"?.67 Z)V.2 C COOC
INTERNATIONAL DEVELOPMENT RESEARCH CENTRE
COUNTRY PROFILE
SIERRA LEONE
OTTAWA December, 1972
ARCHIV Savage no. 14 SIERRA LEONE
The Colony of Sierra Leone originated insale and cession, in
of 1787, by Chief Nairabana to someEnglish abolitionists of a piece land intended as a home for Africansrescued from slave ships. The hinterland was declared a British Protectoratein 1896. Sierra Leone became independent on 27th Apri1,1961.
AREA, CLIMATE AND POPULATION
Sierra Leone lies on the west coastof Africa between60 55'
of and 100 N. latitude and10° 16' and 13° 8' longitude. Its 210 miles The total area coast line extends from theborder of Guinea to Liberia. the dry season is 27,925 square miles. There are two distinct seasons,
from October to May and the rainy seasonfor the rest of the year. The
heaviest rainfall is on the coastfrom July to September. The average
annual rainfall ranges from 75 inchesto more than 130 inches at Guma
At the Valley. The mean temperature is800 F with little variation.
beginning of the dry season the countryexperiences the hamattan, a
dry sand-laden wind from the Sahara.
Population 3,870,000 (1970); rate of growth 2 per cent;
density per square mile 90. -2 -
MAIN CITIES
Freetown, (capital) 132,000
Bo 30,000
Kenema 14,000
Makeni 15,000
Lunsar 12,000
LANGUAGE AND RELIGION
English is the official language; Kiro (Creole) a form of pidgin English, is widely spoken.
Apart from the 400,000 Creoles, there are 13 ethnic groups, the most important being the Mende in the South and the Tare in the
North representing around 60% of the entire population.
The majority of the population is animist, Moslems - about
500,000 Protestants - about 700,000 Roman Catholics.
GOVERNMENT AND CONSTITUTION
The Consitution embodied in the Sierra Leone (Constitution)
Order-in-Council 1961 came into force at Independence on 27th April, 1961, when Sierra Leone became a sovereign and independent member of the
Commonwealth. Sierra Leone was accordingly admitted to the United Nations organization as the 100th member. Sierra Leone is a member of the
Organization of African Unity, the International Monetary Fund, the
International Development Association, the World Health Organization,
I.L.O., and UNESCO. 3
Under the Constitution (1961) the Queen's representative was the Governor-General appointed on the advice of the Prime Minister. The
Government consists of the Prime Minister appointed hy the Governor-
General, and Ministers appointed by the Governor-General on the advice of the Prime Minister, from among members of the House of Representatives.
The House of Representatives consists of the Speaker and no fewer than
60 members elected from the Constituencies established by an Electoral
Commission.
After the elections held on March 17, 1967, the then
Governor-General, Sir Henry Lightfoot-Boston, appointed Mr. Siaka Stevens,
Leader of the All People's Congress Party, as Prime Minister on 21 March.
On the same day the Government was overthrown by a military coup under the Army Commander, Brigadier David Lausana. On March 23 there was a countercoup led by army and police officers who proclaimed the National
Reformation Council under Brigadier Luxon Smith as Chairman and Commissioner of Police, L. W. Leigh as Deputy Chairman, and six others.
On the night of April 17 - 18, 1968, the National Reformation
Council was overthrown by the Army and police non-c(amissioned officers who announced the formation of the Anti-Corruption Revolutionary Movement.
The ACRM appointed an Interim Council but later decided,in concurrence with the elected members of Parliament, that there should be a National
Government comprising candidates drawn from both political parties, independent candidates and paramount chiefs. 4
On April 26,1968, ConstitutionalGovernment and civilian
rule was restored, with the appointmentof Siaka Stevens as Prime
Minister.
On April 19, 1971, Sierra Leone becamea Republic under a
Constitution which provided a ceremonialPresident. On April 21
the Constitution was amended to providefor an Executive President
and Dr. Siaka Stevens wassworn in as President.
POLITICAL PARTIES
The political parties are: the All People's Congress (APC), the
present party in power, the Sierra Leone People'sParty, the Opposition
Party, and a sprinkling of independentparties with one or two members or no party members in Parliament at all.
