Leone Depreciation Affects Cross-Border Trade
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By: Christian Conteh
The National President of the Market Women Association of Sierra Leone, Marie Bob-Kandeh has expressed her concern about the impact of the current economic situation on cross-border trade with Guinea, specifically highlighting the depreciation of the Sierra Leonean Leone. Speaking on behalf of the market women, Bob-Kandeh emphasized the persistent challenges that continue to affect their livelihoods.
Bob-Kandeh explained, “Inflation has become the greatest problem faced by market women in the current economic situation. We find ourselves powerless and frustrated due to the unpredictability of prices, which can significantly increase overnight.” This instability adds to the difficulties faced by market women and makes it even harder for them to sustain their businesses.
Other market women shared their experiences of challenges faced in doing business across the Guinea-Sierra Leone border. Fatmata Kamara, a market trader, expressed her concerns, “The depreciation of the Leone has affected our ability to trade with Guinea. It has become more difficult to exchange goods and conduct business transactions due to the differences in currency values.” Aminata Sesay, another market woman, added, “The fluctuating exchange rates make it harder for us to plan and make profits from cross-border trade. We are constantly worried about the financial risks involved.”
Accessing loan facilities was another obstacle mentioned by Bob-Kandeh. She pointed out that the exorbitant interest rates and collateral requirements make it nearly impossible for most market women to secure financial assistance, further hindering their ability to engage in cross-border trade.
Bob-Kandeh highlighted the importance of addressing the depreciation of the Leone against the Guinean currency. She stated, “The disparity between the two currencies has significantly impacted cross-border trade between Sierra Leone and Guinea. It hampers economic exchanges and affects the livelihoods of market women involved in such trade.”
In addition to the depreciation issue, Bob-Kandeh criticized the ineffectiveness of the ECOWAS trade liberalization scheme and other international treaties. She called for urgent measures to address the issue of the Leone’s value and urged the government to prioritize the well-being and economic stability of market women engaged in cross-border trade. The voices of other market women resonated with Bob-Kandeh’s concerns, as they all stressed the need for the government to take immediate action to support and facilitate cross-border trade.
Only by addressing the challenges faced by market women in cross-border trade and implementing effective measures to stabilize the currency value can Sierra Leone create an enabling environment that supports the growth and prosperity of this vital sector and the nation as a whole.
