Scarcity of foreign currency in the local banks and instability of the foreign exchange rate, and high taxes on trade are some of the challenges face by businesses in the country, the Secretary-General of Sierra Leone Importers’ Association said on Friday.
Rashid Conteh said that charges by various clearing actors at the port were still many and imposing constraints on businesses.
He was speaking on behalf of the business community during an engagement with President Dr Julius Maada Bio at State House in Freetown.
The meeting was also attended by other stakeholders in the business community.
He said that, as a group they are the largest taxpayers in the country, contributing a significant proportion to government revenue.
“Without a vibrant and functional private sector, economic development will be slow, and the much-needed revenue required by government to support flagship programmes will suffer and unemployment will remain stubbornly high,” he said.
He specifically thanked the President for his policy directions in such areas as the reduction of duty on essential commodities like rice, flour, cement, and iron rods, lifting of the burden off importers and helping to cushion household disposable income.
“The disbursement of US$50 million as a revolving fund by the Central Bank of Sierra Leone with single-digit interest rate for the importation of essential commodities at the peak of Covid 19 was commendable and successful in sustaining food and commodity availability in Sierra Leone,” the Secretary General said.
“The trade reforms, rolled out in the last 24 months in areas such as the Ecowas Liberalisation Schemes, Simplified Trade Policies and business-friendly industry policies have not only helped proactive local businesses position themselves to take advantage of the African Continental Free Trade Area of 1.2 billion people, but they will also enhance our competitiveness to trade effectively within the continent,” he said.
While addressing the high-level stakeholders meeting, the President thanked the business community for their support to the economy, saying that no country could develop without their citizens paying taxes. He, therefore, urged citizens to comply with the National Revenue Authority in tax mobilisation for sustained economic growth. He noted that there had been some reduction in taxes on many essential commodities in the country, some were the lowest in the region.
President Bio further reminded the high-level stakeholders’ meeting that the world was going through difficulties ranging from the devasting effects of the Coronavirus pandemic that was largely affecting every sphere of life, to the war between Russia and Ukraine.
“The Russian-Ukraine war is having untold consequences in every African country and in Europe. Prices of fuel, electricity, food, and essential commodities are up in every country. Sierra Leone and no government has control over,” he noted.
He added that his government had given different supports to the business sector, which included but not limited to SMEs having access to finance through the MUNAFA Fund benefiting over 5000 businesses, the Quick Action Economic Recovery Programme of Le500 Billion to importers of food commodities to ensure stability in prices, cash support for vulnerable populations and persons in the hospitality and other industries that were hard hit by COVID-19.
He noted that there were no taxes on the importation of rice in the country, and urged citizens to focus on agriculture, which would reduce the burden of relying on foreign rice. He assured that his government had also deepened bilateral relations with Vietnam and some of their investors would soon arrive in the country to share their expertise in rice production with the Ministry of Agriculture.
“I have always been looking for this opportunity to engage you all on a regular basis. It is better late than never. We will continue this dialogue because it is good for the progress of the country. Thank you very much for coming,” he concluded.
Minister of Trade, Dr Edward Hinga Sandy said that when the Coronavirus pandemic broke out, the government initiated a lot of support systems to support the business community and augment their operations at a time when businesses the world over were almost collapsing.
By Sallieu S. Kanu