RESTRICTED
FIjE tCO Y Report No. AF-20a Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness., The report may not be published nor may it be quoted as representing their views.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized
THE ECONOMY
OF
SIERRA LEONE Public Disclosure Authorized
April 21, 1964 Public Disclosure Authorized
Department of Operations Africa EQUIVALENTS Currency Currency Unit: West African pound (h) U.S. $1 = :0.357 (7s. 2d. WestAfric.an) El = U.S. $2. 80 il million = U.S. $2, 800, 000
Weights All tonnages are expressed in long tons (2, 240 pounds) 1 long ton = 1. 12 short tons = 1. 02 metric tons Fiscal Year The fiscal year is since 1959 - April 1 to March 31 CONTENTS
Page
BASIC DATA
MAPS 1 & 2
SUMMARY AND CONCLUSIONS
I. BACKGROUND ...... , ., 1
Supply and Use of Resources. 2
II. PRODUCTION AiND DEVELOPIVENT IN INDIVIDUAL SECTORS . 3
Agriculture ...... , ...... 3 Fisheries. 6 Forestry ...... , ...... 7 Mining ...... 7 Manufacturing Industry, Building and Con- struction ...... 20.10 Domestic Trade and Services .11 Transport and Public Utilities .11 Social Services ...... ,., 15 Labor, Wages and Prices .15 Banking and Monetary System . 16 Public Finance .17 Foreign Tr4de ...... 21 Developnent Planning .... External Debt .24
III. PROSPECTS AND CCNCLUSIOS .25
Prospects of the Economy in the Short and Long Run. 25 Creditworthiness and IDA-worthiness .26
APPENDIX A Social Services
APPENDIX B Develspment Planning
STATISTICAL APPENDIX BASIC DATA
Area 27,925 square miles; 72,300 square km.
Population (as of April, 1963) 2,183,000
Gross National Product (1961) L60-90 million
Per Capita GNP k27-41 ($77-115)
Public Finance (actual 1962/63) '000
Revenue of domestic origin 13,293
of external origin 705
Expenditure, recurrent 13,169
capital 3,084
External Trade (Average for 1962 and 1963) I000
Imports, retained, c.i.f. (of which from U.K. 43%) 26,450
Exports, exclusive re-exports, f.o.b. (of which to U.K. 75%) 21,060
of which Diamonds 11 610 Iron ore 5,020 Palm kernels 2,450 Cocoa and coffee 1,150
Estimated Public External Debt
Outstanding December 31, 1963 - US; equivalent 40.4 million (or L14.4 million)
Major additions by January 31, 1964 - US$ equivalent 8.5 million (or L3.0 million)
Membership:
IBRD September 10, 1962
IDA November 13, 1962
IFC September 10, 1962 SIERRA LEONE NATURAL RESOURCES AND TRANSPORT
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S,< - ~ OVI C T E R N \j=- cg=- t PROVINCE ~~~~KAILAHUN endemb.,~ S7+ MEL=-MD~~ X p 1' M0BUKV I I t C - - PUJEHUN j0_ Ss Rf2>P - - 90~~~~'I -",1 -S. ,.-.I << FEBRUARY 1964 IBRD-1050 R Summary and Conclusions 1. The known natural resources of Sierra Leone are limited. The basic resources are in agriculture and the major part of the population, is engaged in subsistence agriculture. Cash crops are limited to palm kernels, coffee and cocoa, and some minor products. Minerals have during the past ten years assumed an important role in the economy; diamonds and iron ore account for 80; of the export value. Incomes are generally low and the average annual per capita gross national product is around $100. 2. The past economic development was greatly influenced by the diamond boom which commenced in the mid-1950's but has been weakening since 1962. The increase in purchasing power generated by the sales of diamonds dug by the Africans led to higher consumption standards, larger imports and a smaller exportable surplus of agricultural produce. When the diamond boom subsided some of the diamond diggers went back to agri- cultural production again, consequently some agricultural exports improved. Since 1961 there has been an investment boom partly connected with inde- pendence: private and public buildings; private and semi-private industries including a large extension program of the iron ore company. Roads and bridges have been and are being built connecting the regions, the port has been improved and extended, the old railway modernized, the electric power generating capacity increased and telecommunications substantially irproved. Some of this development has been financed out of public recurrent revenue (there has alw-jays been a surplus over recurrent expenditure), and sorme by UK grants. During the past few years public foreign loans and supplier's credits have come to play an increasingly important role. 3. Economic growth is likely to continue at a slow rate. The fall- off in diamond production is likely to be compensated by larger production of iron ore and newly discovered minerals, such as bauxite and rutile. Agri- cultural production of cash crops is likely to increase slowly during the next 7 to 10 years. Thus total exports are likely to be stabilized between £20 million and £25 million during the same period. Substitution of domestic agricultural products for present imports might however leave room for some expansion of imports of development goods as well as for some larger debt service. In the longer run diamond production is likely to fall off more. It seems urgent that surveys are made soon in order to establish in which fields Sierra Leone would be best advised to specialize, so that new min- erals or new crops are developed in time to compensate for the fall in in- comes from diamond mining. Agriculture probably holds out the best hope for economic growth in the long run. 4. Sierra Leone is making reasonable efforts to mobilize more domestic resources for development while receiving a fair amount of for- eign assistance. If assistance is given in. formulating some of the most urgently needed projects, larger amounts of foreign finance could be used. External finance now pays for the major part cf public investment. Sierra Leone has lately accepted proposals, where the project formulation, finance and construction has been supplied by the same firm. Besides the likely high costs of such projects the financing terms have been such that now more - ii - than half of the total external debt service is for a quarter of the total external debt. Present external debt and debt service however are not yet unduly high (6% of exports in 1964, 9% in 1965) and Sierra Leone should be able to service some additional debt on long-term conventional terms. Present export prospects, however, would not allow borrowing on such terms to keep pace with needs for foreign finance without an unduly high rise in debt service. Since Sierra Leone will need finance on easy terms as well as conventional terms it would, therefore, seem appropriate for a mixture of Bank/IDA financing. 1. BACKGROUND 1. Sierra Leone is an independent state situated on the West Coast of Africa, slightly north of the equator, about 28,000 square miles in area, somewhat smaller than Ireland. The natural harbor at the capital, Freetown, is the third, largest in the world, and one of the few good natural harbors in Africa_1/ 2. When in the late 18th century a movement started in Britain to resettle freed slaves the site of Freetown was chosen as the most suitable. Between 1787 and 1870 philantropists, missionaries and the British Govern- ment assisted repatriation on land bought from the Temne king, Naimbanna. This land was declared a crown colony in 1808. The large hinterland was declared a Protectorate in 1896. After the Second World War followed a long period of preparations for independence which came on April 27, 1961. 3. The population of Sierra Leone is 2.2 million, according to pre- liminary results of a census made in 1963. Freetown is estimated to have about 130,000 inhabitants while the major towns outside the Western Area, Bo, Makeni, Kenema, Linmsar, probably have less than 75,000 inhabitants to- gether. The population is rather evenly spread over the country with an estimated average density of 78 persons per square mile. 4. Sierra Leone people are composed of at least thirteen different tribes, each with its own language. About one-quarter are Temnes and one- third Mendes. The descendants of the repatriated slaves, the Creoles, live mainly in Freetowm and its vicinity and account for about one-quarter of its population. Many of the civil servants are Creoles, who have also for many generations supplied the governments of WUest uifrica with trained clerks. There are only about 1,000 Europeans and 4,000 Asians in the coun- try. 5. Sierra Leone has a unicameral legislature, the House of Represent- atives, with 62 members elected by universal suffrage and twelve indirectly elected paramount chiefs. The representative of the Queen is the Governor- General, at present a Creole, Sir Henry J. Lightfoot Boston. The administ- ration of the country is based on four units: the Jestern area which in- cludes the city of Freetown and the rural area of the rest of the former "colony", and the Northern, Eastern and Southern Provinces. The three provinces are split up into a total of 12 districts, each with its own coun- cil. There are a total of 147 Native Administrations within these districts, not including a few separate town councils. 6. In 1951, the Sierra Leone People's Party (S.L.P.P), largely rep- resenting the up-country under Sir M,1ilton Margai took control of the govern- ment. It has kept power since then and maintained it in the first election after independence on May 25, 1962. The next election is due in 1967. The -/ The name Sierra Leone was given to the mountainous peninsula by the early Portugese explorers who thought they heard the lions roar during the thunderstorms in the mountains. - 2 - political situation appears stable and the people from up-country are safely in power. The formal opposition seems to be working for largely the same goals as the government. 7. The natural resources of Sierra Leone are rather limited. The wild oil palm covers a major part of the country and makes a substantial contribution to diet and cash income. Rice is otherwise the staple food, but production has since the early 1950's been complemented by rice im- ports. Iron ore, chrome ore, gold and diamond fields were discovered about 1930. All have been exploited since then; the known resources of gold and chrome ore are now regarded as exhausted. Production of iron ore is in- creasing; the known resources ought to last at least another 25-30 years. Diamond deposits have been mined since 1930. New alluvial deposits along the rivers and in some swamps were discovered in the early 1950's. Known diamond exports increased from L1.5 million to UL6 million from 1955 to 1960. They have since fallen off considerably. New minerals such as rutile and bauxite are coming into exploitation. 8. No national accounts have ever been prepared. It was estimated that national income per head in 1955 was only 115. Estimates of the value of production in 1961 would range between L50 million and 1100 mil- lion, i.e., L23-IJ5 per head (;;65-o$l30 per head). With a wage of about 6-7s. Der day, the 75-80,000 wage earners in Sierra Leone can be expected to earn on the average L100 per head per year. The actual income per head, including dependents of the wage earner, is probably 1/3-1/4 of this. These estimates show that Sierra Leone is a poor country even poorer than some other countries along the wiest African coast. 9. The following table gives three alternative sets of data based on reasonably well-known estimates for foreign trade and public sector expend- iture. Private investment is based on some major investment expenditure known to have been made in 1961. Total private investment has however been correlated to vary with the three alternative GDP estimates. Private con- sumption is a residual. - 3 - Balance of Resources in 1961 (; million) Alternatives 1 2 3 Gross domestic product 50 75 100 Imports (retained only) 28 28 28 Total supply of resources 78 103 128 Public investment 4 4 4 Public consumption 12 12 12 Private investment (4) (6) (8) Private consumption (33) (56) (79) Exports 25 25 25 Total use of resources 78 103 128 10. Taking the middle alternative, about 1/3 of GDP is exported, which is a high but not unduly high proportion. A somewhat higher proportion is imported, the difference being due partly to imports of foreign financed in- vestment goods. The public sector spends an amount equal to about 21% of GDP, of which 3-4A out of foreign funds and 18-17% from domestic revenue. The proportion of GDP invested is 13%, of which the public sector accounts for 5%. This can be compared with figures from the late 1950's for Nigeria (10%), Ghana (13'), Tanganyika (17,A) and Uganda (18%). Half or slightly less than half of these investments were made by the public sector in these countries. In Sierra Leone foreign capital contributes finance for the major part of the public investment and very roughly half of the private investment. Thus investment out of domestic resources is small, probably only 3-7% of GDP. II. PRODUCTION AND DEVELOPMENT IN INDIVIDUAL SECTORS Agriculture 11. In Sierra Leone about 80% of the population is engaged in predom- inately peasant agriculture based on tribal land tenure system. Private ownership of land is only possible in the region of the former colony. Small peasant farmers grow a variety of erops, most for subsistence, some for cash. The two major crops are rice and (wild) palm products, but there are also cassava, cocoa, coffee, tobacco, ginger, groundnuts, kola nuts and piassava. The few plantations include oil palm, run by the government's Produce Market Board, coffee and cocoa, run by small private planters. The Board was established in 1949 "to secure the most favorable arrangements for the purchase, export and marketing of Sierra Leone produce and to assist in the development by all possible means of the agricultural industry of Sierra Leone ..."g, (Section 15 of Ordinance No.1 of 1949). The role of the Board is discussed below. 12. The total value of the agricultural production in the country is not known. Rough estimates of some of the individual marketed crops eval- uated at the market price of the Produce Market Board indicates a production value in 1961 of JI4-17 million. To this should be added the value of the pure subsistence crops and of livestock products. Exports of agricultural products amounted to LL million a year in 1961-1963, which is considerably lower than the L6 million or more exported in the early 1950's. The fall in exports has been accompanied by a rise in food imports from around Li million annually in 1951-53 to a high of above ;5 million in 1962 and 1963. A trade surplus on farm products of L5 million changed to a deficit of Il million. A partial explanation is to be found in the diamond rush that started around 1954 and took at its height approximately 60,000 Sierra Leonese, mainly menwbetween 6 and 10 of the male adult population in their best ages, from the farms to the diamond areas for most of the year. This caused a drop in production of palm products, since the wild fruits were not harvested to the same extent as before. Rice production was probably also affected. The suddenly swollen incomes from diamond mining (they in- creased approximately by bl10 million) led to a sharp rise in consumption and imports of food, and of clothes, consumers' durable goods, etc. 13. The deterioration of the Sierra Leone trade balance of farm products was more than compensated by the increase in exports of diamonds. The gradual exhaustion of the most easily accessible diamond areas and the crude methods extracting only the biggest diamonds caused, however, a fall in average incomes from digging. A number of diggers consequently left the digging in 1962 and 1963, some going back to their farms and families. Some have been known to be investing their earnings in improvements of their "farms". but the prevailing land tenure system does not generally encourago investments in agriculture. It is however possible that this back flow of people will raise agricultural production again. 14. It has been said that the sum of present knowledge of agriculture in Sierra Leone could multiply several times over the19ricultural produc- tivity of the country without planting an extra tree.-' The basis for this knowledge is the work done at (a) the Government's research stations (rice research at Rokupr, various small agricultural, horticultural, cattle and poultry experimental farms and veterinary stations) dating, in some cases, back more than 25 years; (b) at other West African Research stations to which Sierra Leone has been contributing over the years (the West Afri- can Institute for Oil Palm Research, in Nigeria; the West African Cocoa Research Institute, in Ghana); (c) by special survey and study teams (FAO land use survey team, a Cocoa Virus team); (d) by private investigations for plantations (bananas, rubber, cocoa, sugar). The potential of agri- culture is still far from being thoroughly known. The land use surveys have covered small areas only, and for instance the poasibilities of ir- rigation in Sierra Leone are largoly unknown. 17 Mr. Davies, Chief Agricultural Officer in his draft ten-year progrgm. -5- 15. One of the major problems of increasing agricultural productivity is the disemination of this knowledge to the farmer. This requires a large and well-trained staff of agricultural extension services. Agricultural ed- ucation is at present concentrated at Njala training college, which is now, under an Illinois State University Project, expanding to an autonomous, degree granting, research and educational institution, but there are in addition also special courses by Sierra Leone Produce M4arketing Board and the Aureol Tobacco Company. The important improvement of the extension services through the training at the college and the enlargement of the staff of extension workers in the Agricultural Division is one of the most promising long-term under- takings in the economy but will yield only small immediate returns unless given highest priority among government development expenditures. The general education level of the farmers - the majority are illiterate - the predomin- ance of native customs, and a tribal land tenure system based on the extended family are other obstacles that can only be overcome during a long period. 16. New methods also would require better agricultural credit facilities which are virtually non-existent. Special credit programs of limited size are now handled by the agricultural officers together with the district councils; final decisions, howvever, are made by the Senior Agricultural Officer. Credits are given for planting of oil palms, citrus trees, cacao, coffee, and for poultry, all at an interest rate of 5-6%. Credits are also given through the Cooperative Societies for short-term purposes at an interest rate of 15% to their members. The present system of agricultural credit programs is complex, inadequate, sometimes far too expensive to the farmer, and it is handled by the agricultural officers - detrimental to their good relations with the farmers, 17. The production and marketing arrangements vary frorn product to product. The creation of large plantations is somewhat hampered by the land tenure system in the provinces which prevents sales of land to any individual; long-term leases (50 years) could however be worked out both for agricultural and forestry land. Concessions for planjttion operations have been negotiated for 30 years with provision for renewal.