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Baseline Assessment Report

Leveraging Diaspora Remittances on Post Ebola Recovery in Sierra Leone

016/2015

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The contents of this report are the sole responsibility of the author and cannot be taken to reflect the views of the ACP Secretariat and its Member States governments, the European Commission or the International Organization for Migration.

Prepared by Awoleye J. Olatunji Date: 21st April, 2016

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Contents List of acronyms................................................................................................................................... 3

Executive summary .............................................................................................................................. 5 Introduction and background ............................................................................................................... 7 Overview of The State Of Affairs: Background Information on Ebola Virus Disease Outbreak 2014:

Trends, Magnitude and Dimensions .................................................................................................... 8 The Potential of Cash Transfer Programmes for Developing Countries ............................................. 9

Diaspora Remittances and Sierra Leone ............................................................................................ 10 Leveraging Diaspora Remittances: Some Guiding Issues for Developing Framework of Analysis

and Baseline Assessment Tool ........................................................................................................... 13 Objectives........................................................................................................................................... 13 Baseline Assessment Methodology ................................................................................................... 13

Assessment Results ............................................................................................................................ 15

State of Affairs ................................................................................................................................... 15

Dollarization of the Economy ............................................................................................................ 16 Availability of Relevant Legislation/Regulatory Framework ............................................................ 18 Related programme and project supporting the policy development ................................................ 20 Impact of Remittances ....................................................................................................................... 20 How Government can bridge the gap between migration and development ..................................... 21

Harnessing Remittances to Promote the Development of Sierra Leone ............................................ 21 Logical Framework ............................................................................................................................ 24 Key performance indicator ................................................................................................................. 26 Workplan ............................................................................................................................................ 28

Mapping of NSA stakeholders ........................................................................................................... 30

Analysis of key Stakeholders ............................................................................................................. 30

Feedback regarding the Technical Assistance Fiche ......................................................................... 32 Annexes .............................................................................................................................................. 34

Annex 1 – List of literature reviewed ................................................................................................ 34 Annex 2 – Questionnaires .................................................................................................................. 36 Annex 3 – List of key informants ...................................................................................................... 40

Annex 4 – Data on key Non-State Actors .......................................................................................... 44

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List of acronyms

A4P - Agenda for prosperity

AfDB - African development bank

BA - Baseline assessment

BCD - Bureau de change

CDC - Center for disease control and prevention

DFID - Department for International Development

ECOWAS - Economic Community of West Africa States

ERLBs - Exchange rate linked bonds

EVD - Ebola virus diseases

FGDs - Focus group interviews

GDP - Gross domestic product

HDI - Human Development Index

IMF - International Monetary Fund

IOM - International organization of migration

IPAD - Innovations for poverty action

KIIs - Key informant interviews

LDC - Least developed countries

ODA - Office of Diaspora Affairs

PPP - Proportion of population

PRSP - Poverty reduction strategy paper

S/Leone - Sierra Leone

SALPOST - Sierra Leone postal service

SLCU - Sierra Leone central union

SLIHS - Sierra Leone Integration Household survey

SLLFS - Sierra Leone Labour Force Survey

UNCTAD - United Nations Conference on Trade and Development

UNDP - United Nation Development Programme

USD - United States dollar

USD - United States Dollar

WB - World Bank

WHO - World Health Organization

NSA - Non-state actors

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Executive summary

In low-income countries, remittances from abroad are important source of income in sustaining people’s livelihood. They often contribute to fulfillment of basic needs such as paying school fees, house rent, purchasing food etcetera. The history of civil war in Sierra Leone that lasted for more than a decade cannot be separated from foreign currency inflows into the country through remittances today. Remittances in Sierra Leone are a lifeline to many households. During crises such as Ebola that affected Sierra Leone, remittances levels increase rapidly and in important quantities, and seem to have significant effects on coping capacity of the affected and infected. In the case of Sierra Leone, official report shows that there was a drop in funds inflows because most of the funds transferred came through informal market operators which cannot be accounted for. This further necessitates the need for regulatory framework and enforcement task force. In order to harness the gains from diaspora, the government of Sierra Leone established Office of Diaspora Affairs (ODA), with the aim of engaging Sierra Leone Diaspora in national development. The objectives include working with the government to address critical capacity gaps in the public sector by bringing diaspora professional and expert to deliver result in specific areas. ODA is mandated to create linkages between government of Sierra Leone and over 30% of the educated Sierra Leone nationals mostly in the Europe, UK and USA. However, ODA is incapacitated by absence of fundamental frameworks such as diaspora policy and framework for legal funds transfer. There exists a financial regulation document that consists of a section on remittances. The interview sections reveal that most informal market operators and non-state actors are not aware of financial regulatory framework. Although, the framework is known to formal market operators but they all acknowledged that it is overdue for review in order to regulate current trends. Illicit diamond trading that fuelled the civil war is still playing a significant role in informal market financial operation. Desk review and primary data showed that over 30% of financial inflows into Sierra Leone can be attributable to diamond smuggling. Also when cocoa produce is sold and sent overseas, the money is not returned to Sierra Leone in cash. The dealers divert the fund to other purposes, only few are used by the dealers to procure and import goods from overseas to Sierra Leone. This process therefore reduces accruable remittances to Sierra Leone. The study recognizes that informal market is huge and has created employment for many; particularly a tribe in Sierra Leone has built a career around it over the years such that any project on remittances must recognize and work with this group. There exist other nationals who possibly have naturalized and specialized in remittances management. Our interviews with Office of Diaspora Affairs Authority, Sierra Leone Postal Service (SALPOST), Bank of Sierra Leone and the World Bank Directors revealed that remittances can promote development. In collaboration with the four institutions we reviewed United Nations Development programme recommendations on the same subject in Sierra Leone and came up with the following: i. Provision of technical assistance to ODA to develop diaspora framework ii. Provision of technical assistance to Bank of Sierra Leone to develop diaspora remittance

policy and passed into law through the parliament iii. Work with Sierra Leone postal service to develop a nationally representative platform for

diaspora remittance

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iv. Creation of taskforce for regulatory and policy framework enforcement v. Formalization and incorporation of informal market into the framework. vi. Reduced limits on individual bank transactions to restrict the flow of cash into the informal

banking system (UNDP, 2009). vii. The extension of foreign exchange bureau licenses to allow such bureau to receive

remittances subject to a modest minimum capital requirement, a requirement to report total transfers received or sent as well as individual transfers in excess of US$10,000, or transfers to or from countries ‘blacklisted’ by the Financial Action Task Force. However, the license extension should not extend to deposit-taking or making loans, which bureau would continue to refer to licensed banks (UNDP, 2009).

