The World Bank recently released a list of countries experiencing the highest inflation rates, and Sierra Leone has been ranked 7th, following Venezuela, Lebanon, Zimbabwe, Argentina, Suriname, and Egypt.
Zimbabwe, topping the list with a staggering inflation rate of 414%, holds the unfortunate title of having the highest inflation worldwide. Meanwhile, Sierra Leone faces a challenging situation, with an average inflation rate of 56%, experiencing a rapid increase in inflation where commodity prices are predominantly determined by businesspeople.
The root cause of Sierra Leone's economic instability can be traced back to the Ebola outbreak in 2014, which triggered a significant economic crisis. Despite various governments coming to power after elections, stabilizing the country's inflation rates has proven to be a formidable task. Businesspeople in Sierra Leone are pointing fingers at the government, blaming the increase in prices on the export taxes imposed on them when bringing their goods into the country.
An example of this financial burden is illustrated by Aziz, a seasoned businessman operating at PWD, who shared that acquiring a single 40-foot container at the Water Quay costs more than NLE50,000. Additionally, he must shoulder transportation fees and various other charges to deliver the container to its destination. As a result, the overall expenses far exceed the initial quay payment, prompting Aziz to adjust the prices of his products, which mainly consist of used European goods.
While Sierra Leone's 7th position on the list may not come as a surprise to the country, it poses significant challenges to its population, as many rely on exported products to meet their daily food consumption needs.
Efforts to curb inflation and stabilize the economy are crucial for Sierra Leone's prosperity, and addressing the underlying issues related to export taxes and economic stability will play a vital role in achieving this goal.