- Marketing of the large export crops is well-organized and creates no problem, but marketing for the local market is often non-existent. Rice marketing has been seriously hampered recently by the introduction of a law preventing foreigners from dealing in rice (in some major rice producing districts). This trade was largely in the hands of Syrian traders and no substitute has yet been found, leaving the farmers with unsold stocks of rice and no cash to finance the preparations for next year's crop. Perishable commodities such as meat, fruit, eggs, vegetables are subject to seasonal fluctuations in supply and price to the disadvantage of both the producers and the consumers. There is thus room for private initiative as well as public guidance and support in this field. 18. The structure of actual production and the problems and potential- ities of developing future agricultural production of various commodities is in sum the following: Rice production could be increased by more extensive use of the boli-lands - inland swamps - and by saline swamp production. This plus some increase in rice milling and storage capacity and arrangement of proper marketing and ap- propriate credit facilities could brinL, the country within reach of its long- term goal of regaining self-sufficiency in rice. Such a development, could save Sierra Leone substantial amounts of foreign currency now spent on rice 1/ It is the government's policy to retain 51o of the equity in any enterprise involving the use of land. -6- imports (M.4 million in 1962) and could also help the central government diminish its rice subsidies (;250,000 in 1961) to the farmers. Properly administered a rice production program, based on domestic production could break the agonizing rotation of famine and feast, so far a constant threat to the rural population. Extensive natural oil palm groves are wiidely unused except that the palm kerfels are collected. It is difficult to say whether these groves could be economically utilized because of comparably low produc- tivity of the trees, the inefficient and labor intensive harvesting methods and the crude processing, yielding only very low quality oil. Small (SLPMB) plantations of higher yielding oil palm trees have not been very successful in the past, although a combination of well-planned, larger ecale operations, better choice of site, and more modern processing methods might show better results. Such a development seems however unlikely to have any bearing on the economy within the next ten years. Cocoa production is becoming an in- creasingly important and popular cash crop and has a good growth potential. The volume of exports doubled between 1950 and 1960 and rose another 40% from 1960 to 1962. Still the value accounted for less than 5% of total 1962 exports. Coffee production fell in 1960-62 but recovered in 1963; the potential of this crop is mainly limited by the availability of suitable land and by the international coffee agreement which at present allows Sierra Leone to sell 60,000 bags per annum. Of a number of other cash crops rubber holds out some hope for the future. The government is presently preparing for the establishment of three nuclei rubber estates of about 20,000 acres each. These estates would be expected to serve as parent plantations for small holder rubber production in the vicinity. Plans for large-scale plantations now being launched, till - if successful - beFrin to have an impact 10-15 years from now. Sugar imports, which now amounr to 18,000 tons a year could be substituted by local production. A private company has already investigated the possibilities for a sugar plantation and expressed interest in such an investment. Tobacco is an example of a comparatively successful orivate import replacement production which started recently. Other crops like cotton, citrus and bananas might be found to hold reasonably good prospects if grown on a proper scale. While pig and poultry farming is becoming increasingly popular, cattle raising is still a doubtful proposition in Sierra Leone. Fisheries 19. The rivers and coastal areas are rather rich in fish as is pro- bably the large continental shelf which extends to around 80 miles from the coast. The fishing industry in Sierra Leone is of three types: first indi- genous individual fishermen with primitive methods and small canoes in the rivers and close to the shore; secondly foreign privately-owned ocean-going trawlers mainly supplying Freetown with fresh fish; thirdly contracted for- eign boats delivering tuna to cold storage facilities in Freetown for direct export. The total catch has been estimated at 25,000 tons annually. 20. The tuna fishing which started in 1960 is carried out 70 to 80 miles from the coast, mainly by Japanese and Spanish vessels, which deliver their catch to van Camp's cold storage plant in Freetown for transshipment to Puerto Rico for canning and final export to the US and Europe. Exports are planned to increase from the present 5,000 tons to about 20,000 tons. The company's cold storage has recently been complemented with a small cannery. The company has up to now invested Ll-Ll.5 million in Sierra Leone (partly in buying an old cold storage) and plans to spend another M million on a quay and fishing boats. -7- 21. The tuna industry is thus planned for expansion. It seems that it would be worth while to examine the possibilities of increasing other types of fishing. The Fisheries Division is planning a comprehensive development including the building of a boatyard, training of fishermen, marketing of fish, etc. Lack of funds, credit facilities, and trained staff are howe-ar serious obstaclos. There is a strong fo2ling tlat Wy expansicn should bQ made with Sicrra LAono-n pcrticipatirn and that foreign influences should be diminished. Forestry 22. The Forestry Division dates back to 1911, by which time the greater part of the country's timber-bearing forests had already been cle- ared for farming. Gradually the Division managed to build up protected forest reserves of more than 1,000 square miles (or about 4% of the country), partly by setting aside forest areas, partly by planting old farmland. (Most trees take between 40 and 100 years to mature.) Surveys are now under way to establish a forest inventory and to determine available and needed access to exploitable forest resources. 23. The present rate of logging is claimed to be 650,000 cubic feet, and it is believed this can be increased soon to 1 million cubic feet per year from present reserves, and another 3/4 million from new reserves now being demarcated. Present output is all consumed in Sierra Leone, partly as pitprops and housing timbers, but partly by the sawmills for further treatment. There is one private sawmill at Panguma and one -overnment saw- mill at Kenema. The latter one has recently been substantially modernized and extended. Production of sawn timber has been combined with prefabri- cation of wooden buildings and with an extensive furniture industry mainly for the domestic market. Total forest industries sales amount to about I6270,000 a year; about half this value is of furniture. Mining 24. The mining industry in Sierra Leone has been developed since the first years of the 1930's when iron ore, chrome ore, gold and diamonds were found and exploited. The value of all the minerals produced has de- veloped accordingly: (in 1'000) 1930 1940 1950 1960 1961 1962 6 1,622 3,271 20,508 21,986 16,577 The rapid increase in production between 1950 and 1961 was due mainly to the diamond boom starting around 1954, raising diamond exports tenfold. The value of iron ore exports was trebled between 1950 and 1960, while ex- ports of other minerals such as chrome ore and gold, after an increase up to 1953, tapered off; gold production ceased in 1956 and chrome production in 1963. Bauxite production started in 1963, and rutile is likely to be added to the exploited mineral wealth by 1966. -8- 25. Diamonds were first discovered in Sierra Leone in 1930. The ex- clusive rigghtto-prospect for or mine diamonds was granted to the Sierra Leone Selection Trust Limited (SLST).!/ Opencast mining commenced on a small scale in 1932. During the first half of the 1950's annual production varied between 400,000 and 500,000 carats (valued at around UL.5 million), and later was successively raised to a level of around 700,000 carats. Although the larger part of the weight of the production is in industrial diamonds, the gems usually account for as much as 80% of the total value. 26. Illicit mining and sales of alluvial diamonds began in the early 1950's leading to a major diamond boom in 1954 and onwards. In order to solve the problem, the government introduced the "Alluvial Diamond Scheme" in 1955. SLST relinquished its exclusive prospecting and mining rights ex- cept for an area of some 500 square miles where it had already proven or developed reserves. The "Alluvial Diamond Scheme" requires prospectors, miners, dealers and - initially - exporters to have licenses renewed annual- ly. Miners have to be native Sierra Leoneans or firms with a native majority. Supervision of the scheme is supplied by the Mines Department. Illicit ex- ports of diamonds continued at an estimated annual rate of UO-15 million a year up to 1959. A major part of diamond mining and sales seems to have been brought under control by 1960, in which year b12.1 million of diamonds were legally produced within the scheme. Some 25,000 people were working within the "Alluvial Diamond Scheme" at some time in 1962, some of them working in the 44 native firms organizing the digging. SLST employed at the same time about 4,000 people. 27. The De Beers diamond organization is represented by three companies, The Diamond Corporation Sierra Leone Limited (Dicosil), which acts as a dealer in diamonds, the Diamond Corporation West Africa Limited, which since August 1959 has been managing the Government Diamond Office, an/d finally, the Diamond Exploration Company which was created in July 19602/ with the purpose of assisting the Government in the exploration and development of the mineral resources of the country mainly by prospecting for gold and platinum and by investigating used and unused diamond deposits. After some initial investigations this company started operating a large dredge in the river Sewa during the summer of 1962, so far an unsuccessful operation. 28. Since 1959 exports of diamonds from the "Alluvial Diamond Scheme" have been exclusively in the hands of the Government Diamond Office which sells all diamonds to and through the Central Selling Organization (CSO) in London (managed by De Beers Associates). SLST sold their diamonds to the sameorganization up to 1960, then during a short period sold to independent buyers. The Government rapidly introduced a law that all diamonds mined in Sierra Leone should be sold through the Government Diamond Office. SLST then stopped all exports but went on producing. A compromise was worked out whereby SLST has to turn in all its produce for evaluation and to sell half its produce to Government Diamond Office but is free to sell half outside the office to specified buyers as long as the selling price is equal to, or more than, the price quoted by the Diamond Office. '7 A subsidiary of Consolidated African Selection Trust Ltd., a British Company. Under the name Sierra Leone State Development Corporation. -9- 29. Exports of Sierra Leone diamonds account for 10-15% of the sales of the Central Selling Organization, which is estimated to sell 80-90% of the world's diamond production. Some 75-80% of the value, or about ;90 million of the diamonds, sold through the CSO are classified as gems and the remainder as industrial stones. World production has increased fairly rapidly and was twice as high in 1962 as in 1950. Prices have been kept rather steady - lately rising - thanks to the selling organization. 30. 20-30% of GDP (ccmpare paragraph 8) is directly derived from the diamond operations; this excludes the indirect impact on GDP of the diamond mining through the industries and trades servicing the miners and mining companies. SLST pays annually close to L2 million (in 1962 p2.5 million) to the government. while the "Alluvial Diamond Scheme" contributes directly only about E 1/2 million, based on licenses, fees and an export duty. Any increase in government duties or taxes is expected automatically to lead to increased smuggling. It is estimated that the indirect benefit to the budget of the diamond mining amounts to about 15% of the export value of the diamonds, (or L2 million in 1962).Total Goverrment incxme, dcrectand indirect, from diamond mining might thus have amounted to as much as 30% of ordinary revenues in the past few years. 31. Iron ore deposits have been located at several places in Sierra Leone. Deposits at 11arampa in the Northern Province have been worked since 1933 by Sierra Leone Development Ccmpany Limited (Delco)l/ from which about 30 million tons had been mined by the end of 1963. The company is mining mainly 47% "powder ore" (a specular hlematite) which is cono;entrated to 64% at the mine and shipped by a 52-mile railway (3t6") to the Lori ore port of Pepel. This port, capable of handlirg shipv of 18,000 tcns io to Be in- creased during spring 1964 to handle 35,000 tons. 32. Production has been increased in several stages during the last ten years from 1.1 million tons in 1950 to about 2 million tons in 1963. The value of production has at the same time increased from 1.3 million to r5 million. The company has an agreement with the government to pay income tax on its profits plus an iron ore concession tax which together shall not absorb more than 50% of the total profits earned. These taxes have averaged 11.2 million a year since 1953 and are expected to rise to L1.5 million in the long run. (The company is not paying customs on equip- ment imported but on other imports.) The company has a labor force of 2,900 and a senior staff of 150. A J9 million 4-year program of extension and modernization is now nearing completion. rhis will increase production capacity to 2.8 million tons. The knotDm reserves should last at least 30 years. 33. Bauxite has recently been discovered in the southwestern part of the country and the government signed an agreement in 1961 with a Swiss owned company, the Sierra Leone Ore and Metal Company, to prospect and mine bauxite. A 21-mile road has been built (with a government subsidy of L50,000), and a jetty projected on the Bagru river, total investment amount- ing to L250,000. Production began on a small scale in 1963 and should soon reach 100,000 tons (containing 604 aluminum) worth b250,000 and later in- crease to 300,000 tons. A British company. -10- The government is to obtain 50% of profits through concession and income taxes. Titanium-bearing minerals, mainly rutile, have been discovered in the same area and are now, after q7vearf-years of prospecting, to be mined by an American and a British Companyt'at a rate of 50,000 tons of concentrates. The investment to be made during 1964 and 1965 amounts to around i7 million. Production is likely to start in 1966. Oil prospecting was started in 1963 by Tennessee Gas Transmission but finished after a few months as the results were negative. Gold is continuously prospected by the ivlines Department re- cently with some assistance from the Imperial College of London. Manufacturing Industry, Building and Construction 34. Mlanufacturing industry is not extensive and its total output is small. 1Most major manufacturing industries are public or semi-public. Thus, the Government has some rice mills, while the Produce ivMarket Board is in charge of the pioneer oil mills, and the Forest Department runs the forest industry in Kenema. The Road Department has several repair shops in the country, one of which also builds vehicle bodies. The railway repair shop is mainly servicing the railway but also takes private heavy equipment for repair. Manufacturing of parts has to be done to some extent. The Govern- ment Printing Works does all the printing for the Government and semi- official bodies. 35. Private and semi-private industry mainly produces consumer goods for the local market. The Aureol Tobacco Company, a subsidiary of the British, American Tobacco Company, employs 400 workers in its new factory - a 1l million investment - and has stimulated and taught more than 4,OOO farmers to grow tobacco. Two other investments each amounting to less than a Ll million have just been finished. One is a brewery and the other a distillery (70/' govern- ment owned). From now on these plants will cover a large portion of the dom- estic demand previously met by imports. (Beer and cigarette imports alone have amounted to L1-1.5 million in the past few years). There is furthermore a paint factory in Freetown, a sawmill at Katema, a furniture industry in Freetown, a nail factory, an oxygen acytelene and carbon dioxide industry, and small mineral water and ice plants, etc. 36. To promote development of industries, the government has adopted various techniques such as a tax holiday and customs protection. amendments beneficial to the investors to be laid before the parliament soon are likely to remove the major obstacles to some long-discussed industrial investments. The government has also assisted in building roads and has created an indust- rial estate in Freetown where land equipped with water, power, road and rail- road is leased on most favorable terms to industrial enterprises; the tobacco industry, the brewery, the distillery and the paint factory have already moved in there. A cement clinker factory is now being built with government participation. To attract capital the government and the Commonwealth Dev- elopment Corporation (C.D.C.) established in 1961 the Sierra Leone Investment Limited with a share capital of L350,000. The company places primary emphasis on the establishment and expansion of industrial, agricultural and mining enterprises. Minimum investment in any one project is 10,000. Most of the funds were committed at the end of 1963 for a flour mill, a plastic manufact- l/ Pittsburgh Plate Glass Company and British Titan Products have formed a new company, Sherbro Minerals Ltd., incorporated in Sierra Leone in February 196h. -Uo- uring industry, a palm kernel processing mill, and a tire retreading company. A number of other projects are undcr dizcussion. Total private investment in manufacturing industr (excluding the mines) can be estimated to run around ;0.5-1 million per year. 37. Building and construction is important in Sierra Leone employing as many as 10,000 workers, cr as much as in manufacturing and regular mining industry combined. The building and constructing activity is partly reflected in imports of such materials as cement and corrugated sheet for roof covering, as shown by the table below: (LOOO) 1950 1951 1955 1957 1959 1961 1962 1963 Cement 117 226 224 393 394 05 458 445 Corrugated sheets 29 109 483 753 515 536 457 470 The steadily increasing imports of cement were used mainly in Freetown, where building has increased with independence and a large influx of people. The corrugated sheets are mostly used on the more primitive buildings in the vil- lages and the purchases seem to have been varying with the success of the dia- mond digging. Domestic Trade and Services 38. Domestic trade, including retail and wholesale trade of domestic and imported goods, as well as the purchasing of export products at the producers for sale at SLEIviB and the Government Diamond Office is malinly con- ducted by Syrians, Lebanese, Europeans as well as some Indic^w-. Outside shops, booths and hawking is on the other hand entirely in the hands of the Africans. One factor of some significance in the internal commerce of the country is the growth in recent years of cooperative societies. The Depart- ment of Cooperation has been the coordinator and sponsor of the development of the cooperative movement. There are basically two types - producers' marketing cooperatives and thrift and credit cooperatives. The producerst marketing cooperatives handle an important proportion of certain c-ash crops like cocoa and rice scld to the government rice mills. They also include piassav.:, coffee, and citrus fruit marketing. The union of marketing coop- eratives is an appointed buying agent of the SLPIvIB. 