SLDN REPORT: PRESIDENT ERNEST BAI KOROMA’S VISIT TO THE UK
JANUARY 2008
President Ernest Bai Koroma’s visit to the UK started with a
meeting at Southwark Council with invited guests from the Sierra
Leonean Community on Sunday 28th
January.
This
was followed by a meeting with the Diaspora at the Damilola Centre.
His presence and speech was met with a great response from the
mainly partisan crowd.
SLDN members were present at his next meeting with members of the
Diaspora at Chatham House, where His Excellency outlined his
‘Agenda
for Change’
on Tuesday 29th
January
2008, he expressed concern on the events Kenya and called for a
resolution for the sake of democracy.
He commented on the fact that democracy was indeed in action during
the ‘free and fair’ elections last year in Sierra Leone, during a
clear mandate (for democracy) was received from the people of
Sierra Leone. He thanked the international community for the
financial support given for the monitoring of the electoral
process.
He went on to highlight the fact that Sierra Leone has become
increasingly attractive to the international business sector, in
spite of the fact that social and economic indicators are the
lowest in the world; a ranking that belies the country’s natural
mineral resources and tourism potential.
Expectations on the new Government, he said, are high. People
expect all infrastructural problems to be sorted within the first
100 days of Office. His Excellency called for a change in
direction, in which we as the Diaspora, and home nationals, move
forward as donors and active participants in our own
development.
‘Failure is not an option!’ Sierra Leone has the best opportunity
to restore the positive image she enjoyed in the past. A good
precedence was set with the successful execution of the electoral
process, where democracy prevailed without the need for military
intervention or violence.
President Koroma gave brief feedback on the recent Bumbuna Retreat,
during which the GoSL’s goals and objectives were defined, and
priority sectors were highlighted:
♣
Energy:
The Government inherited 10MW for the whole country; Freetown
itself needs 60MW. A Task Force has been set up to facilitate the
restoration of power supply in Freetown and the
provinces.
♣ Mining:
diamonds, as well as other extractive minerals which are yet
to
be fully explored, for example iron ore.
♣
Agriculture
♣
Employment
creation: development of the private
sector
Other
areas of concern:
♣
Corruption:
A new anti-corruption Commissioner has been appointed,
with a mandate to investigate and prosecute
♣
Education:
Massive improvements are needed to improve the quality of
education
♣
Health
delivery: The health sector is in dire need. In a country of five
million people, there are only 60 doctors, 1 Psychiatric doctor,
6
Paediatricians and 250 nurses, with most people leaving the
country
after completing their training.
♣ Land
tenure: A review is needed on the land tenure system to
unlock
opportunities in agriculture and industry
♣
SME
Commission: how can the Sierra Leonean Diaspora support the
growth of small and medium enterprises and contribute towards
job
creation in Sierra Leone. Seventy percent of economic activities
are in
the informal sector, so there is great need at present to formalise
these
activities. The plan is to provide increased access to
micro-finance and
basic business training. The onus is on all of us to support
and
contribute to this sector
♣
Youth
employment: An assessment is needed on how best to engage the youth
so as to attain the Millennium Development Goals (MDGs).
Plans
are to set up youth centres which will support the education
and
development of the youth, and to prepare them for the workplace. In
the
short term, there is a need to reactivate job opportunities, by
creating
base level labour. There is also an urgent need for middle level
technical skills. Employment is tied in with the sustained growth
of the economy.
♣
Access
to Information: Work is being conducted on a review of the
Public
Order Act, as well as an increased access to
information.
Sierra
Leone needs US$19.2 million in order to successfully effect changes
over this initial period of governance. The President asked that
the people of Sierra Leone and the international community for
patience as these steps to development will take no less than three
years for results. He thanked and asked the British Government for
their continued support.
Sierra Leone is one of the recent recipient’s of debt relief.
Sierra Leone attained its competition at the end of 2006, but there
was a hold on expenditure which has now been negotiated and
released, with approval of the World Bank and the IMF.
Whilst he and the Government will not accept aid at any cost, it is
important that Sierra Leone remains open to negotiating favourable
terms. The focus now is to maintain favourable terms with monetary
institutions. Bi-lateral agreements will be assessed on a
case-by-case basis. Sierra Leon would consider aid from China to
develop the infrastructure, or another international community
funder willing to support defence.
The President stressed his commitment to working together with
various partners. To illustrate this commitment, he was accompanied
by the SLPP Minority Leader in Parliament, Mr Momoh Pujeh.
