Severe austerity beams down on Sierra Leoneans as president Bio announces measures to cut down overseas expenditures.

This comes just two months to the country’s general elections slated in June 24 this year.

“His Excellency the president has directed the suspension of all official overseas travels by Ministers, Ministers of State, Deputy Ministers and Heads of Department with effect from 30th April 2023, unless advised otherwise,” a notice reads from State House  issued out on 4th April 2023.

But, the move is believed by many Sierra Leoneans to be taken lately as the country has been experiencing rising inflation since 2018.

“We expect the president to have taken this bold step early than now when we are just close to elections,” says a man who owns a cigarette box.

He adds: “He wants to retain power; this is more of a campaign thing”.

Other analysts say although the Bio administration inherited inflation from Koroma’s administration, Sierra Leone’s persistent rising inflation is fuelled by the former administration.

President Bio, analysts say, could have done much better by curtailing several of government’s overseas travels within a year he assumed power.

However, despite several ‘financial leakages’ are blocked by the government owing to the existence of a single treasure account, a floodgate of overseas travels opened up more government expenditures under president Bio’s leadership.

And inflation continues to rise largely because the domestic mining companies were halted due to a ban by Bio’s era.  The economy couldn’t do well as government late to lift up the ban on mining in the country.

Koroma’s austerity

The leone was struggling to peak up after global market prices on iron ore sharply fell around 2014 and 2015.

Ex-President Ernest Bai Koroma at the time announced austerity measures with the view of stabilizing the economy.

But a change in government in 2018 brought waves of changes as iron ore mining companies were sanctioned to operate while several business firms suffered impositions of heavy taxes.

One hundred USD which used to be 750 in 2018 quickly took to heels. It keeps going up and up, weakening the domestic legal tender, the leone to a wide margin.

As a result, prices on foodstuffs increase frequently. Three tins of sardine, for example, which cost Le 10 by 2018 is now sold Le 19,000 per tin in 2023 and the price is bound to go up by June.

Currently, 100 USD is now Le 275,000 or Le 2,275,000 (as per old leone).

The foreign currency and Sierra Leone’s currency are now less in circulation as hoarding also threatens the market, a factor that has further compounded the situation.

As it stands, the leone is constantly depreciating in value as prices of goods and services increase almost on a weekly basis.

Giving his analyses on Sierra Leone’s bad economic conditions, Dr. Ibrahim Stevens, Bank of Sierra Leone’s acting governor, said in a recent report: “The domestic economic continues to be challenged by multiple supply side shocks, exchange rate depreciation pressures and the associated rise in prices”.

In a severe austerity, ordinary Sierra Leoneans will continue to face a situation when they do not have much money to spend on goods or pay for services as a result of the bad economic conditions that the governor is referring to.