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Sierra Leone Government Le4.5 Billion Expenditure For Q2 2023 Revealed in Fiscal Report


The Sierra Leone Quarterly Fiscal Report has indicated that the government’s expenditure reached SLe 4.5 billion (SLE4,515,898,000) in the second quarter ending June 30, 2023.

This report, curated by the Accountant General’s Department, provides detailed insights into the government’s financial operations.

Awoko reports that the reported amount covers the spectrum of operational costs, including financial charges associated with both local and international debt, arrears clearances, and debt repayment. Accountant General Richard S. Williams confirmed that the report’s figures were collated from genuine revenue and expenditure data related to the Consolidated Fund and central government.



A breakdown of the total operational costs reveals that:

  • Wages and salaries consumed SLE1,127,725,000.
  • Social security and benefits for employees were allocated SLE241,731,000.
  • Expenses excluding salary and interest came up to SLE901,856,000.
  • Current transfers were marked at SLE1,447,170,000.
  • Capital expenses and transfers, inclusive of foreign debt interest, summed up to SLE583,637,000. These figures solely reflect the Consolidated Funds.

The quarter also saw financial expenses arising from local interest (SLE597,198,000) and foreign interest (SLE28,187,000).

On the revenue side, external grants for this period summed up to SLE12,853,000, with domestic revenue generation by agencies recorded at SLE32,652,000. Cumulatively, project and sub-vented agency revenues amounted to SLE45,505,000.

Furthermore, the consolidated revenue accrued during Q2 2023 was SLE2,412,809,000, with SLE2,406,882,000 stemming from domestic sources and a grant of SLE5,927,000 donated by Development Partners.

The domestic revenue of Q2 2023 comprised:

  • Tax income, profits, and capital gains: SLE903,892,000 (38% of domestic revenue)
  • Customs and excise: SLE52,424,000 (2%)
  • Goods and Services Tax (GST): SLE457,673,000 (19%)
  • International Trade and Transport taxes: SLE336,000,000 (14%)
  • TSA revenue: SLE319,401 (13%)
  • Other taxes and non-tax revenue: SLE261,810 (11% of domestic revenue).

 



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Sierra Leone’s Foreign Reserve Grows by 12.69%


In April 2023, there was a notable 12.69% increase in reserve money owned by the government of Sierra Leone.

This increase was primarily due to a boost in the Bank of Sierra Leone (BSL)’s net domestic assets (NDA), even amidst a decrease in net foreign assets (NFA). Reserve money is crucial for promoting investments, transactions, managing international debt, and influencing domestic exchange rates.

Regarding liabilities, the rise in reserve money was evident in the increased currency issuance, surpassing the growth in bank reserves. Broad money (M2) grew by 2.24% in April 2023, driven by a hike in the banking sector’s NDA, which overshadowed the decline in NFA. The NDA increased by 4.69%, which mirrors an uptick in net claims on the government by both BSL and Other Depository Corporations (ODCs). Conversely, the NFA of the banking system dropped by 9.36%, mainly due to a decline in both BSL’s and ODCs’ NFA. Additionally, April 2023 marked a slight 0.53% rise in credit extended to the private sector, a drop from the previous month’s 5.92%.



In response to the evolving economic environment, the Bank adjusted its monetary policy rate (MPR) and the standing lending facility (SLF) rate by 0.50 percentage points each. The MPR was set at 19.25%, and the SLF rate at 22.25%, with the standing deposit facility rate (SDF) remaining at 12.75%. In May 2023, the interbank rate slightly increased to 20.88% from April’s 20.77%, aligning with the policy corridor. Commercial banks’ average lending rates stayed at 21.23% in May 2023, while savings rates remained at 2.17%, making the gap between the two a consistent 19.06%.

Moreover, 2023 showed varied trends in government securities’ average yields. The 91-day Treasury bills weren’t traded in January, March, and April, but their average yield decreased from 8.44% in February to 4.11% in May 2023. The 182-day Treasury bills, not traded in January, March, and April, had a yield of 10.49% in May 2023. The 364-day bills maintained stability, with yields ranging from 28.24% to 28.28% between January and May, ending at 28.24% in May 2023.



