Sierra Leone’s aspiration in 2012 was to become a middle- income status for the people to live well under a strong economy.
Hopes were high when the country got global favourable ranking as the fastest growing economy during the Iron Ore boom in 2013.
Such hope was however dashed when the defunct Iron Ore miners, London Mining Company and African Minerals Limited shut down owing to what the they referred to as the twin shocks: the Ebola outbreak and the fall in the Iron Ore price at the world market.
Sierra Leone, without doubt, faced hard times during and after the Ebola period which claimed the lives of over a thousand including health professionals.
That period appears to be better off as compared to today, a time that Sierra Leone is still grappling with an unprecedented aid cut in its history.
The aid cut by the international community is impacting every aspect of the economy as seen in inflation, uncomfortable exchange rate between the dollar and the Leone currencies, high taxation, budget and balance of payment deficits among others.
Although public officials sometimes attempt to play magic with figures by claiming that inflation is single-digit, the stark and harsh realities on the streets and market centres tell the different story.
The prices of basic goods and services continue to skyrocket with men on the street on the receiving end.
The prices of food which had recently dropped to an appreciable level have started shooting up again hovering between Le700 (seven hundred Leones) to Le800 (eight hundred Leones) for a 50kg (bag) of rice.
Other exceptionally high prices for rice considered to be of superiority or high quality, and it is outside the reach of the have-nots.
Situation remains the same for locally-produced food varieties (cassava, yam, paw paw, orange) whose prices have equally shot up, blaming it on the recent increase in fuel.
Like other commodities, the price of fuel (petrol, diesel and kerosene) had started going down but dealers reverted to old high price of Le35 (thirty-five Leones) a litre.
Since land remains Sierra Leone’s main transport system, huge sums of money will have to go into fares to carry local food to Freetown, the national capital and urban centres.
No gainsaying that prices of commodities are tied to the fuel situation in the country as the higher the price of fuel, the higher the prices of local commodities.
Questions on the ‘Feed Salone’ flagship project are sure to surge when prices of food shoot up.
The ‘Feed Salone’ requires government to put food on the table by creating an enabling environment where agriculture thrives.
Sierra Leone is blessed with good weather (abundant rainfall and sunshine) earning it the name “agrarian nation” for decades.
The large stretch of boliland at Tomabom and Gbondapi in Bonthe and Pujehun districts can feed the nation and even export some if fully utilised.
Many say yes, the country can do it as Sierra Leone exports rice to other countries in the 1960s.
The people were highly hopeful when agriculture was placed at the top of the national agenda, but recent hikes in prices have sent different messages.
Food is a basic want for every human being but a shelter matters too, but building is slowly stalling owing to sharp rise in the price of cement.
A bag of cement now stands at Le250 (two hundred and fifty Leones) causing a big alarm at the market as the recent price is sixty Leones (Le60, 000).
It is not the end as the prices of related materials also hike, but dealers have blamed it on government over what they say “harsh tax” system.
GST (Good and Services Tax) is composite and the business community sees it high and unbearable when compared to other countries particularly neighbouring Guinea.
The hue and cry over the tax system has not changed government’s stance since money is needed to run the country amid an ongoing funding cut.
Sierra Leone’s economic malaise is also worsened by the exchange rate system in which thousands of Leones chase few US dollars.
In Sierra Leone, at the moment, a hundred US dollar attracts about Le2, 400 (two thousand, five hundred Leones), a record high and seems too much for an economy grappling with multi-faceted challenges.
By all standards, Sierra Leone is a primary producer and therefore a price taker for her raw commodities she exports to the outside world.
Sierra Leone known for her raw commodities (cacao, coffee and ginger), Gold and rough diamonds cannot dictate the price, but buyers do.
Resultantly, the country suffers endemic balance of payment deficits which can only be corrected by loans or grants either locally and internationally.
Although statistics on Sierra Leone’s trade relations with other states are scant, signs remain clear that she has been suffering an unfavourable terms of trade as she pays high for imports and receives less for her exports.
As a result of the poor trade, money flowing into the country’s purse is meagre, according to analysts, for the government to champion a major development after three years in power.
Sierra Leone, for Successive years, has suffered what is known as budget deficits as estimated revenue is less than estimated expenditure per annum. Before now, the country is relatively economically safe with development partners coming in handy, but now, have locked their purses apparently for democratic backsliding.
Sierra Leone’s traditional donors EU, US, UK, Germany and other countries have cut off funding for Sierra after the June, 2023 election which they say is marred with irregularities.
The donors, before this time, offered loans and grants to successive government for upholding democracy by holding free, fair and credible elections.
The inter-state body, EU played an active role in revamping Sierra Leone’s post war infrastructure seen in good roads and bridges from the city to the provinces. It also helped Sierra Leone in optimising its deficit budgets to stabilise the economy and ultimately governance.
But the aid has been withheld until owing to the controversial 2023 election.
Even the long-awaited and much-needed US$480M being MCC (Millenium Challenge Corporation) money is still in American banks while the country wallows in poverty.
The MCC money is not a loan but a grant for countries that meet good governance benchmarks including holding peaceful, free and fair elections.
While addressing the media, former US Ambassador, David Reimer made it clear that Sierra Leone had done everything to get the money but for the 2023 election.
If the Ambassador is understood correctly, David Reimer means the MCC money will not come until the 2023 election problem is rectified.
With Sierra Leone’s economy on an oxygen support for breathing, the men in the street will continue to pay the price.