CABINET
President (with responsibility for Defence) : Dr. Siaka P. Stevens
Vice-President, Prime Minister and
Minister of the Interior : S.I. Koroma
Minister of Finance : C. A. Karmar-Taylor
Attorney-General : L. A. M. Brewah
Minister of Lands and Mines : S.D. Kawusu-Konteh -5
Minister of Trade and Industry : S. A. Fofana
Minister of Agriculture and Natural Resources : A. G. Sembu Forna
Minister of Works : D. F. Shears
Minister of Information and Broadcasting : Alimamy Khazali
Minister of Health : J. C. Hadson-Taylor
Minister of Education : J. Barthes-Wilson
Minister of Transport and Communications : E. J. Kargbo
Minister of Social Welfare : S. A. T. Koroma
Minister of Development : S. W. Gaudi-Capio
Minister of Housing and Country Planning : M. O. Cole
Minister of Labour : F.B. Turay
Leader of the House : A. B. Janneh
POLITICAL DEVELOPMENTS
Following the resignation of two prominent Cabinet Minsters and their expulsion from the All People's Congress Party, Dr. Siaka Stevens, the Prime Minister at the time, declared a state of Emergency on
September 14, 1970,"in the interest of national security and in order to give effective protection to the lives and property of all citizens and people resident in Sierra Leone". In October, 1970, the United
Democratic Party was banned and a number of people detained, the majority of whom have since been released. After an abortive coup in March,1971,
Dr. Stevens asked for Guinean Army support to safeguard the position of -6
his Government. Parliament then passed an Act declaring Sierra Leone
a republic within the Commonwealth and Dr. Stevens was elected the
first President of Sierra Leone. The President is head of the Cabinet
and the Government, and Mr. S.I. Koroma, Vice-President, Prime Minister,
and Minister of the Interior. The present Parliament is to complete
its term of office in April, 1973, when parliamentary elections are
due to be held.
LOCAL GOVERNMENT
The Provinces are administered through the Ministry of the
Interior and divided into 147 chiefdoms, each under the control of a
Paramount Chief, and a Council of Elders who are responsible for the maintenance of law and order and for the administration of justice except for serious crimes.
One hundred and forty-three of these chiefdoms are now organized as local Government units, empowered to raise and disburse funds for development of the chiefdom concerned. In each administrative district there is a fully elective Dictrict Council with a president elected by the members from their number. District Councils have now developed into local Government units with funds at their disposal for the development of their districts. -7
EDUCATION
There were 914 registered primary schools with a total enrolment of 139,400 pupils in 1968-69. Primary education is as yet neither free nor compulsory. School attendance varies considerably in different parts of the country. For example, the western area has
47 per cent of its primary school-age children in school, while the percentage is as low as 12 per cent elsewhere.
There were 72 secondary schools with a total enrolment of
25,000 pupils, and nine of these schools take pupils up to university entrance level. Technical education is provided in two technical institutes, two trade centres and in the technical training schools of the mining companies. There is also a rural institute.
Telcher-training is carried out in nine training colleges, two of which are Government-run, five mission-operated and two in the Western Province. Milton Margai Teachers Training College and the Freetown Teachers College are autonomous colleges. The number of teachers in colleges for secondary school teachers and eight others for primary school teachers training for the teacher's certificate was
900 students, (1970).
Fourah Bay College and Njala University College make up the
University of Sierra Leone, offering a range of first degree and diploma courses They have a total enrolment of 900 students (1971). The newly-formed Institute of Education is now responsible for teacher education, educational research and curriculum developmeot in the
country. - 8 -
JUSTICE
The judiciary is headed by the Chief Justice. The Supreme Court
has jurisdiction in civil and criminal matters. Subordinate courts
are held by magistrates in the various districts. Native courts apply
native law and customs under criminal and civil jurisdiction. Appeals
from the decisions of the magistrates are heard by the Supreme Court.
Appeals from the decisions of the Supreme Court are heard by the
Sierra Leone Court of Appeal.
ARMED FORCES
Sierra Leone has a force of 1,560 officers and men. The Police
Force in 1970 had an authorized strength of 68 senior officers, 76 junior officers and 1,900 other ranks. In the provinces each chiefdom keeps an additional force known as "chiefdom police".
An Auxiliary Force consisting of two officers and 270 other ranks are helping the regular force in maintaining law and order in the diamond protected area in the Eastern Province.
HEALTH
In the Western area there are 7 Government hospitals (1,000 beds) including a maternity hospital, a children's hospital and an infectious diseases hospital near Freetown. A mental hospital at Kissy has accommodation for 220 patients. In the other provinces there are 13
Government hospitals, 4 mining company and 6 mission hospitals. There -9
is a School of Nursing in Freetown. There are 107 Government dispensaries and health treatment centres. There is also a military hospital (100 beds).
The infant mortality rate is 147 per 1,000.
number of beds 2,000
doctors 144
dentists 9
health inspectors 73
chemists 10
midwives 71
nurses 262
auxiliary nurses 280
31 hospitals; 7 mission clinics; 3 private clinics;
47 dispensaries; 39 centres against contagious diseases.
GROSS NATIONAL PRODUCT
$190 US per capita 1970
FINANCE
The Bank of Sierra Leone (Central Bank),established in August,
1964, is responsible for providing the currency in the country. The unit of currency is the Leone which is $1.30 US. The paper currency consists of 1, 2, and 5 Leone notes, the coinage of 1/2, 1, 5, 10 and
20 cents. - 10 -
Other banks:
The Standard Bank of Sierra Leone Limited
The National Co-operative Bank (entirely owned and financed by Co-operative Societies in Sierra Leone)
The National Development Bank
Barclay's Bank, DCO (Sierra Leone Ltd.)