viii. Public utility companies in Sierra Leone should offer for sale, through approved issuing banks in the UK and US, Exchange Rate Linked Bonds (ERLBs), in accordance with the Securities legislation of the UK and the US respectively. These would be payable in relatively small amounts, say US$100 per bond. Interest, at a rate of, say, 5%, and principal would be payable in Leones to a nominated beneficiary in Sierra Leone over a period of five to eight years. Interest and principal would increase in proportion to changes in the exchange rate between the Leone and the US$, so that the bonds would keep their effective dollar value. The maturity period should allow the issuing utility company to refinance ERLBs by placing longer term bonds on the Sierra Leone Stock Exchange. To assure the liquidity of ERLBs, their beneficiaries should be allowed to obtain early repayment of the principal by selling the bonds to the National Social Security and Investment Trust, at a discount of, say, 10% (UNDP, 2009).

ix. Citizens of Sierra Leone resident abroad should be allowed to open non-resident foreign currency bank accounts in licensed commercial banks in the country. Interest should be payable on these accounts at a rate slightly below the rate offered on ERLBs (UNDP, 2009).

x. Terminating credit societies, based on the traditional osusu system, to finance house building or school fees, should be established with the possibility of receiving contributions from Sierra Leone citizens living abroad. These should be registered and audited to prevent fraud (UNDP, 2009).

xi. To finance infrastructure repair and improvement and social services such as education and health, the Government of Sierra Leone should issue Diaspora Bonds in amounts of say US$100 each. These would have a maturity of between five and eight years and pay interest at a rate of, say, five per cent. Interest would be rolled up and paid together with principal in dollars on maturity. We recommend that matching loans be provided the World Bank and multilateral financing agencies.

xii. Eventual issue of foreign currency securities backed by the foreign exchange components of remittances and donor aid flows. The latter would require greater and longer-term commitments by aid donors (UNDP, 2009).

xiii. We recommend ‘milestones’ for financial development to support these new financial instruments, including report of data on remittances and target levels of foreign currency deposits with commercial banks; households with bank accounts; sovereign bond issuance by the Government of Sierra Leone to establish a benchmark credit rating for future securitization; reductions in diamond-smuggling; and the successful refinancing of ERLBs on the Sierra Leone Stock Exchange (UNDP, 2009).

xiv. Strong political will by the government to end or reduce operations of informal markets and diamond smuggling

xv. Cooperation between the Bank of Sierra Leone and other Central Banks in Africa, Asia and Latin America to share experience and build capability in managing informal banking and remittances (UNDP, 2009)

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Introduction and background

Country profile Sierra Leone is located on the Atlantic Ocean in West Africa and shares boundaries with Guinea in

the North and East; Liberia in the South (see figure 1 below). It has an estimated population of 6.3

Millions in 2014 and a total area of 71, 621 sq Km. Average annual population growths in 2005 –

2014 was 2.6% (World Bank, 2015: 52 – 53). Sierra Leone’s Human Development Index (HDI) rating

for 2013 was 0.374, placing the country 183rd out of 187. Between 1980 and 2013 Sierra Leone’s

HDI value increased from 0.276 to 0.374. The new 2014 estimate for 2013 remains 0.374 with any

gains in development likely to be reversed due to the impact of EVD on health (i.e. life expectancy

at birth), education (years of schooling) and standard of living (gross national income per capital)

(Zayid 2015).

Between 2010 and 2013 before the Ebola outbreak, Sierra Leone showed strong macroeconomic improvements including an accelerated economic growth. Sierra Leone made good economic and social progress over the immediate past years indicated by steady progress in per capita income, which was US$680 in 2013. In 2013, Sierra Leone ranked second among the top countries with the highest GDP growth in the world (albeit their base levels of GDP are very small to begin with) (GDP growth rates 4.5% in 2011, 15.3% in 2012, 20.9% in 2013 and 4.6% in 20141). A change in the composition of growth drivers from activities in agriculture, construction, manufacturing and services sector to an iron ore led growth characterized developments. Prior to this, growth in agriculture, construction, manufacturing and service sector averaged 5.7% per annum during 2010-2012. Total exports receipts increased by 56.9% from USD 1.065.47million in 2012, showing improvements in earnings from mineral exports, namely diamonds rutile and iron ore together with other exports (Zayid 2015).

In 2003, proportion of population living below $1 (PPP) a day was 53.4%, proportion of population

living below $2 (PPP) a day was 74.5%. In 2004, proportion of population living below national

poverty line was 66.4%. Poverty indicators derived from the 2004 Housing and Population Census

and the 2003/04 and 2011 Sierra Leone Integrated Household Survey (SLIHS) show that the

national-level severity of poverty declined by more than half from 14 percent in 2003 to 6.7

percent in 2011. The incidence and severity of poverty was highest in rural areas, with a severity

index of 9.1 percent compared to 2.8 percent in urban areas (Braima, et al, 2015: 20 – 24). The

rural/urban population breakdown was 61.6% rural to 38.4% urban in 2010 with Freetown

accounting for 40% of the urban population and regional development forming part of the

country’s Agenda for Prosperity (A4P). Overall, the poverty incidence was 52.9% in 2011, a decline

from 66.4% in 2003 (Zayid 2015).

UNCTAD (2012) data shows that over the past decade Sierra Leone has gradually increased its

merchandise exports from $158m in 2005 to $342m in 2010. The country then experienced an

export boom in the early part of this decade, reflecting high commodity prices. As a result

merchandise exports grew by 220% in 2012 and by a further 70.9% in 2013, to a total figure of

$1.917bn.

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http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-

last&sort=desc

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Figure 1: Map of Sierra Leone

Sandbox Networks, 2014 Overview of The State Of Affairs: Background Information on Ebola Virus Disease Outbreak 2014: Trends, Magnitude and Dimensions The Ebola Virus Disease (EVD) known as Ebola hemorrhagic fever, is a severe, often fatal illness in

humans. EVD is characterized by the sudden onset of fever, intense weakness, muscle pain,

headache and sore throat, followed by vomiting, diarrhea, rash, impaired kidney and liver

function, and in some cases, both internal and external bleeding. Ebola viruses are highly

transmissible by direct contact with infected blood, secretions, tissues, organs and other bodily

fluids from dead or living infected persons. Transmission via inanimate objects contaminated with

infected bodily fluids (fomites) is possible (CDC, 2014). According to the World Health

Organization, "there is no specific treatment or vaccine," and the fatality rate can be up to 90%

(WHO, 2014). Patients are given supportive care, which includes providing fluids and electrolytes

and food. The principal mode of transmission in human outbreaks is person-to-person

transmission through direct contact with a symptomatic or dead EVD case. Burial ceremonies and

handling of dead bodies play an important role in transmission (WHO, 2014).

