AMBASSADOR MEETINGS REVEAL INTERNATIONAL

C O N F I D E N T I A L SECTION 01 OF 03 FREETOWN 000049

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/07/2018
TAGS: ECON EFIN PGOV PINR PREL SL
SUBJECT: AMBASSADOR MEETINGS REVEAL INTERNATIONAL
COMMUNITY,S CONSISTENT VIEWS ON ISSUES FACING SIERRA LEONE

REF: FREETOWN 44

Classified By: Ambassador June Carter Perry for reasons 1.4(b) and (d)


1. (C) SUMMARY: A number of themes are emerging from the
Ambassador's recent meetings with members of the
International Community concerning economic and political
conditions in Sierra Leone. Specific common concerns were
raised by the Guinean and Nigerian envoys as well as by the
World Bank Representative. All centered on the extremely
fragile economic base currently evident in food shortages and
sharp price hikes. Observers agree that the new government of
President Koroma has made all the right promises - to end
corruption, to supply more energy and to tackle youth
unemployment. These goals are also reflected in the Peace
Building Commission Plan for Sierra Leone. Yet, they will
prove a difficult nut to crack unless the country's six
million people can first be able to feed themselves. We
concur with our diplomatic colleagues' assessments and, like
they, hope to do more through our governments and
institutions to avoid corrosion of national support for a
democratically-elected government. END SUMMARY.

MEETING WITH GUINEAN AMBASSADOR


2. (C) The Guinean Dean of the Diplomatic Corps, Lamin
Sompore has been in Sierra Leone nearly eight years. A former
security and police official in Conakry, Sompore has a long
history with, and understanding of, the country. During our
January 28 bilingual meeting (Sompore only speaks French)
Sompore noted that the economy faces significant problems
including high unemployment and the need to engage the
younger population in meaningful work. He also perceives the
rising inflation and costs of commodities as a problem, and
noted that it will be more difficult for families to support
themselves. Smuggling, in his view, is a known problem and
one that is difficult to curb at present. Sompore agreed with
Ambassador that there is a need for increased technical
assistance in the economic sector, particularly in addressing
unemployment and providing training for youths.


3. (C) Sompore supported the notion of good governance, and
cited the peaceful election as a positive sign for the
country. He stated, however, that the people are impatient
for the new government to make good on promises made during
the election period, and that the provision of electricity
alone is insufficient to appease them. He also noted that
the new President and his administration have limited
government experience, and will need to surround themselves
with knowledgeable advisors. He identified the President's
private sector background, but did not comment on how this
business acumen could be of potential benefit to the
development of the country. Sompore provided little insight
into the idea of harnessing the Mano River Union for
effecting change, but did state that "we are all one people."



4. (C) Besides holding a variety of civil service posts in
Guinea, Sompore was also a judge and the head of the law
enforcement training academy. While the purpose of this
particular meeting was not to discuss security, he might be a
useful contact in the future regarding border security issues
and the potential for cross-border law enforcement
cooperation.

MEETING WITH NIGERIAN CHARGE d'AFFAIRES


5. (C) Echoing the comments of his Guinean colleague, Dan
Wari Nwazim, Nigerian Charge d'Affaires (CDA),has a dim view
of the economic climate in Sierra Leone. He noted that Sierra
Leone is highly reliant on imports, and that fluctuating
global market prices have a deleterious impact on local
prices. Thus, the rising costs of various commodities hit
the economy of Sierra Leone particularly hard (see reftel).
The CDA raised an interesting point about rice, an important
staple whose price is currently on the rise. He stated that
while Sierra Leone produces rice, it is more expensive than
imported rice. Consumers have grown accustomed to the cost
and quality of imports, and are less inclined to support the
local rice market. Nwazim discussed unemployment, and the
issue of human capital in the country. He agreed with the
assessment that there is a general lack of depth with regards
to the labor market. This lack of depth, noted Ambassador,
is reflected in the limitations of the civil service.
Ambassador a
nd CDA discussed the need to support initiatives that will
enhance the civil service, to ensure that regular government
activities can be maintained regardless of elections and
other potentially distracting events.


6. (C) Nwazim reiterated the perception that the people of
Sierra Leone are impatient for change, and are putting

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significant pressure on the new government to quickly address
the various challenges facing the country. He noted that the
president inherited many issues from the past, and is only
now realizing that he cannot necessarily govern as he
envisioned, or as his campaign promises suggested. He stated
that the president should make clear to the people that it
will take several years before they will see a significant
improvement in their livelihoods.

MEETING WITH WORLD BANK REPRESENTATIVE


7. (C) Engilbert Gudmundsson's view of the Sierra Leone
economy is negative, and he expects continued poor
performance in 2008. He cited inflation and rising commodity
prices, as well as poor infrastructure for revenue generation
and collection as key problems. He also cited unemployment
and limited human capital as significant problems facing the
country.