Intra-Bank S.A.
The Agricultural Co-operative Development Bank
THE ECONOMY 1970 - 71
The sharp decline of diamond production, especially in the second half of 1970-71, led to stagnation in most sectors of the economy. In fact any decline in production in the diamond industry has a far greater impact on the Gross National Product,due to its very large share of export earning. Despite increased agricultural production, the fall in diamond sales had an immediate depressing effect throughout the economy. On the other hand, the levelling off of trading activity, poor investment outlook, political uncertainties, the lack of decisive develop- ment plan, and the impact of the Non-Citizens (Trade andBusiness) Act 1969, which came into operation in September ,1970, were contributory factors that gave rise to lack of business confidence.
The stabilization programme tntroducgd: in 1966 had not checked the stagnation of the economy by 1970, and inflation was inevitable due to the re-emergence of budget deficits financed by borrowing from theCentral
Bank. Lower tax rkeipts and higher expenditure put severe strain on the country's finances. There was a 7.5 per cent rise inthe cost of
living index which could be attributed to increased importcostswhile
money incomes have been rising withoutcorresponding increase in
productivity.
TABLE 1 GROSS DOMESTIC PRODUCT (at factor cost) Le. million
1966-67 1967-68 1968-69 1969-70*
248.0 260.6 290.8 310.0
*Estimate
FOREIGN TRADE AND PAYMENTS
The increase in agriculturalexports in 1970 was offset by a
heavy fall in the value of diamondexports, and total exports
(including re-exports)was Le.84.4 million, whilst total importswas
Le.96.9 million. The visible trade deficitwas Le.12.5 million compared with Le: 2.9 in .196,9 and a surplus of1Le.2.4.millionin 1g68.
All three major exportcrops: palm kernels, coffee,and cocoa showed significant increases both involume and cash value. At any rate mineral exports still account for78 per cent of the total value of all domestic exports, Le. 64.9million in 1970, as against Le.74.1 million in 1969. The estimated mineral export for 1971 is Le.60 million. - 12 -
TABLE 2 BALANCE OF TRADE 1968770 (Le. million)
1968 1969 1970
Diamonds 45.7 61.9 51.0
Iron Ore 10.1 9.9 10.5
Bauxite 1.5 1.3 1.5
Palm Kernels 8.6 5.4 7.0
Coffee 3.1 3.0 4.3
Cocoa Beans 2.3 2.9 3.3
Piassava 0.9 0.4 0.5
Other 3.5 2.4 4.9
Re-exports 4.0 2.9- 1.4
TOTAL EXPORTS 79.7 90.1 84.4
TOTAL IMPORTS 75.5 93.0 96.9
BALANCE OF TRADE 4-4.2 - 2.9 - 12.5
Source: Central Statistics Office
INTERNATIONAL TRANSACTIONS (millions of Leones)
1965 1966 1967 1968 1969 1970 1971 Exports f.o.b. 63.22 59.22 50.48 79.72 88.34 85.55 83.13 Diamonds 39.96 31.29 29.76 46.57 61.21 52.80 48.75 Iron Ore 10.90 9.77 9.02 10.32 9.84 10.17 11.13 Palm Kernels 5.68 4.62 1.10 8.59 5.39 7.00 5.62 Imports c.i.f. 77.40 71.40 65.27 75.48 93.03 96.96 94.02
Source: International Financial Statistics VolXXV No.10. October, 1972 - 13 -
The main item that accounted for the rise of imports in
1970 was foodstuffs, Le. 20.4 million; rice imports alone acounted
for Le.5 million. Also, there were increases in the values of other
imported food items - "sugar, fats and oils". Correspondingly there
were significant increases of machinery and transport equipment due
mainly to vehicles impotted by the Road Transport Corporation.
The fall in production in the mining sector had adverse effects
on Sierra Leone's external debt position. The exchange reserves of the
Bank of Sierra Leone was Le. 24.6 million at the end of 1970 compared with
29.4 milliort on January 31st 1970. The fall of the reserves occurred
despite the receipt of the second allocation of Special Drawing Rights of
$3.4 million US from the IMF. The rapid deterioration in reserves occurred
in the latter half of 1970, highlighting the weakness of her external trade
position during 1970-71.
