Currency | Sierra Leonean leone |
---|---|
Calendar Year | |
Trade organisations | AU, AfCFTA, African Development Bank, ECOWAS, MRU, World Bank, IMF, WTO, Group of 77 |
Country group | |
Statistics | |
GDP | |
GDP growth |
|
GDP per capita | |
GDP by sector |
|
16.862% (2018 est.) [3] | |
Population below poverty line | |
35.7 medium (2018) [7] | |
Labour force | 3.102 million (2018 est.) |
Unemployment | N/A |
Main industries | diamonds mining, small-scale manufacturing (cigarettes, beverages, textiles, footwear), petroleum refining, commercial ship repair |
External | |
Exports | $1.704 billion (153rd) (2018 est.) [10] |
Export goods | diamonds, rutile, cocoa, coffee, fish [11] |
Main export partners | |
Imports | $2.309 billion (172nd) (2012 est.) [13] |
Import goods | machinery, fuel, lubricants, chemicals, food [14] |
Main import partners |
|
FDI stock | $2.644 billion (94th) (31 December 2018 est.) [16] |
Gross external debt | $3.425 billion (158th) (31 December 2018 est.) [17] |
Public finances | |
42.8% of GDP (2024) [18] | |
Revenues | $510.2 million (2012 est.) [19] |
Expenses | $728.5 million (2012 est.) [19] |
All values, unless otherwise stated, are in US dollars. |
The economy of Sierra Leone is $7.41 billion by gross domestic product as of 2024. [20] Since the end of the Sierra Leone Civil War in 2002, the economy is gradually recovering with a gross domestic product growth rate between 4 and 7%. [20] In 2008 it in PPP ranked between 147th by World Bank, and 153rd by CIA, largest in the world. [21]
Sierra Leone's economic development has always been hampered by an overdependence on mineral exploitation. Successive governments and the population as a whole have always believed that "diamonds and gold" are sufficient generators of foreign currency earnings and lure for investment.
As a result, large scale agriculture of commodity products, industrial development and sustainable investments have been neglected by governments. The economy could thus be described as one which is "exploitative" - a rentier state - and based upon the extraction of unsustainable resources or non-reusable assets.
Two-thirds of the population of Sierra Leone are directly involved in subsistence agriculture. [22] Agriculture accounted for 58 percent national GDP in 2007. [23]
This is a chart of trend of gross domestic product of Sierra Leone at market prices estimated by the International Monetary Fund and EconStats [24] with figures in millions of Sierra Leones.
Year | Gross Domestic Product |
---|---|
1965 | 246 |
1970 | 355 |
1975 | 572 |
1980 | 1,155 |
1985 | 4,365 |
1990 | 98,386 |
1995 | 657,604 |
2000 | 1,330,429 |
Current GDP per capita of Sierra Leone grew 32% in the 1960s, reaching a peak growth of 107% in the 1970s. But this proved unsustainable and it consequently shrank by 52% in the 1980s and a further 10% in the 1990s.
The mean wage was US$0.32 per hour in 2009.
