By Alpha Abu
Trade and Industry Minister, Dr. Edward Hinga Sandy has defended the government’s position in the face of rising commodity prices, saying the government is very concerned about the situation which he asserted is driven by external factors.
The minister at the weekly Ministry of Information and Communications press conference in Freetown was at pains in highlighting the rise in freight charges of commodities in the world market that have had corresponding effect on the prices of essential goods in the country, a situation that has led to public criticisms of the way his ministry is handling the situation.
He said the pandemic has affected global trade and caused a difficult situation for everyone, which prompted the government to initiate some cushioning measures for importers that include allowing them to pay some taxes later to the National Revenue Authority (NRA) after they have cleared and sold their goods. He said importers have also been given the opportunity not to incur huge costs whilst their goods are in the NRA Bonded Warehouse.
On the increase in the prices of rice and cement in the country, the minister said the two products have witnessed soaring costs globally including their freight charges. He cited the month of August that saw the price of a metric tonne of cement rise from between $32- $35 to $68, and freight charges increasing by over two hundred percent which he said left local importers shell- shocked as it adversely affected the prices here. Dr. Sandy said they had to encourage the importers not to panic. He spoke about the dramatic rise in the price of a metric tonne of rice to $500 and mentioned the government’s infusion of $50 million of foreign exchange just to aid importers of essential commodities.
He described as misleading, the views by some people that the government has no price control system in place.
“We cannot sit by and see prices of commodities going up for no reason other than just letting importers push the prices up”, the minister pointed out. He said trade officials sit and discuss with importers the price margins agreeable to all for commodities shipped into the country, which is to ensure price control. He claimed the government has done a lot to address the unfortunate global market climate and found itself in a very difficult situation but was nevertheless doing its best to ease the situation.
He said Sierra Leone buys from the same market as other countries in the continent and argued that the country’s prices for commodities like rice and vegetable oil, the latter now wholly locally produced, are reasonably lesser than those of neighbouring countries, an indication of government’s strenuous efforts to address the problem.
The trade minister said come January 2022 a Consumer Protection Commission will be established to help provide solutions to consumers’ concerns.
Information and Communications Minister, Mohamed Rahman Swarray highlighted the various interventions by the government in the form of cash provision to workers in the hospitality sector, the physically challenged and extremely poor families, and making available agricultural inputs during this pandemic. He said that shows the government was not indifferent to the plight of the people that was brought about by Covid-19. He said the relief packages were done with no political profiling of targeted beneficiaries. The minister said the government got affected by events around the world but remain committed to improving the living standard of the average Sierra Leonean, with “practical steps being taken to turn the corner”.
Copyright © Politico Online 08/10/21