39. At present the Department of Cooperation is able to borrow money in the commercial banks with the guarantee of the government and relend it either for expansion and improvement work or for sheer maintenance and sub- sistence. These credits are usually made available to the final borrower at an interest rate of 15p which is considerably more advantageous than the traders' credits estimated to be in effect lO0 a year or private loans us- ually at an interest of 25% a month. The size of these operations were around b285,000 in 1962. Transport and Public Utilities 40. The Sierra Leone Railway was constructed at the end of the 19th century. A main line section runs from Freetown to Pendemu (227 miles) and a branch line to Makeni (83 miles from intersection). The gaugue is 2'6" - 12 - which means that load and speed are seriously limited. The railway is com- pletely state owned and has been running a deficit practically every year since the start of operations. For many years the railway and the port of Freetoam belonged to the same authority, but since April 1962 they have been put under different autllorities. The railwjay is now 50% dieselised, the track has recently been completely relaid and a number of new coaches pur- chased. These recent investments of £5 million have increased the efficiency and reduced costs to some extent. One of the main problems is the increasing discrepancy between shrinking traffic dowm to Freetown (mainly export goods) and the increasing up traffic from the city (mainly irports). Passenger traf- fic rose by about 90io' from 1950 to 1960-61e An A-merican transportation con- sultant team paid by an AID grant mnade a survey late 1962 and early 1963 and suggested the railway should be temporarily maintained but closed as fast as road transport is able to take over, wrhich they thought could be by 1968. 41. Roads. Until lJorld War II the road system was conceived as ancil- lary to the railwray, roads being built from a fews selected stations on the railway line. During the War the army constructed the first road link from the "colony" to the main land. After the War the roads were continuously ex- tended and improved and, at the end of 1961, there were about 3,700 miles of road of which some 1,600 miles constitute the basic system of primary and secondary routes. Only 210 miles wsere tarmac surfaced, the remainder being "laterite" roads. The large number of rivers crossing the country has re- quired costly bridge construction. Some primitive and inefficient ferries still remain on some important roads causing delays and high transport costs. 42. Capital expenditure by the central government or, newi roads through the Public Works Department amounted to around £500,000 annually in the years 1958-61. In 1962 the Department was spending only about £220,000. This de- cline in public road expenditure was more than offset by the construction made by a contractor (Vianini) wh&0o during 1961-63 financed (at 6% and 6 years re- payment) and built roads and bridges for about £E.4 million. (Total cost of about 50 miles wffas estimated to be £1.7 million.) Other road builders are the district councils (£50,000-£75,000 a year), wihile the Produce i4arket Board has constructed roads to its pioneer oil mills in the past. The inhabitants of the villages sometimes build so-called pioneer roads under the direction of the i-iinistry of Social Wielfare. 43. Traffic has increased by approximately 20% a year since 1950 mainly consisting of commercial vehicles. Traffic counts regularly conducted since 1954 showi that traffic has increased even faster on the major roads. There are now 2.8 vehicles per mile of road compared with 0.7 in 1951. Road transport is the only industrial or service activity where the Africans dominate over the expatriates. Four thousand and seventy-seven commercial vehicles were registered in 1961 as against only 444 in 1950. Gross investment is heavy as overloading and bad roads as well as lack of adequate maintenance practices mean that a truck only lasts about two years. Imports of trucks, dual-purpose vehicles plus chassis and bodies amounted to £1.6 million in 1961, a doubling from four years earlier. Part of these imports probably went to the mining companies. 44. There is obviously need for continuous road building and improve- ment. The transport survey referred to above has prepared a 15-year master plan of howJ best to allocate resources. It is based on the assumption that -13- all highway construction will be financed by foreign grants and loans amount- ing to about il.5 million a year up to 1972. This plan seems to be overly optimistic as far as foreign finance is concerned. Hmoever AID and the German Government are considering contributing finance during the next two years for roads at a total cost of L3 million. 45. The port of Freetown is the only import port and by far the largest in the country. The total tonnage handled during 1961-62 (excluding bulk oil and bunker fuels supplied to shipping) amounted to 418,000 tons. About 1,000 vessels discharged cargo and passengers at the quay or by lighters and another 1,000 vessels berthed for bunkering. Some 180 of these proceeded to the iron ore harbor of Pepel 13 miles from Freetown. The port of Freetown keeps about 10,000 employed. During the ten years 1951-61 11.3 million were spent on a new quay in Freetown as well as on lighter quays and stores. The port seems to be serving its purpose adequately, waiting time being usually shorter than two days. The Transport Survey mentioned above forsees however need for ex- tension of the Freetown facilities. AID is now to undertake a survey apprais- ing the need and the cost of such a project. 46. Civil air service in Sierra Leone is performed by Sierra Leone Airways, a national company which is assisted by British United Airways (B.U.A.) in three fields; first, the running and maintenance of the internal airline system; secondly, the ground handling unit at the internaticnal airport of Lungi; and thirdly, the operation of the international service using crew and aircraft supplied by B.U.A. Passenger and freight traffic has grown by roughly 15% a year since 1957. The Transport Survey foresees need to raise the stan- dard of Lungi Airport, but is sceptical about some other projects announced by the government, e.g. the Lungi Hotel. 47. Electric power is supplied in Freetown andsome district towns in the country. The mining companies have their own supplies and there are a number of small generators in different places. The Ministry of Works had 17 undertakings with an installed capacity of about 14 NlW in 1963. Fourty-four million KWH were generated by the public installations and another 20 million KWvH by the private in 1963. Electric production in Freetown has been rising at an annual ratc of 16,A in the post war years. All stations are running at a loss - even the one in Freetown, if provision is made for interest on capital. The government spent about b320,000 in 1962/63 and plans to spend L735,000 in 1963/64, on extension and improvement of power stations, transmission lines, etc. This includes the building of a plant at King Tom with two slow speed diesel generating plants of 6-7 MW capacity each, at a total cost of about bl.5 million. The Bank has been asked to supply fin- ance for this project. Further demand is planned to be met by the small Guma Valley hydroelectric power project and an extension of the King Tom power sta- tion. A public statutory corporation, the Siurra L onc Electricity Corporation, is to be established in 196L to tak., ov.r treponsibility for electric power supply. -14- 48. Water Supply facilities are inadequate. A ccntract was signed in January 1964 whereby the French firm Degremont undertakes to sup- ply 21 towns up-country with potable water within 4 years. The total cost of the scheme is b2 million and is financed by the contractor with French Government assistance. Freetown has its own big water supply scheme, the Guma Valley Water Scheme, which is managed as an autonomous company with the purpose of constructing and maintaining the Guma Dam and other works connec- ted with it, and supplying - with exclusive right - water and distributing it within Freetown and adjoining areas. Rationing of water in Freetown and Wellington is hoped to be abolished in 1964, and the whole project finished by the end of 1965. The capacity will then be 18 (later 19.5) million gal- lons a day, which should be sufficient for this area up to the year 2000. Total cost of the Guma Valley project is estimated at 15 million. Of the L3.25 million to be spent during 1961-65 Commonwealth Development Corporation contributes L2 million in the form of a loan and Commonwealth Development Finance Company Limited a loan of 1400,000, and the Government the residual with the help of a Ll million loan from the Diamond Corporation. As mentioned2 n para 47 a small hydro-power station (2.4 iIW) will be combined with the scheme the cost of which is paid by a UK loan. 49. Sewage arrangements in Freetown consist at present of septic tanks which are not satisfactory for the density of population. The cost of a sewage plant was estimated some years ago at U1.2 million. 50. Telecommunications are at present poor. Sixty per cent of all telephones are used by the government without charge. Development of a new system started in 1962 and should be finished within 3 years. Ihew exchanges and an extended number of lines in Freetown and some district towns and microwave connections from Freetown to all main towns up-country are now be- ing provided. The external communications will also be considerably impro- ved. Total cost of the program is L265 rmillion which is being financed by the contractor, Philips, who also will train Sierra Leoneans to man and main- tain the equipment. - 15 - Socijl services- 51. Sierr& Leone ec.ucation traditions date back more than a hundred years; secondary schools were introduced in 1845 cnd hiCher education alreedy in 1827 at the Fourth BEV College. However, it is estimated that for the country as a wshole only 20%; of all children ol school age attend prinary schools; as the drop-out ratios are high this actually means that soce 40% of all children at sorme time or another have attended school. The government's air is to introduce universal free primary education at the earliest lossible date. Central Governi:ent expenditures for education have risen fror; &0.4 million in 1950 to L2.5 n.illion in 1962/63 or frorii 9%r to 15% of total expenditure. The major obstacles to further yrorress in education are lack of finance and lack of teachers; about one third of all teachers are regarded as unqublified. Teacher training has recently bfen expanded and further expansion with the helT. of foreign Did is exypected. 52. Hospitri and public health services are su plied by the governrent, the mining companies and mission stations. There is, however, not nore than one medical practitioner to 25,000 people. Although no officicl data on mortclity rates are available it is recognized that child rnortality is high. ilans to develop the public heelth services Ere seriously htmpered by lack of finance and lack of personnel. The establishrent of tr[inir5 facilities in connection with a planned re( iczl center connected xiith the Foursih E y College should in the lon- run improve the situation. Lebor. ,lares 2nd .rices 53. Of the total labor force estir.-ated to be around 800,000 about 80% are ermployed in agriculture. Industriel or predoriinantly non-agriculturt-1 employrent, that is of iersons employed as waCe earner;, is estimated to be about 80-ls00,000 persons. 54,000 persons were accounted for in returns of industrial employment covering six persons or more in 1962. The percentage distribution of this tottul, by industry, was as follows: .Ericulture and forestry 5 ' -/ Compare Appendix A. - 16 - 55. Wage rates have increased from a mininium for unskilled workers in mining, building and transport of belev 5 shillings per day in 1955 to a minimum of 6e. 3d. in 1963, an increase of one third in eight years. This minimum does not include such social welfare benefits as hospital services, low cost housing and pensions which are supplied by the larger mining companies. There is, however, no general social security scheme in the country and none has yet been contemplated. (The range of wages and their changes frorn 1'55-63 are shown in Table 9 in the Statistical Appendix.) The law permits the intro- duction of wages below those cited in connection with plantation wDrk. 56. Prices generally vary with export prices and food prices are especially vulnerable to seasonal fluctuations and crop variations. The price stabili- sation introduced by the Produce Ntarketing Board has, however, contributed to reduce sorme of the impact of fluctuating world rarket prices. The rice sub- sidizing scheme has also helped stabilize prices, particularly by making im- ported rice available at tires end in areas of scarcity. As for di&mondP, prices have long been kept rather stable by the buying organization. The cost of living in Freeto.:n was, however, rising slowly up to independence at a rate of 26 a year but has since been stable. Whila oDst of food and of clothing has declined during the past few years the cost of housing has been soaring at a rate of 9-10% a year - even faster during 1963. Thisin due to the heavy population inflowi into Freetown, not least of civil servaiits. TVhe trans- formation to independence &lso attracted a number of foreiEn goveniment repre- sent atives. B&nking end I'mnetar_Syem 57. The currency has since 1913 been issued by the kiest African Currency Board, which originally covered Nigeria, Ghans, Sierra Leone and Gembia; only Sierra Leone and Gambia still remain within the system. The regulations of the BDard provide that it maay issue West African currency at the rate of 20 shillings Uest Africcn currency to one pound sterling if the equivalent amount of sterling is lodged in London. The Board is required to pay out sterling in London at the rate of one pound sterling for an equal value of 'est Africtn currency. The Board has run a substential profit, part of wyhich it has distributed over the years to its members. 58. The governnent of Sie ra Leone has decided to create ita own currency (2 Leone = i sterling) and set up its ovm centrral bank - the Bank of Sierra Leone. The act creating the Bank was passed by the legislature in April 1963. The Bank is expected to be in full operation by the time the new currency is introduced, in August 1964. The size of the assets to be taken over from the tjo3t African Currency BDard depends on the currency circulation in Sierra Leone at that date (estimates range frorm Q0 to QL4 million) and the aLount of un- distributed profits of the Board. 59. Three comr,ercial banks, Barik of 1jest Ifrica, Earcli ys Bank (D.C. &O.) and Intra Bank (a Lebanese bank established in 1963) operate at present. - 17 - Total bank deposits rose 11% a y cr from 1954 to 1960, and even faster in the next three years. (Savings and tirie deposits accounted for 1%,of' total deposits in 1954 but 43% in 1963.) Loans and advances have had an accelerated growth - 27, a year 1954 to 1960, 37% a year 1960 to 1963. One reason for this explosive development after independence and especially during 1963 is the fact that foreign subsidiaries in Sierra Leone have begun to draw on the local banks instead of their mother companies. The building boom has also contri- tuted to the long-term growth. The banks' net debt to foreign banks has in- creased fromn 627,OCO in 1960 to h62,897,000 in 1963, of which a full i1 million occurred only in the last three months of 1963. Some uneasiness seems to pre- vail because of the currency reform, although no change in the value of the currency is considered. There is also a 7bst Office Savings Banl the acti- vities of -;hich have been somewhat stagnant since 1956 writh totcl accu!ulated balances of 51.6 million - 80D,invested in foreign securities. It is likely that the Central Bank will take over these foreign assets. The r:onetary policy to be pursued after August 1 is still subject to ciscussion. The possibility of the introduction of liquidity ratios for tho banks has made the banks con- sider a credit stop during 1964. Public Finance 60. The public sector comprises the central governrent2 the Freeto-n City Council, the Sherb2'o Urban Council ;nd the Rural Area Council (ii' the Western Area), the 12 District Councils and 147 native administrations. There are also a number of independent public activities twhich partly obtL in fin&ice outside the government budget, most of ',hich have been described abDve. 