July 19, 2021
By Mohamed Jalloh
For those who cannot reckon the rationale behind key economic decisions, may easily besmirch the reputation of the government for not doing enough to ameliorate the sufferings of the people. Utopians could argue that Sierra Leone is blessed with immense natural and mineral resources and with a population of less than 8 million, the country is supposed to be paradisiac in nature.
Some clueless extremist would even have one to believe that the colossus devil, thwarting the prosperity of the people is the corrupt and oppressive government. Such an inconsiderate assumption could sometimes cause disaffection against a ruling government.
For it simplistically ignores the fact that the country`s problems remains deep-rooted, structural, endemic and recurrent. The outcome of such a complex scenario has made every sector of governance an urgent priority.
Sometimes, plugging a gap in one area could disproportionately expose other weaknesses and vulnerabilities in other areas. Therefore, the best the Bio led government can do (as was done by previous governments) is to create the enabling environment or the favourable climate so that citizens can better their living standards.
Sierra Leone has never being a welfare state and citizens should not expect a namby pamby treatment, where government caters for the needs of people from the cradle to the grave. With hard work, citizens are expected to harness the opportunities that are contained in government policies so as to provide food on the table.
With over 3 years into the Bio led government, there is no public official that is best placed to clarify to the general public, the logic behind economic decisions, rather than reducing it to whims and caprices of Jacob Jusu Saffa the current Chief Minister. He was able to demystify the decisions government has taken in tackling some chronic socio- economic problems in his maiden interview over 98.1(Radio Democracy), when he was promoted as Chief Minister. Even in opposition, the internationally acclaimed economist was instrumental in designing strategies that made the Julius Maada Bio presidency a reality. His role as one of the main scribes of the SLPP`s new direction manifesto placed him at a vantage point in diagnosing the area of focus. For he must have been conducting things whilst in opposition as a government in waiting.
Operating the economy of a poor country as Sierra Leone that is largely donor driven, demands restoring the confidence of donor partners such as the World Bank and International Monetary Fund (IMF).
The previous Koroma led government had faltered in implementing the agreements dictated by the Extended Credit Facility (ECF) programme with the IMF. The programme was suspended during a crucial post Ebola pandemic period when the country`s economy was in doldrums.
Initially, after the change of government in April 2018, the IMF was aloof observing the quick impact measures of the incoming SLPP government geared towards resuscitating the economy. Donors were amazed by the Executive Orders aimed at rapid domestic revenue mobilization.
Within a short period, the budget deficit inherited from the Previous APC government was substantially narrowed. As early as May 2018, the purse of the Bio led government was deep enough to pay the emoluments of public servants, instead of resorting to domestic bank overdraft as was the case with the previous Koroma led government.
The initial economic policies engineered by JJ Saffa was promising; it impressed the IMF. with what it described as a “prudent and responsible economic management” of the BIO led government.
As a result, Jacob Jusu Safa the then Finance Minister (a position he served from 2018-2021) was able to rekindle the confidence of the IMF in renegotiating a new programme with the government of Sierra Leone. In November 2018, the IMF disbursed $172 Million to the government in budget support and to tackle other socio-economic challenges. It is important to note that the IMF and World Bank are largely indispensable to developing countries such as Sierra Leone, even China until recently was banking on the support of these multilateral institutions to bridging the gap between rural poverty as compared to the opulence of Chinese urban cities.
The World Bank has funded projects of social value in rural China such as the building of dams for agriculture and irrigation and other pipe borne water projects for domestic uses in homes. Therefore, a country such as Sierra Leone that normally grapples with socio-economic challenges could hardly do without the financial support and technical advice rendered by the Breton woods institutions. The onus is on the donor recipient country to judiciously utilize these resources in areas where a large section of the population can be positively impacted. When donor resources are misappropriated, the encumbrance rest on the shoulders of future tax payers to repay some of these loans.
Furthermore, by way of averting a situation where the country`s debt could become unsustainable, Jacob Jusu saffa as Finance Minister championed the Medium Term Debt Strategy to manage the country`s debt at a bearable level. In 2018, the total debt stock of Sierra Leone stands at Le19 Trillion. The Bio led cabinet approved the Arrears Clearance Strategy and Principles which commenced the payment of Le 1.77 Trillion out of crystallized cheques at the end of December 2020.By revitalizing donor confidence that witnessed increased financial support to the government coupled with the judicious management of the country`s debt, alongside an improved domestic revenue mobilization, the country`s economy is on the path of stability. Even in the midst of Covid-19 there were no reports of shortages of essential food, fuel and medical supplies. In December 2020, the NRA deferred taxes to importers and manufacturers of locally consumed goods. These tailor made interventions initiated by JJ Saffa contributed in the relative stability in prices as well as ensuring certain immobility in the exchange rate and inflationary trend. Therefore, who else deserves commendation for restoring donor confidence and stabilizing Sierra Leone`s economy other than Jacob Jusu Saffa, the current Chief Minister.