It is no secret that with the world economies taking a battering in recent years,
the 2008 financial crisis,the first in the 21st century, a severe worldwide financial
crisis was the worst since the great depression .
Many nations have sincere calibrated their financial organizations, not only to prevent a repeat of such a
financial catastrophe, but to mitigate and provide systems that would act as
shock absorbers, should a similar crisis occur. In the past few weeks, the Silicon
Valley Bank, a state chartered commercial bank in Santa Clara collapsed
spectacularly, but First Citizens Bancshares acquired it, with the backing of US
regulators.
This reminds of how the 2008 financial crisis unfolded, when financial services,
banks, and mortgage lending institutions collapsed spectacularly. Like a pack of
cards, Wall Street giants that were deeply entrenched in the housing market with
unregulated predatory practices of pure greed saw the likes of Bear Stearns and
the Lehman Brothers even put several national central banks at risk.The rest is
history, as it took only one major bank to collapse and set a rippling effect with
catastrophic consequences. This time, governments and financial institutions
acted fast enough to avoid a repeat of 2008.
Just when you thought that the CoronaVirus pandemic had wreaked enough, two
landlords were at each other’s throats in the Russia Ukraine war. The impact of
this war is well documented, as the cost of living continues to threaten air traffic
worldwide. It is no surprise that strikes and protests have become a favourite
pastime across the world. Sierra Leone has not escaped the clutches of this
financial demise. There is a saying that every lizard crawls on its belly, but you
can never tell which one is suffering from stomach ache.
We all witnessed NGOs, Western Government and the International Community
falling over themselves to resuscitate Sierra Leone after the decade long civil
war. The emergence of new mining companies like African Minerals, London
Mining, Koidu Holdings and the ever present but elusive Sierra Rutile Company
gave many of us hope that Sierra Leone was back to the good old time. Sadly,
natural catastrophes like the mudslide and the Ebola Virus stopped our country
dead in its tracks. The rest is history, as the building blocks of our recovery
chipped away, brick by brick.
Fast forward to present day Sierra Leone where the average discussion around
every dinner table, every keh keh ride, every poda poda ride and even chat up
lines are dominated by the hardship and ever increasing price rise in the country.
Interestingly, a lot of Sierra Leoneans believe that our country has a monopoly
over this financial phenomenon, and that the living crisis and the increasing cost
of living is only taking place in Sierra leone. Thanks to the divisive nature of our
politics, many would swear blind that only Sierra Leone is feeling the pinch. After
spending two months of utopian bliss in Sierra Leone, I returned to the UK to find
a four pint milk cartoon has risen from £1.45 to £1.85. We are not alone. It was
£1.09 in 2022.
In the 60s, 70s and early 80s, the economy of Sierra Leone was a source of envy
from our neighbours as we basked in the name “sweet salone”, much to the
chagrin of our kindred in Guinea under the late Ahmed Sekou Toure. Ironically,
SekouToure told his countrymen to endure the pepper then, so that they would
savour the sugar in the future. How prophetic has that advice turned out to be
today, as we look across and suck our teeth next door.
We still had our resources,ranging from agriculture, mining, tertiary, tourism,
manufacturing, aviation etc. Today’s financial institutions and systems owe their
origin from the time honoured barter system, the exchange of goods as currency.
Although battering still occurs a lot in the modern day business world, typically in
the form of trading space, services and supplies, unlike the old system which was
predominantly determined by need, today’s version is fuelled by pure greed.
Sierra Leone had a lot to offer to the outside world, and it was no coincidence
that our GDP was in a healthier state.
One does not need to be an Einstein to know that things have changed beyond
recognition. In spite of our riches in mineral wealth, successive governments
have proved our inability to manage those resources to their maximum potential
for the good of all. No prizes for guessing why our country now has one of the
biggest begging bowls south of the Sahara and north of the Limpopo, as much of
our economy now rests on the good will of others. We have slowly but
insidiously transformed from a breadbasket of West African economies to a
basket case.
It is hard to admit but our economy is bordering on the case of a
liability to world events. Each time the world sneezes, we catch the cold tenfold.
In the absence of much to offer, are we surprised at our current state of affairs?
However, all hope should not be lost, if only, and only if we invest in our human
capital. We may lose our natural resources but our human capital is permanent.
We just need to fully invest heavily in it. Times have changed and many modern
and developed economies have changed with the times.
The advent of the internet and the corresponding advances in technology have led to the
information superhighway. We need to join the internet, which is becoming the
town square for the global village of tomorrow. The internet means: Easy access
to resources and technology creates new opportunities to do jobs that customers
want done. We have to remember that we don’t use the internet, we live it.