61. The native adriinistrations levy a local tax at a rate not exceeding 25 shillings per year on every adult nale. The native administrations also receive tnnual concessions fror; companies operating uithin their area. The district councils collect a precept on the native administrations usually amounting to 10 shillings for each taxpeyer. The district, city, town and rural area councils have Ulso other revenues from services rendered, etc. Local revenue amounts to El-2 million. 62. Central Government ex enditure and revenues have increased rEpidly during the past 10-15 years.lY This is illustrated in the table bclow. Annuel rate of growth (in %) 1950-57 1957-62/63 Total expenditure 16 9 of 'rhich recurrent 20 12 Total revenue of donestic origin 18 7 / The Central Governrent Budget is composed of an ordinary, an extraordinary and a developrent or cepital budget. The first two budgets include both re- current and non-recurrent iters, tihile the last is an incomplete list of development projects "in the pipeline", which does not include an adecquate explanation of how the projects are to be financed. - 18 - The rapid growth during the first half of the 1950-63 period reflects the sudden impact on the economy of the diamond boom in the mid 1950's. There was a slow-dowm during the second half of the period - e£pecially notable on the revenue side. (See also tables 17-19 in Appendix.) 63. The following table shows the relative importance of various sources of revenue in the budget. 1950 1957 1962/63 (in per cent) Customs and excise 44 57 45 Direct taxes 32 22 20 Licenses, fees, departmental receiptsll 12 11 21 special receipts (incl. external) 12 10 14 Total 100 1OC 1C:O Total revenue in V'0O0 3,268 10,358 13,998 The relative reliance on customs and excise has apparently varied with the value of imports, which in its turn has largely reflected the variation in income from diamond digging0 The poor development of d.rect ta-:es is likely to be reversed in the 1963/64 budget year with the end of a temporary sales- stop of SLST. The low proportion of direct taxes reflects, however, the seemingly unsurmountable difficulties encountered in taxing the dia-Tond digging outside SLST properly without losing control of that produot°o-n. On the other hand, the fastest growing item. in the budget, licenses, fees, etc, depends partly upon levies of various types on that kind of ,iamond digging, which accounted for about 4$ of total revenue in 1962/63.1/ J It is to be noted that with exception of the railroad and port authorities vr&se result is only shoun net in the general budget, all other activities are fully integrated into the general budget. This blows up the magnitude of revenue and expenditure registered on the budget without necessarily increasing the reans aveilable for strictly central government activities. An exercise in which expenditure and revenue were shown on a net basis for the departmlents concerned with electricity, post and telegraph and forest industries reduces the proportion derived fron fees, etc. by 4%, 5% and 7% of total revenue for the years 1950, 1957 and 1962/63. It is likely that besides the electricity department, the port and the Sierra Leone forestry industries will be established as public corporations during 1964. - 19 - Currency Board profits beve becorme increasingly important accounting for as much as 6% of total revenue in 1062/63. This is, however, a source which will diminish in connection with the creation of a national currency in 1964. Of a more temporary nature is the UK contribution to the military forces which although sizeable from 19 v 59 and onwards to a large extent reflects the change of guard at independence./ The foreign contributions to developrent are dis- cussed below. 64. There has been a rapid, all-round rise of Government e2genditure, especially recurrent The composition ofrecurrent expenditure from a functional point of view is shown below.'/ 1950 1957 1962/63 c,, % <~~~~~~~~~~~~~~~~,, Administration (incl. police & defense) 48 39 43 Social services 20 26 24 Economic services, Util. transp. 30 32 27 Piblic debt charges 2 3 6 Total 100 100 100 Total recurrent expenditure in W'C0O 2,122 7,710 13,169 65. Canital e &ture rose rapidly up to 1958 but has since varied around 43,5 million, It accounted for 44V of total expenditure in :;950, 29' in 1957 and 19% in 1962/63. This falling percentage shows the. -'he govrernrment finds it easier to increase recurrent than capital expenditure. Since the surplus on the current account has been Shrinking, a growing proportion of capital expenditure has had to be financed out of borrowing. Part of the public investmerits ha8 been handled by contractors also supplying the finance f'or the project. Suppliers' credits have been obtained for po jects such as roads, public buildings, telecorrunication and lately a tourist hotel and a water supply scheme for the .;hole country. The Government has also becore partner in the developr.,ent of the Guma Valley Dam. The actual public invest- ment has lately exceeded registered public capital expenditure; roughly by 8OO,OCO in 1962/63 and X1.6 million in 1963/64. / The UK contributions to the military forces are partly a continuation of previously undisclosed UK military expenditure outside the Sierra Leone budget. 2/ If expenditure is shown net of revenue for some public utility and in- dustri&l undertakings the proportion spent on economic services would be reduced by 5%o 5% and 7p for the years 1950, 1957 end 1962/63. Compare footnote 1 in paragraph 63. - 20 - 66. The following table shows the importance of various sources of finance available for public investrnent in the period 1953-1963/64. (IBRD estirates). A l!i U A L I V L R h C( L 6'CCO 1953-1957 1958/59- 1962/63 1963/64 1961/62 Estirates Capitcl and non-recurrent expenditure in budget 2,630 3,750 3,080 4,530 Actual rublic investT.ent (2,630) (3,700) 3,870 6,1CO Financed out of Domestic revenue 1,610 1,050 360 1,590 Foreign grants (disb.) 480 720 470 350+ Domestic long-term borrowing 150 (350) (2C0) (0) External long-term borro0,dnglg O (770) (1,140) (1,250) Supplier's crieditslJ (C) (250) (430) (1,150) Residual and errorslJ 390 560 (1,270) (1,760) The average periods chosen above include large vtriations fror. year to year. However, the table shows that a) aor,estic revenue contrituted more to piblic investr-ent in the first period then later (6C05 in the 1953-57 period c:.;d beloir 3051 thereafter.) b) domestic long-terr. borroiring (frorm the West African Currency Board) has sor.etires cor.1-ensated ior the fall in dorestic revenue. How- ever, the total domestic contribution has fallen fror. t,.o thirds to below one third of total financial recuirerents. c) foreign gr&nts (prir.arily C.D. &.t,.JWgrents) contributed about 2Co; of total financial requirer.ents up to and including the first year of independence, when there was a rush to disburse previously accurulated funds. The grLnts have since 1962/63 not been as generous as earlier and are exp.ected to account for less thbn l0% in 1963/64. J The actual disburserment of dor!estic and external lo;ns is estimated by IBRD, the supplier's credits re derived frorn figures indicating actuel lnvesti-ent and actual public pe-: ents on contractor finirced projects. The 1963/64 residual figure indicates the over-optimism of the govern- ment, since it is not likely to find finance, nor have projects ready for the amount indicated. - 21 - d) Foreign public lonp-term lending has become increasingly important. The first loans were extended in 1960 and 1961 and have lately accounted ior about 30% of public investment financing. The total f'oreign public contribution to public investrent financing has thus increased fronm belouJ 20,; in the 1953-57 period to about t,'ice that level in the next period. The amount available in 1963/64 may be approxirmately the same. e) The new and important factor since 1960 in the financing of public investrment has been the supplier's credits, some foreign sone domestic. A number of large contracts were signed during the first year of independence totalihg 14.5 rillion (or about one f'ourth of public debt). Disbursenents of this finance havebecome increasing- ly important. Two new contracts were signed in December 1963 and January 1964 totelling i2.7 million. Debt service on the presently attracted supplier credits will amount to around hclf of the total debt service during the next few years. 67. It is difficult to judge the public development effort by looking only at the budget. Revenue from personal taxes is low and could probably be raised by better tax enforcer,ent. Revenue from diamond agging is especially poor. The company tax which including concession duties ranges from 5,O; to 6D05 seems to be adequate, howrever, end any rise should be weighed againt the possible discouragenent of new private investrent in the country. The hiph dependence on indirect taxation seems to be hirhly justified by the need to complement the taxation of the alluvial diamond digging0 The pattern of spending has deteriorated, capital and recurrent developrent rxpenditure claiming a continuously diminishing share of revenue. Iihile rmilitary ex- penditure does not claim a large proportion of revenue other adtinistrative expenditure seems to be rather high. The rather unsatisfactory growth of public investment letely (notwithstt;nding 1963/64 estir';ates) stems partly fror low adrinistrative capacity geared to t' at type of exrenditure (techniciLns, and other experts qualified to pre;,are public investment projects are scarce) partly fror the falling proportion of dcmestic revenue available for investmlent purposes. The tem,orary reliance on suFplier s credits has raised the copacity to invest as contractors are supplying not only finance but also the major part of the project preparation. The burden of such finance has been high end wvill increase, however, and Sierra Leone can ill afford nore of those crecdits. Some long-term conventional borrowing such as already supplied by '.v., USA and international organizations coapler;ented '4th technicel assistance (pre-investmnent surveys and actual project preparation) could offer E more acceptable alternative for Sierra Leone if she is to effectively increase her public investment. Foreign Trade 68. The economy of Sierra Leone seems to have grown rapidly during the 1950's up to 1957 due ruinly to t'*e diamond boom. The growth slowed donm considerably thereafter. This developrient is reflected prirarily in import - 22 - statistics, while exports due to ladc of registration of all diamond exports during the first years of alluvial diamond production gi';es a sligtly erroneous impression. Measured from the height of the Korean boom in 1951 imports grew by 215 a year up to 1957, i.e. from L8 mfllion to '125 million. Imports reached another high in 1961 of Q8 million but have since fallen back to &26 million. Part of this fall might be due to a decrease in un- registered re-exports to Quinea. Registered domestic exports (i.e. total exports less registered re-exports) gr0qcomparatively slowly froE 1951 to 1957 (66; a year); then from the 1957 level of E15 million exports rose to a high in 1960 of ,26ml]lion. lifter riaking allowance for illicit diamond exports - especially in the rid-195C 's - it seems that total actual exports probably reached ahigh already in 1958 or 1959. Exports fell sharply in 1962 tnd socewhat more in 1963 (allowance rade for the BLST 1962 production exported early 1963). While the 1961 export valuie was L25 million the comparable value for 1°62 was 622 rillion and Jor 1963 120 million. 69. The importance of the diamond boom on exports is shown in the following table of domestic exports. 16O1O Diatonds Iron Ore Pcricultural Other Exrorts Total Products 1951 1,372 1,4,k1 6,577 42C 9,850 1960 16,473 4,117 4,760 577 25,927 1962/ 63* 11,635 5,027 4,071 380 21,113 kAnnual average for 1962-1963. Thus diamonds accounted for 14 of totel exports in 1951, as much as 64I. in 1960 and 55' in 1',62/63; the proportion of iron ore out of total exqorts remcined at around 16% up to 1960, then rose up to 245b '-hile that of agni- cultural produce fell from 66%5 to 18%. 70. Export projectiors do not indicate any spectacular increases in any cornodity. The best guess possible is that exports will remain for a few years at a level around or slightly above 1962-1963 exports, i.e. 621 r.illion. Dianond exports have fallen during 1962 end 1963. The WI,5T diarond production should, however, keep up both in the short and tre long run; any increase would shorten the life of available resources beyond what the coirpany regards as reasonable. The alluvial production has been falling _ince 1961 and the large scale dredging operations have not been successful enough to stop this trend. It is likely that exports of alluvial diamonds Aill be stabilized for some time at a level around that of 1963 exports of L6.5-7 million, but then taper off towards the end of the 1960's since reserves are likely to be ex- hausted. The steady progress of iron ore exports will be accelerated during 1964-66 when volure will be increased to 2.8 million tons fror 1963 exports of 2 million tons. The long-term prospects beyond 1966 depend on the -orld market It is also likely that Delco would need some years of consolidation before - 23 - going into a new phase of expansion. Other mineral exports are of small but growing importance. While chrome exports ceased in 1963, bauxite and rutile will soon be of some importance. Rutile should add well over one million pounds of export value towards the end of the decade. It has to be remembered, howeverp tht the large investments made in mining will require a substantial capi -1 e fromfrp;t Sierra Leone during the period the borrowed capital is being rI;p th.e long run other mineral resources might be found which will be w&cth c.xc2oil:,ing. However, no concrete projects seem to exist at the moment. Oil exploration which started only in 1963 has finished already. 71. The export prospects of agricultural products do not look bright in the short r.n, There should, hawever, be a growth potential in the long run given favorable results of present research and pilot schemes and a determined effort by' J,e Go'-'ernment and response from the farmers. Sierra Leone exports forturzte&.y c-Dy account for a minor part of world markets of agricultural produce. i4-r;ets are thus likely to be available for palm kernels, coffee, cocoa, and. possibly also for bananas, rubber and finished products like fruit juice. Paltn kernels export has lately kept up rather well and coffee and cocoa export volume expanded. Any increase in palm kernel export is dependant upon more efficient use of available natural groves and expansion of plantations. The rate of expansion of coffee sales are limited by the international coffee agreement. Follcwing the rate of planting it can be expected -Lhat cocoa sales will rise substantially during the next few years. Export prospects for the other commodities depend on efficient plantation type operations making available sizeable quantities at uniform quality' as well as on the world market situation. The developmeat of agricultural prcaducti.toa in e;- next 7 to 10 years will probably have its largest imract in subs ;;ut-ing for im- ports of other commodities of direct importance 'co the development of the country. 72. The composition of imports changed during the 1950ts due to the diamond boom. Imports of foodstuff accounted for 11% of total imports in 1951 and 25% in 1962. Rapid import substitution by local production of beer, liquors, cigarettes, oontributed to depress imports of these commodities from 20% of total imports in 1950-53 to 5-6% during the last three years. Imports of other consumer goods such as textiles, shoes and passenger cars rose rapidly up to 1961. The rising standards also lead to higher imports of building materials, e.g. corrugated sheet for roofing and cement for mainly urban con- struction. The expansion of the mining activities caused imports of mining machinery, electric machinery and transport means to rise significantly in 1960 and 1961. 73. Sierra Leone trade is oriented towards the UK from which it obtained 39% of its imports in 1962 (as against 64% in 1950) and to which it sold 69% of its exports in 1962 (as against 80% in 1950). The dependence on United Kingdom has thus been decreasing. Among other sources of imports Japan has gained a first position with about 10% of total imports, recently closely followed by the Netherlands. On the export side the Netherlands and Germany absorb each about 10% of total exports. Sierra Leone has also gained importance as a supplier for ships stores and of bunker oil. This re-export has risen from an insignificant £0.3 million in 1955 to a high of £4.7 million in 1961. No reliable information is available on Sierra Leone Balance of Payments. An attempt to compile some of it is shown in the Statistical Appendix, Table 28. Foreign exchange reserves are now held by the Wlest African Currency Board, by the Sierra Leone Produce iiarketing Board,by the Post Office Savings Bank and the commercial banks. They should amount to between L10 and L14 million. - 24 - Development Planningl/ 7L. Development planning in Sierra Leone dates back to 1946 whea a 10-year plan was adopted comprising expenditure of L5.3 million. The limited objectives of this plan which was primarily a list of projects were achieved. In the so-called Childs' plan published in 1949 another &3 million of develop- ment expenditure were added within the first plan period. Before the goals of this plan were achieved the diamond boom changed the whole basis of the economy, 75. In 1962, a new 10-year plan for the period 1962/63 - 1971/72 was published and adopted by Parliament. This plan which was composed in a matter of months gave a good account of the economy of Sierra Leone and of its needs, and it also suggested a number of ways to solve present problems. However, it estimated unrealistic development expenditure, both as far as finance available domestically and externally was concerned and in terms of absorp- tive capacity. The public sector was to spend £99 million in capital costs and £53 million in recurrent development costs during the first 5 years of the period, which would require at least a five-fold increase from past levels of expenditure. The estimates of domestic financing (£15 million a year) and external aid (£14 million a year) were far from attainable. How- ever faulty and unrealistic, the plan at least made many goverrnient depart- ments consider their long-term requirements and ambitions. It is possible that a thorough revision would be able to create something more suited to the needs of the Government. For the time being, however, the developrent budget estimates of projects totalling £32 million being completed at a rEte of £4-5 million a year comprise the most realistic estimates ol future development spending. External Debt 76. The external debt of Sierra Leone amounted to I122.6 million ($ 35.4 million) net of undisbursed loans as of December 31, 1963. Total external debt (including undisbursed) as of January 31, 1964 amounted to £17.4 million ($t8.9 Million). The ext_rral dubt servico iB£ 1.25million ($ 3.5million) in 19d1.. Debt service calculated as a percentage of 1963 exports (£20 million after adjustment for 1962 diamond production sold in 1963) amounted to 6.3%. The debt service ratio for the next ten years based on the debt of January 31, 1964 will develop as follows assuming (a) exports £21 million throughout the period and (b) exports growing by £0.5 million a year from the 1963 level of £20 million. 