Rank | Sector | Percentage of GDP |
---|---|---|
1 | Agriculture | 58.5 |
2 | Other Services | 10.4 |
3 | Trade and tourism | 9.5 |
4 | Wholesale and retail trade | 9.0 |
5 | Mining and quarying | 4.5 |
6 | Government Services | 4.0 |
7 | Manufacturing and handicrafts | 2.0 |
8 | Construction | 1.7 |
9 | Electricity and water | 0.4 |
Two-thirds of the population of Sierra Leone are directly involved in subsistence agriculture. [22] Agriculture accounted for 58 percent national Gross Domestic Product (GDP) in 2007. [23]
Agriculture is the largest employer with 80 percent of the population working in the sector. [25] Rice is the most important staple crop in Sierra Leone with 85 percent of farmers cultivating rice during the rainy season [26] and an annual consumption of 76 kg per person. [27]
As of 2016, about 12% of the population of Sierra Leone had access to electricity. Of that 12%, 10% was in the capital Freetown, and the remaining 90% of the country used 2% of the nation's electricity. [28] The majority of the population relies on biomass fuels for their daily survival, with firewood and coal used most prevalently. [29] The burning of these sources has been reported to have adverse health effects on women and children. [29] A 2012 study was done on the correlation between Acute Respiratory Infection (ARI), and burning biomass fuels in the home. The results were that 64% of children were diagnosed with ARI where firewood stoves were used, and 44% where charcoal stoves were used. [29] The use of coal and firewood has also posed environmental concerns as they are both in conflict with the push for more sustainable sources of energy. [30] As a result, the commercialisation of firewood and coal has been a point of contention with aid donors and government agencies such as the Ministry of Energy and Water Resources and the Forestry Division. [30] There have been strong pushes for both solar and hydropower to become the dominant sources of energy in Sierra Leone because of the UN's Sustainable Development Goals, particularly goal number seven (affordable and clean energy). Sierra Leone's tropical climate, heavy annual rainfall, and abundance of rivers give it the potential to realistically pursue more solar and hydropower alternatives. [31]
In conjunction with the UK's Department for International Development (DFID), Sierra Leone has set the goal to provide solar power to all of its citizens by 2025. [32] This overarching goal has been broken down into smaller goals as well. The first of these goals is to provide solar power to at least 50,000 homes in 2016, the second is 250,000 homes by 2017, and finally to provide power to 1,000,000 people by 2020. [32] This initiative falls under the Energy Africa access campaign which seeks to provide electricity to 14 different African countries by 2030. [28] Previous to this compact agreement, Sierra Leone's private sector for solar energy was weak, as it provided energy to less than 5% of the target population. [28] Part of the reason for this was due to the import duties and taxes and the lack of quality control. [28] To ensure that the Energy Africa goal is met, Sierra Leone has agreed to remove its import duties and Value Added Tax (VAT) on certified solar products. [32] This change will attempt to encourage foreign investment while providing affordable, quality solar products to its citizens. It is estimated that there will be a 30% to 40% cost reduction on solar products with the lack of duties and taxes. [28]
Rich in minerals, Sierra Leone has relied on the mining sector in general, and diamonds in particular, for its economic base. In the 1970s and early 1980s, economic growth rate slowed because of a decline in the mining sector. Financially disadvantageous exchange rates and government budget deficits led to sizable balance-of-payments deficits and inflation.
Certain policy responses to external factors as well as implementations of aid projects and maintenance have led to a general decline in economic activity and a serious degradation of economic infrastructures. Sierra Leone's short-term prospects depend upon continued adherence to International Monetary Fund programs and continued external assistance.
Radio is the most-popular and most-trusted media source in Sierra Leone, with 72% of people in the country listening to the radio daily. Sierra Leone is home to one government-owned national radio station and roughly two dozen private radio stations, as well as one government-owned and one private TV station.
Telephone and telegraph services are marginal, but improving. Internet usage is low, reaching just 1.3% of the population in 2012, but improving with growth in 3G mobile cellular data services and the mid-2011 arrival of the ACE international fiber-optic cable system in Freetown.
According to the International Labour Organization, approximately 8,000 Sierra Leoneans are employed in the tourism industry, with a growing number of jobs expected to be created in the future. The main entrance point is Freetown International Airport, where transport to and from has been problematic. The main attractions for tourist in Sierra Leone are the beaches, nature reserves and mountains. [36]
Because of widespread poverty, high petroleum prices and a large portion of the population residing in small communities, walking is often the preferred method of transportation in Sierra Leone. There are 11,700 kilometres (7,270 mi) of highway in Sierra Leone, of which 936 km (582 mi) are paved.
There are 800 km (497 mi) of waterways in Sierra Leone, of which 600 km (373 mi) are navigable year-round. Major ports of Sierra Leone include: Bonthe, Freetown and Pepel. Queen Elizabeth II Quay in Freetown represents the country's only deep water port facility capable of berthing large-hulled cargo or military vessels.