SIERRA LEONE INTERNATIONAL LIQUIDITY (millions in US dollars)
1965 1966 1967 1968 1969 1970 1971
Central Bank Reserves 21.3 19.2 15.9 27.5 35.4 34.5 39.6 SDR's - - - - .5 3.4 Reserve position in the Fund 1.3 .8 - - - 4.9 5.3 Foreign Exchange 19.9 18.4 15.9 27.5 35.4 29.2 30.9 Fund Position Credit Tranche position: Stand-by - 5.2 - 3.6 2.5 - - Credit Trance position: Others 11.2 9.8 10.4 6.9 9.5 25.0 27.1 Drawing Outstanding - 1.5 6.9 6.9 5.4 - Use of Fund Credit - - 4.6 4.5 3.0 - - Quota 11.2 15.0 15.0 15.0 15.0 25.0 27.1 Other Official Institutions 2.8 3.1 3.5 5 6 4.4 - - Commercial Banks: Assets .3 .3 .3 1.2 .5 .1 1 0 Liabilities 8.0 8.3 6.2 5.2 2.9 1.9 5.8
Source: International Financial Statistics Vol. XXV No.10, October, 1972 _14 _
TABLE 3 FOREIGN TRADE JANUARY-MARCH (le. million)
Total Total
Domestic Exports f.o.b. 1968 1969
Coffee 0.42 0.77 Cocoa Beans 1.53 2.44 * Palm Kernels 2.13 1.09 Iron Ore & Concentrates 3.08 3.17 Uncut Diamonds 5.75 7.52
TOTAL including other items 14.30 21.99
Re-exports f.o.b. 1.29 1.10 Food, Drink and Tobacco 2.89 3.22 Cereals & Products 0.51 0.49' Sugar & Products 0.58 0.56 Mineral Fuels & Lubricants 1.63 0.91 Chemicals 1.28 1.16 Manufactured Goods 4.63 7.22 Cotton Cloth 1.26 2.50 Iron & Steel 0.66 0.78 Machinery & Vehicles 4.98 4.71 Road Motor Vehicles 0.85 1.52
Misc. Manufactured Goods 1.25 2.51
TOTAL including other items 17.44 20.44
Source: Quarterly Economic Review No.2 1972, E.I.U.
*Under the International Coffee Agreement signed in September this year, Sierra Leonewas allocated 27,731 bags of 60 kg for 1972-73 coffeeyear. 15
PUBLIC FINANCE
In the 1967-68 and 1968-69 financialyear budgetary
current account surpluses were achievedbecauseof the introduction
of stabilization policies in the1966-67 budget, and CurrentRevenues
exceeded their original estimates byLe. 8 million in 1967-68 and
Le.lmillion in 1968-69. This was due to the boom in theproceeds
of diamond sales during theseyears. In 1970-71 the recession in
the world diamond market hada marked effect on current revenues. The
1970-71 current account spendingwas Le. 49.9 million instead of the
original estimate of Le. 46.3 million. The increase in expenditure
was due mainly to increased spendingon social services. The
expenditure was about Le.3.6 millionas against Le. 4.7 million
originally estimated.
The Government plan of developmentspending of Le.13.2
million was over-optimisticas it was based on an upward trend in
revenues in 1968-70. However, the fall in the currentsurplus can
be attributed to the delay incompleting arrangements with the World
Bank for the construction of theBo-Kenema highway and the unbudgeted
Government contribution of Le. 4.08million to DIMINCO - National
Diamond Mining Corporation workingcapital led to a restriction of the development budget despite theproceeds of the Le.3 million 6 per cent Road Development Stock floated inNovember, 1970 by the Bank of
Sierra Leone. -16-
Revenues from indirect tax in 1971-72 are estimated at
64 per cent of total current receipts. On the basis of existing levels
of taxation, it is estimated that the recurrent budget for 1971-72 would
balance at Le.50.6 million for both revenue and expenditure. The
Government has introduced additional measures to raise Le. 1.1 million in
revenue to help finance the development expenditure estimated at Le.10.1 million.. With total external assistance of Le.4.6 million, and a
development contribution of Le.0.8 million from public corporations, the overall deficit for the year is fixed at Le.3.6 million.
The Government is heavily committed to a substantial road construction and transport programme; estimated development expenditure on transport in 1971-72 is Le. 4.7 million, or 46.5 per cent of the total development budget. The second largest item in the Development
Plan is the Le. 1.9 million for the Provincial Water Supply project Phase III
(Le. 1.5 million will be provided by contractor finance). PhasesI and II of this project, which commenced in 1964, are now complete, and the final
Phase IV is to completed by December, 1973.