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The Correct Money Transfer Service to Sierra Leone


Looking to transfer money to Sierra Leone? Look no further! Ezipay SL offers a trustworthy and professional service that you can rely on.

They understand the value of your hard-earned money and are committed to ensuring the safety and security of your transfers.

EziPay SL offers a range of services that go beyond just sending money. With this app, you can buy EDSA top-up, pay for purchases, and even buy airtime for Orange and Africell.



This means that you can stay connected with your loved ones and ensure that they have all the essential services they need.

One of the key features of EziPay SL is the ability to transfer funds to Afrimoney and Orange Money. These are the two leading mobile money platforms in Sierra Leone, and with EziPay SL, you can send money directly to these platforms. This means that your loved ones can access the funds easily and use them for their daily needs or emergencies. The convenience and accessibility of EziPay SL make it the ideal choice for sending money to Sierra Leone.

Another advantage of using EziPay SL is the security it offers. EziPay SL uses industry-leading encryption technology to protect your financial information. This gives you peace of mind, knowing that your money and personal data are safe and secure. Additionally, EziPay SL complies with all relevant regulations, ensuring that your transactions are legal and transparent.

To get started Download the Ezipay SL app here: https://linktr.ee/ezipaysl

Ezipay SL is your go-to service. With their reliable and professional service, competitive rates, low fees, secure transfers, convenient management options, and real-time transaction tracking, we make sending money a breeze. Trust Ezipay SL for all your money transfer service.

Download the Ezipay SL app today on Google Playstore and App Store and start sending money to Sierra Leone with ease, convenience, and peace of mind. Your loved ones will thank you for it!



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Sierra Leone SME Finance And Investment Summit to Address SME-Finance Challenges


The African SME Finance and Investment Network (ASFIN) will bring together key stakeholders across the country for a one-day Sierra Leone SME Finance and Investment on 31st August, 2023, at the Radisson Blu Hotel, to address some of the major challenges SMEs face in accessing finance.

According to Peter SaSellu, President and CEO of ASFIN, “In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs.” He says that access to finance is a key constraint to SME growth. It is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries, especially in Africa.

Small and Medium Enterprises (SMEs) are less likely to be able to obtain bank loans than large firms; instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises. The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending. About half of formal SMEs don’t have access to formal credit. The financing gap is even larger when micro and informal enterprises are taken into account.



Ashma Jalloh, the Coordinator of the Summit says the Sierra Leone SME Finance and Investment is timely. She says, “The Objective of the Summit is to focus discussions on adequate funding, access to finance and financial inclusion. This will take care of some of the problems such as provision of modern technology and low managerial skills.”

She says “the SME Finance and Investment Summit will examine the financing of SMEs in Sierra Leone and the various financing options available to SMEs. This will involve looking at debt financing by considering the role commercial, microfinance banks and other financial institutions and investors play in the financing of SMEs in the country. It will also consider the role of equity financing through venture capital and business angels financing. Efforts will aim at adequate funding of SMEs in Sierra Leone.”

According to Rebecca Paulson, Executive Director of ASPIN, “SMEs play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to World Bank’s estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.”



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Sierra Leone Tops West Africa in Highest Food Price Inflation


A recent World Bank Food Security Update has ranked Sierra Leone top in the list of countries to have recorded the highest Price Inflation in West Africa.

The study covers a period of three months starting from March to June 2023.

Awoko Newspaper reported that Sierra Leone is at the apex after Nominal Food Inflation surged to a new peak of 58 percent. The West African nation surpasses its previous peak which was 56 percent.



The new data shows that Sierra Leone is at the top alongside West African neighbours, Ghana.

According to World Bank, the calculations include the use of Consumer Price Index (CPI) and the overall data of the CPI.

Experts have said that the country’s food inflation is affecting the majority of low and middle income earners.

The government acknowledged that the country is undergoing one of its worst economic shocks due to the protracted effect of the Ukraine war and other factors.

Most of the countries affected by food inflation are in Africa, Asia and Latin America. Venezuela ranked top of the list in World Nominal Food Inflation with a score of 414 while Zimbabwe leads in Real Food Inflation with a score of 80.

Sierra Leone scores 58 in Nominal Food Inflation and 13 in Real Food Inflation.





