Macro economically Sierra Leone remains extremely volatile, as diversification of the economy remains low and highly dependent on agriculture and the production of minerals.

The annual growth rates over the past two decades ranged from between approximately -20% and +20%. They peaked due to large iron ore mining projects in 2012/2013, slowing to around 5% at the Ebola outbreak in 2014, and fell to -21% in 2015, according to the IMF. After a recovery, growth increased in 2019 to around 5%, but the suspension of the licenses of major mining companies in mid-2019 and the COVID-19 pandemic overshadow future growth prospects. The IMF expects -3.1% for 2020.

The outlook beyond 2020 remains challenging. First, there is the uncertainty surrounding the development of international prices for Sierra Leonean extractives. Second, there is an on-going conflict between the government and some of the largest foreign mining companies operating in the country.

In 2019, the government temporarily cancelled the licenses of the Chinese company Shandong Iron and Steel Group and of UK-based SL Mining, a subsidiary of U.S. commodity trader Gerald Group. Both companies challenged the suspension in court.

SL Mining filed for arbitration with the International Chamber of Commerce (ICC) and Britain’s High Court dismissed the government’s challenge to an ICC decision in early 2021. Observers are alarmed about government’s attitude toward the rule of law and the effects of this on the country’s investment climate and the development of FDI.

The challenges arising from a mono-structural export economy and dependency on a small number of influential foreign companies are multiplied by fiscal and monetary hardships high inflation, price increases, debt (public debt 2019: 70%); current account balance (2019: -$646.1 million), underperformance in the banking sector, unemployment (officially: 4.4% in 2020) and poverty, among other challenges.

Sierra Leone witnessed an increase in official development assistance (ODA) during the COVID-19 crisis. Sierra Leone seeks augmentation of the current allocation under the Extended Credit Facility Program (ECF) with the IMF, debt relief from multinational and bilateral partners, as well as additional grant resources.

Those funds are directed to bridge existing and widening financial gaps.

Altogether, lower revenue coupled with substantial and growing expenditure needs puts the government budget under immense pressure, with potentially disruptive social consequences.

Like its precursor, the dreadful COVID-19, the burgeoning global food crisis is turning to be another pandemic of a greater proportion. North, South, East and West of the hemisphere the impacts of food shortage are being felt in shopping malls, the marketplace and in homes where lack of food is manifesting in profound hunger. The hunger is translating fast to anger and potential social unrest in many countries. In many countries of the global south not even multibillion dollars in buffers has been able to avert crisis.

That the earlier pandemic of COVID-19 interrupted international supply chain is saying little. The on-going war in Ukraine is another big disruptor. The war has severely disrupted food, fuel and fertilizer outlets. The ripples effect is being felt everywhere both in developing and less developed countries.

As at half year, the World Food Programme (WFP) has estimated the number of acute food insecure people whose access to food in the short term has been restricted to the point that their lives and livelihoods are at risk 345 million globally. WFP’s estimates covered 82 countries. Reports around the world indicated knee jerk reactions which have seen over 25 countries adopting export restrictions measures. The high costs of inputs such as natural gas are also a contributing factor as it has resulted in escalating the price of fertilizer. The elephant in the room is climate change. This is affecting agricultural productivity especially in agrarian counties where farming and subsistence agriculture are being severely constrained.

This is recipe for disaster. A potential disruptor of progress already being made towards achieving outcome under the UN Sustainable Development Goals (SDG).

What next?
Heart-warming that the international Monetary Fund (IMF) has come up with a four point framework –that hold promises on this food crisis. The framework equally has potentials to becoming the much needed solutions to the food crisis. Strengthening safety nets for vulnerable households, according to the fund, is urgent and should be top on the list of priorities. One cannot agree less. The subdued anger in many countries as a result of this food crisis needs to be stemmed and nipped in the bud. A hungry man is an angry man.

Facilitating trade and improving on international supply of food should be next. While these can be achieved in the short term, countries of the world and concerned world bodies especially the World Food Programme (WFP) should begin taking action to encourage farmers and fishers to boost sustainable food production in both developing and developed countries and improve the supply chains that connect them to the world’s eight billion consumers. Needless to say that this feat would require affordable fertilizers, seeds, and other agricultural inputs.

It is imperative that help gets to many vulnerable countries especially those in the global south in the throes of acute balance of payments problems. Significant assistance with capacity to cover costs of increase in food import bill would minimize risks of social unrest presently brewing up in many countries - Sierra Leone inclusive

A stich in time in this instance would save millions.

There has never been any doubt that countries of rich raw materials, many of which are in Africa, want to develop and move from net receivers of so-called aid to self-reliant net providers of innovations and solutions to the challenges and problems confronting them and the world.

Colonialism, underdevelopment, inequalities, poverty have been and would continue to be major global crises that have dragged on for ages. This is compounded in Africa by limited global value chains, financial outflows, with worsening threats from pandemics and climate change, among other challenges. The continent has a significant infrastructure gap that must be closed. Foreign Direct Investment in Africa is key to sustainable recovery and growth.

Fresh funds imply the erection of factories, stimulation of sustainable industrial development, research and development, employment creation and sustainable livelihoods and value addition to commodities in the case of African minerals and divestment from fossil fuels and investment in renewable energy.

German investment in Africa stood at 1% of its total external investment in 2018; this means that Sierra Leone and other African Nation’s has an opportunity to tap into the German business investments. 2021, the G7, hosted by the UK, pledged to invest $80 billion in Africa.

The G7 has a present and historical duty to assist by drawing on their financing commitments for Africa. There are potentials for mutual benefit for Germany and Africa in German foreign direct investment, as with G7 FDIs in Africa.

The G7 and the G20 have committed to re-allocating $100bn of Special Drawing Rights out of $650bn to help International Monetary Fund (IMF) member countries facing economic crises. The G7 has promised much to Africa through endless so-called aid offerings. For decades, G7 leaders have pledged to allocate 0.7% of their respective countries (GNI) to international aid to support Africa and other continents in need.

Yes, Africa needs development partners who care about its citizens’ environment, climate, and economic and social wellbeing. However, any development support that ignores Africa’s post-colonial challenges relating to trade, food sovereignty and energy sovereignty will merely deepen Africa’s economic challenges.

To do this, there is the need for the G7 to invest in a global financial and trade architecture that would enable African countries produce their own food, provide energy to meet their domestic needs, facilitate technological transfer (to enable sustainable essential manufacturing and industrial activity) and invest in public education, research, and development. This is the only way to achieve sustainable economies that would produce jobs and provide livelihoods on the continent.