The Government has received a UNDP-financed F.A.O. Project for the Integrated Development of the Agricultural Sector - which is a ten-year rural development programme: 1971-80. Le.26.8 million is estimated for this project, of which the Government's contribution would be Le. 12.7 million, or an annual investment rate of Le.1.3 millionper annum. -17 - TABLE 4 BUDGET ESTIMATES 1971-72 (Le. million)
Current Budget Development Budget
Current Revenues: Revenues: Indirect taxes 33.3 Balance on current account 1.1 Import duties 19.7 Foreign Loans and Grants 4.6 Export duties 3.9 Other development revenues 0.8
Excise duties 9.7 Total receipts 6.5 Direct taxes 10.5 Total development expenditure 10.1 Company taxes 7.1 Overall deficit 3.6 Mining taxes 0.7 Income taxes 2.7 Miscellaneous revenues 7.9
Total recurrent revenues 51.7 Current expenditures 50.6
Surplus on Current Account 1.1
Source: Budget Speech 1971-72 Ministry of Finance
MONEY AND BANKING The currency is the Leone. One Leone equals $1.30 US. Government borrowing from the commercial banks reached Le.54. million in 1970-71, compared with Le. 4.5 million in 1969-70. The Banks' holdings of Treasury bills is now over 24 per cent, or Le. 5.4 millibn. Domestic credit increased by 23.7 per cent to Le. 26.6 million in 1970, compared with Le. 2 million in 1969. - 18 -
The total money supply remained stable, despite increases in domestic credit. The increase was only half a million Leone to
Le. 30.9 million. Currency in circulation dropped by Le. 1.4 million.
On the whole, deposit liabilities rose from Le. 24.2 million in 1969 to Le. 26.2 million in 1970. the addition of loans and advances was
Le. 2.6 million, reaching Le. 18.7 million. The combined liquidity ratio of the banks remained above the minimum level of the 30 per cent ceiling set by the Government.
AGRICULTURE
Exports of agricultural produce during 1970 were higher than in 1969. Total tonnage exported in 1970: 69,040 long tons, valued at
Le. 14.35 million, as compared with 60,809 long tons in 1969, valued at
Le.12.97 million. Total cocoa exports in 1970-71 were 4,923 tons as compared with 4,300 tons in 1969-70. There was also a substantial increase in coffee production and total purchases in 1970-71 were 9,150 tons, and in 1969-70 7,300 tons. Efforts are being made by the Government to increase
Sierra-Leone's quota (which at present is 5,810 tons) under the International
Coffee Agreement. The Sierra Leone Produce Marketing Board'spurchases
of palm kernels in 1970 were 57,193 tons and in 1969 52,223tons.
Despite the producer price remaining unchangedat Le.65 per ton, world prices have taken a downward trend since the endof the Nigerian civial war. Purchases of ginger were 450 tons in 1970 and 500tons in 1969.
The period 1970-71 recorded a significant increase in the value and volume of imported foodstuffs. With significant increases in imported foodstuffs, the Government hasnow placed emphasis on agricultural diversification, in order tosave valuable foreign exchange.
A total of 270,000 tons were sold to the RickCorporation in 1970-71, compared with 244,000 tons in 1969-70. With the extensive mechanical cultivation of inland swamp rice fields and the increasinguse of fertilizers, self sufficienty in rice production is hoped forby
1976-78.
A World Bank team of experts visited Sierra Leone inMarch ,1971 to study the proposals for an integrated agriculturaldevelopment project in the Eastern Province. The Mission recommended the establishment ofa
National Agricultural Development Authority, to be responsiblefor the management of agricultural projects. It is envisaged that such an institution would take over the management of the oil palmdevelopment project at Daru, cocoa plantations, and inlandswamp rice extension project in the Eastern Province. -20-
MINING
By the formation of the National DiamondMining Company
(Sierra Leone) Limited - DIMINCO - sharecapital Le.10 million
(the Government owns 51 per cent and Sierra LeoneSelection Trust
49 per cent) this means that the saleof diamonds to world markets will now be streamlined. The agreement between the Governmentand
Sierra Leone Selection Trust is fairand reasonable. It has cleared
the way for a review of the Company's existingarrangement and
procedures, and for the acceleration within the companyof the pace
of"Sierra-Leonization:' The Government has agreed to take measuresto
combat illicit diamond mining. The total amounts purchased by the
Government Diamond Office were:
Amount Value carats Leone million
1971 1,031,090 25.2 1970 1,102,978 33.7 1968 863,000 25.4 1967 759,000 21.8
Source: Government Diamond Office and The EconomistQuarterly Economic Review No. 2, 1972
IRON ORE The Sierra Leone Development Company produced2,252,000 tons
of iron ore in 1970, as compared with2,337,000 tons ig 1969. The
opening of the Ghafal mines in late1971 would lead.it is hoped)to
increased production from 1972 onwards. - 21 -
Bauxite. Total production of bauxite in 1970 was 449,000 metric tons. With the second washing plant now in operation, it is estimated that production will reach 600,000 tons by the end of 1972.
In Apri1,1971 Sherbro Minerals Limited, which was jointly owned by Pittsburgh Plate Glass Industries and British Titanium Products
Limited, suspended mining of rutile because of production difficulties and staffing problems. A total of 43,500 tons was produced in 1970, as compared o 28,700 tons in 1969.
