By Juliana Adama Vandy, Stratcom – MOICE
On Tuesday, January 14th, 2025, during the weekly government press briefing, the Minister of Trade and Industry, Ibrahim Alpha Sesay, updated journalists on the new pricing formula aimed at reducing rice prices in the country.
The minister explained that to effectively control or regulates the prices of essential commodities; the government needs to establish a supportive policy. He noted that recent global challenges, particularly the conflict between Ukraine and Russia, have impacted grain supply from some of the world’s leading producers, and this situation has made it difficult for countries like Sierra Leone to manage or mitigate rising prices for these products.
Additionally, the trade minister furthered that other goods being transported through Ukraine and Russia have also been affected by these circumstances. “Due to the challenges, including significant increases in transportation costs caused by changes in supply routes, as well as rising petroleum prices and additional import costs, consumers ultimately bear the burden,” he elaborated. “We understand that if this trend continues, it could jeopardize the peace and stability of our country as has happened elsewhere on the continent.
As a response, he disclosed that the ministry proposed a temporary solution following guidance from the Economic Management Committee chaired by the president.
He explained that the government began by subsidizing petroleum prices to lessen the impact on the costs of related commodities. In collaboration with oil marketing companies, they successfully developed a pricing formula for petroleum products. He praised the companies for their support throughout the process and confirmed that a similar approach is being implemented for rice.
Minister Ibrahim Sesay mentioned that the government has been diligently working with rice importers in Sierra Leone for nearly eight months to establish an acceptable pricing formula. Extensive consultations, according to him, were held to achieve a balance between government revenue generation, consumer welfare, and business profitability. During this process, both institutional and private costs were taken into account, leading to an agreement on rice pricing. He expressed gratitude to the importers for their cooperation.
“Initially, they agreed on a wholesale purchase price of NLe 840 per 50 kg. However, after further discussions, importers agreed on a price of NLe 800, which will decrease to NLe 779 per 50 kg within the next two weeks,” the minister informed.
He said that he is currently engaging with the Ministry of Transport and Aviation to address transportation issues, which will inform the final retail prices based on location. “For a country to maintain stability, its citizens must be able to afford food and move freely. That is why our government is focused on stabilizing the prices of these essential commodities.”
Minister Sesay further assured that no one will arbitrarily raise prices on these items, as a responsible committee will convene to review any factors influencing price changes and agree on new rates. “Going forward, the process will be transparent,” he concluded.