1/ Compare also Appendix B. - 25 - Debt Service Ratio 1964 1965 1966 1967 1968 1969 19701/ 1971 1972 1973 (a) 5.9 9.1 9.7 9.1 8.9 8.1 18.2 5.2 6.5 5.4 (b) 6.1 9.1 9.5 8.7 8.3 7.4 16.3 4.5 5.6 4.6 77. It is likely that Sierra Leone needs and can absorb a gross capital inflow to the public sector of, say, £3 million a year in order to cope with a modest development program. If it is assumed that Sierra Leone should have to be satisfied to borrow £2 million ayear on conventional terms the new debt would require £1.9 million in debt service in 1973 (assuming favcruble terms of 20 year loans, 4 years grace period and 5.5% interest rate), wh I1jtogether with debt service on present debt would amount to £3.1 million (or r,:.'co than the assumed gross inflow of capital on conventional terms). This >1"e'Ni- valent to a debt service ratio of 12% (exports assumed to be £25 iw1!-cn in 1973). If the requirements were set at a higher but more reasonr'L!e cap-ital inflow of £2 million net of repayments and interest, debt service requirements in 1973 (under same terms) would amount to £4.6 million (equivalent to a debt service ratio of 18 % in 1973). These examples show that even if cierra Leone is given reasonably good conventional terms on major part of her capital inflow the debt burden will soon increase to a height making arny furth r net borrowing almost impossible unless of course growth of exports becomes much more vigorous than is now expected. III. PROSPECTS AND CONCLUSIONS Prospects of the Economy in the Short and Long Run 78. The very slow growth of the past few years is likely to continue for some time. The export prospects are not too promising due to slackening and even falling diamond production which is likely to be just balanced by in- creasing iron ore and other mineral exports. In the long run diamond exports might fall off even more, while other mineral exports could only be increased through the exploitation of yet unexplored resources. The volume of agri- cultural products presently exported might increase enough during the next 7-10 years to offset a possible deterioration of world market prices. 79. In sum, exports are likely to be stabilized between £20 and £25 million during the next 6-10 years. While exports thus would leave little room for expansion of development imports, expansion of domestic production of agri- cultural commodities and manufactured consumer goods is likely to substitute a large proportion of present imports. If imports, for example, of food stuffs could be cut down to the 1951 levels through such substitution this would leave room for a doubling of present imports of machinery and other equipment. Increases in agricultural production should basically be achieved through better land utilization and improved production techniques resulting in higher yields per acre and man hour. Research cn rice, oil palms and cocoa / 7 The high figures for 1970 are due to the repayment of a UK government loan, for which present sinking fund allowances are not sufficient. - 26 - show that available varieties would respond to such improvements provided pro- per support from the government and proper response from the farmprs would be forthcemi-ng.other crops like sugar and possibly cotton hold out hone for thefuA- tireIntrduction of new export crops such as bananas and rubber will depend on avai- lability of foreign capital and know-how. The small scale industrialisation contemplated and underway will also raise living standards for a limited number of people and might be the nucleus for more far-reaching projects in the future. Such projects could possibly be export industries based on the natural resources of the country. However, there are at the moment no concrete plans to develop export industries in the near future. 80. More basic knowledge of the natural resources has to be obtained before there will be any certainty into which fields Sierra Leone would be best advised to specialize. In spite of all the various mining undertakings that have taken place in Sierra Leone the country is still largely unexplored. A major geological survey might disclose new resources of economic importance. Basic surveys in the field of agriculture are also needed before major ex- tensions of present crops or introduction of new crops are made. Given the prospects that the economy will show only slow growth in the near future and the risk that export incomes from diamonds will be declining at the end of the 1960ts it seems extremely urgent that such surveys are undertaken soon. This is obviously a matter where the Government has to take the initiative but also has to call for outside assistance not only in the technical field but also for finance. Given proper inducement, private capital might be willing as in the past to contribute to these basic surveys. However, as in most pre-investment surveys public capital - domestic or external - has to make the main contribution. Creditworthiness and IDA-worthiness 81. Development efforts in the past measured in actual expenditure of a development character have by no means been small. There are indications, however, of increasing difficulties of financing this expenditure out of domestic means. External finance primarily from the United Kingdom Government and in the form of suppliers' credits from Holland, Italy and Israel have carried more than half of public development capital expenditure. The absorptive capacity of the country would probably allow £6-Y£8 million annual capital expenditure, or more than at present. The domestic resource mobilization has been improved during the past few years but could be improved still more; the taxation system and especially the savings institutions and the whole credit system may need to be overhauled. The continued increase in monetization of the economy facilitates the mobilization effort. An in- creasing proportion of the domestic resources are, however, spent on recurrent expenditure, leaving a falling proportion for capital expenditure. It is thus unlikely that domestic resources available for public investment will exceed the average for the past six years of £1.2 milLion (excluding debt re- payments of £0.3-0.4 million). Major institutional obstacles, such as the land tenure system, remain basically untouched. - 27 - 82. Sierra Leone will need and be able to absorb external technical and financial assistance in moderately increasing amounts over a long time. Major contributions from the United llingdom are available until 1965 and perhaps longer. The United States which hitherto has concentrated its effort on technical assistance may come up with some finance in the future. Other financial contributions have been committed bg Canada, Germany and Sweden, as well as technical assistance from a nu-mber of countries and organ- izations. In total, Sierra Leone could expect disbursements of foreign credits for public investments amounting to L4-4.5 million during 1964 and 1965 assuming that IBRD will grant a loan for the King Tom Power Project. Under this assumption suppliers' credits will account for ial.5 million a year of this gross capital inflow. The net capital inflow will, however, be only L2.4-2.9 million, since debt service will require .l.6 million (half of which for suppliers' contracts). 83. In view of past performance, of justified need for additional extbernal aid of a moderate size, and of the fact that present external debt and debt service are not yet unduly high (67' of exports in 1964, 9S0 in 1965) Sierra Leone should be able to service some additional debt on conventional terms. Present export prospects, however, would not allow bcrrowing on such terms to keep pace with needs for foreign finance without an unduly high rise in debt service. Since Sierra Leone will need finance on easy terms as well as conventional terms it would, therefore, seem appropriate to consider a mixture of Bank/IDA financing. APPENDIX A Social Services Education 1. Sierra Leone education traditions date back to the early 18th century whten education was supplied by missionary stations. Secondary education of the grammar school type was introduced in 1845. Higher education has been supplied since 1827 by the Fourah Bay College. This college became the leading institution in West Africa and has always attracted a number of students from other West African countries. Present modern education is based on an Educa- tion ordinance from 1953 and comprises a seven-year primary school, a seven- year secondary school from which at various levels technical education and teacher training branch off. Education is not compulsory. Higher education is based on the Fourah Bay College and scholarships for studies overseas. The Central Government plays the predominant role in the provision of education especially from the financial aspect. Primary education, however, is to a very large extent under the control of local authorities and churches/missions, subject always to inspection by officers of the Central Government, which by law controls the appointments of teachers and the subjects of instruction. Technical education and vocational training is partly supplied by the mining companies. The certification of teachers is a matter for the Ministry of Education. 2. It is estimated that the primary school population amounts to the equivale,nt of 20% of the number of children in school age, five to eleven years.Y A large number of the pupils never attend school for t.he full seven- year period - partly because this is not available at every school, partly because of a high drop-out ratio (20-30%O in the first year, 507 and 60, over the seven-year period). This means, however, that more than 20%of all children, possibly as many as 40O%, at one time or another attend school, The Government's aim is to introduce universal free primary education at the earliest possible date. There is obviously a long way to go, but progress has been rapid in the past. 3. The major obstacles to progress in education are lack of finance and lack of teachers, the latter problem being of course also part of the first. There has, however, been a rapid increase in the finance made available in the central government budget for education. Thus expenditures have risen from 1/The proportion is higher in Freetown (over 80%) and low in remote districts where there recently even have been cases of schools being closed because of lack of children willing or allowed to go to school. - 2 - LO.4 million in 1950 to'2.5 million in 1962/63. Only 18% of these were capital expenditure in 1962/63 as against 47% in 1950. The proportion spent on edu- cation oint of total government expenditure has risen from 9% in 1950 to 15% in 1962/63.1/. This increase of education expenditure (a grewth of 18% a year) has led to the following development of education: 1950 1955 1962/63 Primary school enrolment 34,520 48,934 105,805 Secondary school enrolment 3,041 5,721 11,179 University students 93 204 424 Teacher training students n,a. 4`.8 687 There were 3,277 primary school teachers in 1962/63, more than three times as many as in 1950. The pupil teacher ratio has remained fairly constant at 34:1 during this period, The number of unqualified teachers is, however, gb-ll large - about one-third do not fulfil the requirements of the lMinistry, 4. The post-graduate training of teachers is the responsibility of the University College (Fourah Bay). The training of teachers at sub-graduate level is carried out by the Ministry of Education either in the three govern- ment colleges (one was opened up in 1963/64) or in the five provincial colleges. The latter have up to now mainly recruited pupils directly from primary school and given them a three-year training course. Recruitment is to be improved by requiring students to have three years of secondary education before entering the college. The narrow recruitment basis is, however, a serious obstacle. Teachers have also been trained in the United Kingdom under a Commonwealth scheme; 30 students were included under this scheme in 1961/62. 5. A UNESCO study was made in 1961 regarding the future development of education in Sierra Leone, with special reference to discuss the requirements for obtaining universal fee-free primary education not later than 1980/81. UIJESCO cost estimates suggest that to achieve fee-free primary education by 1975 and to have one quarter of the children aged 12-18 years in school would require an average annual increase in recurrent expenditures of lL.9% and of capital expenditures of 8.5% (only including class rooms but no boarding and staff facilities), Thus total ed cation expenditures should grow at 14% annually, i.e., slower than in the 1950-56 period but as fast as in the 1956-60 period. This estimate does not allow for any expansion in higher and adult education. The UNESCO report points at the fact that total government revenues are not likely to grow 14% a year, in the future, not even as fast as in the past. UIESCO does not recommend a further substantial increase in the pro- portion of budget expenditure allocated to education at the cost of other / Capital expenditure has varied reaching a high of 1703,000 in 1961/62 and a six-year low of L458,ooo in 1962/63. Capital expenditure is e7en est- imated to fall further in 1963/64. - 3 - expenditure. The financing of such a program would thus to a large extent have to be supplied from external sources. Besides financing difficulties there will be enormous short-falls of teachers even if present teacher training facilities are increased substantially. The shortfall would be a matter of, say, one-third of all teachers reouired or about 3,000 teachers already by 1971/72. Foreign assistance could to some extent fill this gap. The Peace Corps already during its first years of activity supplied around 100 teachers to Sierra Leone. Public Health 6. The government medical a;d health service is responsible for the bulk of the country's hospital and public health services although the private mining companies have their own facilities. There are base hospitals at Freetown and Bo with rural hospitals in the principal town of each administra- tive district. Ancillary to the hospital services there is a network of 20 health centers, 25 dispensaries and 23 endemic diseases treatment centers. Including private and missionary medical facilities there is not more than one medical practitioner to 25,000 people. There has been a gradual but rather slow development of the public health services. Preventive medicine has not been instituted in the same degree as curative medicine. The demands for hospital services have increased considerably over the past ten years. From 1950 to 1960 the number of in-patients rose from 9,600 to almost 25,ooo, and the number of deliveries in hospitals from 1,500 to 7,600. 7. The plans for an improved public health service include a substantial increase in the available hospital facilities and health centers. The possi- bility to establish a medical faculty and a medical center as a part of the University is being discussed. Total capital cost of such a center would be about ;4 million. Freetown water supply problems are soon solved with the partial completion of the Guma dam in 1964 but there remains need for water supply in a score of towns up-country. This will be supplied by a French firm which will supply water for 21 towns over the next four years at a total cost of L2 million. An improvement of the health situation in Freetown is, however, dependent upon a substantial improvement of the sewage system, probably at a cost between L2 and 1,3 million. APPENDIX B Development Planning 1. Development planning has already become a tradition in Sierra Leone. A 10-year plan received the assent of the Legislative Council in 1946. It proposed to spend ;5.3 million and included the cost of a deep water quay, better electricity and water supplies. I'iost of these goals were achieved within the planned period. The 10-year plan was however mainly directed towards sorne basic but limited projects. In 1948, the Sierra Leone Government therefore commissioned Hr. H. Childs, the Chief Commissioner to examine the measures and requirernents necessary to achieve a substantial increase in economic production, and therefore in the prosper- ity and welfare of the people of Sierra Leone, during the next four or five years. His report was published in 1949. It was not a comprehensive econ- omic plan, but it did indicate production targets for selected agricultural products. It also included proposals of a series of projects to be under- taken by the central government and suggested that district plans should be drawn up by district authorities. The foundation of the Childs plan was a rapid increase in the mileage of roads, which roads were to facilitate ex- port of agricultural crops and to stinmulate new plantings. The roads were to be complementary to the railroad and water ways. Agricultural research, plantation of oil palm tress, palm oil mills, promotion of swamp rice grow- ing were also on the program. Each district made an inventory of their re- sources, aims and targets in general terms and in detail down to actual pro- jects. Agricultural, Forestry and Cooperation Officers helped to shape the district plans. The implementation of the plan wqas mainly carried out with the help of chiefs through their system of allocating work and duties. But other agencies assisted also and a cooperative scheme was introduced. It was realized, however, that whatever measures were taken to promote agricul- tural production and marketin- would come to nothing if prices were allowed to fluctuate as widely as in the past. A Sierra Leone Produce ivliarketing Board was thus created in 1949 in order to stabilize prices and to guarantee the producers an outlet for their products. The Childs plan added b3 million to the L5 million development expenditure included earlier in the 10-year plan. 2. No evaluation will be made here of these plans from the past. The actual outcome of the promotion of agricultural exports seemed in the early stages of the planning period to be more than fulfilled. In the post- Korean world, prices slumped, however, and Sierra Leone export income from agriculture started falling. The completely unforeseen diamond boom from 1954 and onwards changed the development prospects drastically. It caused agricultural production to fall but at the same time Sierra Leone total ex- norts doubled within a period of two years. The primary problem from 1955 and onwards became how to transform the new won resources into long-term development. In 1957 Professor D. T. Jack was invited by the government to carry out an economic survey of Sierra Leone. This survey was published in 1958. It included a number of recommendations but never went as far as the Childs Report. Although not a Plan, it served a purpose by illuminating various ways of prcmoting development. -2- 3. During the years followfing the end of the 10-year period, govern- ment capital expenditure continued to be allocated via the caDital budget, in 1960/61 changed to the development budget. The development estimates give the total cost of projects undertaken in various sectors of public act- ivity as submitted by various government departments and agencies and ap- nroved initially by the Ministry of Finance and finally by the Parliament. They do not include, however, any estimate over which period these projects are to be made. Total costs of projects included in the 1963/6 development estimates amounted to b32 million, of which 10 million had already been dis- bursed during preceeding financial years. Of the remaining L22 million, fA.5 million were expected to be spent during 1963/64. If this rate of spending iould be achieved, the projects would on the average all be finished over a period of five years. The strergth of the development estimates is not so much the accuracy of the forecast for the actual spending over one financial year as the fact that all the projects included - or at least most of them - do exist and that there is behind each of them an organization reponsible for carrying them through. 