By Sylvester Samai
Sierra Leone, a West African nation known for its resilience through years of civil war, now faces a different but equally daunting challenge: a severe economic crisis. Central to this crisis are the issues of non-price control and high inflation, both of which have intensified under the leadership of President Julius Maada Bio. As the cost of living soars and the value of the Leone plummets, the population is growing increasingly disillusioned with the government’s ability to steer the country towards economic stability. This article delves into the factors contributing to this economic turmoil, the implications of the government’s inaction, and why, for many Sierra Leoneans, there seems to be no hope for the future under President Bio’s administration.
The Absence of Price Control and Its Consequences
Price control mechanisms are critical in stabilizing an economy, particularly in developing countries where the majority of the population lives below the poverty line. These mechanisms are designed to keep essential goods and services affordable, thereby protecting the most vulnerable members of society. However, in Sierra Leone, the lack of effective price controls has led to widespread price gouging, particularly in the markets for food, fuel, and medicine.
For instance, the All People’s Congress (APC) met the price for a bag of rice at le 60 and left it in 2018 at le 200. The Sierra Leone People’s Party under Maada Bio inherited the prices of both local and imported commodities at a stable or more considerate prices. The exchange rate for US dollar in 2018 was le 800, unfortunately in just six years it has uncontrollably sprinted to le 2390. The price for a cup of pepper, which is one of the most locally produced food commodities, was at le 5 3 before the SLPP took over governance. Presently, it is quite amazing that it is sold at le 15. Onion bag was sold at le 150, unfortunately, the cost for it now triples that amount. Furthermore, the unprecedented increased in taxes and the tollgate fee further exacerbate the inconsistent pricing of local commodities.
The absence of regulation has allowed businesses to exploit this situation, driving up prices far beyond the reach of ordinary citizens. For instance, the price of basic food items like rice, which is a staple in the Sierra Leonean diet, has skyrocketed a million leones, leaving many families unable to afford even one meal a day. The situation is further impaired by the cost of fuel, which has severally increased under Bio’s regime. This has had a ripple effect on transportation and, consequently, on the prices of all goods and services that rely on transport. The government’s failure to intervene and regulate these prices has led to widespread suffering and has eroded the public’s trust in its leadership.
High Inflation: A Symptom of Broader Economic Mismanagement
Inflation in Sierra Leone has been on an upward trajectory, with the official rate reaching double digits. This persistent inflationary pressure is a clear indication of broader economic mismanagement. A combination of factors, including excessive government borrowing, a devaluing currency, and external shocks such as global commodity price fluctuations, has fueled the inflationary spiral.
The government’s reliance on printing money to finance its deficits has been particularly damaging. This practice not only devalues the Leone but also fuels inflation, as more money chases the same amount of goods and services. The result is a vicious cycle where prices continue to rise, further eroding the purchasing power of the average citizen. For those on fixed incomes or without a stable source of income, the situation is dire, as their ability to afford basic necessities diminishes with each passing day.
Moreover, the inflation crisis has had a devastating impact on businesses, especially small and medium-sized enterprises (SMEs) that form the backbone of the Sierra Leonean economy. These businesses are facing increased costs for raw materials and transportation, which they have to pass on to consumers. However, with consumers’ purchasing power eroding, many of these businesses are struggling to stay afloat. The result is a contraction in economic activity, leading to job losses and further exacerbating the poverty crisis in the country.
The Role of Government Policy in the Economic Decline
Critics of President Bio’s administration argue that the government’s policies have not only failed to address the economic crisis but have also actively contributed to it. One of the major criticisms is the lack of a coherent and effective economic strategy. Since taking office, President Bio’s government has been plagued by allegations of corruption, inefficiency, and a lack of transparency, all of which have undermined investor confidence and stifled economic growth.
For instance, the government’s handling of public finances has been widely criticized. There have been numerous reports of mismanagement and embezzlement of public funds, with little to no accountability. This has led to a situation where the government is unable to meet its financial obligations, including paying public sector workers and funding critical infrastructure projects, such as their most boastful infrastructure project, the Lungi Bridge Construction”. The result is a stagnating economy that is unable to generate the growth needed to lift the population out of poverty.
Furthermore, the government’s failure to implement structural reforms has also contributed to the economic decline. Despite the clear need for reforms in areas such as taxation, public sector management, and the business environment, there has been little progress. This lack of reform has made it difficult for businesses to operate efficiently and has discouraged both domestic and foreign investment. Without these critical investments, the economy has little chance of recovering from its current malaise.
Public Disillusionment with President Bio’s Leadership
The economic challenges facing Sierra Leone have led to widespread disillusionment with President Bio’s leadership. When Bio was elected in 2018, he promised to transform the economy and improve the lives of ordinary Sierra Leoneans. However, six years into his presidency, many of these promises remain unfulfilled, and the situation has only worsened.
One of the key areas where the government has failed is in addressing the high cost of living. Despite numerous promises to reduce prices and improve access to essential goods, the cost of living for Sierra Leoneans has continued to rise, placing an unbearable burden on the population. This has led to growing anger and frustration, with many questioning the government’s commitment to addressing the needs of its people.
Moreover, the government’s handling of the COVID-19 pandemic has also been a source of contention. While the pandemic has undoubtedly placed additional strain on the economy, many believe that the government’s response was inadequate and poorly managed. In the circumstance, the lack of support for businesses and individuals affected by the pandemic further deepened the economic crisis, thereby leaving many citizens feeling abandoned by their leaders.
The disillusionment with President Bio’s leadership is also reflected in the increasing levels of social unrest in the country. Protests and demonstrations have become more frequent as people take to the streets to voice their frustrations. These protests have often been met with a heavy-handed response from the government, further fueling tensions and creating a sense of hopelessness among the population.
The Grim Outlook for Sierra Leone’s Future
Given the current economic situation and the government’s apparent inability to address the underlying issues, the outlook for Sierra Leone’s future is grim. The combination of non-price control, high inflation, and ineffective governance has created a perfect storm that is pushing the country towards economic collapse.
Without significant changes in policy and leadership, it is difficult to see how Sierra Leone can overcome its current challenges. The government’s continued reliance on short-term fixes, such as borrowing and printing money, is unsustainable and will only lead to further economic deterioration. What is needed is a comprehensive and long-term economic strategy that addresses the root causes of the crisis and lays the foundation for sustainable growth.
However, given the current state of governance in Sierra Leone, there is little hope that such a strategy will be implemented anytime soon. The government’s track record suggests that it is either unwilling or unable to take the necessary steps to address the crisis. This has led to a growing sense of despair among the population, many of whom believe that there is no hope for the future under President Bio’s leadership.
The economic crisis in Sierra Leone, marked by non-price control and high inflation, has reached a critical point under President Bio’s administration. The government’s failure to implement effective economic policies, coupled with widespread corruption and mismanagement, has led to a situation where the country is on the brink of economic collapse. The public’s disillusionment with the government is growing, as many Sierra Leoneans see no hope for improvement under the current leadership.
For Sierra Leone to emerge from this crisis, it will require a complete overhaul of its economic policies and governance structures. This will necessitate strong leadership, a commitment to transparency and accountability, and a willingness to implement the difficult reforms needed to stabilize the economy. Without these changes, the future of Sierra Leone looks increasingly bleak under President Maada Bio, with little or no hope for a better tomorrow.