MR. CHAIRMAN,
YOUR EXCELLENCIES MEMBERS OF THE DIPLOMATIC CORPS,
DISTINGUISHED LADIES AND GENTLEMEN,
Let me first of all thank the
Africa Trade development centre, under whose
auspices we are assembled here today, for organizing this seminar on issues so
pertinent to trade and investment between the United States of America and
Africa.
As a
continent, Africa has been known for myriads of problems. To most people,
Africa is still a place for charity, not investment. But thankfully, in recent
years, there has been some major positive transformation particularly in
democratization, good governance, and the observance of the rule of law. Indeed
these rapid changes have helped prepare the continent for private sector-led
growth and many African countries, including Sierra Leone, have either
privatized or are in the process of privatizing state-owned enterprises and
creating the best possible investment climate that would strengthen and expand
the continent’s link to the rest of the business world.
The new momentum for development and the successes Sierra Leone
has been achieving as a nation are directly the result of policies elaborated
by the Government of President Ernest Bai Koroma, under a policy framework called
the AGENDA FOR CHANGE.
The Agenda for Change captures the developmental aspirations of the country and
defines five priority areas for development namely:- Agriculture, Energy,
Infrastructure, Health and Education. In the ongoing process to turn around the
Agricultural sector, the Government has increased spending from two to over ten
per cent and launched a National Agriculture Development Plan. In Energy, the
Government is investing in hydroelectric power and has completed the
construction of the first phase of the Bunbuna Hydroelectric Dam with a
generating capacity of fifty megawatts, and, indeed, energy generation
capabilities are being expanded throughout the country. In infrastructure, the
Government has ensured a turn-around in the road network by the construction of
new roads, networking provincial and district headquarter towns, and widening
existing ones. In Health, The Government has introduced free health care
initiative for pregnant women, lactating mothers and children under five. The
number of healthcare facilities in the country has been increased by over
thirty per cent. In education, Government is putting in place appropriate
measures through the adoption of the Professor
Gbamanja Commission of Enquiry Report to
improve the system of education at all levels and make it available to all,
especially the
Girl Child.
Sierra
Leone is only beginning to tap into the full potentials of what it can
contribute to the business world. Its natural relevance to a very wide expanse
of business sectors cannot be overstated. There is a host of benefits for the
investor who makes Sierra Leone his or her destination. This is because we have
an open-arm trade policy and the Government invites and indeed encourages
foreign investors to invest in a country that will soon be ‘the’ place to be in
terms of investment opportunities. To create a conducive investment climate,
the Government embarked upon a holistic review of the regulatory framework
necessary for easing business establishments and operations. All foreseeable
administrative barriers to investment have been removed. Consequently, the
average number of days it takes to start a business in Sierra Leone is between
ten and fourteen days; far less than the global average of 35 days. For this
reason, Sierra Leone has become the top performer in West Africa in the
“Business Startup’ indicator on the World Bank Doing Business index. The
country’s Investment Promotion Act ensures that no distinction is made between
foreign and domestic investors in investment procedures. The Investment
Promotion Act further guarantees the right to remit profits, and all private
firms, foreign and domestic are protected against expropriation of property.
Further, there are no performance requirements for foreign investors, proscribing
export amounts, domestic inputs, investment levels, or limiting access to
foreign exchange, etc. But more importantly, because we recognize corruption’s
corrosive effect and that it can stifle enterprise and choke off economic
growth, we have revised the Anti-Corruption Act to give the Anti-Corruption
Commission more teeth with robust prosecutorial and conviction powers to combat
corruption. I can say that these measures, including incentives of tax and duty
waivers among others, aimed at cultivating a business friendly environment has
caught the attention of our development partners, including the United States
to the extent that President Obama was able to state in his Millennium
Development Goals (MDG) United Nations address, and I quote:
“we know that countries are likely to prosper when they
encourage entrepreneurship; when they invest in their infrastructure; when they
expand trade and welcome investment. So we will partner with countries like
Sierra Leone to create business environments that are attractive to investment.”
Sierra
Leone Continues to manage its economy and the public finances prudently and
steadily, introducing reforms to make the country a better place to do business,
based on the principles of openness, fairness and transparency. Untapped
opportunities for investment do exist in Sierra Leone. They include, first of
all, Freetown’s natural harbor, Africa’s best natural harbor, and indeed one of
the best in the world, providing access to a regional market of millions of
consumers. As ours is an agrarian economy, with more than 5 million hectares of
arable land, less than 20 per cent of which is under cultivation, the country
is sitting on an agribusiness boom poised for take-off. The Government has
substantially increased spending in Agriculture and is rapidly commercializing
the sector. Specific agribusiness potential areas are sugar, oil palm and other
edible oils for which the Government launched an outreach campaign a few years
ago for investments and is offering substantive incentives.. Other potential
agribusiness areas include cacao, coffee, cotton and all of those crops that
can prosper in a tropical climate.
For
the extractive industries, I may say that this sector encompasses way beyond
diamonds for which, for better or for worse, many may associate Sierra Leone,
partly due to movies like Blood Diamonds and the war it depicted.. The Sierra
Leone portrayed in that movie is certainly a different country from the Sierra
Leone of today. There is a full-proof international certification system for
diamonds in place, the Kimberley Process, and for the past ten years,
diamond revenues have gone to benefit the people of Sierra Leone. Diamond
cutting and polishing fall within the value adding industries the Government is
desirous to promote. In addition to diamonds, there are proven deposits of iron
ore, rutile, petroleum, bauxite, gold, platinum etc. Proven bauxite
reserves stand at 300 million tons and over 146 million tons of iron ore..
Other
potential opportunities include industrial fishing, construction, tourism, and
ecotourism.
Following
his re-election last year for a second five-year term, President Koroma, has, a
few days ago, precisely July 12,2013, launched a follow-up policy framework as
a sequel to the Agenda for Change, the Agenda for Prosperity which will, for the next five years be the country’s road map
towards meeting our goal of becoming a middle income country and donor nation
within the next 25 to 50 years.
The
Agenda for prosperity will guide our collective aspirations to doing more to
sustain the transformation of our country, complete residual projects in the
Agenda for Change and address recurring and emerging challenges, especially
unemployment among the youth.
All
these developments are sustained upon the bedrock of peace and stability, a
stable democracy with a tropical climate, duty free market access to the United
States for a number of products through AGOA
(African Growth and Opportunity Act), and
access to the European Union Market through the
Everything But Arms (EBA). Sierra
Leone, has, with solid determination, moved on from its bitter experience with
rebel war and now ranks among the most peaceful countries in the world as
attested by the 2010 Global Peace Index.
It
is therefore important that African Diaspora Communities amplify the
opportunities they have now and play the role of bridging trade between their
countries of origin and the United States as a means to an end; that “end”
being functional partnership characterized by balanced trade flows. In this
connection, I firmly believe that the impact of a formidable business
collective like the Africa Trade Development Center (ATDC) cannot be overstated
in promoting the goals of the win-win situation that characterize fair trade. I
therefore urge you today to press on further with your noble ideals so that
Africa can win, and the United States of America whose ideals laid the foundation
for the great success our diaspora communities are now enjoying can also be a
sure winner.
I thank
you.