Thanks to the internet, many economies using this technology to its full potential
have led to the emergence of E-Commerce, gig economies and many more.
Many are becoming self employed and becoming less and less dependent on
government employment. Governments cannot employ everyone and Public
Private Partnerships is one of the ways forward. We should be able to sit in a
shed or in the comfort of the kitchen and operate a multi million dollar/leone
business.
While other countries have perfected the art of E-commerce, has Sierra Leone
taken any advantage to do so? This article is in no way meant to suggest that
Sierra Leoneans have not caught on to the idea of E-Commerce. The crux of this
article is a humble attempt to highlight, demonstrate, and emphasize the role of
two big giants EDSA and NATCOM; if our country is to stand any chance of
moving into the 21st century. The value of electricity in any community cannot be
overemphasized.
If we are to be honest, the electricity situation in Freetown and other cities has
improved year on year since the days of “ the darkest city in Africa”. In those
days, you relied on the pilot to know that you had arrived at Lungi International
Airport at night. That does not mean that today’s electricity supply is acceptable.
There were frequent blackouts that lasted relatively shorter times during my
recent trip to Sierra Leone. Funnily, I never heard the spontaneous chorus of
“Light Don Cam” that used to accompany the return of electricity. Either this was
commonplace or they knew the outage would not last long. In most cases, it
didn’t.
However, if our economy is to return to a life of vibrancy, there is no doubt that
the full provision of electricity is vital. Electricity by any standards should be the
oxygen and life blood of not only our communities but our economy. No one
needs a reminder of what electricity can do for business. Our new electricity
supplier EDSA now largely operates a “pay as you go” tariff system. This means
that you consume what you pay for. Not only should this ensure a robust system
of revenue collection but also ensure that the supply of electricity should be a
matter of continuity. Money na hand, back na gron.
So why is EDSA struggling to provide electricity with a “pay as you go system”?
Many blame it on electricity theft. That does not mean that EDSA is free from
blame here. Why do people steal electricity? Has EDSA made the tariff
affordable? Is EDSA giving value for money? Is EDSA a reliable and dependable
supplier? Do customers get what they pay for at all times? Others say that the
tariff is too high and unaffordable for many Sierra Leoneans. Does that justify the
theft? Should EDSA consider affordable prices and tariffs to ensure a critical
mass of consumers? But again, how can EDSA move to improve the lives of
people, when the right to order and distribute meters are auctioned to third
parties ?
With EDSA as the main supplier of electricity in the country, one would expect
that the responsibility to order, distribute, connect and supply meters should be
solely in the hands of EDSA. But is that the case? When you contract that
responsibility to a third party with no affiliation to energy, the resulting outcome
will be a high cost of meters. This is just an example of many administrative and
bureaucratic factors that contribute to the high cost of electricity. This means that
the tariff would not be affordable for the average small business owner. Now you
see the incentive to go rogue? This is not to justify the act of theft of electricity
but to highlight the domino effects of bad administrative policies.
The effects of inconsistent or poor electricity supply is obvious and that is where
the role of NATCOM cannot be overlooked. NATCOM presides over everything
and anything to do with our national communications. The advent of the internet
means that every aspect of our lives now revolve and are consumed by
technology. Our children need the internet to keep abreast with advances in
education. Children no longer need to worry about Pedro Da Cintra, who
discovered Sierra Leone. They don’t need to memorize about Bai Bureh or
Madam Yoko. They can just google it. Better still, they can talk to SIRI. Those
days of memorizing mathematical tables or converting dollars to leones are gone.
Just google it.
So, how do we expect our children to do well and join the international
community when they cannot afford the high cost of data? How do we expect
them to do well when they are always met with “Dae system dae don”? Since
NATCOM is the High Priest of the international gateway, it becomes imperative
for it to ensure that such a highway is free from gridlock, is affordable and
available to all. Call it utopian but if other third world countries can, why shouldn’t
we?.
In order for our country or any country to be economically viable, we should be
able to provide two things: products or services. Even as individuals, if one
doesn’t have a product or service to offer, one could be a liability. If president
Bio’s Free Quality Education is to achieve its intended and full potential, EDSA
and NATCOM should be part of that conversation. If we are to exploit the full
benefits and potential of our tourist industry, EDSA and NATCOM should be at
the table. If we are to rip the benefits of the gig economy, conduct business
without the need to travel from Kono to Freetown, from Nigeria to Senegal,
Guinea to Morocco, and in effect worldwide. It’s about blockchain and not
conveyor belts to join the world community. To join in the industrial revolution, you
needed to open a factory. In the internet revolution, you need a laptop. If you
think that there is life without Facebook and the internet, please send me the
link.
Don’t forget to turn the lights off when you leave the room.
