General background

Sierra Leone is situated on the Golf of Guinea in Western Africa. The country is coming out of a decade-long civil war (1991-2001) and a severe humanitarian crisis.

Sierra Leone counted about 5.2 million inhabitants in 2002, with an average per capita income of 140 US$/year (World Bank data). Covering 71,740 km², the current population density is about 72 inhabitants/km².

The country is still facing a complex post-conflict situation, marked by depleted infrastructure, a depressed economy and weak institutions. According to the UNDP, about 75 % of the population of Sierra Leone are living below the poverty line of 2 US$/day.

Political situation

Since the civil war was declared over in January 2002, the internal situation has progressively normalised. Democratic elections were held in May 2002, resulting in the re-election of President Kabbah for a 5-year period. With the support of the international community, the new government has made considerable efforts to restore public administration over the entire territory, to enhance democracy and the rule of law, to undertake structural reform and to promote economic growth.

The consolidation of peace and internal stability is a priority of the government and has been addressed by an ambitious reform programme for the national security forces. National reconciliation is another crucial issue and will greatly depend on the efficient action of the International Court for Sierra Leone, pursuing war crimes and crimes against humanity during the civil war, and of the Truth and Reconciliation Commission which is organising public hearings of victims of the war. The successful re-integration of ex-combatants is an additional important factor for reconciliation and stability.

In a formal declaration published on 25 March 2003, the presidency of the European Union has expressed its strong support to the Special Court for Sierra Leone in its crucial task to bring the main perpetrators of serious violations of international humanitarian law in Sierra Leone to justice.

Economic situation

Sierra Leone’s economy is little diversified and remains highly dependent on the primary sector (agriculture, mining). However, economic performance was surprisingly good over the last few years and resulted in considerable economic growth. Having declined by an average rate of 6% per annum from 1995 to 1999, the GDP turned to a 3.0% growth in 2000. This positive trend continued in 2001 with an estimated GDP growth of 5.4%. For 2002, economic growth is estimated at 6.3 %, the inflation rate being reduced to 3.9% (World bank data).

However, fiscal revenues had to cover increasing public expenditure in 2002, resulting in an overall deficit of 17.9% of GDP (excluding grants). External budget support might thus be further necessary to cover the primary deficit and to allow to cope with the cost of reconstruction and economic recovery and the implementation of a comprehensive Poverty Reduction Strategy.

As Sierra Leone’s main trading partner, the European Union accounts for about 70% of exports and 45% of imports. Rough diamonds were an important export commodity in the past. However, illegal mining and export of diamonds have been a major source for fuelling the civil war the country has faced in the preceding decade. Further to the introduction of a diamond certification scheme compatible with the Kimberley Process, in October 2000, Sierra Leone is currently making considerable efforts to more effectively control its diamond sector.

The Sierra Leone Government is committed to an economic and institutional reform programme, supported by the Bretton Woods Institutions and other donors including the European Commission. Ranking amongst the least developed countries, Sierra Leone has gained access to debt relief under the HIPC initiative, having reached the decision point in March 2002.

Source: European Commission, External Relations, 2007