Sierra Leone - Economic position and prospects

RESTRICTED FILE COpy Report No AF-5Za This report was prepared for use within the Bank and its affiliated organizations They do not accept responsibility for its accuracy or completeness The report may not be published nor may it be quoted as representing their views INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC POSITION AND PROSPECTS OF SIERRA LEONE October 31, 1966 Africa Department  r 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 CURRENCY EQUIVALENTS US $1 00 = Leone 0 714 Leone 1 00 = US $1 40  CURRE1NT ECONOHIC POSITION AND PROSPECTS OF S:TERRA LEONE TABLE OF CONTEInTS Page BASIC DATA MA,P SUWlARY kAD CONCLUSIONS i - ii I. POLITICAL AND SOCIAL BACKGROUND 1 II. ECONOM1IC POSITION 2 Production and Income 2 Investment Trends h Production in Selected Sectcrs 7 Extractive industries 7 Agriculture 8 lanufacturing and Construction 11 Transport, Storage and Comunication 11 Commerce 12 Public Utilities 12 Employment, Wages and Prices 13 Public Finance 13 The Public Sector 13 Budget Trends 1959/60 - 196h/65 15 Fiscal Years 1965/66 16 Fiscal Year 1966/67 19 Credit and 1Monetary Development 21 Foreign Trade and Balance of Payments 23 Foreign Exchange Reserves 25 Present External Debt Position and. Debt Service Ratio 25 III. PLANNING AND FUTURE PROSPECTS 26 Planning 26 Prospects of 1Major Sectors 27 Public Finance and Public Investment Prospects 31 Conclusions 33 APPENDIX: Statistical Tables This report is based on the findings of two missions to Sierra Leone. The first mission composed of Messrs. John A. Edelman and Guenter Conrad visited Sierra Leone in November/December 1965. Mr. Conrad revisited Sierra Leone in June/July 1966.  SIERRA LEONE BASIC DATA Area: 27,925 square miles (72,300 square km.) Population: (census year 1963): 2,180,355 Rate of growth (19b8-1963; official figure seems too low): 1.1% p.a. Population density: 78 per square mile Political status: Independent within the Commonwealth since April 27, 1961. Gross national product (196b): Le 185 million ($259 million). Rate of Growth 3% Per capita (196b) $118 Gross dcmestic product at factor cost (196h): Le 192 million ($269) of which, in percent, Agriculture LjO Mining 23 Manufacturing 6 Percent of GDP at market prices: 1964 Long-term Gross investment 13.3 Gross national savings Balance of payments current account deficit 8 Investment income payments (net) 3 Government current revenue (1964/65) 17 Resource gap as % of investment 63% Money and credit Relationship to large monetary or customs area: member of sterling area. 1957-1965 (in Le million) March 31 1966 Rate of change per annum Total money supply 22.7 Time and savings deposits 8.2 18.8% Commercial bank credit to private sector 15.5 Rate of change in prices (1955) 5% 1% (Index of retail prices in Freetown)  Public sector operations (in Le million) 1966/67 1959/60-1966/67 Budget Rate of change p.a. Government current receipts 37.5 9.9% Government current expenditures 37.7 8.2% Deficit - 0.2 12% (decrease of deficit) Government capital expenditures 22.9 26% Public investment expenditures Total external assistance to public sector (Central 3.0 - 9.5% Government) External Public Debt (in US$ million) June 30 1966 Dec. 31 1963 Total debt outstanding (including undisbursed) 5g.9 *0-5 Total annual debt service 8.4 3.6 Debt service ratio 7.8 Balance of payments (in US$ million) 1965 1963/1965 Rate of change p.a. Total exports (adjusted) 33.0 7.3% Total imports (f.o.b.) 93.6 12.5% Net invisibles -2b.) 23% of which net investment income -11.9 24% Net current account balance -35.0 )2% Commodity concentration 1965 1957-1964 Average Diamonds 65 53 Iron ore 19 21 Palm kernels 10 11 June 30 1966 1958-1965 Average Net foreign exchange reserves (in U2$ millicn) 19.3 39.6 in months' imports 2 5-1/2  - 3- IMF Position (in US$ million) June 30D 1966 1962/64 Quota 15.0 11.25 Drawings - - External financial assistance (in US. $ million) (Government only) 1965/66 1959/60-196L65 C:omitments Disbursements Commitments DisburseTerit s Total .. 3,a .. 5.9 Soft assistance (grants cnly) *- 2. Hard assistance .. 3., .. 3.5 Major Donors United Kingdom .. 2.9 .. 5.0 United States .. ..  SIERRA LE'ONE POLITICAL AND TOPOGRAPHICAL MAP Inltcl-rlntlol:OI boindal r_ llt e