Table 1: Overview of the caseload and deaths per country and area as of 13th March 2016

Country Number of suspected, probable &

laboratory confirmed) cases

Number of death

Liberia 10,675 4,809

Sierra Leone 14,124 3,956

Guinea 3,804 2,536

Nigeria 20 8

Mali 8 6

Senegal 1 0

Spain 1 0

United State of America 4 1

CDC, 2014

In addition to the enormous and tragic loss of human lives (see figure 2 below), the Ebola

epidemic had devastating effects on West African economies in a variety of essential sectors by

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halting trade, halting agriculture and scaring investors. “These economic impacts include the costs

of healthcare and forgone productivity of those directly affected but, more importantly, they arise

from the aversion behavior of others in response to the disease” (World Bank, 2014)

Figure 2: One of Ebola victim cemeteries in Freetown, Sierra Leone

The Sierra Leone economy was adversely hit by two major shocks in 2014: the outbreak of the Ebola Viral Disease (EVD) and the sharp drop in iron ore prices. The combined effect of these two shocks on economic activities weakened the growth potential of the economy and reversed some of the gains made in stabilizing the economy in 2013. As a result, the economic growth moderated to 7.1% compared to the pre-Ebola projection of 11.3% and the robust growth of 20.1% recorded in 2013. Economic growth is expected to slow to 6.0% in 2014 as an effect of Ebola (against an 11.3% projection. GDP growth is projected to go as low as -2.5% in 2015 and the economy is projected to recover slightly reaching 2.8% in 2016. Inflation revised upwards from 8.8% to 10% for 2014 and is projected at 9.4% and 8.3% for 2015 and 2016, respectively.

The Potential of Cash Transfer Programmes for Developing Countries

Migrant remittances, such as the money migrants send to their countries of origin from their host countries, are increasing significantly for West Africa (African Development Bank Group, 2015). In many low-income countries, remittances are important in sustaining people’s livelihood and become even more significant during disasters (Le De, et al, 2015). Remittances are a livelihood diversification strategy that people use to deal with their everyday struggle. They often contribute to the fulfillment of basic needs such as purchasing food, housing, equipment, and paying education fees. Remittances may reduce the level, depth, and severity of poverty. Indeed, remittances have often been described as a kind of self-insurance (Heath, 2009). During crises, remittances levels increase rapidly and in important quantities, and seem to have meaningful effects on both the short-term coping and longer-term recovery of disaster-impacted communities (Le De, et al, 2015). A study conducted by Anyanwu and Erhijakpor (2010) reviewed

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that that a 10 percent increase in official international remittances as a share of GDP leads to a 2.9 percent decline in the poverty headcount or the share of people living in poverty . Migration and remittances also affect labour supply directly or indirectly. On the one hand, outward migration reduces labour supply, which may put upward pressure on domestic wages in the short term (Le De, et al, 2015). The Diaspora should be considered not just as sources of financing, but as development partners (IOM, 2005). Remittances provide benefits at several levels. Many Diaspora prefer to invest in their own countries in establishing small businesses in the assumption that they might one day return and would need to have a source of local income. Such establishments invest in the purchase of land and assets, transfer of technology and skills, and relatively modernized approach to management and at times may also open up regional markets through value added cross-border trade. At the household level, recipients of remittances in Africa were found to have higher levels of education, were more likely to have some form of savings account and a higher level of savings than those who were not receiving money from abroad. Remittances had become an important means of Least Developed Countries (LDC) integration into the world economy even during the period when they were relatively marginalized in terms of world trade and investment flows (Ratha 2013, IMF 2005). In 2014, the amount of remittance into West Africa totaled US $26 billion (of which US $20.9 billion was sent to Nigeria) and amounted to 3.2% of the region’s GDP (African Development Bank Group, 2015). The magnitude of these transfers, which make West Africa the second recipient sub-region on the continent, reflects the size of the West African Diaspora, estimated at 9.1 million people in 2011, or 2.6% of the population of the region. This shows growing development of Diaspora in the development of West Africa. The financial volume of remittances sent by migrants to their countries of origin continues to increase; it is more significant in the time of disaster such as flood, earthquake and outbreak of disease like Ebola. In Sierra Leone, remittances increased by over 50% between 2013 and 2014 with the Ebola virus disease outbreak, some of these remittances have spillover effect on trade and infrastructures (African Development Bank Group, 2015).

Diaspora Remittances and Sierra Leone

By 2010 Stock of emigrants have risen from 119 thousands in 2005 to 267 thousands and further increased to 336 thousands in 2013 (World Bank 2015:52 - 53); Stock of emigrants as percentage of population increased to 5.4% in 2013 from 1.4% 2005 figures (UNDP, UNHCR Development Prospects Group2). In 2005, top 10 destination countries were United States, United Kingdom, Germany, Liberia, Nigeria, Spain, Netherlands, Gambia, Canada, Italy. By 2010 the top destination countries were: Guinea, the United Kingdom, the United States, Liberia, Germany, the Netherlands, Nigeria, The Gambia, Canada, and Australia. It was estimated that about US$25million was remitted to Sierra Leone in 2005 (Rakotia and Addy

2008). As at 2007, US$168 million has been sent to Sierra Leone which is a considerable increase in

such a short space of time (IFAD, 2007). However, it is thought that the true figure would be

significantly higher, if remittance inflows through informal channels were to be included (AfDB,

2015). Remittances have had a pronounced impact and effect on GDP growth, particularly after

the conflict. The EVD outbreak caused a significant surge in remittances in 2014 (AfDB, 2014).

2 http://www.worldbank.org/prospects/migrationandremittances

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Figure 3 shows average annual growth rate in remittances from 2002 to 2011, Sierra Leone is

second highest among countries represented.

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Figure 3: Average Annual Growth Rate in Remittances 2002–2011

Source: UNCTAD, 2012: 76

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Leveraging Diaspora Remittances: Some Guiding Issues for Developing Framework of Analysis and Baseline Assessment Tool According to UNDP (2011), the following guiding issues were considered paramount for developing framework of analysis that make the most of remittances on improving infrastructure for sending and receiving money, these are: a) good economic policies at national level; b) political stability and improvements in the investment climate in origin countries; c) improvements in migrants’ access to the formal financial sector – or ‘banking the unbanked’ d) improving access, transparency and choice of remittance service provider; e) lowering costs of fund transfer; f) linking to other financial services, such as savings accounts; and g) increasing the positive impact remittances have on development. To effectively assess the processes for leveraging Diaspora Remittances to Sierra Leone, the

following important issues were considered: what institutional framework exists for

managing migration at national level? What are the low-cost and secure mechanisms for

sending remittances? What national policies or laws exist to provide accessible support for

positive diaspora activity? What are the existing remittance corridors to Sierra Leone? What

do we know about the size and uses of remittance flows? What is the government doing to

engage with remittance flows into Sierra Leone?

These issues guided our discussions at all levels of engagement during desk review and primary data collection processes. The next sections explain rationale for baseline assessment, methodology and assessment results.

Objectives

This assessment aims at providing state of affairs on the development of remittances

strategy in order to strengthen Office of Diaspora’s Affairs capacity in leveraging Sierra

Leone diaspora remittances to promote legal transfer for all migrants. These involve:

a. review of funds transfer policy and mechanism for sustaining possible technical

assistance intervention;

b. defining work plan for technical assistance for intervention;

c. Identification and mapping of potential stakeholders and non-state actors in

S/Leone.

Baseline Assessment Methodology

The methods adopted for baseline assessment involve

Assessment Design Mixed methods were used for the baseline assessment. They are presented as follows: a) In order to get insight into current situation and to provide conceptual framework

for baseline assessment data collection, a desk review of published and gray literature were conducted.

