Economy

Sierra Leone is slowly emerging from a protracted civil war and is showing signs of a successful transition. Investor and consumer confidence continue to rise, adding impetus to the country’s economic recovery. There is greater freedom of movement and the successful re-habitation and resettlement of residential areas.
Rich in minerals, Sierra Leone has relied on mining, especially diamonds, for its economic base. The country is among the top 10 diamond producing nations in the world. Mineral exports remain the main foreign currency earner. Sierra Leone is a major producer of gem-quality diamonds. Though rich in diamonds, it has historically struggled to manage their exploitation and export.

Diamond miners in Kono District

Annual production of Sierra Leone's diamond estimates range between $250–300 million US$. In October 2000, a UN-approved certification system for exporting diamonds from the country was put in place and led to a dramatic increase in legal exports. In 2001, the government created a mining community development fund (DACDF), 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. By the 1990s economic activity was declining and economic infrastructure had become seriously degraded.

Over the next decade much of the formal economy was destroyed in the country’s civil war. Since the end of hostilities in January 2002, massive infusions of outside assistance have helped Sierra Leone begin to recover. Much of the recovery will depend on the success of the government's efforts to limit corruption by officials, which many feel was the chief cause for the civil war. A key indicator of success will be the effectiveness of government management of its diamond sector.
Despite its successes and development, the Sierra Leone economy still faces significant challenges. There is high unemployment, particularly among the youth and ex-combatants.

By Daiane Freire