By Yusufu S. Bangura
The Executive Secretary,Sierra Leone Chamber for Agribusiness Development (SLeCAD), Ahmed Nanoh, has called on the government to reduce and harmonise taxation in order to increase investment flows and promote Sierra Leone’s local industries and cut down importation.
He made the call on Wednesday, November 29, while addressing the press about findings they made, through an assessment funded by the European Union under the Opportunity Salone project, managed by the International Labour Organization (ILO), on access to finance by the private sector, especially the agribusiness sector.
The assessment was made by SLeCAD in collaboration with Mustard Seed Advisory from Zimbabwe.
Speaking to the press, the Executive Secretary said the chamber was quite aware about the breach of security at the Wilberforce Barracks, which brought the country to a standstill and seriously affected the private sector.
“As I already said, the private sector is really suffering. You know, businesses are not functioning now as expected. So, today, we are here to brief you on issues that have to do with access to finance. Basically, we talk about two key issues that are currently affecting our economy-the monetary policy and the fiscal policy,” he said.
He disclosed that based on their findings, 9% of agribusinesses SMEs and agribusiness companies have access to finance, whereas 9% receive loans, albeit most of them experience high interest rate (28-30%), short term loans, no-grace period, and high cost of transaction.
He said 15% of agribusiness SMEs have accounts with banks, 85% have access to loans through Village Savings and Loan Associations, 95% stated that interest rates are very high and affect business growth and not encouraging at all for agribusiness SMEs and companies, smallholder and cooperatives that are the back bone of very economy.
He added that 86% of private sector actors disclosed that commission for United State Dollars withdrawals or transfers varies from bank to bank and that 98% agribusiness, cooperative and farmers don’t have insurance.
He cited come of the negative impacts of poor fiscal policy including dwindling of government tax base, low Gross Domestic Product (GDP), expansion of informal sector, retardation of investment, increase unemployment, poor entrepreneurship and above all endemic poverty.
On the impact of the bad monetary policy, he cited high inflation, weak fiscal balance, private sector lacking trust and confident in the banking system, increase hoarding, too much money in circulation and stay unchecked and unaccounted for, among others.
“However, we are calling on the government especially the ministry of finance and the Central Bank to reduce interest rate to support the good government programmes like Feed Salone that will also help to bring inflation down and grow the economy, reduce the money in circulation and stick to one denomination (NLe), cut down government spending and focus on core government priority projects like Feed Salone that support private sector growth and job creating goals, reduce and harmonise taxation to increase investment flows and promote Sierra Leone local Industries to cut down importation, among others,” he recommended.
