It is difficult for investors to put their money in a country that is less stable with Sierra Leone not an exception. The threat emanating from inter-party conflict between the ruling Sierra Leone People’s Party (SLPP) and the main opposition, All People’s Congress is forcing foreign investors out of the country.
The Airport Company, Suma Group is seeing tough time in their attempt to get back their money after spending thousands of dollars in the expansion of the Lungi International Airport about a year ago. Many Sierra Leoneans in the diaspora travelling to Sierra Leone no longer lands in Sierra Leone but passes through Guinea where they board vehicles bound for Sierra Leone. Less passengers means less aircrafts that will touch down at the airport as most have cancelled their flight operations to Sierra Leone.
Several flight companies including Air France are contemplating to stop coming to Sierra Leone where business is no more worth going into. In response to the sad situation, the investment company, Suma Group recently cut down the landing fees to an appreciable level for aircrafts to land as usual. But, it remains unclear whether the investment company would get the expected results.
Apart from the air transport investment, road and sea transport have also seen little investment under the new government of President Julius Maada Bio. Investment of US$2.1bn in the much-talked about Lungi bridge has reached a standstill as the Chinese are not sure of getting back their money let alone making profit.
Situation remained the same even when the money was reduced to US1.1bn. President Bio recently travelled to China where he discussed plans for the construction project, but his journey to the Asian country is yet to bear fruit as Chines still ponder how much they would make when the bridge is done.
Even Arise Integrated Industrial Platform (Arise IIP), a company that has recently shown strong interest in investing in agriculture, port and rail seems to have lost confidence in the security of the state apart from other challenges.
The company initially occupied over a 1,000 hectares of land in Koya Chiefdom in PortLoko district to transform agricultural produce into finished and useable goods. The project was launched by President Bio in April, last year in a well-attended ceremony.
By this time, the project ought to have been in full swing by manufacturing the products and putting jobless men and women to work. Although one could argue that friction between government and Arise IIP over an abrupt termination of the company’s agreement might have caused the slow move of the project, political tension also has a slice of its own in the investment nightmare.
The company also had good plans to acquire and manage the Ferengbeya-Pepel rail and port in Tonkolili and PortLoko districts, but such move also has taken a slow pace. Local businesses have also shut down with investors running away with their money as they could not trade in a conflict-prone environment.
The harsh tax environment also adds to an already polarised situation as local traders could shut down shops for days and sometimes weeks, a move that costs government millions of dollars in taxes.
Evidence of capital flight showcased itself at Lungi Airport where a foreign national was intercepted with hundreds of thousands of dollars. Government’s lack of respect for agreements and contracts signed with investors also plays a great part in the drama.
Bio’s government is known for dishonouring legal obligations evidenced by the contemptuous treatment of investors after going into business.
The disappointment of Arise IIP is a case in point as government went into an agreement and later backed out when it was time for implementation.
Bio’s government did the same to Marampa Mines formerly SL Mining, an Iron Ore miner that went into a 25-year agreement to exploit ‘Marampa Blue,’ a popular name for Iron Ore in Lunsar town.
A legal battle which ensued between government and the company ran for over a year with the latter emerging victorious but at the expense of the people of Sierra Leone. After it won government in the courtroom, the Iron Ore miner exploited the precious ‘Marampa Blue’ for a year without paying the usual royalty to the state.
The company however resumed payment of taxes in June 21 after the gratis mining. However, political conflicts, tension and threats have not died down as they continue to hit hard on the economy.
Recent mass arrest of APC (All People’s Congress) politicians including former President Ernest Koroma is one that threatens the peace and security of the state. APC’s Organising Secretary, Bai Mahmoud Bangura and the former President are currently in the dock for treason with threats that other APC politicians will soon follow suit.
Last week, APC executive promptly reacted to the arrest of their officials by issuing press release condemning the arrest particularly Bangura who many doubt his involvement in a plot to oust President Julius Maada Bio and take over state administration. The Police too fought back as they summoned the APC Secretary-General for interrogation and other officials may be invited.
Tomorrow, APC supporters and sympathisers will take to the streets in solidarity of ex-president Ernest Bai Koroma who is answering to treason charges in a magistrate court in Freetown. Nobody knows what will be the outcome as the police had earlier restricted the number of those who should see the former President.
The inter-party conflict between APC and SLPP could be traced to early 2018 when machete-wielding thugs linked to the ruling party stormed the streets in an open intimidation of former government officials apparently to recover what they called stolen vehicles and other public assets.
Homes of past government officials were raided, others hacked to death with judges and magistrates not safe in what appears an armed struggle against past government officials. A judge of the High Court who was mistaken for a minister was forced out of his vehicle under death threat.
The former President’s daughters were also not safe as thugs broke into their premises in search of government vehicles. Weapons were pointed at one of them in readiness to pull the trigger.
As the tumult ensued, former Chief Minister, Professor David Francis and 12 SLPP hardliners were writing a so-called Governance Transition Team (GTT) report that labelled the then government a “ criminal racketeering enterprise” that wrecked the state in no small measure. It alleged that owing to corruption and mismanagement of state resources, Sierra Leone was plunged into the highest debt burden which the country had never seen since independence.
The report therefore recommended the setting up of a judge-led commission of inquiry to investigate persons who were President, Vice President, ministers, deputies and heads of agencies.
The report already convicted past government officials even before they were taken to the tribunal. The commission, according to political and legal analysts, was Kangaroo-styled as it lacked rules of evidence. Even the constitutional instruments used to establish the commissions were in themselves erroneous as alleged by a legal luminary representing persons of interest at the commissions. A suit filed to the Supreme Court challenging such laws was never heard, and feelings of marginalisation were widespread.
But, government still continues the harassment, intimidation and terror rendering the state less stable with investors running away and potential ones scared to come in.