There are ten airports in Sierra Leone, of which one - Lungi International Airport in Freetown - has a paved runway in excess of 3000m in length. Of the remaining airports, all of which have unpaved runways, seven have runways of lengths between 914 and 1,523 m (2,999 and 4,997 ft); the remaining two having runways of shorter length. There are two heliports in the country.[ where? ]
Mineral exports remain Sierra Leone's principal foreign exchange earner. Sierra Leone is a major producer of gem-quality diamonds. Though rich in this resource, the country has historically struggled to manage its exploitation and export. Annual production estimates range between $70–$250 million; however, only a fraction of that passes through formal export channels (1999: $1.2 million; 2000: $16 million; 2001: projections $25 million). The balance is smuggled out and has been used to finance rebel activities in the region, money laundering, arms purchases, and financing of other illicit activities, leading some to characterize Sierra Leone's diamonds as a "conflict resource."
Recent efforts on the part of the country to improve the management of the export trade have met with some success. In October 2000, a new UN-approved export certification system for exporting diamonds from Sierra Leone was put into place that led to a dramatic increase in legal exports. In 2001, the Government of Sierra Leone created a mining community development fund, which returns a portion of diamond export taxes to diamond mining communities. The fund was created to raise local communities' stake in the legal diamond trade.
Sierra Leone has one of the world's largest deposits of rutile, a titanium ore used as paint pigment and welding rod coatings. Sierra Rutile Limited, fully owned by Nord Resources of the United States, began commercial mining operations near Bonthe in early 1979. Sierra Rutile was then the largest non-petroleum U.S. investment in West Africa. The export of 88,000 tons realized $75 million for the country in 1990.[ citation needed ]
The company and the Government of Sierra Leone concluded a new agreement on the terms of the company's concession in Sierra Leone in 1990. Rutile and bauxite mining operations were suspended when rebels invaded the mining sites in 1995. Negotiations for reactivation of rutile and bauxite mining are in progress. The U.S. interest in the company has been reduced to 25%.
Since independence, the Government of Sierra Leone has encouraged foreign investment, although the business climate suffers from uncertainty and a shortage of foreign exchange because of civil conflicts. Investors are protected by an agreement that allows for arbitration under the 1965 World Bank Convention. Legislation provides for transfer of interest, dividends, and capital.
The currency is the leone. The central bank of the country is the Bank of Sierra Leone which is in the capital, Freetown. The country operates a floating exchange rate system, and foreign currencies can be exchanged at any of the commercial banks, recognized foreign exchange bureaux and most hotels. Credit card use is limited in Sierra Leone, though they may be used at some hotels and restaurants. There are a few internationally linked automated teller machines that accept Visa cards in Freetown operated by ProCredit Bank.
Sierra Leone is a member of the Economic Community of West African States (ECOWAS). With Liberia and Guinea, it formed the Mano River Union (MRU) customs union, primarily designed to implement development projects and promote regional economic integration.
The MRU has so far been inactive because of domestic problems and internal and cross-border conflicts in all three countries. The future of the MRU depends on the ability of its members to deal with the fallout from these internal and regional problems.[ citation needed ]
Sierra Leone is a member of the WTO.
GDP: purchasing power parity - $11.55 billion (2017 est.)
GDP - real growth rate: 3.7% (2017 est.)
GDP - per capita: $1,600 (2017 est.)
Gross national saving: 10% of GDP (2017 est.)
GDP - composition by sector:
agriculture: 60.7% (2017 est.)
industry: 6.5% (2017 est.)
services: 32.9% (2017 est.)
Population below poverty line:: 70.2% (2004 est.)
Distribution of family income - Gini index: 34 (2011)
Inflation rate (consumer prices): 18.2% (2017 est.)
Labor force: 2.972 million (2017 est.)
Labor force - by occupation:
agriculture: 61.1% (2014 est.)
industry: 5.5% (2014 est.)
services: 33.4% (2014 est.)
Unemployment rate: 15% (2017 est.)
Budget:
revenues: 562 million (2017 est.)
expenditures: 846.4 million (2017 est.)
Budget surplus (+) or deficit (-): -7.9% (of GDP) (2017 est.)
Public debt: 63.9% of GDP (2017 est.)
Industries: diamond mining; iron ore, rutile and bauxite mining; small-scale manufacturing (beverages, textiles, footwear)
Industrial production growth rate: 15.5% (2017 est.)
electrification: total population: 5% (2013)
electrification: urban areas: 11% (2013)
electrification: rural areas: 1% (2013)
Electricity - production: 300 million kWh (2016 est.)