Proceedings carried on at a
Briefing of Investment Opportunities in Sierra
Leone,
to which SLDN Steering Committee members were invited at the Hall
of India and Pakistan. Organised by the
UK Sierra Leone Business Forum and the Commonwealth Business
Forum,
the goal of this event was to highlight the business opportunities
in Sierra Leone.
The
Attendance list was impressive with representatives from various
sectors, including, tourism, mining, security to housing.
Introductions were made by
Lord St. John of Bletso (Chair
of the UK Sierra Leone Business Forum) and
Dr. Mohan Kaul.
The President gave an outline of the points highlighted at the
Chatham House meeting. He said that this was the time to engage
with investors. Sierra Leone needs business partners in order to
attain sustainable development.
Sierra Leone is growing into a transparent and liberal economy, as
the Government launches it fight against corruption.
Energy is of course a major source for intervention and the private
sector were called to invest in Phase II of the Bumbuna
Project.
The Stock Exchange is in development, with an Act and the basic
infrastructure (housed at the Bank of Sierra Leone) in place. Banks
are on the increase in Sierra Leone, with 6 Nigerian banks recently
registered and more waiting for registration.
His Excellency made his apologies as he was due at another
appointment and so called for members of his cabinet to provide
more insight in the potential areas of investment in Sierra
Leone.
The Minister of Finance and Economic Development, the
Honourable David Carew,
was introduced, and he gave a background to Sierra Leone’s current
economic status. [Although the nation has ranked the poorest in the
world on the UN Development Index], there has been steady growth in
GDP as follows:
2004 7.4%
2005 7.3%
2006 7.5%
2007 6.8%
He explained that 2007 growth rate was due to uncertainties about
the outcome of the Presidential Elections.
Mr Carew went on to highlight the key drivers of economic growth in
Sierra Leone:
1.
Agriculture (a sector in which 80% of the population are
involved)
Private
investment has to be encouraged in this sector. The conditions in
Sierra Leone are ripe for growth: climate, land and cheap labour.
Youth engagement in this sector will also help reduce the youth
employment rates.
There has a shift from the ‘hoe’ style method of agriculture; there
is currently low production per acre, so there is a need to
increase mechanisation and improve the farm to market
infrastructure, thereby linking all farms to their nearest towns,
with identified buyers for various products.
There is a need for fiscal incentives. There is an inflow of new
banks into the economy, so financial institutions with an interest
in micro-finance should be targeted.
There is sufficient freehold land in the provinces, which are held
in trust by the Paramount Chiefs for the people. However, there is
a need for a review of land tenure laws in order to offer longer
term tenures.
2.
Mining
There
are no solid mining policies. Thus, major companies / countries
negotiate individual contracts. The Government is working on
creating a level and consistent playing field, which is not based
on the ability to negotiate.
The infrastructure in mining areas is usually controlled by the
mining companies themselves. Therefore, these companies are
encouraged to enter into a Public Private Partnership (PPP). Due to
the removal of administrative barriers, companies can now be set up
in as few as two days.
3.
Tourism
Sierra
Leone has eleven top of the range beaches. The gap exists in the
amount of accommodation available; tour operators and companies
interested in building hotels are sought.
4.
Construction
Partners
are sought to rebuild Sierra Leone’s infrastructure
5.
Marine Resources (a priority sector for
2008)
There
is a plundering of fishing stock on the one hand, and in some
areas, stocks are not being used up. Undoubtedly, there is huge
potential for revenue within this sector.
6.
The Ports
Sierra
Leone boasts the second largest natural harbour in the world. There
are plans to convert the harbour into a major transit point
(Freetown is the shortest route when transiting to Brazil).
The
Government, he said, were aiming for an ambitious 10% GDP growth
rate by 2015, which will go a long way towards reducing the poverty
rate by 50%. There are plans for parastatals to be
privatised.
The
Honourable
Alimamy Koroma,
the Minister of Trade and Industry also gave a brief background to
the Ministry’s areas of priority.
He said that Sierra Leone enjoys a liberalised trade regime and
private sector development, offering much in attracting investment
with no restrictions on remittances or dividends.
In Sierra Leone, he said, one hundred percent (100%) foreign
investment is allowed. There are natural incentives: rainfall,
favourable temperatures, marine and natural resources etc.
There is development of hydropower, gas and solar power within the
energy sector and recent indications show good prospects for oil.
Along the coastal stretch, there are fish of all kinds, with
development needed for the cold storage and manufacturing of fish
stocks.
The Sierra Leone Import and Export Promotions Agency is being set
up to replace SLEDIC, which will be a ‘one stop shop’ for business
services in Sierra Leone.
