Statement by H.E. President Koroma at European Development Days, Stockholm, October 22nd 2009, in response to the global economic downturn:
Ladies and Gentlemen,
We are living through turbulent economic times. But to those of us in Africa, at least, they did not begin with the collapse of Lehman Brothers. First, there was the food crisis that saw the global price of rice double in less than a year. Then came the fuel crisis, with oil prices climbing to nearly $150 a barrel. And finally there was the financial crisis that plunged the whole world into recession.
There was a time when shocks of this intensity would have thrown Sierra Leone into turmoil, or perhaps even turned the clock back to the 1990s when my country was engulfed by economic crisis, political instability and civil war.
I can tell you today that time has passed. Our economy grew by 6.4% in 2007, 5.5% in 2008 and, despite the most adverse global conditions in decades, is projected to grow at 4% in 2009, more than double the average for the rest of Africa.
Of course, we have not escaped completely unscathed from the global downturn. Mineral exports in the first half of 2009 fell by more than a third from the same period in 2008, remittances by 30%. Ordinary Sierra Leoneans have been hit hard by high fuel and food prices.
My government reacted swiftly to address inflationary pressures, and cushion the impact of the crisis on the poorest. We created jobs for youths in rural areas by funding local councils to create labour intensive projects. We cut import duties on basic essential commodities. And we worked with our development partners to ensure that poverty-related expenditures – especially in health, education, water and agriculture – were protected.
We are not out of the woods yet, but the fundamentals of our economy are strong.
I know that to many people, this will come as a surprise. Images of Sierra Leone remain rooted in the troubles of our recent past. But those images are out of date, reflecting neither the realities of our present nor the promise of our future.
The reason we have been able to withstand the current crisis is because of the efforts made to ensure political stability, rebuild our economy and make Sierra Leone a country of genuine opportunity.
It is a long term mission, and we recognise that there is still much work to be done. But I am proud of the achievements we have made so far.
First, we are becoming a stable, politically mature nation. We have held two free and fair general elections since 2002 that have met international standards. In 2007 I took power in a successful transition of Government that was met without the violence or large-scale protest that has too often accompanied elections elsewhere. According to the World Bank, political stability and our citizens’ ability to hold government to account has improved faster in Sierra Leone than in almost any other country in the world. We are becoming better known by the people who visit our country for our citizens’ friendliness, tolerance and hospitality, with our capital city now recognised as one of the safest in Africa, and there is growing international interest in our country’s proud history of religious tolerance between Christians and Muslims.
Second, we have a clear plan to transform our economy, set out in what I call my Agenda for Change which focuses on agriculture, energy, infrastructure and human development. We are already making good progress:
in energy, the long awaited Bumbuna Dam has been completed, providing clean, affordable and sustainable hydro electricity to Freetown and the surrounding areas;
in agriculture, we have deployed over three times more tractors, power tillers, and combine harvesters than last year, while the land ploughed for rice cultivation is up by 35% since last year. In recognition of our efforts, we have been made champions of agriculture in Africa by the African Union/NEPAD.;
in infrastructure, with support from the European Union and other development partners, all twelve core road building projects are making good progress and will be completed before the end of 2012;
in health, maternal mortality has fallen by around 30% in the last three years.
Third, we are making Sierra Leone a country of genuine opportunity. When I came to power, I promised to run the country like a business concern. Sustainable, equal partnerships with international investors are the only way to deliver long term growth. That’s why we are managing the economy and the public finances prudently, and steadily introducing reforms to make Sierra Leone a better place to do business based on the principles of openness, fairness and transparency. The World Bank has recognised Sierra Leone as one of Africa’s best business reformers, climbing 20 places up the Doing Business rankings in the last three years. We are among the top five for ease to start a business across the continent and only South Africa offers better protection to investors in Sub-Saharan Africa. We have also introduced some of the toughest anti-corruption legislation in Africa, for we recognise that the scourge of corruption fatally undermines the long-term growth of any nation.
The result is that wherever you look in Sierra Leone, you see untapped opportunities, many of which we will be showcasing to private investors at our first international Trade and Investment Forum in London on November 18th. These opportunities include:
Africa’s best natural harbor providing access to a regional market of 30m consumers.
5.4 million hectares of rich arable land, of which only 11% is under cultivation.
Total hydro energy potential estimated at 1200MW, of which less than 5% is currently being effectively harnessed.
400km of virgin white sand beaches waiting to be developed for tourism, prompting Lonely Planet to name Sierra Leone one of its “Top Ten Countries to Visit” in 2009
The third largest iron ore resource in the world, along with bauxite, gold, and diamonds
Finally, one of the biggest sources of untapped opportunity is our fisheries. Our seas are some of the most well-stocked and under-fished in the world. Yet I’m sure you will agree with me that it remains a travesty that Sierra Leone is banned from exporting fish to the EU, when fish illegally caught in our waters and repacked elsewhere are ending up on kitchen tables throughout Europe, costing our economy an estimated $30m a year. I hope that you will work with me in the coming year to rectify this anomaly.
From mining to infrastructure, agribusiness to renewable energy, tourism to fisheries, our economy has great potential. The foundations have been laid; Sierra Leone is now ready for significant, high return investment. As a former businessman myself, I can promise international investors that if you are willing to commit to investing in Sierra Leone you will find it is stable, rewarding, and exciting.
None of this is to belie the challenges that lie ahead. If the food, fuel and financial crises have taught us anything, it is to expect the unexpected. They have also taught us that we live in a complex and interconnected world, and that no country can hope to insulate itself completely from the challenges faced by others.
That’s why the best response to the global economic downturn must, in the long-term, be to complete the work we have started: to maintain a stable political and economic climate, rebuild our infrastructure, bring power to homes and businesses, boost agricultural production, diversify our export base and, in time, reduce our dependence on foreign aid flows.
If we can do this, then when the economic clouds lift, as I believe they are beginning to do, the landscape that comes into view will be one that is rich in possibility.
Thank you for your attention.