Electricity - production by source:
fossil fuel: 23%
hydro: 51%
nuclear: 0%
other renewable: 26% (2017)
Electricity - consumption: 279 million kWh (2016 est.)
Electricity - exports: 0 kWh (2016 est.)
Electricity - imports: 0 kWh (2016 est.)
Agriculture - products: rice, coffee, cocoa, palm kernels, palm oil, peanuts, cashews; poultry, cattle, sheep, pigs; fish
Exports: $808.4 million (2017 est.)
Exports - commodities: iron ore, diamonds, rutile, cocoa, coffee, fish
Exports - partners: Cote dIvoire 37.7%, Belgium 20.5%, US 15.7%, China 10.2%, Netherlands 6.1% (2017)
Imports: $1.107 billion (2017 est.)
Imports - commodities: foodstuffs, machinery and equipment, fuels and lubricants, chemicals
Imports - partners: China 11.5%, US 9.2%, Belgium 8.8%, UAE 7.7%, India 7.4%, Turkey 5.2%, Senegal 5.1%, Netherlands 4.3% (2017)
Debt - external: $1.615 billion (31 December 2017 est.)
Reserves of foreign exchange and gold: $478 million (31 December 2017 est.) [37]
The economy of Burundi is $3.436 billion by gross domestic product as of 2018, being heavily dependent on agriculture, which accounts for 32.9% of gross domestic product as of 2008. Burundi itself is a landlocked country lacking resources, and with almost nonexistent industrialization. Agriculture supports more than 70% of the labor force, the majority of whom are subsistence farmers.
The economy of Chad suffers from the landlocked country's geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including livestock herding. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Bank, and other sources is directed mainly at improving agriculture, especially livestock production. Because of a lack of financing, the development of oil fields near Doba, originally due to finish in 2000, was delayed until 2003. It was finally developed and is now operated by ExxonMobil. Regarding gross domestic product, Chad ranks 147th globally with $11.051 billion as of 2018.
The economy of the Dominican Republic is the seventh largest in Latin America, and is the largest in the Caribbean and Central American region. The Dominican Republic is an upper-middle income developing country with important sectors including mining, tourism, manufacturing, energy, real estate, infrastructure, telecommunications and agriculture. The Dominican Republic is on track to achieve its goal of becoming a high-income country by 2030, and is expected to grow 79% in this decade. The country is the site of the single largest gold mine in Latin America, the Pueblo Viejo mine. Although the service sector is currently the leading employer of Dominicans, agriculture remains an important sector in terms of the domestic market and is in second place in terms of export earnings. Tourism accounts for more than $7.4 billion in annual earnings in 2019. Free-trade zone earnings and tourism are the fastest-growing export sectors. A leading growth engine in the Free-trade zone sector is the production of medical equipment for export having a value-added per employee of US$20,000, total revenue of US$1.5 billion, and a growth rate of 7.7% in 2019. The medical instrument export sector represents one of the highest-value added sectors of the country's economy, a true growth engine for the country's emerging market. Remittances are an important sector of the economy, contributing US$8.2 billion in 2020. Most of these funds are used to cover household expenses, such as housing, food, clothing, health care and education. Secondarily, remittances have financed businesses and productive activities. Thirdly, this combined effect has induced investment by the private sector and helps fund the public sector through its value-added tax. The combined import market including the free-trade-zones amounts to a market of $20 billion a year in 2019. The combined export sector had revenues totaling $11 billion in 2019. The consumer market is equivalent to $61 billion in 2019. An important indicator is the average commercial loan interest rate, which directs short-term investment and stimulates long-term investment in the economy. It is currently 8.30%, as of June 2021.
The economy of Eritrea has undergone extreme changes after the War of Independence. It experienced considerable growth in recent years, indicated by an improvement in gross domestic product in 2011 of 8.7 percent and in 2012 of 7.5% over 2011, and has a total of $8.090 billion as of 2020. However, worker remittances from abroad are estimated to account for 32 percent of gross domestic product.
The economic activity of the Federated States of Micronesia consists primarily of subsistence agriculture and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the US is the primary source of revenue, with the US pledged to spend $1.3 billion in the islands in 1986–2001. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.