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b) Qualitative study, this was explored using i) key informant interview (KII) guide to collect data from eight (8) key stakeholders, such as personnel of financial institutions (Bank of Sierra Leone, commercial banks, Ministry of Finance and Economic Development, Postal Service, Office of Diaspora Affairs Authority, and EU Delegation in Sierra Leone, and paramount bureau de change, Statistics of Sierra Leone and IOM chief of mission, ii) Focus Group Discussions (FGDs) were held with Diaspora Associations and non-state actors (NSA).

c) Quantitative study: with the aid of questionnaire, a cross-sectional descriptive survey was undertaken with NSA and representatives of the Money Transfer Operators.

Study population Study populations include financial institutions, money transfer operators, ODA, diaspora associations in Netherlands/Italy/UK, ministry of finance and economic development, NSA civil society organization and other key stakeholders like IOM, and donor agency. Sample size Table 2: Key informant interviews/Focus group discussions (KIIs/FGDs) sessions and questionnaire administrations

Methods of data collection

Institutions/Agencies Respondents/Target group

KIIs i. Bank of Sierra Leone, commercial banks, ii. Ministry of Finance and Economic

Development, iii. Postal Service iv. Office of Diaspora Affairs Authorities v. EU Delegation in Sierra Leone vi. CoM IOM

Key personnel of each institution

FGDs i. Diaspora Associations ii. NSA

6-8 participants of each group

Quantitative session

i. Mobile transfer operators ii. Diaspora Representatives

Key personnel of each agency

The sample size and categories of respondents were purposively determined based on relevance, appropriateness for addressing baseline assessment objectives and available time frame for the assessment. A total of 8 KIIs sessions were conducted with different target audience while 2 FGD sessions were conducted as stated above. Most of the quantitative data for the assessment was derived from secondary data analysis from project documents as well as secondary data from national surveys and databases. In addition, primary data was obtained from questionnaire administered among selected respondents as indicated above. Limitations The BA did not include a mapping of all remittances service providers due to their wide spread and uncoordinated manner such as the use of supermarket, shops, internet café, streets, etc. One of major service providers “Afro International” declined interview section. Chairman of bureau de change was hospitalized at the time of data collection and hence we could not meet him.

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Assessment Results

3.1 State of Affairs The main sources of income for people living in Sierra Leone are categorised into three. They are as follows: a) Formal sector: people earn their income through salaries and wages paid by government and non-governmental organizations, b) Non formal business: such as small and medium scale enterprises, e.g. mining, farming and other farm produce, and c) services industries, such as odd jobs, cleaning etc. The Sierra Leonean civil war in 1991 to 2002 drove about 30% educated nationals to other countries mostly to UK, USA, Europe, and some to other West African countries. The nationals that have established abroad also facilitated migration of their relations. Therefore, this led to an increase in the number of emigrant from Sierra Leone to other countries. The quantum of migration has brought significant increase in remittances, and it is a major source of income for many individuals and families. Office of Diaspora Affairs disclosed that there are seasons for remittance inflows; it is more during Ramadan, Christmas and student resumptions. And more importantly during Ebola outbreak, this was supported with quarterly report of remittances (see table 4 below). The EVD also attracted inflows of funds most of which are done through informal sectors such as the use of Fula, bureau de change and person to person. According to a respondent during interview section at the Bank of Sierra Leone “During the war and Ebola outbreak, all sorts of agencies came in to help; they established informal systems of remittances collection and disbursement. They are successful during the war and have gained trust of people because there has not been any negative report to date. Now they are difficult to handle, besides money they also deliver food items during Ebola. Migrants also take advantage of informal system of remittances because it’s cheaper and faster. The challenge now is how government of Sierra Leone will formalise the informal market segment” He further stated that, “a big player in informal market of remittances collection in Sierra Leone is Afro International, though the company is registered but by quantum of their operations it is obvious that actual tax due to government is not declared. The challenge now is that what type of structure should Bank of Sierra Leone put in place for MTO to disclose a full report?” It is noteworthy to mention that Sierra Leone economy is largely dependent on donations and remittances. These sources were adversely affected during the crisis. Although large sum of remittances go through unauthorised channels such Bureau de change and private companies, the ones that were remitted through the formal sector and reported to Bank of Sierra Leone are shown in figure 4 below.

Quotes

“Very few Sierra Leoneans can survive

without remittances” - Office of Diaspora

Affairs

“Remittances are lifeline for most families in

Sierra Leone” - Diaspora association

“Sierra Leone economy is driven by donor

funds and remittances” - Director of Financial

Markets (BSL)

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Figure 4: Diaspora remittances in dollars Source: Bank of Sierra Leone

Dollarization of the Economy

Despite the fact that the regulation states that all transactions must be in Leones, some businesses are transacted in dollars. For instance, hotel rates are displayed in dollars at the reception, and my bills were requested for in dollars. I visited 5 supermarkets; each of them has bureau de change transaction as part of their businesses. At the computer business centre, we saw a display of bureau de change business. The picture below (Figure 5) shows “dollar boys” on the street selling and buying dollars, what they are holding are dollars as an advertisement of their service. According to response from Sierra Leone commercial bank Head of Operations that we interviewed, “the volume of dollars that bureau de change operators transact can compete with commercial bank volume” According to our interviews, a bureau de change operator named Afro International controls up to 30% of all remittances in Sierra Leone, they have branches in all the provinces, engages in shipment and also partners with MoneyGram which gives an impression that they are operating formal market but the volume of informal operations outnumbers the formal. This therefore reduces the tax accruable to government. Several attempts we made to interview the management failed because of their refusal to be interviewed.

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Figure 5: Picture of “Dollar boys” at Central Business Street of Freetown In Sierra Leone, according to our interviews, Bureau de Change operators are dominated by a tribe called “Fula”. They control dollars in foreign exchange market, they can supply dollar to any amount customers wanted, they have networks in a neighbouring country like Guinea and can move dollar across border without hindrances since they often have dual citizenships. They have gained trust of people and can take higher risk than commercial banks. These possess treat to foreign exchange market and local currency. During the war, operators of unauthorised money transfer were able to serve people even when commercial banks and other formal money transfer operators fled. These lasted for 11 years, therefore, confidence of people have been gained by informal market. Among other bitter experiences with formal banking in Sierra Leone by indigenous people that cannot be easily forgotten was that they could not get access to their money held in commercial banks during the war. One of the main routes through which remittances gain access into Sierra Leone foreign exchange market is mobile phone transfers. This is done through a platform created by Zain Company. This involves crediting the mobile phone account of the owner in Sierra Leone with an amount that can be withdrawn at an agency of the mobile phone company. The sender does this through his/her bank credit at the host country. Our interviews also revealed that person-to-person means of funds transfer contributes a small quantity due to restriction in the amount that travellers can travel with. However, many people use this route during festivals to remit to their family back home to support domestic financial needs. Other form of remittances: in the past, Sierra Leone was actively involved in global trade in a number of agricultural commodities such as cocoa, coffee, palm kernel, etc. Today, the

