Freetown, Sierra Leone – The Government of Sierra Leone is being urged to act decisively to ensure transparency and fairness in the rice importation sector. Recent developments have revealed concerning practices by the authorities, leaving genuine rice importers disillusioned.
In a crucial meeting at State House, the Chief Minister recently summoned all major rice importers and urged them to reduce the price of rice to alleviate the financial burden on citizens during Ramadan. Consequently, importers unanimously agreed to lower the price of a 50kg bag of Parboil rice to Le730 and Fen-Fen rice to Le640, despite incurring losses. This goodwill gesture was aimed at fostering stability in the rice market and benefiting consumers nationwide.
However, subsequent actions by the government have raised serious concerns. Instead of supporting these genuine importers, the authorities appear to be engaging in practices that undermine their business operations. Reports indicate that while importers were compelled to lower their prices, the government has been purchasing rice at significantly higher rates for public institutions.
A recent publication revealed that the government is paying Le1,150 per bag of Fen-Fen rice, contradicting the agreed-upon market rates. This has sparked widespread concern among importers, who question the rationale behind such inflated payments. A senior official at the Ministry of Trade and Industry had assured that prices would drop further in March, yet government procurement practices suggest a different reality.
One rice supplier, speaking anonymously, expressed frustration over the situation. “We have never supplied Fen-Fen rice to the government. We only supply premium Parboil rice. The amount quoted by the government includes several deductions, including a 6.5% withholding tax, transportation, loading, and offloading costs. Even at that, we are still receiving far less than the quoted amount,” he lamented.
Further compounding the issue, importers revealed that they bear additional costs such as interest rates on loans taken to facilitate imports. Delayed government payments have also left many suppliers struggling with financial constraints. Some are owed billions of Leones for backlog supplies, raising questions about the government’s commitment to honoring its obligations.
Meanwhile, citizens continue to grapple with high rice prices, with retailers in the Western Urban area selling a 50kg bag of Parboil rice between Le800 and Le830. This contradicts the government’s assertion that prices have stabilized following the intervention of the Chief Minister.
A Ministry of Finance official disclosed that supply contracts should reflect fluctuations in the global market. If prices rise, suppliers adjust accordingly, and when prices fall, they are expected to reduce their rates. However, critics argue that some suppliers are exploiting the system to maximize profits at the expense of government institutions.
As of January 7, 2025, a government directive mandated that the wholesale price of Parboil rice be reduced to NLe840 per 50kg bag, with a further reduction to NLe799 by February 14, 2025. Despite these directives, reports indicate that some government agencies continue to purchase rice at exorbitant prices, raising suspicions of corrupt practices.
The public is questioning why government institutions, including the police, prisons, and military, are still procuring rice at inflated rates when global market prices have dropped. The Ministry of Finance, which oversees procurement processes, must take urgent action to investigate and address this anomaly.
Economic analysts argue that the government can boost domestic revenue by eliminating leakages in public spending. Instead of paying inflated prices for rice, authorities should crack down on dubious duty waivers and tax concessions granted to mining and construction companies. This would help increase revenue mobilization without relying on foreign aid.
The National Revenue Authority (NRA) must also reassess its priorities, shifting focus to domestic tax collection rather than placing undue pressure on the customs department. Strong leadership is required to curb revenue losses and ensure accountability in government transactions.
Ultimately, the government must stop undermining genuine rice importers who have demonstrated their commitment to national development. By engaging in fair and transparent business practices, authorities can restore confidence in the rice importation sector and ensure that Sierra Leoneans benefit from stable and affordable food prices. Failure to act will only discourage importers from future cooperation, potentially leading to a more severe food crisis in the long run.