The economy of Gabon is characterized by strong links with France, large foreign investments, dependence on skilled foreign labor, and decline of agriculture. Gabon on paper enjoys a per capita income four times that of most nations of Africa, but its reliance on resource extraction industry fail to release much of the population from extreme poverty, as much of 30% of the population lives under the poverty threshold.
The economy of Grenada is largely tourism-based, small, and open economy. Over the past two decades, the main thrust of Grenada's economy has shifted from agriculture to services, with tourism serving as the leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and mace. Other crops for export include cocoa, citrus fruits, bananas, cloves, and cinnamon. Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export.
The economy of Kyrgyzstan is heavily dependent on the agricultural sector. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. According to Healy Consultants, Kyrgyzstan's economy relies heavily on the strength of industrial exports, with plentiful reserves of gold, mercury and uranium. The economy also relies heavily on remittances from foreign workers. Following independence, Kyrgyzstan was progressive in carrying out market reforms, such as an improved regulatory system and land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Kyrgyzstan's economic performance has been hindered by widespread corruption, low foreign investment and general regional instability. Despite those issues, Kyrgyzstan is ranked 70th on the ease of doing business index.
The economy of Malawi is $7.522 billion by gross domestic product as of 2019, and is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries. In 2017, agriculture accounted for about one-third of GDP and about 80% of export revenue. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational and health facilities, to face up to environmental problems of deforestation and erosion, and to deal with the problem of HIV/AIDS in Africa. Malawi is a least developed country according to United Nations.
The economy of Mali is based to a large extent upon agriculture, with a mostly rural population engaged in subsistence agriculture.
The economy of Mongolia has traditionally been based on agriculture and livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Soviet assistance, at its height one-third of Gross domestic product (GDP), disappeared almost overnight in 1990–91, in the time of the collapse of the Soviet Union. Mongolia was driven into deep recession.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of the Republic of the Congo is a mixture of subsistence hunting and agriculture, an industrial sector based largely on petroleum extraction and support services. Government spending is characterized by budget problems and overstaffing. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Nowadays the Republic of the Congo is increasingly converting natural gas to electricity rather than burning it, greatly improving energy prospects.
The economy of Senegal is driven by mining, construction, tourism, fishing and agriculture, which are the main sources of employment in rural areas, despite abundant natural resources in iron, zircon, gas, gold, phosphates, and numerous oil discoveries recently. Senegal's economy gains most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services. As one of the dominant parts of the economy, the agricultural sector of Senegal is highly vulnerable to environmental conditions, such as variations in rainfall and climate change, and changes in world commodity prices.
The economy of Madagascar is US$9.769 billion by gross domestic product as of 2020, being a market economy and is supported by an agricultural industry and emerging tourism, textile and mining industries. Malagasy agriculture produces tropical staple crops such as rice and cassava, as well as cash crops such as vanilla and coffee.
The economy of Fiji is one of the most developed among the Pacific islands. Nevertheless, Fiji is a developing country endowed with forest, mineral and fish resources. The country has a large agriculture sector heavily based on subsistence agriculture. Sugar exports and the tourism industry are the main sources of foreign exchange. There are also light manufacturing and mining sectors.
A per capita GDP of $3,200 ranks Solomon Islands as a lesser developed nation. Over 75% of its labour force is engaged in subsistence farming and fishing.
The economy of Papua New Guinea (PNG) is largely underdeveloped with the vast majority of the population living below the poverty line. However, according to the Asian Development Bank its GDP is expected to grow 3.4% in 2022 and 4.6% in 2023. It is dominated by the agricultural, forestry, and fishing sector and the minerals and energy extraction sector. The agricultural, forestry, and fishing sector accounts for most of the labour force of PNG while the minerals and energy extraction sector, including gold, copper, oil and natural gas is responsible for most of the export earnings.
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. The economy grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before. Real GDP growth is expected to average 6.5% in 2024–25.
The mining industry of Sierra Leone accounted for 4.5 percent of the country's GDP in 2007 and minerals made up 79 percent of total export revenue with diamonds accounting for 46 percent of export revenue in 2008. The main minerals mined in Sierra Leone are diamonds, rutile, bauxite, gold, iron and limonite.