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situation has changed with only cocoa appearing with significant volume in international trade. The produce dealers are Lebanese who buy from farmers and sell at international market overseas. When products are sold overseas, the money is not returned to Sierra Leone in cash. The dealers divert the fund to other purposes, only few are used by the dealers to procure and import goods from overseas to Sierra Leone. This process therefore reduces accruable remittances to Sierra Leone. Mining sector taxation is organised in manner that it is difficult to evade tax in Sierra Leone. Mining constitute 75% of export and it is organised in such a way that before a dealer will be allowed to purchase a product, evidences of previous transactions such as statement of account including record of tax remittances into government of Sierra Leone account is required. According to the finance Act (2016) on mining taxation, the chargeable income of a person derived from the exploitation of mineral rights prospecting and exploration licenses, mining licences or mining lease granted under the Mines and Minerals Act, 2009 (act No. 12 of 2009) shall be determined in accordance with and taxed at the rates scheduled”. Diamond-smuggling also contributes to inflows of dollars into informal market. There are established firms overseas such as in UK, USA, and Netherlands who receive remittances on behalf of dealer in Sierra Leone. The beneficiary is given a code through text message or email with name of the merchant from whom the remittance will be collected. The credit is often used for purchase or shipment of goods to or from Sierra Leone which may be Diamond through black market.

Availability of Relevant Legislation/Regulatory Framework

Out of 15 interviewers only two said that there is a policy on remittances. According to BSL, “there is a policy on remittances in S/Leone which is enshrined in the BSL Exchange Control Regulations; the document is in public domain such as BSL website (www.bsl.gov.sl/pdf/EC_REGULATIONS.pdf)” Economist at the World Bank said that the policy on foreign exchange control regulation is overdue for review; he proposed this review about 10 years ago when he was at BSL. According him “a quick fix is to review the policy by BSL and get it passed into law by the parliament” According to BSL (2003), Financial regulations state that: a. Commercial banks (authorised dealers) can process and approve for current

international transaction in foreign currency for transfers and remittances abroad without reference to Central Bank. Transfers abroad must be in accordance with the regulations governing payments for goods and services

b. Foreign exchange bureaus licensed to purchase and sell foreign exchange in cash shall issue a receipt for each transaction.

c. Payments for all goods and services abroad should be done in line with the regulations governing current international account transactions

d. The legal tender in Sierra Leone is the Leone and payments for all transactions in Sierra Leone must be in Leone

We found out that The Bank of Sierra Leone issues license to Bureau de Change (BDC) operators for purposes of buying and selling foreign currency as contained in the regulation.

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However, the BDC operators have exceeded their mandates in the course of doing business. This includes receiving remittances internationally and sending nationally. We also discovered that supermarkets and business centres also engage in remittances management all across the country. The national economist at the World Bank who was a formal Director at the Bank of Sierra Leone Financial market department explained that there are grey areas in the Bank of Sierra Leone foreign exchange control regulations. According to him, the first thing is to amend the law which can be done through regulatory amendment and enforcement. The roles of BSL such as onsite and offsite of financial institutions will address inaccurate reporting, and that BSL has power to penalise any operator who fails to comply with the law. He attested to the fact that there is a high appetite for remittance services in Sierra Leone; that the market is huge but there are few operators of the formal sector. To address this, the BSL should allow more players to register in the formal sector by reducing the cost of registration and bureaucracies in its operation. He highlighted advantages and disadvantages of both markets segments that can be used for strengths, weaknesses, opportunities and threats (SWOT) analysis as follows: Table 4: Factors Hindering or Promoting Enforcement

Advantages Disadvantages

Informal market Formal market Informal market Formal market

Quicker services Legal backing Potential source of terrorism funding/attack

Bureaucratic process of operation

Operations are less procedural

Tax remittances to government

Lack of record of remittances

Non-disclosure of all remittances to BSL

Provision of credit facility and health insurance to remittances’ recipients

Enables availability of statistical record for planning

No capacity to scrutinise transaction

High cost of operation/tax

Cost of funds transfer is lower

Encourages ownership of a valid client identification issued by government

Uncoordinated market

Banks pay remittances in Leones

Higher exchange rates in favour of recipients

Saving account opportunity for Diasporas

Treat to financial institutions

Lower exchange rates

Access to unbanked population

Open crime/black market

Strict account opening procedure

Respondents said that BSL should be particularly concerned with insecurity that the country is prone to due to operations of unauthorised money dealers and economic losses due to unregulated money transactions. Exchange control regulations further stated that exporter of commercial goods are required to repatriate proceeds of their exports to Sierra Leone. Our interviews reveal that huge

20

inflow of foreign exchange through proceeds from diamond-smuggling, remittances, cocoa transactions go through informal market and they are galvanised by the desire to evade tax that accrue to government.

Related programme and project supporting the policy development

Our interview with Office of Diaspora Affairs Authority and World Bank reveal that there is urgent need to: a) grant licences to bureau de change and other money transfer operators so as to legally manage remittances and work with commercial bank based on regulations by BSL, b) issuance of Diaspora bonds that will facilitate infrastructural repairs and development such as for healthcare, education, water and sanitation, etc c) Implementation of programme that will focus on rebuilding confidence on banking services and behavioural change of citizen affected by war and frustrated by inability of the banks to provide service during crisis, e) national household survey on remittances, d) strict measure against diamond smuggling, f) citizen of Sierra Leone should be allowed to open non-resident foreign currency bank accounts at a lower exchange rate linked bonds.

Impact of Remittances

Remittance has positive impact more on individuals and family especially for domestic use like payment of school fess, medical bills, house rent and feeding but it is not significant at macro level. Communal bonds help to spread the wealth from remittances. Focus group discussions held with the Director of Diaspora Association affairs revealed that remittances have seasons, as indicated in Table 1 below, during Ramadan, Christmas and Student Resumption, remittances are more. Also during Ebola 3 days locked down due to non-movement, remittance was the main source of survival though this cannot be seen in the table below because most remittances come through unauthorised dealers. This has created a perception that people cannot make it at home (S/Leone). The director of ODA said “At macro level, some old boys associations had developed their formal school but very few of this happened. There are private companies such as Sierra AKA investment by someone based in The Netherlands which worth over $40,000, others are: Cashew farm and business club in Kambia district, Door way restaurant at the Airport. There could have been infrastructural development such as road and electricity which are not happening yet. Table 5: Diaspora remittances recorded in dollars from January 2012 to February 2016

TRENDS OF DIASPORA REMITTANCES REPORTED BY COMMERCIAL BANKS ($)

2012 2013 2014 2015 2016

Jan 4,419,920.59

5,328,034.91

1,713,043.88

4,352,917.92

4,713,817.80

Feb 5,099,369.59

5,898,611.97

4,671,694.67

4,436,963.78

4,650,936.18

Mar 5,799,528.96

6,426,779.93

3,463,541.85

5,819,559.00

Apr 4,984,644.13

6,417,028.35

6,712,606.48

5,206,037.73

May 5,074,206.20

5,945,575.16

5,387,025.96

3,458,964.29

Jun

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5,381,884.24 4,784,785.01 4,615,197.41 4,816,306.28

