Freetown, Sierra Leone – Allegations of government undermining rice importers, as peddled by a local tabloid, have been described as blackmail. These importers are allegedly intent on pressuring the government to increase the price of rice.
In a meeting with rice importers and Chief Minister Dr. David Sengeh, an agreement was reached to reduce rice prices, including a corresponding decrease in transportation costs, as agreed with transporters. However, some importers, desiring to maintain the status quo, have targeted contractors supplying rice to government institutions. They seem to overlook that these arrangements are made through loans, with suppliers pre-financing the entire supply chain.
Like any loan-based business, the cost is often adjusted to allow the supplier to break even, especially since payment for such supplies is delayed for several months. This practice is common, even in small business transactions, where Sierra Leoneans take goods to offices on a hire-purchase basis, with repayment done in installments over several months. Suppliers of rice to government institutions face a similar situation. They are not the importers; they purchase rice from the importers at government-stipulated prices using loans from banks, which accrue interest. After buying the rice, suppliers distribute it to various government institutions and wait for several months before receiving payment.
While these suppliers patiently understand the government’s constraints and continue supplying rice, the importers demand immediate payment from them. This requires suppliers to take bank loans to offset payments and meet the agreed supply deadlines with government institutions.
Suppliers are contracted to supply rice to institutions, often involving pre-financing, while importers simply sell goods on demand and receive immediate payment. The insinuation that the government is undermining its directive is false and appears to be a calculated attempt to create mischief. It gives a false impression of government partiality, disguising the importers’ underlying motive to force rice price increase.
Sources close to the suppliers explain the difference between a supplier and an importer. Importers buy rice at stipulated prices and receive immediate payment, whereas suppliers are contracted to supply rice to institutions and get paid after several months, often taking bank loans with interest.
The ploy to push the government to review rice prices upwards is deemed unreasonable, potentially harming ordinary consumers who buy from importers or retailers. Concerned citizens believe the government should not entertain these insinuations, as importers are attempting to scapegoat suppliers for their own selfish gains and exploit the country’s resources.