Reply with quote #1
http://politicosl.com/articles/risks-amidst-strong-mining-outlook-sierra-leone Sierra Leone's reliance on a mining boom to boost the economy is simply a false economy. Most people will argue that the seeds of the country's economic woes were sown by the lavish hosting of the OAU in 1980. I would argue that the demise of DELCO and the Marampa mines in the mid-70s was the trigger. Fast-track 40 years later, the country still does not get it. Relying on revenues from the mining sector alone as a boon to the economy is nothing short of a mirage.
Reply with quote #2
You are right Delco, Sierra Leone has to diversify its economy .
Develop agriculture and tourism. Utilize the cheap labor costs advantage to encourage multinationals to build factories and plants in Sierra Leone
Reply with quote #3
@ Kamara. Good suggestion. Out of the many factors militating against your suggestion is the limited available human capital assets (productive and healthy) in our country. This is a big disincentive to multinationals. Given the option, these multinationals would rather invest in countries with highly skilled labor. Example - the far eastern countries. What is the GoSL doing about human capital development?
Reply with quote #4
Manner of speaking, you are right, the over reliance on mining and really on one commodity has not been good for us. However, we now have to get grammatical. The governments over time, did not look at a wealth of options and say you know what will be better, mining, let's ignore everything else. They went with mining because it was the low hanging fruit. We have the resources, go mine it. So the problem is not that we put our lot in mining, the problem is that as others have mentioned, our economy is not diversified. Also, and more importantly, our economy is too small and private individuals are not doing their part. We have Sierra Rutile, we have the mobile phone companies and I guess African Minerals is back, beyond that, how many other large companies are there? So that is our problem. That and the thievery. If you look at what Botswana with the help of Debeers (yes, I know this is a company with a tarnished history in Africa) has done, you will be amazed.
Debeers moved its London HQ to Botswana! And now you have plenty of foreign diamond buyers coming in regularly to buy diamonds. This has boosted the hotel and restaurant industries among other things. More revenues are being generated for the government and the business owners serving these people. The most important thing however, is that Botswana doesn't just mine diamonds and send it overseas anymore. They have some polishing being done there boosting employment. If they are smart, they will also expand jewelry making. Now this is just one company, but it shows what can be done. This is also a country wracked by AIDS but they are not letting it hold them back. I have details on how aggressively and successfully they are fighting HIV, but that is a story for another day. Private industry is the answer. If we leave things up to the government, we will always be backward. We need to do something, as in start more big businesses, manufacture things in our country, grow agriculture etc.