Sierra Leone News: IMF Rep Lauds Govt’s Sound Economic Policies
By Isaac Swen
The International Monetary Fund (IMF) has been one of the development partners working with the Government of Sierra Leone for decades in the areas of providing advice to government on prudent financial management and the economy as a whole. It has worked with successive governments and this time around it is closely working with the Bio-led government to turn around the dismal financial and economic shackles the previous Ernest Bia Koroma administration left behind.
In her farewell interview aired on Radio Democracy, the outgoing IMF country representative, Madam Dr. Iyabo Masha, critically analyzed the financial and economic situation under the Ernest Koroma regime to the sixteen months old government of President Julius Maada Bio.
To draw a retrospect of the financial and economic situation in the country inherited by the Bio regime, the economy was on the brink of collapse, with high financial deficit, mounting debts incurred by the then government, obnoxious mining agreements and the inability to finance the national budget because of borrowing and deficit, amongst other unhealthy economic policies. These realities found the past government on the bad books of the IMF and as a result the Fund withdrew its Extended Credit Faculty (ECF) because the then APC regime could not fulfill its benchmarks.
According to the outgoing IMF Representative, the government under the leadership of His Excellency retired Brigadier Julius Maada Bio, for the period 2018 to date has embarked on a robust revenue mobilization (domestic revenue) which has exceeded the targets. The domestic revenue generated account for 14% of the Gross Domestic Product (GDP) within a relative short period. She also lauded the government for using an automatic price mechanism in the event of an increase in fuel prices. Dr Iyabo Masha pointed out that the SLPP government knowing that there could be an unforeseen change in fuel prices which could adversely affect prices of goods, demonstrated prudency to provide school buses and reintroduce the school feeding programme.
She said the single treasury account initiated by the Bio led government has reduced corruption. She noted that the enactment of the Public Finance Management Act in 2019 has put the government on track in terms of adhering to the fiscal and public finance management.
Madam Masha said that the passage of a new Act on mining agreement will no doubt improve the government’s purse which will also be beneficial to the country. She maintained that the introduction of the collateral register in the banking sector will help track loan borrowers, and further noted that the implementation of a risk management register at the Bank of Sierra Leone has improved the governance systems of the Central Bank. She also acknowledged that progress is being made on qualitative finance.
On the current economic standing of the country, the former IMF representative to Sierra Leone made it categorically clear that the country is in a better shape compared to two years ago.
With regards to agriculture, mining, fisheries and tourism, Madam Masha said there are bright prospects, taking into cognizance the foundation that has been laid which would eventually generate more jobs and create more revenue base so as to better the lives of Sierra Leoneans.
Concluding her assessment, she did not mince her words when she said all the programmes put together by the present government are being strictly ‘’adhered’ to. ‘’ Opening of the mines is a priority of the government,” she said.
