Paper long abstract:

Capacity gaps and weaknesses in the policy, research, training and advocacy elements in the operations of the various stakeholders in the extractive sector have hindered the meaningful contribution of the sector to development and poverty reduction in Sierra Leone. The overall objective of the assessment is to identify weaknesses and gaps in the administration of the extractive sector in Sierra Leone with a view to strengthening the stakeholder institutions for effective management, monitoring, and utilization of revenues from the country’s natural resources. The assessment covers the major stakeholders in extractive sector governance including state institutions, civil society organizations, the media, academic institutions, international financial institutions, and mining corporations.

The key policy issues considered include the transparent and accountable generation and use of revenue from mineral resources, equitable distribution of revenues from mineral resources, Freedom of Information Act to enable citizens access information, public participation and expert review of state policies, payment of appropriate royalties by companies for extracting mineral resources through a review of the fiscal regime and annual audit of companies and other stakeholders managing mineral resource revenues, and the capacity of CSOs to monitor key stakeholders.

The key capacity gaps of the various stakeholders includes, the lack of public participation in the drafting of mining agreements/contracts, the lack of a freedom of information act that would ensure full access to information by the public, the absence of an arrangement that would ensure equal distribution of revenues, inadequate funding of research institutions and outdated training facilities, slow pace of EITI implementation, weak civil society coalitions, the failure of international financial institutions like the World Bank and IMF to endorse the mandatory revenue disclosure by mining companies as a condition for the granting of loans, among others.

Key recommendations for the effective performance of the extractive sector are (1) Review of all mining policies, agreements/contracts by government in consultation with all stakeholders (2) The enactment by the legislature of a Freedom of Information Bill that would ensure easy access to information (3) The EITI should be fully implemented as a matter of urgency (4) CSOs should improve their visibility by becoming more proactive in all matters of state governance, not least, the equitable distribution of mineral resource revenues and (5) Research institutions should be mainstreamed in civil society advocacy. Such a paradigm shift is necessary for effective dialogue between government and civil society.

The paper contains the country profile, with an overview of the location, physical geography, population, economy and ethnic composition, as well as its membership in global and regional organizations. It gives a profile of the country’s mineral resources, and the role in the national economy, including contribution to GDP, foreign exchange and employment. The country’s mineral resource governance arrangement is presented, and relating to government agencies, and non-state actors, like the media, CSOs, academic institutions, the private sector, and international financial institutions responsible for the management of mineral resources are discussed. The national and global initiatives to improve transparency and the role of the legislature are also considered. The country’s budget processes and systems as well as the fiscal regime for mineral resources are presented and a SWOT analysis of all stakeholders targeted in the assessment, including state institutions, CSOs, academic institutions, the media, mining corporations, and international financial institutions. An analysis of stakeholder capacity gaps in the policy, research, training, and advocacy domain is presented with the key findings and recommendations on policy, research, training, and advocacy.