There will be special concessions for making investments in certain
areas and in certain locations. All these changes will be governed
by the 2004 Investment Promotions Act.
The energy sector will be drastically improved.
There will be private sector development with assistance from the
DFID.
The Removal of Administrative Barriers to Investment (RABI) has
been set up to remove the administrative steps to setting up a
business. There is no longer any need for payment of advance tax,
nor will there be a need for a solicitor – only if desired.
Dr Abdul Rahman Turay, Chair of the National Commission for
Privatization stated that there are over 20 companies on their
books. The Rokel and Sierra Leone Commercial Banks are to be
resuscitated. The Ports Authority is to be reviewed, as is the Air
industry. The construction arm of the Roads Authority will also be
reviewed, and the Maritime Protection services are to be
outsourced.
He stressed the importance of introducing adequate regulations
before any utility companies are privatised.
Ann Grant, Vice Chair of Standard Chartered (SC) Capital Markets
gave a brief background into the financial sector in Sierra Leone.
Standard Chartered was one of the few banks who stayed in Sierra
Leone, although the branches were scaled down from fourteen to one.
She expressed hopes that the banking market would increase to
accommodate its growing popularity. SC, she said, is the most
profitable bank in Sierra Leone, making it the biggest
taxpayer.
She maintained that the poor image of Africa is because growth
within the economy is usually attributed to the aid sector. The
private sector is somewhat reluctant to acknowledge profit so as
not to be seen to be making money out of the poor.
SC is proud to announce that 98% of their staff is Sierra Leonean,
with regular secondments across international branches. They run
corporate social responsibility programmes, mainly focused on the
supporting the blind and increasing HIV / AIDS awareness. They also
sponsor financial expertise programs.
Together with the British Council, SC runs the Management Express
Forum to increase capacity and create a middle management.
Ms Grant highlighted the importance of Sierra Leoneans investing in
their own country, so as to increase the confidence of foreign
investors.
The event was by all accounts successful in highlighting the
current priorities of the GoSL and the investment potential in
Sierra Leone.
The Ministers mentioned the upcoming Investment Forum in Sierra
Leone (organised by the GoSL, the Commonwealth Business Council and
the DFID), details of which are to be confirmed. They were hopeful
that various legislations would have been announced by this
time.
_______________________________________________________________________
RECEPTION
FOR THE FIRST LADY, MRS SIA NYAMA KOROMA
During the President’s visit, SLDN organised a Reception for the
First Lady at the Sierra Leone High Commission in Holborn.
This
event provided an excellent opportunity for an invited group of
Sierra Leonean women of various disciplines to, not only meet the
First Lady, but to hear of her vision for Sierra Leone.
Mrs Koroma gave a focused and detailed speech on her plans for
poverty intervention in Sierra Leone, in particular on the improved
status of women and children. Unsurprisingly, based on her
professional background as a scientist and nurse, her focus was on
health.
She highlighted the dire state of Sierra Leone’s health sector,
listing an insufficient infrastructure and limited human resources
and equipment as the major constraints to necessary improvements.
These constraints are aided by the prevalence of low salaries, poor
working and insanitary conditions, lack of proper and basic
equipment and the brain drain. As well as these needs, Mrs Koroma
also highlighted the following:
♣
Revamp
of the laboratory and blood bank services;
♣
Improved
Intensive Care Units (ICUs): There is only one in the entire
country;
♣
Improved
Immunization Programs;
♣
An
oncology centre (There are no oncologists in the
country);
♣
A
Dialysis Unit (There are none in the
country);
♣
Training
of psychiatrists (There is only one in the
country)
♣
Increased
number of General Practitioners (There are only 67 GPs as
opposed to the minimum of 300 needed);
♣
Increased
number of midwives (There are 87 midwives as
opposed to the minimum of 200 required);
♣
Increased
number of clinical nurses as opposed to the minimum of 375
needed).
She
requested the support of Sierra Leonean women in the Diaspora to
help Sierra Leone improve its health sector and primary care
delivery. There was also a call for increased business activity to
Sierra Leone.
The
Sierra Leone Investment Information Portal (SLIIP),
which is a SLDN project, was set up to facilitate Diaspora
investment. More information can be found online. The Office of the
Diaspora has also been set up in Sierra Leone to support Diaspora
needs when in Sierra Leone.
The group of women presented vowed to work to supporting each other
towards Sierra Leone’s development, as well honouring Mrs Koroma’s
call for support of her personal charity, the Dankay Koroma
Foundation.
It was by all accounts, a successful meeting of great minds and
great potential for Sierra Leone.
Please click here to view a letter of thanks from Mrs
Sia Koroma.