After prolonged negotiations, the Government has signed an agreement with a new company, Sierra Leone Rutile, owned by Nord Resources
Corporation, to re-open the rutile mining operation abandoned by Sherbro
Minerals. The United States Export-Import Bank has so far put up
$12 million for the original project, of Nhich it has recovered very little.
Also, the Preussag of Hanover and Bayer Chemicals of West Germany are now prospecting for titanium in the Bonthe area, and this is producing encouraging results.
INDUSTRY AND COMMERCE
As stated earlier, the recession in the world diamond market affectedtrading conditions throughout the economy. The sector that showed an upward trend was for cement and other building materials. In order to boost internal trade, the National Development Bank created the
National Trading Company, with a capital of Le.5000,000 of which the
"A" ordinary shares of Le.375,000 are for Sierra Leoneans and the "B" ordinary shares of Le.125,000 are for non Sierra Leoneans. - 22 -
TABLE 5 *INDUSTRIAL PRODUCTION
Cigarettes (million sticks) Acetylene ('000 cu.ft.) Oxygen ('000 cu.ft.) Carbon dioxide ('000 cu.ft.) Paint ('000 Imp.gal.) Spirit ('000 Imp.gal.) Beer and stout ('000 Imp.gal.) Confectionery ('000 lb.) Matches (gross boxes) Plastic footwear ('000 pairs) Nails (cwts) Umbrellas (dozens)
*cleared through excise authorities
Source: Bank of Sierra Leone
The performance of industrial production also was patchy. The output of cigarettes, carbon dioxide and oxygen rose during 1970-71, whilst that of confectionery also showed an upward trend, production in
September/December 1970 was 748,000 lb. from 418,000 lb. in 1969; in fact, the total production of confectionery in 1970-71 was 2.5 million lb.
On the other hand the production of beer and stout, spirits, acetylene, plastic footwear, nails, paints, matches, and umbrellas fell, or remained at their 1969 levels. The Government is considering proposals for the establishment, of a cement factory near Freetown, at a cost of Le.2,1 million. It is expected that the Government would hold 25% of the equity shares, 15% to Sierra Leoneans, and the rest to foreign investors. The initial production target is 125,000 tons, with a spare capacity of
50,000 tons per annum. On industrialization, the Government policy is one of diversification. The development of forestry and tourism is of tremendous importance - efforts are being made to increase the acreage of forest reserves and there are plans for the establishment of asawmill, plywood factory and a joinery factory in the Tonkolili -Tana Forest
Reserve. The Hotels and Tourist Board is actively engaged in the development of the tourist industry and the Government expects to see substantial improvement after the opening of.four new hotels in Freetown.
FISHERIES
There has been a gradual expansion of the fishing industry,
due to the introduction of new fishing gear. The indigenous
canoe fishery for sardines and Bonga (Ethamalosa jimbriata) was estimated tohave
produced 36,000 tons (1969). "The Food and Agricultural Organization
is carrying out a five-year survey of pelagic fish resources along
the coastline and continental shelf."
The total catch is still well below the demand of Sierra Leone.
In 1966, 184,283 cwt of fish were imported, of which over half werefrom
The Gambia, valued at Le.1,310,000. There are also tuna canning
factories in Freetown. - 24 -
RAILWAYS
A Government railway 2'6" gauge) operates from Freetown
to Pendembu. From Banya Junction (65 miles from Freetown)a branch
line runs to Makeni, but following the Government's decision to phase
out the railway system, this line was closed in 1968, and in three
years' time road transport would have taken over most of the freight
now being carried by the railways.
The Sierra Leone Development Company railway (3' 6" gauge)
60 miles is used for the transport of ironore from Marampa to the
port of Pepel.
SHIPPING
During 1968 the total tonnage handled by the portof Freetown was 419,600 tons of cargo and 435, 200 tons of bunker fuel.
Bonthe-Sherbro, 80 miles south óf Freetown, is used for the shipment of piassava, palm kernels, rutile and bauxite. Pepel, the terminal loading part for iron ore, liessome 12 miles south of
Freetown.
ROADS
There are about 5,460 miles of main roads, of which 380 miles are surfaced with bitumen.
Vehicles (1970): motor cars: 18,000; commercial vehicles: 8,800; buses and trucks: 5,500; motor cycles: 1,400. AVIATION
Freetown Airport (Lungi) isthe only international airport
in Sierra Leone, and all aircraft entering and leavingthe country must land at Lungi The airport is served bySierra Leone Airways, Ghana Airways, Nigeria Airways, BUA, Union de TransportAériens, Middle East Airlines, KLM, Air Afrique, United ArabAirlines, and
Czechoslovakia Airlines. A once-weekly non-stopflight from London
(Gatwick) to Freetown andvice versa is also provided.
Sierra Leone Airways provide domestic flightsdaily (except Sundays) from Hastings (14 miles from Freetown)to Gbangatoke, Bo, Kenema, Yengema, twice weekly to Bonthe andoccasional flights to Marampa and Port Lokoon a charter basis.
