How Foreign Debts Undermine Democracy in Sierra Leone
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Show notes
Between July 2021 and June 2023, United States Development Finance Corporation (DFC) approved over US$360 million in debts to supposedly finance critical infrastructure projects in Sierra Leone. The debts include US$150 million to the Summa Group for expansion of the Lungi international airport, and US$217 Million loan to Milele Energy and TCQ Power Limited; also to allegedly finance an electricity project in Freetown.
These critical infrastructure projects were awarded to the Summa Group, and Milele Energy and TCQ Power, without public knowledge, and without full compliance with Sierra Leone’s transparency laws and procurement regulations. Worse, majority of Sierra Leoneans are still unaware of the terms and conditions of these debt financing arrangements, including the interest rates attached to the loans. For one, the agreements granted exclusive proprietary rights over Sierra Leone’s strategic assets (the international airport, and the Kissy Terminal/Oil Refinery) to US and European financed corporations for 20-years.
Additionally, in September 2022, Sierra Leone’s Parliament unanimously revised the country’s 1960 Arbitration Law and passed a new Arbitration Act that mostly protects the proprietary rights of foreign companies and multinational corporations who secured recent mining concessions, and non-scrutinized and non-transparent debt-financing projects.
In this episode, we examine the impacts of non-transparent debt-financing arrangements on Sierra Leone’s democracy and electoral politics. We ask: why the United States Development Finance Corporation (DFC) approved nearly US$400 million in loans to supposedly fund critical infrastructure projects in Sierra Leone after the country’s auditor general had been unconstitutionally sacked? In general, how was Summa Group awarded the airport expansion contract? What is the history of Milele Energy and TCQ Power Limited in Sierra Leone? Why has Sierra Leone continuously experienced lack of electricity despite these huge multinational debts imposed on the country in the name of energy and electricity supply? What are the individual roles of Sierra Leone’s two recent presidents, Ernest Bai Koroma and Maada Bio, in these secretive multinational debt deals? Most importantly, how did secretive multinational debts affect the democratic conduct of elections in June 2023? Above all, is it possible to have free, fair, and transparent elections in any African country overloaded with enormous non-transparent debts?
This episode is part of the VOICE FROM EXILE commentary series of the Africanist Press.
