Prospects are looking bright for Sierra Leones post-war economic recovery but decisions to be made by a new government coming in after weekend elections will be crucial, the World Bank said Wednesday.
– I think this country has, in many ways, very good prospects, World Bank Country Manager for Sierra Leone, Engilbert Gudmundsson, said.
Sierra Leone, ravaged by 10 years of a devastating conflict, last year registered a record seven percent economic growth, spurred mainly by resumed mining exports and agricultural production.
Citing growth seen in other post-conflict countries like Mozambique and Rwanda, Gudmundsson said:
– There is no reason why Sierra Leone should not be able to continue to grow, at seven percent or even a higher rate for a number of years. But it does call for the right decisions by government. Steps taken roughly four to six years after the end of conflicts are very important determinants of whether a growth rate of this high level could continue.
The international banking world has shown faith in the outgoing government, writing off more than one and a half billion dollars in debts. At the end of 2006, the International Monetary Fund and the World Bank forgave 1,6 billion US dollar of debts. Some funds owed to the US and the Paris Club group of donor countries were also cancelled this year.
International lenders have praised the extremely poor West African nations efforts to streamline government procedures and improve use of donor funds as the country slowly recovers from the impact of the 1991-2001 war.
Allthough economic indicators show positive trends, with 7,5 percent growth last year and 11 percent inflation, experts say this needs to translate into a tangible strategy for tackling poverty.
But ordinary Sierra Leoneans have yet to see their standard of living increase in proportion to economic growth. – There is peace, production is picking up, availability of goods is improving, but life for an ordinary citizen in Sierra Leone is extremely hard, said Gudmundsson.
In its last days the outgoing parliament passed legislation to simplify company registration and overhaul the corporate tax system.
Freetowns once bustling port lies idle, as the government and the World Bank seek ways to attract investors to operate it. – The port is ideal. It is a very good natural, deep-water port. We are fairly certain that there will be a few port operators who will be interested, said Gudmundsson.
Gudmundsson further noted that “Sierra Leone will complete the Bumbuna hydroelectric dam by mid-2008, giving a major economic boost to the energy-starved West African state which is struggling to attract investment. Lack of reliable power has been a major obstacle to growth in one of the world’s poorest countries”.
The 50 megawatt dam, located some 200 km northeast of the capital Freetown, was originally scheduled to be completed in 1998 but work was abandoned in 1997 due to the war when it was only four-fifths finished.
– The expectation at the moment is that by July next year, power will start flowing, said Gudmundsson. – This will have an enormous effect. This is certainly the single biggest project for boosting the economy. Without reasonably secure electricity at a reasonable price, you are not going to get foreign investment, he added.
Gudmundsson said construction of the 88-metre dam was largely complete and the government was repairing the cable connecting it to the grid of the hilly coastal capital.
Kilde: www.worldbank.org