POST
The Posts and Telecommunications Department maintaina trunk network of radio and overhead telephone and telegraphroutes linking all the Provinces. Automatic telephone exchanges have been introducedat Bo, Kenema and Makeni and a microwave radiorelay link now replaces
"overhead open wire"on all main trunk routes. An extension projectto link the important mining areas of Koidu and Majanji tothe national network by microwave links will be completedtowards the end of 1972. - 26 -
There are 25,000 transistor radios, purchasedunder a scheme run by the Government. Number of telephones (1971) 11,000.
Telegraphic facilities are provided at 58 post offices. There are
136 post offices and postal agencies. The number of private wireless licence holders as at June 20th,1970, were radio70,000 and television sets 600. There is one television transmitter in
Freetown.
PRESS
There are three dailies,seven weeklies in English, and one monthly in Mende.
DEVELOPMENT
The Government's policy places special emphasis on agricultural development; this will concentrate upon rationalization so as to ensure the even distribution of rural incomes,self-sufficiency in the production of rice, and increased earnings from agricultural exports, contributing to an impromment in the balance of trade." Apart fromthe high priority given to rice, cocoa and coffee production, coconutpalm
plantations and copra production in certain areas are being encouraged.
The oil palm estates at Daru and Kambia are now producing8,000 tons of
palm oil annually. The attempt by the Government to accelerate
agricultural production will, it is hoped, result in attracting more
people back to farming, and thereby reduce unemployment. -27 -
The Government, in diversifying the economy, plans to secure
profitable returns for investors, and also to contribute in a meaningful way to internal development. The Development Act 1960, which is the basis of previous industrial policies, is under review to bring it into line with present conditions. There is also the Government's policy of "participation in partnership with privateenterprise" - for example, Sierra Leone Airways and the Sierra Leone Oil Refinery; within the framework of this policy, it is emphasized that the
Government firmly believes in the contribution to be made by private enterprise. Its objective is the importation of fresh capital. The
Government hopes to establish a battery factory, confectionery, iron and steel rolling mills, soap, salt from sea water and a pharmaceutical factory.
The first stage of the phasing out of the railways is in progress, and is linked to the implementation of the Government's Five-Year
Road Construction programme, scheduled for completion in 1974. By the end of 1974 the Government would have received Le.20.2 million for road construction (Le. 4.7 million from Britain, Le.3.2 million from
West Germany, Le. 3.0 million from the World Bank, Le.2.8 million from the International Development Association, and Le.6t5 million from the
West German Finance House of KFW. The Guma Valley Water Company has disclosed that its Le.1.8 million development programme to increase
water supply , to be financed from a loan of Le.1.2 million from the African Development Bank and the rest from local resources, will be completed by the end of this year. - 28 -
ECONOMIC STRUCTURE
The country's economy depends very largely on the export of minerals, contributing over80per cent of her foreign exchange earnings. However, while the mining sector has reached 16 per cent of Gross Domestic Product, the agricultural sector still makes up 36 per cent. Over 75 per cent of the population relies on agriculture, mostly at subsistence level or on small-scale farms, and until the rapid development of mining, especially diamonds in the 1950's, agriculture was of prime importance as foreign exchange earner.
Attempts are being made to diversify and expand agriculture, thus avoiding dependence on a few fasic crops, but the main agricultural products remain cocoa, coffee, palm kernels, rice and piassava.
Of her mineral resources, diamonds are the most important, followed by iron ore, bauxite and rutile. Diamond production provides not only valuable export earnings, but also some20per cent of all Government revenue.
Because of the size of the market and the shortage of pur- chasing power, industrial production potential is only modest, and is restricted to import substitution. Industrial development will inevitably be linked with the growth of incomes in the agricultural sector.
As a result of acute financial difficulties, brought about by persistent trade deficits, increasing large budget deficits and a resort to suppliers' credits, a stabilization policy is now actively pursued -29-
by the Government with the help of the International Monetary Fund.
This policy comprises a large measure of deflation in recurrent
and capital expenditures, higher taxation and strict limits on
public sector borrowing and in overall monetaryexpansion, together
with an IMF stand-by arrangement, authorizing drawings of Le.5.2
million. Sierra Leone devalued the Leone in line with the devaluation
of the pound sterling in November, 1967 - quite an unwise step to have
taken at the time.
