at the moment. For many homes especially in the South-East, Cassava is now their staple food. Bo city and other parts in the Southern region have gained fame for living on sliced cassava. The high price does not stop only at food but also other related items. Price of palm oil, a locally processed commodity in Sierra Leone has hit a record high.
The price of palm oil before 2018 hovered around Le180, 000 (one hundred and eighty thousand Leones) to Le200, 000 (two hundred thousand Leones).
Now, the price stands at Le700, 000 (seven hundred thousand Leones) for a jerry can making it difficult for many people especially low-income earners to afford it. The President has also found it difficult to contain the situation at the last hour.
The price of Petroleum, one of the most sensitive commodities in Sierra Leone, has shot up beyond imagination, and fears that it might further rise remains high. Before 2018, a price of litre was between Le4,500 (four thousand five hundred Leones) and Le6, 000 (six thousand Leones). But, it is never the same again when President Bio took over state governance in 2018.
The price started spiralling out of control between 2020 and 2021 the peak or mid-point of Bio’s leadership. Now, the price stands at 21, 500 (twenty-one thousand, five hundred Leones) for just a litre.
In the black market, the price is more than the recognised market price. Black marketers (jebu sellers) sell at the price of Le23, 000 (twenty-three thousand Leones) or Le25, 000 (twenty-five thousand Leones) especially during fuel shortages. The Petroleum Regulatory Agency (PRA) finds it difficult to stabilise the oil price,most times, during situation the agency is required to act.
By the low file it keeps on frequent fuel crises, accusing fingers are being pointed at the regulator for colluding with fuel dealers. Many say they share the loot. Fear is rife that the price will remain as it is until Bio goes out of power in June, 24. Petroleum is both political and strategic: it has been used to depopularise governments or remove them from power.
A shift in its price will also affect almost every commodity and service in the economy.
Since its price sky-rocketed, prices of basic goods and services too has moved in similar direction. An ordinary sardine is currently sold at Le17, 000 (seventeen thousand Leones), a price that has surprised everyone. How can a commodity which was sold at Le3, 000 (three thousand Leones) could suddenly rise to such price level remains the most frequently asked question.
One cannot mention sardine and leave out bread; the two are complementaries although there are other substitutes. The price of a real-sized bread stands at Le10, 000 (ten thousand Leones) instead of Le2, 000 (two thousand Leones) which was the normal price in the good and sweet old days.
Even prices of personal wearings have been badly affected by the economic meltdown. A Jean trousers recently sold between Le70, 000 (seventy thousand Leones) and Le80, 000 (eighty thousand Leones) today goes for Le200, 000 (two hundred thousand Leones) and above.
The high market price has driven customers away, and tough times are visible in most market centres in the city and provinces. A trader in clothes, Mabinty Kamara told this medium that sales have considerably fallen to a record low owing to the high prices.
“In the past, I used to sell between Le3, 000, 000 (three million Leones) and Le4, 000, 000 (four million Leones) a day. Now, I cannot even sell Le400, 000 (four hundred thousand Leones). Customers are running away from the high prices,” Mabinty told this press in a recent interview. As prices of goods rise to unbearable heights, so is the transport fare in the country soaring.
Movement from one point to another within the city has been made extremely difficult. Prices cannot just fit pockets, and drivers do not reach passenger’s destinations. Sometimes, they resort to unexpected changes of direction with intent to extort or exploit. The situation remains tougher for those venturing to travel to the provinces.
The fare from Freetown to Kailahun in the farthest East today is tagged at Le400, 000 (four hundred thousand Leones) excluding the return trip.
What a big blow to Sierra Leoneans? Before 2018, Le70, 000 (seventy thousand Leones can take one from Freetown to Kailahun. It is a different case under Presidential Bio as fares for movement from Freetown to other parts of the country remain high. To be on the safe side, many Sierra Leoneans have cut off trips from either the provinces to Freetown and vice versa. It goes without saying that the hikes in prices owes it to the uncontrollable foreign exchange rate for which Sierra Leone is well known.
Currently, 2, 300, 000 (two million, three hundred thousand Leones) chases a US$100, a very big margin when compared to the old days. Before 2018, just Le700, 000 (seven hundred thousand Leones) goes into US$100. Sierra Leoneans, at this stage, are in dire need of a need of another President who can fix the economic problem for which Samura Kamara has taken an oath. What happens if he fails to fix the economic problem.