Jul 5,511,564.52

5,436,531.60

4,944,384.39

4,470,299.08

Aug 4,473,373.30

4,809,646.86

4,561,478.99

3,898,600.51

Sep 4,046,155.80

4,242,746.43

4,264,988.87

4,193,978.42

Oct 5,091,922.72

4,937,736.06

4,277,347.88

3,934,917.92

Nov 4,651,649.40

5,010,132.44

4,841,131.09

4,012,506.67

Dec 5,459,606.15

6,657,396.45

4,901,263.72

4,120,227.57

Total 59,995,837.60

65,895,005.17

54,353,705.19

52,721,279.17

How Government can bridge the gap between migration and development

Respondents from 15 ministries/departments, agency and non-state actors that we interviewed suggested that government should create environment for Diaspora contribution in the economy, create job opportunity for citizen to stay in-country rather than desire to leave. Awareness creation that can change perception of people about migration for economic reasons, setting up legal structure for migration, development of migration policy, implementation of remittance framework developed by UNDP for Sierra Leone, review and enforcement of foreign exchange regulations, organize post EVD conference, government through office of diaspora affairs should create a connection between Sierra Leoneans in Diaspora and people back home. Government should ensure stable political system, a database of Sierra Leonean in Diaspora that will contain their details should be created, improved investment climate, travellers should declare money in their procession at entry and exit points, and Government should reduce tax on formal system of transfer.

Harnessing Remittances to Promote the Development of Sierra Leone

Our interviews with Office of Diaspora Affairs Authority and the World Bank Directors revealed that remittances can promote development; they recommended that in addition to UNDP report, the following points of action should be implemented:

a. Provision of technical assistance to ODA to develop diaspora framework b. Provision of technical assistance to Bank of Sierra Leone to develop diaspora

remittance policy and passed into law through the parliament c. Work with Sierra Leone postal service to develop a nationally representative

platform for diaspora remittance d. Creation of taskforce for regulatory and policy framework enforcement e. Formalization and incorporation of informal market into the framework. f. Reduced limits on individual bank transactions to restrict the flow of cash into

the informal banking system (UNDP, 2009). g. The extension of foreign exchange bureau licenses to allow such bureau to

receive remittances subject to a modest minimum capital requirement, a requirement to report total transfers received or sent as well as individual

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transfers in excess of US$10,000, or transfers to or from countries ‘blacklisted’ by the Financial Action Task Force. However, the license extension should not extend to deposit-taking or making loans, which bureau would continue to refer to licensed banks (UNDP, 2009).

h. Public utility companies in Sierra Leone should offer for sale, through approved issuing banks in the UK and US, Exchange Rate Linked Bonds (ERLBs), in accordance with the Securities legislation of the UK and the US respectively. These would be payable in relatively small amounts, say US$100 per bond. Interest, at a rate of, say, 5%, and principal would be payable in Leones to a nominated beneficiary in Sierra Leone over a period of five to eight years. Interest and principal would increase in proportion to changes in the exchange rate between the Leone and the US$, so that the bonds would keep their effective dollar value. The maturity period should allow the issuing utility company to refinance ERLBs by placing longer term bonds on the Sierra Leone Stock Exchange. To assure the liquidity of ERLBs, their beneficiaries should be allowed to obtain early repayment of the principal by selling the bonds to the National Social Security and Investment Trust, at a discount of, say, 10% (UNDP, 2009).

i. Citizens of Sierra Leone resident abroad should be allowed to open non-resident foreign currency bank accounts in licensed commercial banks in the country. Interest should be payable on these accounts at a rate slightly below the rate offered on ERLBs (UNDP, 2009).

j. Terminating credit societies, based on the traditional osusu system, to finance house building or school fees, should be established with the possibility of receiving contributions from Sierra Leone citizens living abroad. These should be registered and audited to prevent fraud (UNDP, 2009).

k. To finance infrastructure repair and improvement and social services such as education and health, the Government of Sierra Leone should issue Diaspora Bonds in amounts of say US$100 each. These would have a maturity of between five and eight years and pay interest at a rate of, say, five per cent. Interest would be rolled up and paid together with principal in dollars on maturity. We recommend that matching loans be provided the World Bank and multilateral financing agencies.

l. Eventual issue of foreign currency securities backed by the foreign exchange components of remittances and donor aid flows. The latter would require greater and longer-term commitments by aid donors (UNDP, 2009).

m. We recommend ‘milestones’ for financial development to support these new financial instruments, including report of data on remittances and target levels of foreign currency deposits with commercial banks; households with bank accounts; sovereign bond issuance by the Government of Sierra Leone to establish a benchmark credit rating for future securitization; reductions in diamond-smuggling; and the successful refinancing of ERLBs on the Sierra Leone Stock Exchange (UNDP, 2009).

n. Strong political will by the government to end or reduce operations of informal markets and diamond smuggling

o. Cooperation between the Bank of Sierra Leone and other Central Banks in Africa, Asia and Latin America to share experience and build capability in managing informal banking and remittances (UNDP, 2009)

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3.2 Key Baseline Indicators Table 6: List of banks and Money Transfer Operators

Government Banks

Commercial Banks Community Bank Money Transfer Operators

1. Bank of Sierra Leone

2. Rokel commercial bank

3. Sierra Leone commercial bank

1. Access bank 2. Ecobank 3. First bank 4. First International

bank 5. Guarantee Trust bank 6. Keystone bank 7. Skye bank 8. Standard chartered 9. Union Trust bank 10. United bank for

Africa 11. Zenith bank

1. Marampa Masimera community bank

2. Matrrru community bank

3. Segbwema community bank

4. Yoni community bank

1. MoneyGram 2. Western Union 3. Afro International 4. Koroms

International 5. Navos

International 6. Nimo foreign

exchange 7. FADUGU

enterprises 8. Dems 9. First foreign

exchange bureau 10. Blue Circle

Table 7: List of Registered Diaspora organization

S/N Registered Diaspora Organizations Legal Status in Sierra Leone

ODA

1 Sierra Leone Central Union (SLCU), Netherlands

Registered as Community based organization

Registered with Office of Diaspora Affairs Sierra Leone

2 RIPSTA Culture GEDO, Finland Registered as Community based organization

Registered with Office of Diaspora Affairs Sierra Leone

3 Diaspora Focus, UK Registered as Community based organization

Registered with Office of Diaspora Affairs Sierra Leone

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3.2 Baseline Indicators 3.2.1

Logical Framework

Table 8

Narrative Summary Objectively verifiable Indicators

Means of verification Assumptions

Goal:- Social economic development

i) Economic development

ii) Reduction in Diamond-smuggling

i. National survey report

ii. World Bank report iii. Bank of Sierra

Leone report

i. IOM implement proposed TA intervention

ii. Stable political environment in Sierra Leone.

