Civil Society Organisations (CSOs) operating in the extractives sector in Sierra Leone, particularly those serving on the Multi-Stakeholder Group in the Extractive Industry Transparency Initiative (EITI), have raised significant concerns regarding the establishment of the Sovereign Wealth Fund.
This fund, a vision promoted by President Julius Maada Bio, aims to ensure Sierra Leone benefits more transparently and effectively from its mineral wealth. However, CSOs are urging for greater transparency and inclusivity in the process.
One of the primary concerns from civil society is the lack of information about the independent management firm contracted to work with the Sovereign Wealth Fund. CSOs are calling for the disclosure of the names of the individuals and entities behind this firm because they believe that without knowing who is managing the fund, it will be challenging to ensure accountability and transparency. This call for transparency extends to the recruitment process of the independent management firm. CSOs are demanding that the process involves consultations with all relevant stakeholders, including mining companies and advocacy groups within the extractives sector.
The role of Parliament in ensuring due diligence is crucial in this context. Parliament must oversee the establishment of the Sovereign Wealth Fund to guarantee that all procedures are transparent and that the fund is managed in a manner that benefits the country. This includes scrutinising the selection of the independent management firm and the guidelines for the fund’s operations. Parliamentary oversight can help prevent potential mismanagement and ensure that the fund operates with the highest standards of integrity and accountability.
The Ministry of Mines and Mineral Resources has also come under scrutiny for its role in the process. There is a perception that the ministry has failed to effectively manage the country’s mineral resources, contributing to the current lack of transparency and accountability in the sector. Civil society groups argue that without significant reforms in the Ministry of Mines and Mineral Resources, the Sovereign Wealth Fund may not achieve its intended goals. They are calling for the ministry to play a more active role in ensuring that the fund is set up and managed transparently, with the involvement of all relevant stakeholders.
Minister of Finance, Sheku Fantamadi Bangura, has highlighted the importance of the Sovereign Wealth Fund in accruing more money from the mining sector and changing Sierra Leone’s approach to its mineral wealth. He acknowledged that the country has not benefited as much as it should from its resources and emphasised that the establishment of the fund would bring more transparency to the sector.
According to Minister Bangura, the fund is expected to address the loopholes in the current mining laws and enhance the robustness of capital raising for the government. He stressed that the fund would ensure it is no longer “business as usual” in the mining sector, ultimately benefiting future generations.
As the government works towards the establishment of the Sovereign Wealth Fund, the concerns of civil society must be addressed. Ensuring a transparent and inclusive process will not only build trust among stakeholders but also maximise the potential benefits from Sierra Leone’s mineral wealth.
The engagement of an independent management firm, along with the input from expert consultants, should be conducted openly, with regular updates and consultations involving all relevant parties. This approach will help build a robust framework for the fund, supporting the country’s economic development and ensuring that its mineral resources benefit all citizens.
The establishment of the Sovereign Wealth Fund is a critical step towards ensuring that Sierra Leone can effectively manage its mineral wealth and use it to support national development. By addressing the concerns raised by civil society and ensuring that all processes are transparent and inclusive, the government can build a fund that truly benefits the people of Sierra Leone. This will require a collaborative effort from all stakeholders, including Parliament, the Ministry of Mines and Mineral Resources, and civil society, to ensure that the fund operates with the highest standards of integrity and accountability.
