By Mohamed Foday Conteh
Speaking on the need to focus on the local production of staple foods, the Minister of Trade and Industry, Dr. Edward Hinga Sandy, has on the 24th June 2021, said that Sierra Leone imports rice worth over $240 million yearly.
The Minister made this statement while presenting on the strides of the Ministry to empower Small and Medium Enterprises (SMEs) in relation to the National Mid Term Development Plan (2019-2023) at the government weekly press briefing hosted by the Ministry of Information and Communication.
Dr. Sandy said his Ministry is working with international bodies like the Economic Community of West African States (ECOWAS) and World Bank to ensure that the country reduces importation and focus on producing locally consumed products. He added that if the country continues to engage in massive importation, it will be a dumping ground and further lead to depreciation of the Leones.
He added that there will be a proliferation of companies to manufacture local products. This he said is a step in the right direction as Sierra Leone seeks to produce basic commodities using raw materials from the country. He added that the country is looking forward to exporting local produce to replace importation.
Through the World Bank’s Economic Diversification Project, he said they have been able to give grants to the first cohorts of SMEs a. He added that the project aided the Munafa funds although several commercial banks boycotted it due to its 9 percent interest rate. Dr. Sandy said that, unlike previous credit interventions that were political, the Munafa fund is apolitical and hopes to address the needs of SMEs.
He went on to note that the production of cooking oil has halted the importation of the commodity. The minister said that these companies are not only producing for the country but also for other countries in the sub-region. He said their operation has also helped minimize the hike in the price of cooking oil in the sub-region.
In addition, he said there are other companies looking forward to investing in Sierra Leone and that these companies will utilize raw materials from the country for production. He added that a metal company in Songo, Port Loko, and Bo will reduce unemployment and at the same time stagnate price of metal products “This will see the end of exportation of scraps to India and China,” adding that the resuscitation of the Sierra Leone Flour Mill will also aid the country to achieve that goal as the company has expanded its production.
With regards to increment of price of imported products, the minister said that this is due to the worlds strive to reduce carbon emission. “The world is doing away with old ships,” Sandy said. He added that the few ships remaining are charging high freight fees. He said that the price of freight has increased more than 80 percent recently. He went on to state that the reduction of containers in places like China has added to the increment of freight fees.
Sandy added that they thrive in getting more companies to invest in the country is aided by the Agro Processing Policy and the Consumer Protection Act.
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