4. The development estimates were however not regarded as a satis- factory approacih to the development problems of the country as they only com- prise certain sectors of the economy Twithout supplying any information of the needs of other sectors and without any coordination of targets and neans out- side that imposed by the Nlinistry of Finance. There were obvious risks that certain sectors of the economy would be lagging and others developed too fast. A Mqinistry of Development was instituted soon after independence and in the fall 1961 a Sierra Leone economist, Dr. David Carney, was given the challeng- ing task to desig;n a new 10-year development plan for the period 1962/63 - 1971/72. Wilithin a matter of a few months a first draft was presented which in fall 1962 was approved by Parliament with minor changes. 5. The 10-year plan was by necessity limited to give only a frame- work and some guiding lines to development expenditure and development policy in general in Sierra Leone. The limited time available Ior the work had not Dermitted a careful screening of projects. The process of making the plan began with a request to all government departments and institutions to sub- mit their planned expenditures, projects and programs for the next ten years aithin a matter of weeks. No such plans existed and the response to the re- quest was mixed. The economist had to fill in gaps himself where he had not obtained answers without time to clheck the reasonableness of his owfn figures. Lven those -who had submitted answers often had only vagae ideas and very lit- tle study behind their contributions. Tle econonmist on his part had to be satisfied that the answers he obtained were the best he could get. The lack of a common approach with each answering department working with the same general assumptions on the future made the various sector approaches slightly inconsistent. However, the Plan included a thorough and systematic descrip- tion of what had been done in the past, what present problems wiere and sug- guested a number of ways how to solve some of these problems. Furtherrnore, the enquiry seemed to have set many departments studying the long-.term pro- blems, plans and prospects of their sectors of activity even af'ter the sub- mission of their answers. A re'gtition of the procedure, as was suggested by the economist - a continuous and rolling revision of the plan might thus successively have improved the estimates. No such revision has however been made, although a Progress ReoDort was published late 1963 covering tne develop- ment in the past year up to December 1963. -3- 6. Although the Plan comprised ten years, estimlates were only avail- able for all sectors for the first five years of the period. While the cap- ital cost of the first five years amourted to I99 million, thie next five years thus included only L26 million, The following description of the Plan will concentrate on the first five years, although indications are sometimes given for the whole period. Development Plan 1962/63 - 1971/72 in Summarv- L million Total First five Average Program years first five 1962/63 ears _ Public Sector Expenditure: capital cost ...... 125 99 19.8 27.3 recurrent cost .. .. n.a. 53;- 9.2-- 0 total ...... n.a. 152 29.0 27.3 Private sector expenditure 25 25 5.0 5.0 Total development expendituren.. n.a. 177 34.0 32.3 Public Sector finance: domestic finance of recurrent cost .. .. 53 9.0 domestic finance of caDital cost .. .. 30 6 external finance .. .. 69 14 7. Annual development expenditures in the Plan of a29 million in the nublic sector should be compared with ordinary expenditures of around T13 million and development expenditures of !4.6 million in 1961/62 pius some public extra budgetary expenditure of, say, 1 million. Development expen- ditures were thus supposed to increase fivefold from 1961/62 to 19G2/63. (The actual outcome was that they fell). And domestic financing of recurrent and development expenditures should double between the same years. (It act- ually fell.) Great reliance was put on the government's ability to raise more revenues from diamond mining. It should be remembered, however, that diamond sales never exceeded b16 million arnually and are very unlikely to reach a higher level at least for any suspended length of time. The importance of having a Central Bank as a means of finance was also overly emphasized, al- though it is not impossible that Sierra Leone's share in the West African Currency Board accumulated profits at the time of creation of the bank could mean a one time contribution of some importance. The size of external fin- ance required by the Plan was of the size of order of three or four times the level of external finance obtained in 1961/62. Such finance was expected to be covered by grants and loans from a great number of countries as well as from the international finance agencies. * This table is based on the basic summary table in the Plan (compare Table 30 in Statistical Appendix). Financing is indicated in the Summary of the Plan. I'll Recurrent cost starts only in year two. Total is for years 2-6, average for years 2-5. 8. Although the ambitions of the author of the Plan by far exceeded the resources of the country and the administrative capacity it showed a moderate and realistic approach to the solution of many basic problems. Thus there was a list of 15 various fundarental surveys to be made - miany of them pre-investment studies. Some of these are now well under way or already completed. Thus a population census was undertaken in 1963. A Transportation Survey of the country wias completed in 1963. A Statistical Office has been set up under which a number of surveys will be undertaken, and statistics such as National Accounts, Balance of Payments data, monetary data, labor statistics and price statistics made available. A geological survey, a cadastral survey and an agricultural census, a survey of land tenure, a survey of water resources were also planned or already under way. A World Bank survey wzas specifically mentioned to be worthwhile once some of the basic statistics have been made available. Development expenditures for various sectors are shown in Table 30 in the Statistical Appendix. STATISTICAL, APPENDIX Table Sierra Leone - External Public Debt Outstanding, Including Undisbursed as of December 31,1963 with 14ajor Reported Additions January 1-31, 1964 ...... 1 Sierra Leone - Estimated Contractual Service Payments on External Public Debt Outstanding including undis- bursed as of December .31, 1963 with Major Reported Additions January 1-31, 1964 ...... 2 Sierra Leone Produce .I-arketing Board Commodity Trans- actions ...... 3 Sierra Leone Produce Plarketing Board Statement of Surplus or Deficit ...... 4 Rice Statistics ...... 5 Railway Transport ...... 6 Public Electricity Undertakings - Generation, Consump- tion and Assets ...... 7 Education ...... 8 lWlage Rates in Selected Areas ...... 9 H1umber of Persons Employed by Industry Group ...... 10 Sierra Leone Civil Service 6enior Posts ...... 11 Index of Retail Prices - FreetowJn ...... 12 Currency Circulation ...... 13 Post Office Savings Bank - Transactions ...... 14 Assets of Principal Banks in Sierra Leone ...... 15 Liabilities of Principal Banks in Sierra Leone ...... 16 Central Government - General Budget ...... 17 Central Government - Composition of Revenues ...... 18 Central Government - ExQenditure ...... 19 External Trade 1950-1963 ...... 20 Domestic Exports 1950-1963 - Major Commodities (value) .. 21 -2- Domestic Exports 1950-1963 - Mvlajor Commodities( olume) 22 Unit Prices (f.o.b.) of Principal Exaports ...... 23 Retained Imports 1950-1963 by commodity groups ...... 24 Imports of Some Important Corimodities ...... 25 Direction of Exports ...... 26 Country Origin of Imports ...... 27 Balance of Payments ...... 28 Development Projects as Contained in tne 1963/64 Development tstimates ...... 29 Sierra Leone Ten-Year Plan 1962/63 - 1971/72 ...... 30 Table 1: SIERPA IEONE - EvTEPNAL PUBLIC DEBT OTJTSTIsADING INCLUDING U1NDIS3BU4§ED AS OF DEC-IITBBL 31, -1963 H'THY1 - 3 Debt Repayable in Foreign Currencies (In thousands of U.S. dollar equivalents) Debt outstanding Major reported Item December 31, 1963 additions Net of Including January 1 - undisbursed undisbursed January 31, 1964 TOTAL EXThRMAL PUBLIC DEBT 35±LQQ 4Q. EQ 8,4834 Publicly-issued bonds-2' 16,245 16,L245 _ Privately-placed debt 13,009 14,345 8,484 Loans from U.K. Government 6,146 9,800 - I/ Excludes £300,000 Line of credit on same terms as Commonwealth h-ssistance loans. 2/ Net of accumulated sinking fund £88!4,780 (:i2,477,384). Table 2- SIERRA LEONE - ESTIMATED CONTRACTUAL SERVICE PAY4EUTS ON EXTETNIAL PUBLIC DEBT GUTSTAIADIUGT T I LUBING Uil- DISB1URED AS OF L'CIMiBER 31,, 1963 r1fH lhAJOR fiEJ)1CPLD) ADDMTiUS JAtdUId'tY;1 i - 31, l9o4 Debt Repayable in foreign Currencies (In thousands of U.S. dollar equivalents) Debt outstanding plus rayments during year Debt out- Paynlenits durir-g year undisbursed January- 1 standing Year Amorti- In- Total Year plus un- Ailorti- In- Tital Gross Net zation terest disbursed zation terest January 1 Total debt _ __ ate 1964 42,867 40,39O 2,138 1,357 3,495 1964 14,345 1,920 29$ 2,215 1965 49,351 46,662 3,394 1,946 5,340 1965 20,909 289l 5554 3,405 1966 46,1087 43,187 3,775 1,918 5,693 1966 18,058 2,997 539 3,536 1967 42,442 39,323 3,488 1,877 5,365 1967 15,061 2,698 534 3,232 1968 39,085 35,7I0O 3,476 1,732 5)208 1968 12,363 2,673 424 3,097 1969 35,373 32,159 3,172 1,601 4,773 1969 9,690 2,356 331 2,687 1970 32,331 28,875 9,194 1,501 109 695 1970 7,334 1,562 270 1,832 1971 19,681 19,681 1,956 1,076 3,032 1971 5,772 1.,240 251 1,1491 1972 17,725 17,725 2,740 1,083 3,823 1972 4,532 2,008 300 2,308 1973 1.,985 14,585 2,124 1,076 3,200 1973 2,524 1,376 335 1,711 1974 12,861 12J,61 1,307 978 2,285 1974 1,148 540 270 810 1975 11,553 11,553 1,192 874 2,066 1975 608 405 213 618 1976 10,361 10,361 1,010 734 1,744 1976 203 203 120 323 1977 9,351 °,351 828 566 1,394 1978 8,523 8 ,c23 852 515 1,367 Publicly-issued bOnds _ Loan from U.K. Government 1964 1.J,722 16,245 21J 659 1J077 1964 9dOO - - 203 203 1965 18,642 15,S53 319 842 1,161 1965 9,300 224 550 774 1966 18,453 15,553 330 831 1,161 1966 9,576 448 548 996 1967 1B,253 15,134 342 819 1,161 1967 9,128 448 524 972 1968 18,o42 IL,697 355 807 1,162 1968 8,68o 448 501 949 1969 17,451 14,237 368 793 1,161 1969 8 232 448 477 925 1970 17,213 13,757 7,184 779 7,963 1970 7,7814 448 452 900 1971 6,573 6,573 268 399 667 1971 7.336 448 426 874 1972 6,305 6,305 284 383 667 1972 6,888 448 400 848 1973 6,021 6,021 300 366 666 1973 6,440 448 375 823 1974 5,721 5,721 319 348 667 1974 5,992 448 3602/ 008 1975 5,401 5,401 339 328 667 1975 5,544 448 333 781 -2- Table 2: Conitinlued Tebt outstanding plus Paduents Uring year Debt out- PayTerits during year undisbursed January 1 standing Year Amorti- In- TotaI Year plus un- Aniorti- In- l'otal Gross Net zation terest disbursed zation terest __T_oTa_I debt January_ Pxrivately-placed debt 1976 5,062 502 35 1976 0 6/1976 1976 5,5u646-0~~~~~~~~~~~~~~~~~096 30b 7545 1977 4,703 4,703 380 287 667 1977 4,648 448 279 727 1978 4,323 4,323 404 263 667 l178 4,200 448 252 700 1/ Includes service on all debts listed in Table 1 )reoared on PAarch 4, 1964. 2/ lNo scheOrle for interest from 1974 on. Calcu-lated at 6jo. TABLE 3 *SIERRA LEONE PRODUCE iARKFTI\TG T.OAPD COR ODTTY TRAIISACTTONS Ton Year Tonnage Bought Tonnage Sold Palm I Palm I I Kernels Cocoa Other ' Kernels ' Cocoa ' Other 1950 64,7&6 1 1,592 ' 6,857 ' 64,766 ' 1,592 1 6,857 1951 75,854 ' 1,973 t 5,630 ' 75,854 ' 1,973 ' 5,630 1952 75,870 ' 1,992 ' 3,323 ' 75,870 1 1,992 1 3,323 1953 69,525 ' 1,546 t 3,808 ' 69,545 ' 1,542 3,810 1Q54 68,562 ' 2,708 1,773 ' 68,075 ' 2,127 ' 2,220 195'5 57,i445 ' 2,386 1 37 ? 57,652 I 1,978 112 1956 58,100 ' 2,271 ' 9 ' 58,167 1 2,683 ' 11 1957 52,899 ' 2,046 '' 52,020 ' 2,011 1958 53,694 I 2,969 ' I 54,624 ' 2,828 1 1959 57,444 ' 2,942 ' I 56,015 ' 2,616 1960 54,W42 ' 3,452 1 125 54,481 3,250 70 1961-*(6 mos.)29,355 ' 1,185 1 345 I 28,032 I 2,488 1 399 1962 62,582 ' 3,81'7 ' 2,905 ' 60,990 ' 3,805 2,25)4 1963 54,024 3,294 4,746 56,214 3,294 3',642 L thousand Year Sales of Produce Cost of Produce Palm ' Palm I I Kernels ' Cocoa ' Other ' Kernels I Cocoa Other 1950 2,664 ' 307 ' 218 1,784 ' 117 167 1951 4,425 ' 534 I 349 ' 2,731 ' 244 207 1952 h,461 520 ' 240 ' 2,982 ' 296' 140 1953 3,727 ' 354 ' 239 ' 2,822 ' 249 ' 163 19c4 3,285 ' 813 1 115 ' 2,718 ' 438 ' 88 1955 2f,475 6146 ' 12 ' 2,121 504) 5 1956 2,525 ' 536 t 5 ' 2,128 ' 587 ' 0.5 1957 2,202 ' 386 'l 1,896 ' 394 1958 2)448 1 872 ' ' 1,993 ' 564 19:9 3,249 ' 709 1 ' 2,121 ' 519 1960 2,916 ' 696 ' 4 ' 2,168 ' 646 ' 3 1961*-*(6 mos. )1,212 416 1 29 1,128 ' 477 19 1962 2,496 616 ' 354 ' 2,49• 610 ' 207 * The Board started operations on August 26, 1949. -' The Board's accounting year was changed in the middle of 1961 from January - December to July - June. Source: Annual Reports, Sierra Leone Produce Ilarketing Board. TABLE 4 SIERRA LEONE PRODUCE XAk-TTTING BOARD STATEMENT OF SIJRPLLJR OR DEFICIT ; 000 Gross suirplus Deficit (-) Net surnlus Grants to Transfer b thousand or deficit on on operations or deficit Sierra to Surplus or de- Cost of commodity of Pioneer on Leone reserve ficit carried Year Sales produce sales Oil Mills operations Government accounts to caDital account 1950 3,189 2,067 831 801 - 831 - 1951 5,307 3,ldl 1,526 -8,1, _ 1,524 - 1952 5,220 3,419 403 -30 177 280 - 1953 4,320 3,233 107 -28 -98 - 17 - 1954 4,213 3,244 105 -51 -89 1,000 - -971) 1955 3,102 2,630 -121 40 -293 - - -190 1956 3,065 2,716 -181 -51 -337 - -38 -201 1957 2,588 2,289 -55 -44 -190 - -18 -76 1958 3,320 2,556 247 -44 90 - 156 33 1959 3,959 2,640 836 -86 613 250 400 68 1960 3,616 2,816 275 -44 112 - 200 51 1961* 1,657 1,624 -202 -20 -272 _ -39 -169 1962"* 3,465 3,312 -92 -109 -383 - 39 -261 7' January - June only. * July 1961 - June 1962. Source: Annual Renorts, Sierra Leone Produce iMarketing Board. TABLE 5 RICE STATISTICS UNIT - TONS Years 1958 1959 1960 1961 1962 1963 1. Quantities of H/Rice purchased 3,971 4,936 7,214 18,656 10,975 9,919 2. Quantities of N.C. Rice purchased 5,015 2,845 9,489 - - 3,851 3. Quantities of H/Rice milled 5,007 6,506 4,572 8,319 14,435 7,694 4. Quantities of N.C. Rice milled 5,497 1,902 2,501 5,624 - 4,627 5. Sales of M.illed Rice 5,630 5,703 3,728 10,254 9,815 4,799 6. Sales of N.C. Rice 2,109 817 104 495 - - 7. Imports of Rice by Government 20,768 43,305 16,632 - 2,998 n.a. 8. Private Imports of Rice 1,016 - 9,959 14,108 1,978 n.a. 9. Government Sales of Imported Rice 21,2135 30,192 17,153 11,039 2,790 n.a. 10. Annual net cost (or profit) of Rice 1958/59 operations to Government inclu. subsidies and Levies(;65,375) v258,288 i257,187 L107,160 (Jan./XNay) ri.a. (profit) Notes H = Husk N.C. = Native cleaned n.a. = not available 10. The 1958-59 Rice Account was made up for 2 years anid showed a net profit of i65,375. The figures shown for the cost of operations represent the loss on the Rice Account plus any subsidy paid by Governrment (1961-1962 only) less any levy collected by Government on Rice Imports including private imports. 3.&4. The Conversion figures are milled rice = 63% of Husk Rice and 90% of Native Cleaned Rice. 1 ton of Native Cleaned Rice = approximately '.4285 tons of Husk Rice. Native Cleaned Rice was sometimes milled and sometinies sold ,with- out further millirg. Source: IMinistry of Trade and Industry. TA13Li. o RAiLIAY TR INSPORT Goods Carried Passengers Receipts Ton Total Down UIp thousands Coods F}assengers bwudr1es lotal Working & Govern- miles ton- traffic traffic b thousands Expendi- ment (millions) nage (exports) (imports) ture,- subsidy Thousands of tons E thousands 1949 16.8 106 82 24 908 307 96 25 428 424 98 1950 14.4 L00 68 32 1,011 297 112 27 438 435 98 1951 16.6 115 77 38 I1,215 343 153 15 511 496 177 1952 19.9 126 84 42 1,248 370 161 28 559 627 227 1953 19.9 127 81 46 1,038 366 173 23 562 666 228 1954 17.3 110 59 51 1,158 349 203 15 567 720 361 1955 14.4 95 42 53 1,353 294 239 17 550 863 466 1956 18.8 117 40 77 1,503 380 264 19 663 1,010 413 1957 20.0 127 43 84 1,438 403 259 18 680 1,132 487 1958 16.4 108 n.a. n.a. 1,596 355 253 19 827 1,349 711 1958/59 (15 mos.) 20.5 134 45 89 1,970 446 314 26 786 1,658 863 1959/60 17.5 113 37 76 1,764 401 293 24 718 1,118 326 1960/61 15.4 111 32 79 1,943 403 326 18 747 1,055 185 1961/62 15.5 120 30 90 1,764 416 329 18 763 J1T57 105 1$62/63 18.h 101 32 69 1,599 365 295 17 677 1S106 158 * Excluding non-recurrent expenditure n.a. - not available. Source: RailwPy Department TABLF, 7 PUBLIC ELFGTRI CIT YU.DI-LTAKINGS Gl7NRPATION, CONTSTUFPTTON A1\ID A8S3ETS Value of Value of Period Number of Installed Units; Units Assets Undertakings Capacity Gencrated Sold sale thousand million million = thousand S thousand kilowatt k-wh kwh - 1950 2,725 4.94-5 - 554.0 1954 8 5,173 10.5 7.2*F 151.5 1955 8 6,383 12.0 7.8i'- 168.6 653.8 200.2 779.2 1956 a 6,928 14.3 9.2i,* 19 57 9 B,328 17.5 1L.8 258.2 914.9 1958/59*-h- 11 8, 75 21.5 1lo.B 392.1 1,267.1 1959/60 12 8,85o 25.6 19.1 - 1,200.4 1960/61 12 1l,Boo 30.9 22.9 480.6 1961/62 14 10,800 38.5 29.1 566.1 1962/63 IC 13,950Q,, 42*- 32.764._ months beginning April and ending March. * Fifteen months, JanuarY 1958 - March 1959; thereafter twclve e&* Freetown only. Fi)m capacity. in 1962 by private uindertakings. .