iii. No Ebola threat

Outcomes 1: i) Existence of legal

framework for diaspora remittances

i) Diaspora

remittance legal framework produced and operational

ii) Presence and regulation of “diaspora bonds” or other similar mechanism tapping into remittances

iii) Improved Growth Domestic Product (GDP)

i) Policy document ii) Photographs of

workshop held iii) Policy available on

ODA website iv) ODA newsletter,

i. No Ebola ii. Parliament

passed remittance policy into law

Outputs: i) Remittances legal

framework developed

ii) Legalization of informal market

i) Number of policy

development workshop held

ii) Number of informal operators legalized

i) Monthly/quarterly

project reports ii) Receipts of

payment iii) Monitoring and

Evaluation field visit report

iv) Bank of S/Leone quarterly report

i. Parliament

passed remittance policy into law

Activities: i) Recruitment of

NGOs for project implementation

i) Number of NGOs

recruited ii) Number of

training

i) Activities report ii) Minutes of

meetings iii) Training reports

i. Currency

exchange rate is suitably within budget

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conducted iii) Number of

workshop held

Inputs:

Resources – Personnel, Finance: - Time

Narrative Summary Objectively verifiable Indicators

Means of verification Assumptions

Outcome 2: Improved financial literacy of community receiving remittances

i) % increase in formal market operators

ii) % of communities receiving remittances who have basic financial literacy

iii) Average cost of sending and receiving remittances in the considered country during the last 12 months

iv) Improved perception of citizen on banking services

i. Bank of Sierra Leone report

ii. ODA report iii. Project report iv. National economic

survey report v. World bank report

Parliament passed remittance policy into law

Outputs: i) Registration of

informal market operators for TA intervention support

ii) Development of media messages on banking services behavioral change

i) Number of

informal market operators registered for TA support

ii) Number of institutions authorized to offer remittance transfer services in S/Leone

iii) Number of media messages on radio and television

iv) Number of postal produced and distributed

i) Formal market

operator registration

ii) Photographs iii) Reports

Activities: i) Capacity building

i) Number of

i) Photographs

i) Political stability

26

for stakeholders ii) Monitoring and

supervision of NGOs

iii) Development of media messages

planning meetings held

ii) Number of advocacy meeting held

ii) Activity reports iii) Minutes of

meeting

ii) No Ebola threat

Inputs Resources – Personnel, Machine Finance: - Time

3.2.2

Key performance indicator

Table 9

Indicators Baseline data Data source

Impact level

1 Economic development

Not available

2 Reduction in Diamond-smuggling Not available

Outcome level

3 Diaspora remittance legal framework produced and operational

Not available

4 Presence and regulation of “diaspora bonds” or other similar mechanism tapping into remittances

Not available

5 % increase in formal market operators Not available

6 % of communities receiving remittances who have basic financial literacy

Not available

7 Average cost of sending and receiving remittances in the considered country during the last 12 months

Not available

8 Improved perception of citizen on banking services

Not available

9 Increased household with bank account

Not available

10 Improved GDP due to diaspora remittances

12% of remittances UNDP 2009 report

Output level

11 Increased remittance reporting Western Union, Money Gram and 13 banks

Bank of Sierra Leone interview

12 Number of postal produced and distributed

Not available

13 Number of media messages on radio Not available

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and television

14 Number of policy development workshop held

Not available

15 Availability of remittance policy Not available

16 Availability of diaspora policy Not available

17 Number of informal market operators registered for TA support

Not available

18 Number of institutions authorized to offer remittance transfer services in S/Leone

Not available

19 Number of workshop/seminar organized for stakeholders

Not available

20 Increase in Diaspora organizations that registered with office of Diaspora Affairs (ODA)

3 Office of Diaspora Affairs report

21 Daily report of foreign currency from all MTOs to commercial banks

Not available

22 Reduction in unauthorised money transfer operators

Not available

23 Number of NGOs/FBOs/NSA trained Not available

Processes

24 Number of trainings conducted Not available

25 Number of stakeholders workshop held Not available

26 Number of consultants hired Not available

27 Number of reports produced Not available

28 Number of NGOs/CSOs engaged Not available

29 Number of staff recruited Not available

Inputs

30 Amount expended Not available

31 Personnel recruited Not available

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3.2.4

Workplan

Table 10

Description of activities Remarks Quarter1 Quarter2 Quarter3 Quarter4

Dissemination of baseline assessment

report

Sharing report of baseline assessment with stakeholders eg BSL, WB, SSL

Development of project proposal and

implementation guidelines

Comprehensive proposal which will include subject.

Hire consultant to develop Diaspora policy

Develop ToR for NGOs/implementing

partners

IOM/ODA will come up with ToRs for NGOs which will include:

*Strategy for engaging informal market operators

*Defining the cope and geographical areas of operation of NGOs

*Developing messages for sensitization/awareness creation at national level

Engage with government eg:(Ministry of Finance

and economic development, Bank of Sierra Leone, National revenue authority, The parliamentary oversight committee on finance

Meeting key government institutions with the view to buy their support to: develop policy on remittance. Create a national task force on remittance.

29

Recruitment of NGOs/Implementing

partners (Ips)

Advertisement and recruitment of NGOs, and engagement

Capacity building of project

implementers/NGOS

Organize workshop on Technical assistance on remittance

IOM and ODA oversight function

IOM/ODA will provide technical and programmatic guidance on the project

Monitoring, supervision and evaluation

Engage consultant to provide TA on monitoring and evaluation including project tracking, mid-term and end-line evaluation

3.3: Stakeholders mapping and analysis Overview of key stakeholder

Office of Diaspora Affair: The Office of Diaspora Affairs (ODA) was created in 2008 by the

President Dr. Ernest Koroma with the aim of engaging Sierra Leone Diaspora in national

development. The objectives include working with the government to address critical

capacity gaps in the public sector by bringing diaspora professional and expert to deliver

result in specific areas. Due to civil war, Sierra Leone has lost a large number of its best

trained, most educated and skilled nationals depriving the country of its doctors, nurses,

teachers, engineers, managers and administrators it needs to break the cycle of poverty and

underdevelopment. ODA is mandated to create linkages between government of Sierra

Leone and over 30% of the educated Sierra Leoneans nationals mostly in the UK, USA, and

Europe.

List of Stakeholders identified for Technical intervention collaboration

Stakeholders

1. Office of Diaspora Affairs 2. Bank of Sierra Leone 3. Association for children in crisis

(ACIC) 4. Social workers for development

10. Commercial bank of Sierra Leone 11. Commercial banks 12. Western Union 13. MoneyGram 14. Afro International

30

(SWD) 5. Children for youth and exploited

children Sierra Leone (CeYEL-SL) 6. World Hope International (WHI) 7. Sierra Leone Postal Service (SALPOST) 8. Ministry of finance and economic

development 9. European Union Delegation in Sierra

Leone

15. Parliament 16. Diaspora Focus – UK 17. Sierra Leone Central Union (SLCU) –

Netherlands 18. RISPTA Culture – Finland 19. National Revenue Authority 20. International Organization for

Migration (IOM) 21. Paramount Bureau de change

Mapping of NSA stakeholders

Stakeholders Value or Contribution

Legitimacy Willingness to engage

Influence Necessity of involvement

CeYEL Low High High Medium Low

SWD Low High High Medium Low

Diaspora Focus – UK

High High High High Medium

SLCU – Netherlands

High High High High Medium

Union of Bureau de change

Medium Medium Low Low High

RISPTA – Finland

High High High High Medium

WHI Low High High Medium Low

Key Value/contribution: Stakeholders with expertise and information on the subject Legitimacy: Status/legal backing of stakeholders for diaspora affairs Willingness to engage: How willing is the stakeholder to engage? Influence: How much influence does the stakeholder have of the subject? Necessity of involvement: Could this stakeholder hinder the process if not included in the engagement?