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Sierra Leone’s Aviation Hub Aspirations Dented by AirFrance’s Departure


Air France is indefinitely suspending its flights to and from the country in October this year. This suspension is a blow to the nation’s aspirations of becoming a regional aviation hub. The decision, said to be attributed, to low traffic volume and high fees, poses significant challenges to both the nation’s economy and its prospects for tourism.

Just a few months prior, in March 2023, Sierra Leone celebrated a remarkable achievement – the inauguration of a state-of-the-art terminal at #Freetown International Airport, Lungi. Covering an impressive 14,000 m² area with a striking wavelike roof design, the terminal symbolized the country’s determination to position itself as a pivotal player in West African aviation. With a capacity to handle up to 90,000 passengers per month and accommodate eight widebody jets simultaneously, the new terminal promised a seamless travel experience for passengers and an attractive opportunity for airlines looking to expand in the region. This development led us to anticipate more flights, not fewer.

We were wrong. With the suspension of AirFrance, Sierra Leone is now left with only five major airlines serving the country, namely Turkish Airlines, Brussels Airline, Kenya Airways, ASKY Airlines and Royal Air Maroc. This reduction in air carriers is detrimental to businesses and the nation as a whole, and it is projected to result in a substantial loss of revenue.



Before AirFrance’s suspension, many passengers were already exploring alternative travel options, such as road or boat travel to #Guinea and then flying from Conakry, where airfares might be more competitive. The loss of AirFrance flights will exacerbate this issue and risk further dwindling passenger numbers.

As highlighted by Umaru Fofana (in a Facebook post), Sierra Leone must urgently rethink its tax policies to address the challenges faced by the aviation industry. Presently, passengers pay higher fares to travel to Sierra Leone compared to other destinations in West Africa. This dissuades potential travelers, especially members of the Sierra Leonean Diaspora, who make substantial investments in the country, from coming back home. Umaru’s suggestion to review the tax structure and additional charges at the airport is well-founded and requires immediate attention from the authorities.

The exorbitant cost of air travel also hampers Sierra Leone’s potential as a tourism destination. Revisiting the country’s economic and tourist policies is crucial to avoid short-sighted decisions that may result in significant long-term consequences. The present high costs deter international tourists from exploring Sierra Leone’s natural beauty and rich cultural heritage.

The suspension of Air France flights should serve as a wake-up call for Sierra Leone. While the opening of the state-of-the-art terminal marked a significant milestone, sustaining and expanding the aviation sector requires a comprehensive and strategic approach. Collaborating with airlines, revising tax policies, and enhancing promotional efforts to attract tourists are essential steps for #SierraLeone to fulfill its ambitions of becoming a thriving aviation hub and tourist destination in West Africa. Through proactive measures, we can rise above the current challenges and showcase our country. Let’s seize this opportunity and reform.



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RCBank Expands Digital Presence With New Kiosks Across Sierra Leone


In a strategic move towards enhancing financial inclusivity in Sierra Leone, Rokel Commercial Bank has taken further steps in its digital expansion efforts.

The bank recently unveiled three new kiosks as part of its Agency Banking initiative, strategically placed at Mile 91, Rutile, and Lunsar.

Emile Sannah, Supervisor of the Rokel SimKorpor Unit, highlighted that this development was a key component of the bank’s vision to foster accessibility and streamline financial processes in Sierra Leone.



This forward-looking strategy also aims to introduce seamless paperless transactions, thus alleviating the financial burden previously endured by customers who had to travel considerable distances to access the bank’s facilities.

Leveraging state-of-the-art technology, Rokel Commercial Bank has effectively empowered more than 200 digital banking agents across the nation. These agents are now equipped to execute a wide array of financial transactions, mirroring the services traditionally provided by the bank’s main branches and outlets spread throughout the country.

Distinguished individuals who graced the launch event praised the management of Rokel Commercial Bank for its swift responsiveness to the concerns of the community.

Prior to this digital expansion, residents faced significant challenges in accessing their funds, often requiring arduous journeys to neighboring towns, resulting in substantial financial implications.

Emile Sannah emphasized the stringent background checks conducted on agents, coupled with the signing of legal agreements, ensuring the utmost security of funds.

Notably, the introduced services boast robust security features, including two-factor authentication and end-to-end encryption, providing customers with peace of mind while engaging in their financial transactions.





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