By Hassan Osman Kargbo
In recent developments in Sierra Leone’s agricultural sector, Hicham El Zein, the Manager of Confidence Trading Company (CTC), has called on the government to stabilize the exchange rate in the country.
He made this disclosure 14th January 2025 at the Ministry of Information and Civic Education press conference held at the Miatta Conference Hall in Freetown.
According to him, the stability has notably influenced the wholesale price of rice, a staple food that plays a crucial role in the daily lives of Sierra Leoneans, adding that exchange rate fluctuations have historically led to erratic pricing and market unpredictability, making essential commodities like rice less accessible to the average consumer.
El Zein’s recognition of the government’s achievements reflects a broader sentiment among local traders and consumers who are burdened by rising costs.
The stabilization of the exchange rate is integral to restore market predictability, particularly for commodities that rely on imports, such as rice.
With a more stable exchange rate, importers can better forecast costs and set competitive prices. El Zein pointed out that a predictable market allows businesses like CTC to invest confidently in local rice production, which could bolster the agrarian economy and create job opportunities in a country where unemployment rates are still a pressing issue.
However, El Zein’s commendation comes with a caveat: the government must take further action to increase local rice production and lower production costs. Despite the benefits of a stable exchange rate, the local rice market is still challenged by high production costs and low competitiveness against cheaper imported options. This discrepancy highlights the urgent need for government intervention in enhancing agricultural infrastructure, providing subsidies, and offering technical assistance to local rice farmers.
Investing in local rice production not only promotes food security but also supports the national economy by reducing dependence on imports. By incentivizing local farmers and investing in modern agricultural techniques, Sierra Leone can increase its domestic rice production, ultimately leading to lower prices for consumers and a more resilient supply chain.
Furthermore, fostering partnerships between the government and private sector entities like CTC can lead to innovative approaches to production and distribution. Such collaborations can enhance market efficiency and ensure that consumers benefit from more stable and lower prices.
In conclusion, while the recent strides made by the Sierra Leonean government in stabilizing the exchange rate are laudable, the journey toward a more self-sufficient and competitive rice market is far from over. Stakeholders must work together to create a conducive environment for local production, making rice not just a staple food but a symbol of national pride and economic growth.
