Just few days when Sierra Leoneans said that the Minister of Finance Jacob Jusu Saffa came out clueless, arrogant and insensitive to the plight of the people, one of Sierra Leone’s political leaders, Kandeh Kolleh Yumkella has put some sense into the debate about the economy.
He maintained that the debate on the Salone economy today should examine how the economic indicators have changed.
That for now, all indicators tell us that the economy is in deep trouble and that we are currently witnessing the catastrophic depreciation of the Leone due to the absence of any export activities in the country, high inflation, high taxation of the private sector, and more importantly, the absence or paucity of foreign investment due to the unstable and risky governance environment.
“It is not too late for the government to take a deep breath, re-calibrate, and do a course correction,” he added.
He continued that revenue collection is a necessary condition but that it is what they do with the money collected that matters most.
“Economies are similar to our household budget; if you receive a high salary every month but you spend it on jingoism and hedonism instead of investments, you will be poor in your old age. Economies are the same, raising revenue and spending on the wrong things, without deep structural and institutional reforms, will simply postpone the crisis for a bigger meltdown in the future. It is like putting new wine in old wine skin,” Yumkella maintained.