-..* An estimated additional 18.5 million kwh were generated Source: M-linistry of Works. TABIE 8 EDUCATION 1963/64 1950 1955 1961/62 1962/63 &stir!abt s Recurrent expenditure (central govlt) 186 767 1,868. 2,123 2,295 429 Development expenditure ii ii 167 317 703 438 Total expenditure 353 1J,08 2,571 2,561 2,72L Percentzge of total expenditure (%) 9.3 13.6 15.7 15.7 14,5 Primary Education n.a. Number of pupils enrolled 34,520 48,934 98tC05& 105,805 Number of teachers 924 1,581 2,75'D 3,277 n.a. Number of schools 277 421 629 706 n.a. Secondary education n.a. Number of pupils enrolled 3,041 5,721 9,864 11,179'* Number of teachers 163 290 506 583--- rn.a. n.a. Nimber of schools 18 24 (50) Higher education Teacher-Training enrolled n.a. (?498) 5ed 687 n.a. n.a. Arnual output of trained teachers n.a. n.a. 175* 135 n.a. Universitr students 93 204 34&8-:- 424 F 1960/61 **k of wqhich technical and vocational - 896 pupils, 48 teachers. cf- -hich 136 froTm Sierra Leone n.a. - not available Source: Ministry of Education TABLE 9 WAGE RATES IN SELECTFD AREAS.i- Employment category 1955 1956 1957 1958-60 1961 1962** l4ine labor Light 4/7 V/7 5/7 5/7 5/7 6/3 Heavy 5/- 5/- 6/- 6/- 6/- 6/8 Mine workers Sumi-skilled 5/- to 6/10 5/- to 6/10 6/- to 7/10 6/- to 7/10 6/- to 7/10 Skilled 6/8 to 8/6 6/1 to 9/3 6/1 to 9/3 7/1 to 10/3 7/1 to 10/3 7/1 to 10/3 7/9 to 10/11 Highly skilled to 14/- to 14/- to 15/- to 15/- to 15/- to 15/8 Technical stalf 1145 to 515 1186 to 552 L186 to 552 M16 to 552 s186 to 552 3.186 to 552 Road transport Drivers 7/2 to 10/2 7/11 to 10/11 7/11 to 10/11 8/9 to 11/9 8/9 to 11/9 1C/5 to 12/5 Miechanics 8/2 to 10/8 8/11 to 11/5 8/11 to 11/5 9/9 to 12/3 9/9 to 12/3 10/5 to 12/11 Other 4/10 to 9/8 5/7 to 10/5 5/7 to 10/5 6/5 to 11/3 6/5 to 11/3 7/1 to 11/11 Techinical staff 1145 to 515 1145 to 515 1186 to 552 1186 to 552 1186 to 552 s186 to 552 Builders and general labors 4/9 to 5/6 5/6 to 6/3 5/6 to 6/3 6/4 to 7/1 7/- to 7/9 7/Bto 8/7 Builders & engineering Semi-skilled 5/'6 to 7,/8 6/3 to 8/5 6/3 to 8/5 7/1 to 9/5 7/9 to 9/11 &./5 to 1C1/7 Skilled 7/8 to 10/2 8/5 to 10/11 8/5 to 10/11 9/3 to 11/9 9/11 to 12/5 1C/7 to 13/1 Clerical L135 to ;I645 1135 to 645 1168 to T756 1168 to ;756 1168 to 1756 1168 to L756 Stevedores 5/_ to 10/1 5/9 to 10/8 5/9 to 10/5 6/7 to 11/6 6/7 to 11/6 7/2 to 12/2 Railway workers Unskilled 4/9 to 5/6 5/6 to 6/3 5/ to 6/3 6/4 to 7/1 6/4 to 7/1 7/- to 7/9 Semi-skilled 5/7 to 7/2 6/4 to 7/11 6/4 to 7/11 7/2 to 8/9 7/2 to 8/9 7/10 to 9/5 Skilled 7/5 to 10/8 8/2 to 11/5 8/2 to 11/5 9,/- to 12/3 9/- to 12/3 9/8 to 12/11 Technical staff 145 to 515 v145 to 515 1136 to 552 1186 to 552 =186 to 552 1186 to 552 * Include: (a) Western Pninsula; (b) Sherbo Judicial Distict; (c) Lungi Airport Area; (d) Townships of Bo, Makeni and Magburaka; (e) Whole of tne South-Eastern Province. 1962. wages hold for 1963 except for Mine Labor v Light 6/6 and Heavy 6/11 Source: T.abhr Department. TABLE 10 NUMBER OF PERSONS EHPLOYED BY INDUSTRY GROUP Period 1956 1957 1958 1959 1960 1961 1962 All Industries 41,078 43,244 47,046 46,341 47,874 51,520 53,082 Agriculture, For- estry and Fishing 1,414 1,528 1,449 1,504 1,813 2,510 2,322 Mining 5,418 6,017 6,074 6,025 6,047 6,146 7,592 Manufacturing 2,321 2,352 2,611 2,917 3,004 3,652 3,291 Construction 8,443 8,244 9,768 8,608 8,689 11,424 10,086 Electricity, Water and Sanitary Services 997 884 1,011 1,204 993 1,049 1,190 Conmmrce 4,498 4,821 4,881 4,801 4,355 4,497 4,556 Transport, Storage and Communications 8,032 9,082 9,828 8,901 8,961 8,675 7,108 Services 9,955 10,316 11,424 12,381 14,012 13,567 16,936 Note: Information based on returns from employers of six or more persons Source: Labor Department. TABLE 11 SIERRA LEONE CIVIL SERVICE SENIOR POSTS End of' Year 1953 1958 1959 1960 1962* Total Number of Posts 957 1,070 1,103 1,170 NTumber of Posts Filled Total 7714 871 945 890 Overseas Officers Pensionable 315 ( ( ( 107** (439 (461 (466 Contract ( ( (185-, African Officers 166 335 410 479 598 Number of Vacant Posts 183 199 158 280 Number of Africans I.T. 85 106 124 n.a. C.T. 4 13 22 n.a. Africans in Post' Established Posts' Group "A" 1 2 Group "B" 2 5 Group "C" 4 5 Group "D" 5 20 GTroup "E" 15 37 Group "F" 5 9 Group "G" 14 38 Group "H" 25 63 Total 71 179 Scale "A" 116 315 Scale "B" 130 187 Scale "C" 227 389 Scale 'M" 24 67 Scale "N" 30 33 Total 527 991 Note: Groups "A" to "H" are super-scale salary grades ranging from 11,600 per annum to M3,250 per annum. Below these come the following scales: Scale "A" - Administrative and Professional; Scale "B" - Sub-Professional; Scale "C" - Higher Technical and Executive; Scale "M" - Doctors; Scale "N" - Nurses. - At 31st March 1962q A1l fi ures a+ this date are provisional 7' At s December pensionable,i62: e 8 contract expatriate officers. Source: Office of the Establishment Secretary. quauiqcvacj ioqL-I : omxoS gol 96 006 O001 96T, SoT t L6 901 96 ' 66 ' 961 qfl07NYIq70CTH OMTH0' 9IISfOTH MNIITcI UNlV UOOJ qOSI,0 001=T961 1Z1 a 9I1 a 96 , lL0T , ,961 1ZT a £T a $6 a 811 , 1 a001 a 601 a 0961 61. a 6e a 96 a ZT1 a 6£1 a zo a 601 a 656T T11 aot0 ,a 96 a 911 a $zT a 101 , LOT a 8551 901 , 9Z1 a 96 a 611 a T, a VE£1T a I L561 OIT 5aT a L6 TOT a 901 a Z01 a COT a 9g61 001 aT1 a 66 ,L6 , TOT 56 ,L6 , 5561 001 ,001 O001 a 001 a 001 a 001 a 001 a .IaXnlb og a0G a 59 a$L 001 0,9 , OOOT Ia 61 _STILM 00s0'j aNIHL0'I0 Ia fL a a G0Od avI a . aa,0iOD.WO )iI?T a(LRo&ThILIHL'I'Ia aOo avo a - 5 I CYT YIlcTI5C , NX SSITj1 ILT a 557 a 16 , IaZ a 901 a i65 a ,a i$61 TLt , 55Z a T££ a £ a 801 a £ee$ a 69C a £561 ILI 55az 1 1$C. a 11T a 801 a \£5 ,a Z6 ,a Z6T 591 a 553 , 6ne a 60z 901 a 651 a 1T£ a 1561 651 a 55z 5La$ a 110Z a 901 a 1£T , 55a , 0561 651 a 55z a 9o0 a $61 a 901 a zo a 0, a5 6I61 651 a 85Z 9t( a 081PT 901 ,a gl ,a z ,61 651 a,~ a 991 a 901 a ggz a a L116T 651 a S7z a 8Z a 961 a 901 a 098 ZaZ 9,T61 001 a OCT a 001 001a 001 a a 001 a 001 a 6£61 Cl0aMIT'WI aSTIIS'iflll Di\D:HJC0TIDa UW a aEd CI00-oohI.OI a UV-x (seJaSVat lEJeae;) -170 -C Di - SiI CI TEILOEI Fo X IH ZE 2iTSIV TABLE 13 CUMRENCY CIF.CITJATTION (T thousand) i 000 Notes and Coins Estimated Net Currency End of Outstanding* HIeld by Banks Circulation, 1956 June 11,337 n.a. n.a. 1957 Dec. 13,h39 692 12,747 1958 Dec. 1h,011 634 13,377 1959 Dec. 13,771 )440 13,331 1960 Dec. 14,368 584 13,784 1961 Sept. 1,251 51,693 -*itThefigures given do not allow for unrestricted transfers of currency into and out of Sierra Leone. n.a. - not available Solrce: Niinistry of Finance TABLE 1-4 POST OFFICE SAVINGS BUrK - TRANSACTIONS = Thousands Period Deposits Withdrawals Interest Accumulated Nlumber of Accumulated Credited Balance Accounts Balance Per Account 1945 437 342 22 979 36,817 26.6 1946 621 645 24 979 36,219 27.0 19147 296 373 23 924 36,472 1948 25.3 236 295 21 687 37,770 23.8 1949 258 280 21 887 39,980 22.2 1950 271 294 21 886 42,484 1951 20.8 296 269 21 934 46,123 20.2 1952 398 279 24 1,076 49,687 21.7 1953 394 338 26 1,159 52,769 1954 22.0 495 376 29 1,271 55,579 23e0 1955 513 391 32 1,1425 59,315 24.0 1956 601 529 35 1,532 62,936 1957 24.3 599 562 36 1,605 65,816 24.4 1956 551 584 43 1,617 68,469 1e59q492 23.6 580 45 1,573 70,361 22.4 1959/60 609 711 56 1,570 70,931 22.1 1960/(1 479 504 44 1,589 1961/62 72,888 21.8 460 447 46 1,647 74,994 22.0 1962/63 408 163 47 1,639 76,996 21.3 Nqote: Calendar years until 1958; 1959/60 covered the 15-month period, January 1959-I`arch 1960; as from 1960/61 the 12-month period extending from April to march. Source: Annual Reports, Post Office Savings Bank. TABLE- 15 ASSETS OF PRINCIPAL BAKIKS II SIERRA LEONE T Thousands Currency Balance due from Othaer Banks Loans Other 31st Decerber Total Holdings Total Local Banks and Investments Assets Banks Abroad Advances 1943 2,143 141 1,951 18 1,933 30 - 21 1944-* 2,492 143 2,313 32 2,281 19 - 15 1945 3,409 116 3,253 15 3,238 22 _ 20 1946 2,978 134 2,769 100 2,669 54 - 22 1947 2,048 113 1,814 15 1,799 91 _ 30 1948*-*- 1,705 104 1,484 58 1,426 66 - 51 1949 1,607 253 1,166 - 1,166 144 - 44 1950 1,489 227 903 - 903 284 - 75 1951 1,760 227 1,164 4 1,160 263 - 106 1952 2,201 340 1,249 14 1,235 363 _ 249 1953 2,403 239 1,350 23 1,327 432 _ 382 1954 2,724 461 1,196 - 1,196 643 _ 424 1955 3,445 383 1,865 16 1,849 749 - 448 1956 4,199 846 1,778 53 1,725 1,077 - 498 1957 4,393 692 1,338 1 1,337 1,8)5 - 548 1953 5,331 634 1,484 63 1,421 1,990 612 611 1959 5,178 457 1,433 19 1,)t14 1,955 - 1,333 1960 5,493 584 6614 82 582 2,730 - 1,515 1961 7,115 642 468 22 446 3,511 1962 7,875 _ 2,494 667 470 72 398 4,992 _ 1,746 1963 10,362 856 82 74 8 6,989 8 2,427 T At30th June. sx At 30th September. Note: The data relate to Bank of West Africa and Barclay3 Bank (D.C. & 0.); for 1963 also Intra Bank. Source: Ministry of Finance. TABLE 36 LIABILTTIVS OF PRINCIPAL BAlKS PT SIIPBA LEONE T Thousands Deposits Balance Sue to Other Banks 31st December Total Total Demand Time Savings Total Local Banks Other Banks Abroad Liabilities 1943 2,143 2,096 1,600 263 233 38 18 20 7 1)44- 2,492 2,430 1,884 300 246 48 30 18 13 1945 3,409 3,389 2,663 470 255 4 - 4 15 1946 2,978 2,866 2,072 586 208 104 100 4 8 1947 2,048 2,035 1,397 450 188 1 4 9 1948-F 1,705 1,646 1,122 345 160 55 38 17 4 1949 1,607 1,567 1,171 238 158 22 22 - 17 19rO 1,439 1,423 1,090 178 155 39 16 23 27 1951 1,760 1,730 1,397 167 172 4 4 - 20 1952 2,201 2,042 1,705 136 201 14 14 145 1953 2,403 2,119 23 23 - 261 1954 2,724 2,370 1,980 115 275 1 - 1 353 1955 3,445 2,995 2,479 1140 376 65 28 1956 37 385 4,199 3,691 2,942 167 582 159 55 104 349 1957 4,393 4,o58 3,110 138 81o 30 10 20 305 1258 5,331 4,269 3,137 159 973 200 73 127 862 1959 5,178 4,288 2,894 191 1,203 1960 95 23 72 795 If493 4,522 2,892 175 1,1655 381 86 295 590 1961 7,115 5,352 3,385 276 1,721 681 31 650 1,05? 1962 7,875 6,262 3,930 323 2,009 877 71 806 73b 1963** 10,362 6,370 3,638 359 2,373 I,96 81 2,905 1,006 * At 30th June. "' At 30th September. Note: The data relate to Bank of West Africa and Barclays Bank (D.C. & O.): for 1963 also the Intrd Bank. Source: Ministry of Finance. TABLE 17 CENTRAL GOVERNiHENT - GENERAL BUDGET 1958- 1959- 1960- 1961- 1962- 1963- b '000 1950 1953 1955 1956 1957 1959 1960 1961 19625/ 1963 1964 15 rnos. Stimaates5J Total revenue 3,268 5,8391/7,546 9,586 10,358 13,660 11,245 13,085 14,192 13,998 16,178 of which f domestic orign 3,216 5,538 6,933 9,053 9,688 12,882 9,968 12,497 13,433 13,293 15,638 of external origin3/ , 252 301 613 533 670 718 1,328 537 759 705 540 Total expenditure 3,799 6,225 7,98010,663 10,893 16,097 13,162 15,115 17,356 16,,253 18,768 of which recurrent _/ (2,121) 3,929 5,417 7,895 J/ 7,710 11,849 10,160 11,084 12,774(13,169) 14,239 non-recurrent (162) 765 690 760 868 830 586 387 (4h3) (407) (404) capital (1,516) 1,531 1,873 2,008 2,315 3,468 2,416 3,644 4,154 2,677 4,125 Financing of -- 4/ Recurrent expenditure 2,121 3,929 5,417 7,895 7,710 11,849 10,160 11,084 12,774 13,169 14239 cu- of recurrent doimiestic re- renue 2,042 3,807 5,139 7,762 7,542 11,284 9,130 9,849 ii,o63 11,e91 13,177 special domestic revenue 79 122 278 133 168 389 458 771 1,378 1,047 872 U.K. military contritu- tion 0 0 0 0 0 176 572 469 313 231 190 Non-recurrent snd caDital expenditure (1,678) 2,296 2,563 2,768 3,183 4,298 3,002 4,031 4,597 3,oO4 4,529 out of recurrent domestic re- venue 1,095 1,609 1,516 1,158 1,978 1,209 380 1,632 972 355 1,589 special domestic revenue ------250 - - - foreign grants etc.2/ 252 301 613 533 670 542 756 68 446 474 350 -2- TABLE 17 1956- 1959- 1960- 1961- 1962- 1963- 1000 1950 1953 1955 1956 1957 1959 1960 1961 1962Ž! 1963 5/ 196 15 mos. EstimatesV C.D.& W suspense account (net) 14 -7 -39 -134 76 293 57 744 164 0 0 domestic funds (net) ) 284 1,459 ) domestic borrowing ) 317 393 473 1,211 459 2,254 1,809 ) ) 2,255 2,590 external borrowing ) ),053 1,556 ) 1/ Inoluding L421,000 transferred from customs revenues to 6.L. Developiiient Fund. 2/ C.D.& 1W vote pluls contributions to fice Resetrch Itation etc. 3 Includes "compensation 1l,570,000 to S.L.S.T." f/ Recurrent expenditure includes loans given bj thie government and investment depreciation and appreciation net, and public debt amortization. This item also includes a varying but small amount of non-recurrent expenditures, not explicitly defined in the soarce. 5/ These years have been adjusted accordingly: Of±ficial Adjust Contribu- Adjustod ifficial Aliu5t UK C .r- Adjustedt urdinary i'or liarine fLor larin bi-ticiL to .on-recurrent tion to ordinarj .ieven'ie and'port cap. oudgetEevsnue 'i xpenditure and Dort P11) hailwiay cap. budget ex-jnditure 1961/62 13,5531 +215 - +424 14,1I7F ' 13,934 +215 - I403 -40 -932 iT2,77 -7 1962/63 13,330 +226-62 +474 13,2f9l ' 14,612 +164 (-345) -62 -1,200 13,l69 1.'`3/(,4 16,4J7 -807+228 +350 16,178 ' 15,,''72 -579 (-393) (-11) -750 14,239 General Note: Actual outcome for the years 195o-1962/63 budget estimates f'or 1963/64. Source: Annual Financial Reports Estimates cf Revenue and expenditure, TABLE 18 CLNTRAL GOVERhlENIT - COMPOSITION OF REVqNTUS 1/ 1/ 1/ 1958- 1959- 1960- 1961ii 1962- 1963- LIOOO 1950 1953 1955 1956 1957 1959 1960 1961 1962 1963 1964 15 mos. Budget Customs and excise 1,4o6 2,810 4,263 5,356 5,888 7,692 5,357 6,429 6,397 6,282 7,472 of which import duties 1,196 1,850 3,5S4 4,709 5,211 6,732 4,663 5,717 5,537 5,639 6,435 export duties 250 946 705 617 613 931 671 665 779 409 615 excise 0 0 0 0 0 0 0 4 51 111 395 Direct taxes 1,045 2,003 1,519 2,441 2,320 3,0o47 2,484 3,014 3,010 2,850 4,120 of which - Companies n.a. 1,856 1,348 2,284 2,061 2,625 2,016 2,693 2,458 2,302 3,720 Personal n.a. 147 170 157 121 250 322 331 551 548 400 Licenses, Fees and Receipts 381 510 720 991 1,115 1,591 1,531 1,802 2,401 2,879 2,953 of wlhich port and marine fees 18 25 81 117 152 205 169 187 2151/ 2261/ 228 electricity 64 103 153 206 250 367 457 505 596 642 728 posts and telegraphs 55 98 127 180 161 250 211 212 306 300 336 rice department ------70 67 118 Forest indtstries 51 66 109 130 152 183 180 223 263 323 297 others 193 218 250 358 400 586 514 675 951 1,321'/ 1,2462/ Royalties and rent 21 45 46 35 39 61 49 52 97 89 91 Interest and Loan Repay,ments 44 47 107 97 158 162 89 179 150 146 130 Reimbursements, Special Receipts etc. 79 122 278 133 168 389 458 1,021 1378 1,047 872 of which - = currency Board profit 45 42 46 45 94 212 285 670 822 830 750 SLPMB grants 0 0 147 2 0 4 25 263 16 23 23 -2F- TABLE 18 195b- 1959- 1960- 1961- 1962- 1963- 1000 1950 1953 1955 1956 1957 1959 1960 1961 19621/ 19631. 1964 1/ ______15 _ mos. Budget- Contributions from abroad 252 301 613 533 670 718 1,328 537 759 705 540 of which C.D& v. grants capitEl budgat 0 0 0 0 0 0 0 0 424 474 350 C.D.&W. vote ordinary budget 251 281 590 483 647 527 748 68 0 0 0 U.K. contribution to military force 0 0 0 0 0 176 572 469 313 231 190 U.S. technicalassi&tance 0 0 q 23 7 1 8 0 0 0 0 other foreign contribu- tions 1 20 23 27 16 14 n.a. n.a. 22 0 0 2 68 Total -Revenuel/ 3, 5839 7,546 9,586 1O,358 13,660 11,2453L3,85 14,192 13,998 If 1.78 of which fOm- diamond mining (excluding SLST) 0 0 0 40 435 581 502 560 649 (518) 545 17 see 1ooi~note 5 in table 17 2/ Includes "Diamond Marketing Rules-OService Fees", approximately L250,000 each year. Source: Ministry of Finance: Financial Reports and Lstuiates of hevenue and Exjenditure. TABLE 19 CENTHAL GOVERNNITENT - aXPLNDITUHL b '000 1950 1953 1955 1956 1957 1958- 1959- 1560- 1961- 1962- 1963- 1959 1960 1961 1962 1963 1964 15 mos. - Estimates Ordinary Budget igriculture, Fisheries 62 151 190 233 271 353 315 325 40h 541 , Forestry and Forest ) 883. Industries 17 136 174 194 197 262 208 234 312 204 ) E,ducation 186 404 767 1,005 1,239 1,822 1,662 1,653 1,868 2,063 2,295 lMiedical Services 234 395 489 565 725 1,024 768 909 1,009 1,090 1,110 Police, prisons 153 231 422 530 655 1,019 839 &60 929 960 999 Military 80 77 125 134 133 277 811 703 669 705 849 Provincial administration 125 199 112 118 145 213 177 176 23Q 216 237 Electricity 70 130 191 221 279) 427 353 412 bO6 589 571 Post and Telecommunic- ations 62 138 164 182 225 328 267 291 31)4 325 348 Public .vorks 220 )463 661 761 885 1,294 1,004 9881/(1,210 4(1,03W/ (1,179 94 Road Transport /95 146 166 203 257 358 262 375 376 311 330 Railway, recurrentl/ .8 228 228 263 360 752 285 140 2801/ 2601/ 3821/ Public Debt Charges2/ 49 159 262 194 242 4h9 355 468 621 648 896 Pensions and gratuities 147 173 309 283 319 512 456 480 726 655 793 Other Departments and miscellaneous services and subventions 493, 822 1,124 1,419 1,734 2,742 2,387 3,958 3,215 3,567 3b367 Total Ordinary Expenditiire2 1 3,852 5,384 6,311 7,567 11,832 10,149 10,972 <12,7'(74) (13,1b9) 14,239 -2- TABaE 19 195 5)-9-l0- 1S61- 1)62- 1963- 1950 1953 1955 1956 1957 1959 1960 1961 1962 1963 1964 15 r.os. 11. Extraordinary Budget Loans, loss on sale of investments 29 77 32 13 43 17 12 112 n.a. n.a. n.a. Development (or Contribution to Capital Buaget) 696 575 1,290 2,7612/ 773 1,285 1,111 956 932 1,200 750 Non-recurrent expenditure (162) 765 690 760 868 830 586 (387) (443) (407) (404) Railwayl/ 0 0 257 151 127 110 41 45 40 (62) 11 Electricity 0 33 36 55 61 56 27 - - - - Post and telecommunications 0 67 10 36 98 69 74 - / - 2 4/ 1/ Public l.iorks 114 622 351 460 470 521 374 342- (403)_/ (345)- (393)- Road Transport 48 43 42 58 112 74 28 - _ - _ Surveys and Lands 0 0 0 0 0 0 42 - - - - Total Extraordinary Expenditure 888 1,417 2,013 3,535 1,684 2,132 1,708 1,454 1,375 (1,607) 1,154 1 & 11. Total Experdicure 2,979 5,269 7,397 9846 9,351i3,914 11 857 12,427 14,145 14,776 151393 111. CGpital Budget.] Civil Aviation (173 )6 29 18 39 31 93 23 65 218 110 209 Inland Waterways 2 2 0 0 0 0 0 0 2 37 4 Freetown and provincial ) electricity ) ) 98 63 58 79 243 77 149 276 251 736 Freetown and provincial ) 818 water supply ) ) 57 238 355 403 419 209 261 254 62 177 Telecommunications 13 3 1 0 0 0 0 35 (287) 341 Information and Broadcasting 2 0 14 0 0 12 15 4L 14 600 2 Roads and bridges 55 176 307 234 491 529 464 382 31160 670 TABLL 19 195b- 1?5'- 1(60- 1),61- 1T C)2-V15., 1950 1953 195 1956 1957 1959 1960 1961 19o2 1)63 1964 25 maos. RailwayZ/ 65 333 361 706 431 65h 643 701 Port ) 2103 145 497 236 247 45 53 96 16 50 ) 296 30 160 Schools and colleges 167 271 317 280 302 598 495 509 703 457 429 Hospitals and clinics 4i4 23 131 88 33 43 53 115 Agriculture 98 60 159 68 106 64 88 103 211 171 214 132 85 Forestry (mainly iorest 158 Industries) 62 25 (0) 34 11 25 31 30 12, 23 Iviiscellaneous 89 284 172 112 81 378 345 219 1,029 1,542 723 1,194 of wrhich Public Building and Housing Schemes 126 0 0 22 358 315 199 869 n.a. n.a. n.a. less underspending ------40/ 111. Total expenditure on Development pFoj_cts (1,516) 1,531 1,873 2,008 2,315 3,468 2,416 3,644 h 2 1542 2A.7 4,125 11. & 111. Total nonrecurrent and developmenF jepeTOTture in ordinary, extraordinary and capital _budgTgs 1,678 2,296 2,55332,768 3,183 4,298 3C02 4,031 4,597u 3.8 4,529 1, 11 & 111. Total expenditure 3,799 6,225 7 S80 1663 - . 