Karefa Kargbo is currently the new Minister of Finance after his appointment on September 2, 2026 by President Julius Maada Bio.
He replaces Ahmed Sheku Bangura who has served for almost three years starting from January, 2023.
Bangura’s removal came after heavy criticisms of missing government’s annual revenue targets to run the economy.
Sierra Leone’s principal revenue collection agency, National Revenue Authority has persistently failed to meet revenue expectations, making it difficult for government to meet its expenditure. One of the priorities of the new minister is to ensure fiscal discipline and broadening of government’s revenue base.
Kargbo’s policy of revenue mobilization is yet to be announced, but a big question mark hangs on the achievement of the objective owing to the collapse of the mining sector, aid cut, tax evasion and other forms of financial leakages among others.
Despite his genuine plans, some economic analysts who are au fait with Sierra Leone’s situation argue that Kargbo comes at the wrong time as the country’s economy shows cracks in several areas particularly the mining sector.
Although government often derives revenue from several sources, the mining sector remains one of the biggest and surest areas of revenue mobilization.
The mining sector, as shown by the records, account for approximately US$56m as government’s revenue, but shortfalls in royalties could not be ruled out as mining companies crumble.
Currently, the mining activity of one of Sierra Leone’s biggest Iron Ore miners, Marampa Mines Limited (MML) is at a low key as export has been halted owing to the high prices of fuel (Petrol and Diesel).
One of the indigenes of Maforki community has intimated this press that the ore is parked at Thofayim wharf in PortLoko district without being taken out for export.
MML entered into a 25-year mining contract with Sierra Leone government for the export of Marampa Blue, the popular name of the Iron Ore in Lunsar town.
For several years, except its temporal breakdown owing to a short period of litigation, the company has been exporting the ore with good returns.
But, a low quantity of export has been recently reported, and low export means low income for the state.
No new job opportunities are created, and some forms of corporate social responsibility and philanthropy have temporally stopped.
A number of youths in Lunsar town have intimated Nightwatch Press that the company would be sold off to another company, and that every activity has been put on hold including employment.
One of the workers also confirmed that a new company was about to take over MML, but remained doubtful what would be the work of the method of operation of the new company.
But, much of the company’s operation will be tied to the fuel price.
Fuel price shot up years almost two years ago after the US-Iran war broke out, restricting movement of fuel ships on the Strait of Harmuz, the sea through which oil is exported to various parts of the world.
Fuel is central to several sectors of Sierra Leone’s economy, and its shortage has a big impact on the overall economy particularly on the mining sector.
As MML struggles to catch up with the country’s economic situation, another Bauxite miner, CTC at Gbere town in Port Loko district is almost closing down.
Like MML, CTC entered into a mining agreement with the government of Sierra Leone in November, 2022 to mine Bauxite at Rogbere community.
The company, for several months, has been doing well in terms of employment, payment of salaries and taxes and the export of Bauxite among others. Recently, however, CTC mine site is currently a ghost community.
Most of the workers have abandoned the site, with many going without salaries for the past months.
A CTC worker has told this press that, in the past three months, they have gone without salaries but conditions seem better off. For now, they get their salaries but not at the exact time as it used to be in the past. He says one can hardly predict when is he going to receive his salary for a particular month.
With the current situation, the company pays its workers without working as they stay at homes for now until the situation is fixed.
Investigation conducted by this press shows that the company prefers paying monthly salaries to its workers to offsetting benefits and gratuities to workers which will cost them a lot of money.
But, again paying workers without working is also a big financial loss for the company, with its ripple effect on the economy. It would be extremely difficult for the company to get back what it is giving now to its workforce.
A credible source has also told this press that in coming days, CTC will slash down about 75% of its workforce when it resumes mining operation.
With such a downsize strategy, there will be job losses, but the company will be up and running.
Next on the brink of implosion is the Sierra Rutile Company which has recently laid off most of its workers for a reason they have never explained.
Reports also indicate that the Rutile miner is about to shut down owing to the country’s tough economic condition. However, Leone Rock, another Iron Ore miner operating between Ferengbeya and Pepel towns in Tonkolili and Port Loko district respectively seems better off.
Despite the economic challenges, the company carries on business and its workers are intact.
Apart from the revenue shortages, the new Finance Minister will also face the ongoing problem of aid cut which is devastating for weak economy.
Sierra Leone, since the end of the June 24, 2023 election has been deprived of the much-needed foreign aid especially the MCC (Millenium Challenge Corporation) compact of 480m which would have been injected into the energy sector.
The MCC compact is a grant that countries which pass governance benchmarks set by the agency are entitled to.
Sierra Leone had qualified for the compact three years ago, but failed the benchmark of free and fair elections.
It is clear at this point that the money is still in MCC coffers and will come only when democracy is restored through the implementation of the tripartite recommendations.
The United States is not the only country that has scaled down foreign aid to Sierra Leone but also UK, France, Germany, EU, UN and other inter-Governmental agencies.
UK cut off ties with Sierra Leone after local and international election observation missions reported that the 2023 election was massively rigged in favour of the ruling party, Sierra Leone People’s Party (SLPP).
Britain, through its development wing, Department for International Development (DfID), had been financing the work of the Anti-Corruption Commission and the defunct Commissions of Inquiry. But, reports have shown that Britain has cancelled its support to government.
Even EU which used to support Sierra Leone’s recurrent deficit budgets and financing infrastructural projects have apparently been scaled down owing to the lack of credibility of the 2023 election.
The Situation is compounded by tax evasion through porosity of borders and financial leakages through corruption in the public and private sectors.
Weak exchange rate between the Leone and foreign currencies, unfavourable terms of trade, balance of payment and budget deficits and uncontrollable inflation also have its own impact on the economy.
This is the situation the new minister faces, and the nation will look up to him to turn the situation around in the short-run.