By Chernor Alimamy Kamara
The World Bank Board of Executive Directors has approved the third inclusive and sustainable growth Development Policy Financing (DPF) and disbursement of a $65 million Grant to support the Government of Sierra Leone in addressing critical developmental challenges.
The Grant which was revealed by the Ministry of Finance in a press release issued on the 18th of December, 2023, is meant to support reforms related to macroeconomic stability, mining sector governance, land management practices, gender equality, and accountability of the public sector.
The release indicated that the DPF addresses weaknesses in land management, mining, and public sector governance while strengthening climate adaptation and resilience. It stated that reforms supported by the programme are consistent with the World Bank's crisis response framework for supporting green, resilient, inclusive development, Global Crisis Response Framework, and the Big Five priorities of the Government of Sierra Leone.
The reforms according to the release, will support critical areas that will stimulate growth in land, mining, and that the sectors will improve inclusiveness in Education, Gender and Payment Systems, quality of transparency and governance in procurement, and efficiency of State-Owned Enterprises.
This support, it said will help the government to meet its critical pro-poor expenditures in education, health, and other statutory payments.
However, the World Bank Country Manager for Sierra Leone, Abdu Muwonge noted that Sierra Leone’s capabilities to eradicate extreme poverty and boost shared prosperity on a livable planet rest on sustained macroeconomic stability, robust growth, and a solid enabling environment for leveraging its abundant natural resources.
“This financing supports reform will help address poor governance of the mining and land sectors, enhance inclusion in access to employment and education, and contribute to reducing fiscal and debt vulnerabilities,” he said.
He stated that sustainable and inclusive growth has been constrained by the country’s exposure to multi-dimensional exogenous shocks (economic, epidemic, and climactic), pervasive governance weaknesses, and limited fiscal space and risks, which inhibit the ability to promote pro-poor growth through public investment. He said that Sierra Leone’s economy has been affected by back-to-back crises, which have aggravated inflationary and fiscal pressures, and increased the risks to debt sustainability.
He further said that the reforms supported by this operation will help address several critical developmental challenges while also helping to meet the increased financing needs of the government.
World Bank Senior Economist and Task Team Leader, Smriti Seth pointed out that ongoing structural reforms, including those supported by this operation in input markets such as land, labor, and natural resource management will support sustainability and resilience in the economy. He assured that the World Bank will continue to support the government’s commitment to tackle crucial structural reforms to promote inclusive growth.
The DPF, according to the Bank’s senior economist addresses weaknesses in land management, mining sector, and public sector governance, while also strengthening climate adaptation and resilience. He said that reforms supported by the programme are consistent with the World Bank’s crisis response framework for supporting green, resilient, inclusive development, and the Global Crisis Response Framework.
He pointed out that the programme builds on the strong foundation established by the two earlier operations in this series, which initiated landmark legislative reforms, including promoting decentralized and inclusive land management, strengthening governance and licensing practices in the mining sector, and promoting gender inclusivity in education and employment.
Copyright © 2023 Politico (22/12/23)