93 97 1%16"2 15,15 1 7 , 3 / 1 6 ~5~ 18,768 1/ Railway deficit less port and marine surplus (compare note 5 to table 17). Includes sinking funds for portions ox' loans allocated to the railwa-Yf. Ircludes interest payments as well as repayments and sinking fund charg3s. 3/ To Sierra Leone Selection Trust for redei;iption of concession 1951: U.570 million N/1\on-recurrent public works expenditures are since 1960-61 included in ordinary bu.get expendit-ure. It w-as however posible to separate them from recurrent expenditure for 1960/61. i§stimates by Bank for later years. 5/ The capital buCd.get i-as initially built up around the Colonial Develc,rent and 4elfare 6rants for certain - development schemes nas but. also over time comne to -nclude aa increasing ainuunt of other capital ex- penditure financed from funds fed by transfers from general budget revenue. A nuimber of non-recurrent TABLE 19 expenditures are, however, still excluded fron the capital budget. eiiost of them can be found in the extra- ordinary budget. 6/ This includes running and maintenance paid for by a C.D. & J. cr:rt. 7/ These development expeniditures are outside the ordinary and extraordinary budget contributions to re- currenit and non-recurrcnt expenliture of the railway budget. 8/ Reserved expenditure 9/ Includes a loan to the Guma Valley Authority - b7),7000. Note: Ac-tual outcome for the years 1950-1962/63, budget estimates for 1963/64. Totals do not always check because of roundings. Sources: Annual Financial Reports Development Estimnates Information supplied by Nfinistry of Finance and iIinistry of Development. TABLE 20 External Trade 1950-196- (£ million) Merchandise Imports c.i.f. Merchandise Exports f.o.b. Retained Re- Produce Trade Year Commercial Government Total Impcrts exports of S.L. Total Balance (1) ( -- 2)T 3 (4) (9) (6) (T7) (8)T 1950 6.2 o.6 6.7 6.5 0.3 6.7 6.9 +0.2 1951 7.3 0.9 8.2 a.0 0.2 9.8 10.0 +1.8 1952 8.8 1.5 10.3 10.1 0.2 9.9 10.1 -0.2 1953 9.5 1.6 11.1 10.9 0.2 11.7 11.9 +0.8 1954 11.0 1.9 12.9 12.5 0.4 11.0 11.4 -1.5 1955 14.4 2.7 17.1 16.8 0.3 9.9 10.2 -6.9 1956 19.1 4.0 23.1 22.0 1.1 12.1 13.2 -9.9 1957 24.4 3.8 28.2 24.9 3.3 15.0 18.3 -9.9 1958 19.8 4.1 23.9 20.8 3.1 16.5 19.6 -4.3 1959 19.7 3.8 23.5 20.4 3.1 16.4 19.5 -4.o 1960 23.3 3.1 26.3 22.6 3.7 25.9 29.6 +3.3 1961 2b.5 4.0 32.5 28.3 4.2 25.2 29.4 -3.1 1962 28.2 2.2 30.4 26.5 3.9 16.6 20.5 -9.9 1963 preliminary n.a. n.a. 29.9 26.4 3.5 25.6 29.1 -0.8 Note: Liamond smuggling ciuring the 1950's has been estimated to UO0 m., 1.12 m., L14.5 m 9.,9.5 m., and Ull m., respectively for the years 1954-58. Figures Ior later years are not available, but it is believed that illicit diamond sales declined rapidly after 1959. If illicit exports are included in the table above, the trade balance becomes positive for all years up to and including 1960. Figures do not always check because of roundings. Source:Columns 1, 2, 3, 5, 6, 7 Annual Trade Report, Sierra Leone Customs Depart- :,ent Column (4) equals column (3) minus column (5) Column (8) equals column (7) minus column (3) or column (6) minus colui(4) TABLE 21 Domestic Exports 1950-1963 Major Commodities b Thousands 1963 Commodity 1950 1951 1953 1955 1057 1959 1960 1961 1962 preliminary Palm Kernels 2,278 4,550 4,260 2,510 2,253., 3,176 2,917 2,438 2,452 2,451 Palm oil 105 261 27 2 1 1 1 1 0 0 Cocoa 117 526 453 741 386 702 696 464 751 587 Coffee 39 0 333 373 896 985 649 596 309 653 Rice 3 3 43 5 1 1 1 1 22 2 Kola 106 182 136 212 103 112 150 99 81 79 Ginger 564 772 145 357 100 103 73 81 146 89 Piassava 255 283 193 254 248 235 273 285 245 271 Iron ore 1,276 1,1481 4,345 3,710 4,380 4,096 4,117 4,673 5,117 4,937 Chrome ore 94 116 332 192 170 50 147 90 94 87 Diamonds, alluvial - - - - 5,030 3,953 12,115 11,541 7,109 6,740 Diamonds, other 1,556 1,372 1,198 1,1400 ',395 2,856 4,358 4,428 0** 9,1426-* Other exports 268 304 274 174 45 130 430 469 324 254 Total exports* 6,661 9,850 11,730 9,930 15,008 16,400 25,927 25,160 16,650 25,576 'F Produce of Sierra Leone, compare footnote to table 20 '*The 1963 figure includes approximately b5.3 imillion of 1962 uroduction exported in the first quarter of 1963. (Bank estimate) 3ource: Annual Trade Report TABLE 22 Domestic Exports 1950-63 Major cormodities (by quantity) Unit 000 Fiih 1963 Commodity of in 1950 1951 1953 1955 1957 1959 1960 1961 1962 preI=n-r; Palm kernels ton 1936 71.3 75.1 68.9 57.6 53.0 57.5 54.5 57.8 61.0 53.0 1952 Palm oil ton 1930 1.9 3.2 0.4 0 0 0 0 0 0 0 1951 Cocoa ton 1962 1.6 1.8 1.6 2.2 2.0 2.6 3.3 2.8 4.7 3.2 Coffee ton 1960 0.3 0 1.1 2.1 3.8 4.9 5.1 5.0 2.4 3.9 Rice ton 1953 1.6 1.7 13.3 1.5 0 0 0 0 0.4 0 Kola ton 1951 1.1 1.5 1.2 1.1 0.7 0.7 1.4 1.0 0.9 C.6 G-inger ton 1951 2.3 3.3 1.9 1.7 0.7 1.5 0.6 0.6 0.5 0.6 Piassava ton 1951 5.0 6.1 2.6 4.3 4.3 5.1 5.8 5.7 5.2 5.6 Iron ore ton 1962 1,143 1,185 1,200 1,332 1,L45 1,503 1,540 1,7581,983 1,954 Chrome ore ton 1953 13.9 11.9 26.1 17.7 16.4 5.0 14.7 9.0 9.4 8.7 Diamonds, alluvial*, carat 1963 - - - - 465 553 1,308 1,4131,158 (2,649) Diamonds, other.F ,-F carat 1960 638 477 417 401 399 652 747 633 0.8&1,089- F * Compare footnote to table 20 The 1963 figure includes 603,000 carats of the 1962 production exported in the first quarter of 1963. Source: Annual Trade Report, Sierra Leone Customs Department TABLE UNIT 7-PICES (F.O.B .) OF £FJ'I.4CIFAL EXPORTS Palm Kernels Iron Ore Liamonds Kola iNuts Coffee Cocoa Piassava Ginger Lper Ton L per Ton L per E per Cwt. ; per E per Tper b per Carat Cwt. 0it. CJt.4* Cwt. 1937 10 n.a. n.a. 1.2 1.0 1.3 0.5 2.0 1938 8 n it 1.0 1.0 o08 0.5 1.1 1939 6 1.3 1.0 0.8 0.5 0.7 1946 15 II U 4.0 2.9 1.0 3.0 2.4 1947 21 5.0 3.0 2.0 2.5 2.3 1948 25 4.7 3.0 3.8 2.0 2.9 1949 30 II II 4.7 3.1 4.6 2.1 5.0 1950 32 II 5.0 4.0 3.9 2.6 12.5 1951 60 1.3 2.9 6.o - 14.6 2.3 12.0 1952 61 1.9 2.9 7.0 - 15,5 2.0 5.7 1953 62 3.9 2.9 5.3 16.0 14.0 3.6 4.0 1954 55 3.1 3.9 10.0 18.0 23.0 3.0 7.0 1955 44 3.0 3.5 9.7 11.0 17.0 2.6 10.2 1956 44 3.1 5.4 6.4 11.0 10.0 3.0 11,0 1957 44 3.1 7.5 7.0 12.0 9.8 2.8 7.0 1958 44 3.1 4.8 6.6 13.3 15.5 2.4 4.0 1959 54 2.7 5.8 8.0 10.0 13.5 2.2 5.0 1960 53 2.6 8.0 5.5 6.2 10.7 2.4 6.3 1961 42 2.7 7.8 5.2 5.9 8.3 2.5 6.8 1962 40 2.6 6.1 4.7 6.5 8.0 2b 13 1963 46 2.5 n.a. 7.9 10.8 9.8 2.u nOai *t-Combined Average for Irime and Other Source: Annual Trade Rejorts TABLE 24 Retained Imports 1950-1963 by Commodity Groups 1 thousands Commodity 1950 1953 1955 1957 1959 1960 1961 1962 1963- pre.imn. Food 667 1,249 3,071 4,434 L,909 4,369 3,667 5,155 5,003 Beverages and Tobacco 1,271 2,346 1)635 2,277 1,690 1,642 1,572 1,638 1,337 Crude materials, etc. 177 191 183 228 358 284 323 Mineral fuels, etc. 891 1,317 247 -258 607 181 3,709 Animal and vegetable oils and fats 84 174 117 140 188 179 227 Chemicals 680 1,086 1,Ol4 1,:52 1,692 1,375 1,586 Manufactured goods classified chiefly by material 5,706 3,090 6,465 8,085 9,414 8,620 7,803 Machinery and trans- port equipment 2,465 4,411 3,200 3,707 7,160 5,601 6,289 Miscellaneous manu- factured articles 1,843 2,724 2,363 3,115 3,269 3,188 3,104 Miscellaneous trans- actions and com- modities, n.e.s. 269 242 234 459 405 339 473 Total imports 6,458 10,869 16,823 24,871 20,451 22,638 28,332 26,560 29,854 ' Including reexports L3.5 million. Source: Annual Trade Report. SITC classification not available for 1950-1953. TABLE 25 Imports of some Important Comruoditius irncluding re-expor ts L thousands 1963 Commodity 1550 1951 1953 1955 1957 1959 '.960 1961 1962 preliminary Rice 2 37 0 968 1,429 1,992 1,237 210 1,359 941 Meal and flour 143 170 263 403 481 584 497 532 711 630 Fish 3 8 12 326 485 241 373 n.a. 380 236 Beet and cane sugar, refined 125 136 1)9 380 573 615 676 824 795 993 Beer 131 191 414 759 1,116 812 764 826 694 536 Umnanufactured tobacco 272 257 270 253 268 258 328 256 402 411 Cigarettes 92 102 160 305 437 274 227 129 140 161 Motor spirits 122 120 158 284 290 304 226 351 288 276 Lamp oil 63 72 95 157 224 207 170 192 217 199 Cotton fabrics 1,579 1,648 1,786 1,958 2,o45 1,743 3,157 3,954 3,102 2,358 Fabrics of syn- thetic fibres n.a. n.a. 311 543 1,428 1,039 592 544 368 306 Shiits 31 59 69 160 256 230 518 297 247 221 Footw2ar 103 139 203 342 411 386 463 624 524 512 Cement 117 226 233 224 393 394 360 405 458 445 Corrugated sheets 29 109 123 483 753 515 682 536 457 470 Mining machinerv 202* 226- 316* 187 547 404 586 7,261 n.a. 519 Electric machinery 183 188 460 267 433 419 172 845 n.,ci 1,568 Trucks n.a. n.a. n.a. 74 157 79 134 402 215 227 Chassis, bodies n.a. n.a. n.a. 343 544 500 397 751 506 251 Dual purDose vehdiiea. n.a. n.a. 137 350 246 213 433 271 223 Passenger cars 135 183 225 335 482 398 494 807 613 648 * Not strictly comparable with the following figures. n.a. not available Source: Annual Trade Report TABLE 26 Direction of Eaxports (including re-exports) (ITthousands) 3/ 150 1955 1957 1959 1960 1961 1962 1963 -_ - -- pr Iray Commonweaith Countries 5,872 7,466 11,513 11,879 21,796 20 283 11,951 20,751 of whlich re-exports 124 178 288 309 153 747 291 n.a. United Kingdom 5,551 7,136 11,230 11,641 21,583 20;076 11,761 n.a. Gambia 155 238 126 99 106 892/ 91 n.a. Nigeria 22 39 107 82 60 61 87 n.a. Others 1424 53 50 57 47 57 52 n.a. Non-Conimonwealth Countries 1,087 2,754 6,873 7,590 7,834 9,088 8,534 (8,325) of which re-exports 174 1124 3,091 2,760 3,551 3,959 3,584 n.a. German Federal Republic 269 1,202 1,283 1,316 1,015 1,924 2,C90 n.a. Netherlands 24 643 1,262 2,434 2,351 2,179 2,511 n.a. Denmark 17 67 36 128 65 26 7 n.a. United States 511 638 1,050 796 494 492 31 n.a. Shins Stores 157 35 3,028 2,669 3,500 3,878 3,411 n.a. Others 109 169 21L 207 409 589 484 n.a. Total Exoorts!/ 6,959 10,220 18,386 15,469 29,630 29,371 20,525(2P076) of which re-exports 298 292 3,379 3,069 3,704 4,206 3,575 (3,500) 1/ Compare footnote to table 20 2/ Excluding re-export of 10.5 million of bullion 3/ Ret-yports only av-ilablc in rounded numbers n.a. = not available Source: Sierra Leone: Customs Department, Trade Report. TABLE 27 Country orig,in of Imports Lrc_uding re--exports) ( T thousands) 1950 1955 1957 1959 1960 1961 1962 1963 Commonwealth Countries (in- eluding Ireland and Burma) ,853 13,778 16,557 14,329 15,329 18.719 1 9L7 17,95 United Kingdom 4,310 10,290 13,176 10,321 11,105 14,568 11,895 12,803 Burma - 107 123 1,201 464 52 1,196 919 Canada 888 259 249 291 315 434 596 595 Cyprus 26 155 214 134 94 85 62 88 Hong I'ong 110 697 697 679 890 748 883 692 India 680 771 559 275 694 629 586 530 Others 639 1,499 1,539 1,428 1,767 2,203 1,729 1,668 Non-Commonwealth Countries 893 3,337 11,693 9,191 11,013 13,820 13,L88 12.559 German Federal Republic 78 411 805 799 979 1,152 1,C14 1,033 Italy 29 272 1,758 1,124 583 822 559 863 Japan 161 362 2,163 2,240 2,858 3,057 2,703 1,936 Netherlands 81 501 848 1,067 1,057 1,739 2,411 2,473 United States 132 286 820 627 710 1,158 1,546 1,543 Others 412 1,505 5,299 3,334 4,826 5,892 5,255 4,711 Total Imports 17,11.5 28,250 23,520 2 342 32,539 3435 29,8514 Source: Sierra Leone: Customs Department, Trade heport. TABLE 28 BALANCE OF PAYIIE-TTS i Million 1st 2nd 1st 2nd 1st 2nd 1st Half Half Total -{alf Half Total Half Half Total Half 1959 1959 1959 1960 1960 1960 1961 1961 1961 1962 Current Account 1. Imports f.o.b. 10.5 10.7 21.2 10.2 13.4 23.6 15.2 9.8 25.0 14.0 2. Exports f.o.b. 9.1 7.3 16.4 12.3 13.6 25.9 13.7 11.0 24.7 10.0 3. Re-Exports 1.4 1.7 3.1 1.5 2.3 3.8 2.4 2.4 4.8 2.6 Visible Balance - -1.7 -1.7 +3.6 +2.5 +6.1 + .9 +3.6 +4*5 -1.4 4. Invisibles net -1.6 -1.9 -3.5 -2.3 -2.5 -4.8 -2.7 -2.3 -5.0 -2.5 5. Official Grants + .6 + .8 +1.4 + .7 + .5 +1.2 +2.6 + .8 +3.4 +1.5 Balance on Current Account -1.0 -2.8 -3.8 +2.0 + .5 +2.5 + .8 +2.1 +2.9 -2.4 Capital Account 6. Loan from H.M.G. - - - 1.5 - 1.5 1.5 - 1.5 .9 7. C.D.C./C.D.F.C. investmLent - - - .1 .1 .2 .1 .3 .4 .6 8. Private investment .2 .3 .5 (not available) Balance on Capital ACCount +.2 +.3 +.5 +1.6 +.l +1.7 (1.6) .3 (1.9) 1.5 9. Errors and Omissions (+.7) (+3,1) (+3.8) (-6.0) (+1.2) (-.4.8) (-2.4) (-2.4) (-4.8) (-.1) Balance on Cur-re ancd. Capital Account -. 1 +.6 +.5 -2.4 +1.8 -. 6 0 0 0 -1.0 Sterling Holdings 10. African West Currency Board -.6 + .8 + .2 - .9 + .4 - .5 - - - - 11. Official +.7 - .4 + .3 -1.4 + .2 (-1,2) - - _ _ 12, Commercial Banks -.2 + .2 - - .1 1.2 1.1 - - - - 13. LMF, IBED, etc. ------1.0 Total Sterling Holdings -.1 + .6 + .5 -2.4 +].8 (- .6) - _ _ -1A Source: Ministry of Finance.Fi;dres Fithin brackets are adjusted by mission. TABLL 29 DEiVELOPINLNT PPOJLCT5 A.. CONTAIliD I- The 16937o4 hDVELOPFIA4T LSTIIkLATL;S ( r,roI 0oo) Estimated Total actual. total cos expenditure Actual hstikates of projects / to Piarch 31, .Xptndit=-u 1963/64 1962 1962/63 1. Civil aviation 2,1443 261 110 209 2, Inland waterways 176 2 37 4 3. Freetowm electricity supply 2,656 158 195 524 4. Provincial electricity supplies 546 272 56 212 5. Provincial water supplies 1,072 401 118 177 6. Roads and bridges 8,105 516 6ck 670 7. iRailway 3,653 2,944 103 145 8. Port 260 41 30C 160 9. Posts and telecommunications 2,891 282 62 341 10. Agriculture, Veterinary, Fisheries 320 70 65 165 11. Forestry, Forest Industries 183 4 13 89 12. Schools and cclleges 1,434 990 457 429 13. Hospitals and clinics 810 224 60, 159 14. Freetown water supply 13 10 2 _ 15. Broadcasting and information 451 88 26 52 16. Low cost housing 596 78 7 16 17. Civil Service Training College 66 0 2 18. Road Transport 100? 59 98 220 19. Miscellaneouis developments 6,392 1,139 616 951 32,167 7,539 2,677 4,526 1/ As included in Development Estirn-tes 1563/64 TABTLE 30 SIERRA LE07T'E TEN-YEAPR PLAIT 1962/63 - 1971/72 Summary of Capital and Recurrent Costs Total First five Second 5 Programme years 1st year 2nd year 3rd year 4th year 5th year years 1. Surveys, information anad research 400,000 400,000 80,000 80,000 80,000 80,coo 80,000 - 2. Lands, Mines & Labour 167,700 167,700 95,700 18,000 18,000 18,000 18,000 * 3. Agriculture, etc. 9,794),454 7,649,524 3,856,502 1,185,528 1,185,804 1,237,032 184,658 2,1144,930 4. Roads and bridges 17,424,500 17,101,800 3,510,800 5,787,800 5,097,200 2,337,000 369,000 322,700 5. Railway 640,700 538,700 211,5-)0 167,200 70,000 60,000 30,000 102,000 v.Port and Marine 2,377,120 2,377,120 342,120 659,000 460,000 458,000 1458,000 , '. Inland ;-aterways and Shipping 264,100 264,100 156,900 62,200 15,000 15,000 15,000 3. Civil Aviation and Meteorology 1,372,240 1,313,240 l,o66,,440 175,440 55,360 6,0oo 10,000 59,000 9. Road Transport 2,171,1493 900,708 2,500 208,377 214,2C0 243,937 231,694 1,270,785 10. Posts and Tele- Commiunications 1,802,000 477,000 96,000 106,000 115,C00 85,000 75,C00 1,322,00o 11. Trade and Industry 15,391,400 9,081,600 2,164,300 2,16)4,200 1,731,600 1,5)48,000 1,1473,500 6,309,00 12. Housing and Country Planning 14,115,000 4,115,000 880,000 808,750 8C8,750 308,750 808,750 13. Public Works (Other) 14,800,800 3,520,800 727,800 756,00O 713,000 627,000 697,000 1,280,0CO 1L4. Water Supplies 1,912,060 1,912,060 533,060 550,500 451,5C0 247,C0o 130,000 , 15. Electricity 12,244,890 10,984,890 1,309,890 1,113,000 3,688,0oo 3,254,000 1,620,000 1,2609000 16. Medical and Health 30g,462,1400 21,225,900 5,871,200 3,726,175 3,726,175 3,726,175 14,176,175 9,236,500 17. Education 12,645,190 10,423,490 3,297,74J 1,840,550 1,895,550 1,740,850 1,648,7C0 2,221,700 18. Social Welfare 1,501,o148 1,501,848 473,509 366,525 276,241 287,116 98,1457 * 19. Information and Broadcasting 3,707,643 3,532,343 1,458,295 838,945 500,810 366,218 368,074 175,300 20. Civil Service 66,000 66,000 66,000 * * 21. Judiciary 221,200 221,200 116,100 51,100 21,100 19,450 13,450 * TABLE 30 -2- Total First five Second 5 T Programme years 1st year 2nd year 3rd year hLth year 5th year vears 22. Police l,01:.7,500 l,007,500 847,500 50,000 50,000 50,000 50oCoo - 23. Preventive Service 280,600 280,600 64,300 53,800 64,800 42,000 55,700 - 24. National Plan inspectorate 155,062 155,062 53,126 23,948 24,776 26,192 27,020 TOTAL - Public Sector 124,965,900 99,258,185 27,281,283 20,793,138 21,262,866 17,282,720 12,638,178 25,707,715 Private Sector 25,000,000 25,000,000 5,000,000 5,OCO,000 5,000,000 5,0C0 30, 5,30co 0O0 TOTAL DEVELTPIP T PLAN 149,965,900 124,258,185 32,281,283 25,793,138 26,262,866 22,282,720 17,638,1-8 25,707,715 ABSTRACT: PUBLIC SECTOR Total First five Second 5 TM Programme years 1st year 2nd year 3rd year )4th year 5th year years I. Basic Information (1 *& 2) 567,700 567)700 175,700 98,000 98,000 98,000 98,0ooo II. Agriculture, etc. (3) 9,7943454 7,649,5224 3,856,502 1,185,528 1, 185,804 1,237,032 184,658 2,144,930 III. Transportation and Comnmuni- cations (4-10) 26,052,153 22,972,668 5,386,260 7,166,017 6,026,760 3,204,937 1,188,694 3,079,485 IV. Trade and Industry (11) 15,391,400 9,081,600 2,164,300 2,164,200 1,731,6c0 1,548,000 1,473,500 6,309,800 V. Other Basic Facili- ties (12-15) 23,072,750 20,532,750 3,450,750 3,228,250 5,661,250 4,936,750 3,255,750 2,540,000 VI. Social Services (16-19) 48,317,081 36,683,581 11,100,745 6,772,295 6,398,776 6,120,359 6,291,4106 11,633,500 TaBhLh' 33) -3- Total First five Second 5 Programme years 1st year 2nd year 3rd year 4th year 5th yeai years nII. Administration, Law and Order (20-24) 1,770,362 1,770,362 1,147,026 178,848 160,676 137,642 146,170 * Total Capit-al Cost 124,965,900 99,258,185 27,281,263 20,793,138 21,262,866 17,282,720 12,633,178 25,707,7151iv .ecurrent Costs (15 percent) 14,888,000 - 4,092,000 3,119,C00 3,1 8 9J000 2,592,000 1,896,00GA Growth in Recurrent Costs (5 per cent per annum) 38,432,000 - - 4,297,000 7,787,000 11,525,000 14,823,000.? Total Recurrent Costs (53,320,000) - (4,092,000) (7,416,000)(l0,976,000)(14,117,000X16,719,000Q Total Capital and Recurrent Costs - 152,578,185 27,281,283 24,885,138 28,678,866 28,258,720 26,755,178 16,719,000. *Figure not available because of incomplete estimate. 1/ Partial estimate. 2/ Figure relates to recurrent costs of fifth year's developrTient spending and will be a standing cost to be covered in addition to the development spending scheduled at the beginning of the second five-year period. Recurrent costs during the second five-year period cannot be estinated because of incomr,plete estimates of development spending during the period. Source: Ten-Year Plan of Economic and Social Developrr2ent for Sierra Leone, 1962/63 - 1971/72. Freetown 1962.