Six years already into President Julius Maada Bio’s presidency, the country finds itself in a state of economic decline, with no significant improvement in sight. The national currency, the Leone, has drastically depreciated, inflation remains high, and the cost of living continues to soar, leaving millions of Sierra Leoneans struggling to survive.
One of the most glaring indicators of Sierra Leone’s economic decline under President Bio is the consistent depreciation of the Leone. Since 2018, the value of the Leone has plummeted against major foreign currencies like the US dollar, the euro, and the pound sterling. This depreciation has far-reaching consequences for the economy, as Sierra Leone is heavily reliant on imports for basic goods, including food, fuel, and medical supplies.
In 2022, the government re-denominated the Leone by removing three zeros, introducing the “New Leone” as a strategy to stabilize the currency and build confidence in the monetary system. However, this cosmetic change has had little to no impact on the currency’s real value. The Leone continues to lose its purchasing power, making imported goods more expensive and further straining household incomes. The underlying issues—such as a weak export sector, low foreign exchange reserves, and lack of investor confidence—remain unaddressed.
The depreciating currency has directly contributed to a skyrocketing cost of living. Inflation has become a persistent issue, with the prices of basic commodities such as rice, cooking oil, and bread doubling or even tripling within a few years. For a country where over 60% of the population lives below the poverty line, these price hikes have been devastating.
Fuel costs have also surged, partly due to global market dynamics but exacerbated by the weak Leone. Higher fuel prices have had a cascading effect on transportation, food distribution, and electricity costs, further squeezing the average Sierra Leonean. The government’s inability to stabilize fuel prices or provide subsidies has left citizens bearing the brunt of the crisis.
Additionally, housing costs in urban centers like Freetown have risen sharply, making it nearly impossible for low-income earners to secure decent accommodation. Many families have been forced to downsize or relocate to informal settlements, where living conditions are dire.
Economic Stagnation
President Bio’s administration inherited an economy already facing challenges, including high unemployment rates and a limited industrial base. However, instead of implementing policies to stimulate job creation and economic diversification, the government has largely focused on short-term measures that have failed to address the underlying issues.
The youth unemployment rate remains alarmingly high, with thousands of graduates entering a job market that offers few opportunities. The agricultural sector, which employs a significant portion of the population, remains underdeveloped and underfunded, despite being touted as a priority in President Bio’s campaign promises. Mining, another key sector, has also faced challenges, including corruption, poor governance, and declining global demand for certain commodities.
Small and medium-sized enterprises (SMEs), which could serve as engines of economic growth, are struggling to survive in an environment characterized by high taxes, limited access to credit, and erratic electricity supply. The lack of support for entrepreneurship and innovation has stifled the potential for economic transformation.
Economic decline in Sierra Leone cannot be analyzed without addressing the issues of mismanagement and corruption. Despite President Bio’s rhetoric about fighting corruption, public perception suggests that corruption remains rampant within his administration. Mismanagement of public funds, lack of transparency in government contracts, and allegations of financial impropriety have eroded public trust and discouraged foreign investment.
For instance, the government’s handling of COVID-19 funds sparked widespread outrage after reports revealed significant irregularities and misuse. Similarly, the management of flagship programs like the Free Quality Education initiative has been criticized for its lack of accountability and efficiency. While the program aims to provide free education for all, its funding mechanisms have been questioned, with critics arguing that resources are being diverted or wasted.
Another critical factor contributing to the economic decline is Sierra Leone’s rising debt burden. Under President Bio’s administration, the country has borrowed heavily to finance infrastructure projects and social programs. While some of these projects are necessary for long-term development, the lack of transparency in loan agreements and the poor returns on investment have raised concerns.
Debt servicing now consumes a significant portion of the national budget, leaving little room for critical investments in health, education, and social services. Furthermore, poor fiscal policies, including inefficient tax collection and excessive government spending, have exacerbated the country’s economic woes.
The government’s reliance on external aid and donor funding to plug budget deficits has also proven unsustainable, as many donors have expressed concerns about governance and accountability.
For the average Sierra Leonean, the economic decline under President Bio’s administration has translated into daily struggles to meet basic needs. Families are skipping meals, children are dropping out of school because parents cannot afford hidden costs, and healthcare access has become even more challenging.
The country’s middle class, which was already fragile, is shrinking as more people fall into poverty. Civil servants and other low-income earners are finding it increasingly difficult to make ends meet, with salaries remaining stagnant amid rising living costs. The desperation among the populace has led to increased crime rates, social unrest, and a general sense of hopelessness.
The government must work to stabilize the Leone by boosting foreign exchange reserves and reducing dependency on imports. Promoting export-oriented industries and improving the business environment for foreign investors can help achieve this goal.
Sierra Leone’s economy remains overly reliant on mining and agriculture. Diversification into sectors such as manufacturing, tourism, and technology is essential for creating jobs and reducing vulnerability to external shocks.
While the Free Quality Education program is a step in the right direction, more focus is needed on vocational training and skills development to prepare the youth for the job market.
The fight against corruption must be more than rhetoric. Strengthening institutions, enforcing accountability, and ensuring transparency in government operations are critical to rebuilding public trust and attracting foreign investment.
The government must adopt prudent fiscal policies, including reducing wasteful spending, broadening the tax base, and prioritizing investments in sectors with high returns.
Providing access to credit, reducing bureaucratic red tape, and improving infrastructure can help small businesses thrive and drive economic growth.
Sierra Leone’s current economic decline under President Julius Maada Bio is a sobering reminder of the consequences of poor governance, mismanagement, and lack of strategic vision. While the challenges are significant, they are not insurmountable.
The government must recognize that rhetoric alone cannot solve the nation’s problems. Bold, transparent, and inclusive reforms are needed to restore economic stability, rebuild public confidence, and create opportunities for all Sierra Leoneans. Without such measures, the country risks further decline, perpetuating the cycle of poverty and underdevelopment that has plagued it for decades.
The time for action is now. Sierra Leone cannot afford another lost decade. The people deserve better, and the government must rise to the challenge of delivering meaningful change.