Concord Times (Freetown)
Olusegun Ogundeji
23 January 2008
opinion
Freetown — The four major groups that control the commerce industry in Sierra Leone are the Lebanese, Nigerians, Indians and Fullahs. The Minister of Trade, Mr.Alimamy P. Koroma met with them late last year at group levels to know their various needs.
Koroma also mentioned that he would meet collectively with these groups afterwards but that has not been confirmed yet.
Agreeably, majority of these groups are constitute by foreigners but they cannot be described as comprising the Foreign Direct Investment (FDI) which is an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC).
Since commerce and business are central to the survival of any nation's economy; and its growth and development is determined by the strength, consistency and reliability of the fiscal policy operating in the financial system, FDIs will benefit national economies like Sierra Leone's by providing increased employment (often at higher wages than domestic firms); investments in research and development and additional capital investments.
So in Sierra Leone's quest to attract FDIs into the country, Koroma's move to coordinate the activities of these home-based businessmen is laudable. It could be best described as goodwill. But the overall effort would only be crowned when the business climate is secured and cleared of all socio-economic, political and social fogs.
The country's economic system, policies and strategies have been unstable and lacking in direction for so many reasons- including the aftermath effect of the decade-long civil war. These factors had impacted the state of the country's economy negatively. To get the attention of FDIs which can also be described as investments with parent enterprise who have control over its foreign affiliate, all these negativities must be corrected.
It is quite understandable that the nation is recording significant progress from the various economic reforms and there is a need to sustain the upward trend. In addressing the unwholesome economic development of the nation, there is the need to brace up to the challenge of repositioning the economy on the path of recovery.
Sierra Leone is a land of opportunities, prosperity and abundant economic resources. It's an investor's delight. The country occupies a strategic position as the economic hub of West African sub-region. But to ensure its transformation, an investor-friendly environment must be created through the provision of basic infrastructure and adequate security, protection for life, property and investments.
Though the recent provision of electricity to the inhabitants of the capital city is a plus to the administration, government still needs to be committed to ensuring adequate security of life and prosperity.
Since the electric power supply has become more regular, the economic countenance of the city has changed. Its wrinkled face is gradually being smoothened.
Nevertheless, the government needs to invest in massive turnaround and rehabilitation of infrastructure facilities including road networks in the country. In fact, government needs to urgently address the deplorable state of the nation's infrastructure, if its dream of having a better economy in the next few years is to be achieved. Also, there is the urgent need to address the problems of inflation, unemployment, security, education and infrastructure, among others, for the gains of the current reforms to be sustained. Basic areas like education and security must be promptly addressed by the Koroma-led administration in order to sustain the gains of the current economic reforms.
Take for instance the situation at the port. In many parts of the world, it takes between 24 and 48 hours to clear goods from the ports; every form of delay at the port should be eschewed. Shipping charges and other tariffs should not be made scary to investors.
These and many more are some of the factors that result in the massive diversion of Sierra Leone-bound cargoes to neighbouring ports, especially the port of Conakry in Guinea where such goods are ferried into Sierra Leone via trucks.
It is not unusual to see streams of heavy-laden trucks snaking out of the small Conakry port through the Parmalap border post into Sierra Leone daily. Apart from the fact that this has cost the country billions of leones in lost revenue, many vehicles with Guinean registration plates are noticeable in every nook and cranny of the country- a manifestation of continuous inflow of vehicles from the other end. This has to discontinue.
There are financial institutions that have strategically positioned themselves to focus on investment banking, corporate finance, retail and consumer banking, as well as pursuing aggressive regional expansion in Sub-Saharan Africa as part of their strategy of ensuring that they have presence where their revenue profile could be enhanced but they are still waiting for the green light to swing into action.
The only observed dent in the economic recovery process in Sierra Leone is insecurity. The security profile of the nation is being tarnished lately with series of reported cases of daylight armed robbery.
Mob justice which has gradually found its way into the country too is an issue of concern.
Our security personnel need to be empowered the more to achieve success in their fight against the menace posed by these social miscreants.
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