- The World Bank is providing approximately $40 million to
support new initiatives. Roughly 10% of their funding in
Sierra Leone is direct budgetary support, and funds are also
directed to such sectors as water, agriculture, financial
reform, health, and education (Note: Gudmundsson will provide
written information regarding the exact figures in the near
future. End Note.). He indicated that they have two new,
large-scale projects set to commence in the areas of
agriculture and maternal/child health. He shared
Ambassador's concern that Sierra Leone is at the bottom of
the Human Development Index, as well as having the highest
infant mortality rates. Interestingly, he noted the cultural
practice of feeding newborns water within minutes of their
birth, and used this example to show the importance of
changing certain, harmful cultural behaviors.

- Reflecting his agreement with the views of the
international community, Gudmundsson expressed concern over
the underutilization of the ports. He noted that the duties
levied on goods brought to the port were prohibitively
expensive, and that Conakry is becoming the port of choice
for the sub-region (Note: He stated that importers using the
Conakry port pay only one fee, based on the number of
containers rather than the value of the containers' contents.
This increases its attractiveness to importers
substantially. End Note.). This represents a loss of revenue
for Sierra Leone, as goods that come to the country via
Conakry are often smuggled. Besides goods for the local
market, he stated that Sierra Leone's ports could serve
land-locked countries, if the duties were decreased and the
port enhanced its professionalism.


8. (C) While Gudmundsson discussed diamonds briefly, he views
the fishing industry as the true source of potential wealth
for the country. Ambassador noted that a large amount of
seafood is fished and sold by pirates, and thus has no
benefit for the Sierra Leonean people. He agreed with this
assessment, and noted that other countries have harnessed
their oceanic wealth for considerable financial gain. He
feels that effective engagement in this sector would vastly
increase the government's revenue.

- Gudmundsson noted that a generation of children experienced
interruptions in their schooling as a result of the war, and
that they lack informal schooling or vocational training to
now be productive members of the economy. He also shared his
view that this generation does not demonstrate an interest or
desire to join the economy in a meaningful and productive
way. The World Bank does contribute to a Youth Employment
Strategies program, but he did not provide an assessment of
that program's efficacy. Despite this discussion on the lack
of educational opportunities for those whose schooling was
interrupted by the war, he did applaud the government for
provided substantial funding to the educational system. He
stated that the government spends approximately 20% of its
budget on education.


9. (C) While Gudmundsson has an unfavorable impression of the
Ministry of Agriculture, he stated that he has faith in the
Ministry of Finance, which has a number of highly trained and
capable staff. He did identify a problem, however, in that
some of the employees are funded by the Bank. While
supporting the employment of skilled consultants is seen as
necessary, it creates tension between Bank-supported staff
and other civil servants. He further indicated that the
Government of Sierra Leone is showing more and more
ambivalence towards foreign consultants (Note: The Minister
of Finance's recent presentation of the budget to Parliament
included a statement that the law requiring foreign
consultants to pay taxes in Sierra Leone will now be
enforced. End Note.). The government's preference is to have
funds transferred to their ministries to conduct the
activities. Gudmundsson stated that acquiescing to this

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preference is not feasible, and that this is a regular topic
of discussion at donor meetings.

- Ambassador noted that regular donor meetings would be
invaluable in Sierra Leone, and Gudmundsson agreed. He
stated that several large contributors, such as the European
Commission and DFID, meet on a regular basis, but that he
sees a need to expand that group to include other
representatives. Such meetings were held previously, and the
time is ripe for their revival.


10. (C) Gudmundsson strongly supported the idea of Sierra
Leone eventually accessing financial support from the
Millennium Challenge Corporation. He and Ambassador agreed,
however, that failing to meet critical milestones related to
investing in people and good governance is problematic, and
could negatively impact the country's chances of receiving
this kind of grant. On an anecdotal note, Mr. Gudmundsson
agreed with Ambassador Perry's assessment that the conditions
of the roads have deteriorated in recent months. He
expressed concern about the Ministry's failure to improve
road conditions in and around Freetown in advance of the
rainy season.


11. (C) COMMENT: Visits to colleagues in the diplomatic corps
reveal consensus on the key issues currently facing Sierra
Leone, with the most pressing being the economy. Besides the
sentiments expressed by the Guinean Ambassador, Nigerian CDA,
and World Bank Representative, a recent roundtable of members
of the international community made clear that
representatives from the UN and other missions share these
views. All agree that the challenge for President Koroma's
administration will be to address longstanding and entrenched
problems like corruption, erratic price fluctuation, and
unemployment in a timely and action-oriented way that will
provide both short-term and long-term gains. Otherwise,
Koroma will face significant pressure and outcry from a
public desperate and impatient for change. END COMMENT.
PERRY