TABLE 6 - EXTERNAL PUBLIC DEBT AT 31ST DECEMBER 1970 (US $ MILLION)
INCLUDING UNDISBURSED
Disbursed Total Bilateral Multi- Private only Official Lateral Suppliers Banks Other Africa total 7,425.5 10,693.5 6,052.4 2,011.3 1,207.9 425.9 995.9 Sierra Leone 84.1 114.4 82.4 26.8 5.2
TABLE 7 SERVICE PAYMENTS ON EXTERNAL PUBLIC DEBT AS PERCENTAGE OF EXPORTS OF GOODS AND SERVICES 1965- 70
1965 1966 1967 1968 1969 1970 6.0 7.3 8.2 5.6 7.1 8.9 _30-
TABLE 8 - AVERAGE AMOUNT OF LOANS AND GRANTS RECEIVED 1965-67 AND 1968-70 (US $ MILLION)
Loans Grants Loans Grant Element(%) Received Received Loans and Grants
1965-67 6.7 6.1 32 64 1968-70 13.5 6.9 39 60
Source: World Bank/IDA Annual Report
TABLE 9 FOREIGN TRADE JANUARY-SEPTEMBER (Le. MILLION)
1970 1971
Imports 72.1 68.7 Exports 67.5 57.9 Balance -4.6 -10.8
Source: Quarterly Economic Review No. 1 1972, E.I.U.
TABLE 10 - APPROVED BANK LOANS AND IDA CREDITS 1971-72 BY AREA(US $ MILLIONS)
Sierra Leone Bank Loans IDA Credits Total NumberAmount Number Amount Number Amount
1 4.3 1 4.3
APPROVED BANK LOANS AND IDA CREDITS 1971-72 BY PURPOSE (US $ MILLIONS)
Sierra Leone Bank IDA Total
Agriculture General Development 4.3 4.3 -31 -
EXTERNAL PUBLIC DEBT OUTSTANDING OF 80 DEVELOPING COUNTRIES BY COUNTRIES AND TYPE OF CREDITOR DECEMBER 31, 1970 (US $ MILLIONS) *
INCLUDING UNDISBURSED
Disbursed Total Bilateral MOlti- Private only Official Lateral Suppliers Banks Others
Africa- Total 7,625.5 10,693.5 6,052.4 2,013.3 1,207.9 425.9 995.9
Sierra Leone 66.0 84.5 33.9 17.3 26.1 0.7 6.5
TABLE 11 SERVICE PAYMENTS ON EXTERNAL PUBLIC DEBT AS PERCENTAGE OF EXPORT AND SERVICES 1965-70
1965 1966 1967 1968 1969 1970 6.0 7.3 8.2 5.6 7.1 8.9
AVERAGE AMOUNT OF LOANS AND GRANTS RECEIVED (AND GRANT ELEMENT) BY DEVELOPING COUNTRIES 1965-67 AND 1968-70 (US $ MILLIONS) *
3 YEAR AVERAGES GRANT ELEMENT (%)
Loans Grants Loan Loans and received received Grants
1965 to 67 6.7 6.1 32 64
1968 to 70 13.5 6.9 39 60
APPROVED BANK AND IDA LENDING OPERATIONS BY COUNTRY *
Bank Loans IDA Credits Total
Number Amount Number Amount Number Amount
3 13,900,000 6 35,350,000 9 49,250,000
* Source: World Bank/IDA Annual Report 1972 GRANTS AND LOANS
In December 1969 the IDA gave a loan of $3 million US to finance the extension of some educational institutions. CIDA provided equipment for these institutions:$650,000 US, and the project will be completed this year.
Further, Sierra Leone received $4.3 million US on
June 20, 1972 from IDA for a $5.6 million integrated agricultural project for a variety of crops, project management and for the establishment of an Agricultural Development Authority. The final stage of this programme is to raise income and living standards of smallholder farm families.
Sierra Leone signed an agreement with the World Bank for a loan of Le. 6,825,310 for the construction of the Bo-Kenema Road. OUTLOOK
The political unrest, coupled with the recession
in the world diamond market, has had an adverse effect on
Sierra Leone's economy. The reassurance of foreign investors, whose capital will be necessary for the successof the Government's
attempts to diversify the economy away fromits dependence on
diamond production will require a long period ofpolitical stability.
Long term progress in diversification of the economyis bound to be
slow. Although agricultural production hasshown a marked increase in
recent years. In the short term, however much would depend on
developments in the diamond industry. The world diamond market has
suffered as a result of the recession in the United States,but
there is cautious optimism that prices will improve. -34-
BIBLIOGRAPHY
World Economic Survey 1969-70 UN publication 1971
Africa Annual Review 1972, London 1972
African Development - September 1970
CIDA Annual Review 1970-71, CIDA 1972
International Financial Statistics Vol. XXV, No. 10, October 1972
Economist Intelligence Unit, Economic Quarterly Review, Nos.1 and 2 (1972)
Barclays International Review, September 1972
World Bank IDA Annual Report - June, 1972
A Year Book of the Commonwealth 1972, London 1972
First, Ruth Barrel of a Gun - London 1971
Oliver and Atmore: Africa since 1800 - CUP 1971
Africa Research Bulletin Vol. 9 No. 10
West Africa (weekly journal)