Analysis of key Stakeholders

Stakeholder Primary Purpose

Potential Role

Level of Knowledge

Level of Commitment

Available Resources

Constraints

Office of Diaspora Affairs

Primary focal/ Direct beneficiaries

Supervision / oversight

High High Network of diaspora, aligned with

Weak financial capacity,

31

presidency, low political weight, few skilled personnel

Bank of Sierra Leone

Financial regulation and oversight

Policy formulation

High Moderate Influence, information, money

Political will

Ministry of Finance and Economic Development

Policy formulation

Oversight Variable Variable Availability for training

Influence

Sierra Leone Postal Service

Mail delivery Network of postal services eg DHL, etc

Remittances management

High Available platform for remittances collection

Lack of policy backing

National Revenue Authority

Revenue collection

Collaboration with commercial banks on remittances collection

High High Staff, infrastructure, available for training

Weak capacity

IOM Migration management

Program design

High High Skill, capacity, international networks

Local content

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3.4 Feedback regarding the Technical Assistance Fiche

Relation of the proposed TA intervention to the assessed state of affairs

Information gathered on the State of affairs through desk reviews and primary data correlated with technical assistance intervention proposed. According to Economist at the World Bank who was a Director at The bank of Sierra Leone said the development of legal framework for diaspora remittances is overdue, he described the status of remittances in Sierra Leone as an act of “open crime” that needed urgent attention.

Office of Diaspora Affairs Authority director said the capacity of personnel at ODA is limited on the development of diaspora policy and thereby hopeful that IOM through TA intervention project will help to deliver this. The authority also plans to hold national conference on remittances with the aim to promote diaspora affairs and national development. Therefore BA exercise is seen as a timely intervention.

Director of Sierra Leone postal service (SALPOST) said the baseline assessment on diaspora remittances came at the right time as SALPOST in collaboration with a firm in the Netherlands has developed a platform called AUXFIN, it is an online platform and software built for financial institutions which has special functions for migrants and remittances services, the platform has been successfully implemented in Nepal, Senegal and some other countries. IFAD’s US 18 million donor financial facility for remittances to rural poor to ease access to international and/ domestic remittances have the following objectives: reduce cost of remittances transfers, ‘bank the unbanked’ population, coordinate migrants remittances and facilitate investment back home for migrants, the platform can be tailored to services required by senders. SALPOST is hopeful that BA will further strengthen this platform and promote development through diaspora remittances in Sierra Leone.

At Paramount bureau de change, respondent said “ we are registered as buyer and seller of foreign currencies however before we receive and pay remittances, we stopped this because regulations said we are not qualified to manage remittances, but others are doing it without due registration and nobody is challenging them. I hope this study will address this”

Proposed adjustments, if any, to the technical assistance fiche and related justification

Remittances are viewed from perspective of Diaspora sending money home. However, interviews revealed that the largest sum of remittances to Sierra Leone come from Diamond-smuggling and cocoa produce buyers, unfortunately they are not remitted through formal markets. Therefore, at impact level the project is aimed at reducing diamond-smuggling by promoting legal funds transfers.

Interviews revealed that a tribe named ‘Fula’ with traditional nomadic lifestyle that spreads across West Africa has over the years been committed to buying and selling foreign currencies and manages remittances. In order to adequately reduce informal market operations Fula should be considered for TA intervention. Therefore, one of indicators

Respondent at the Bank of Sierra Leone said “informal market has gained credibility overtime, now they are difficult to handle, IOM should come to the aid of government to correct this abnormality” He requested for a copy of BA report and expressed willingness to work with IOM.

33

included targeted media messages at outcome level and the need to involve Fula in the design ad implementation.

Risk assessment, if relevant: what key assumptions need to be taken into account and how to mitigate risks.

a. Ebola threat

As elucidated in introductory section, Ebola killed about 3, 956 people and scared many people out of affected countries. Many projects were halted during the peak of the disease outbreak. TA intervention is therefore leaned on Ebola free Sierra Leone. To mitigate this, the following factors were considered paramount: a) Screening of travellers at the borders, b) prompt medical attention to suspected case, c) surveillances, e) isolate patients with Ebola from other patients. Political stability:

In a report on Sierra Leone by McNee (2009) stressed that “security remained fragile and the international community should not become complacent. In particular, high youth unemployment, illicit drug trafficking and weaknesses in democracy and the rule of law threatened the peace” Our interview revealed that unemployment rate is high in addition to some Sierra Leoneans returning home from diaspora due to economic meltdown globally. To mitigate this trend, IOM should engage in prompt political analysis and crisis mitigation.

Engagement with the Parliament: In order to pass diaspora policy and remittances policy into law, the parliament is required. Engaging with the parliament is not straight as it requires negotiation, lobby and collaboration. To address this, high level advocacy and effective engagement strategy will be required.

Informal market operators may understand TA intervention on diaspora remittances as a way of removing business from them. Therefore, there should be a form of incentive and collaboration strategies.

34

Annexes

Annex 1 – List of literature reviewed

AfDB (2011), The Role of the Diaspora in Nation Building: Lessons for Fragile and Post-

Conflict Countries in Africa,

http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-

Operations/2011%20The%20role%20of%20the%20Diaspora%20in%20Nation%20building%

20-%20lessons%20for%20fragile%20and%20post-

%20conflict%20countries%20in%20Africa.pdf

AFDB, (2015) Remittances from West Africa’s Diaspora: financial and social transfers for

regional development, http://www.afdb.org/en/blogs/measuring-the-pulse-of-economic-

transformation-in-west-africa/post/remittances-from-west-africas-diaspora-financial-and-

social-transfers-for-regional-development-14614/

African Development Bank Group (2015). Regional Perspectives: Diaspora and Development in West Africa, West Africa Monitor Quarterly, Issue 7, July 2015 Anyanwu, J. C and Andrew E. O. Erhijakpor, E.O (2010), “Do International Remittances Affect Poverty In Africa?” http://www.afdb.org/fileadmin/uploads/afdb/Documents/Knowledge/30754258-EN-3.1.4-ANYANWU-DO-INTERNATIONAL-REMITTANCES-AFFECT-POVERTY-IN-AFRICA.PDF

Braima, S. J; Fofana A. I; Jarrett A.A; Kamara J.L; Weekes S; Wellington N.S.B (2015)

Measuring National Priorities for Post-2015 in Sierra Leone,

http://www.post2015datatest.com/wp-content/uploads/2015/07/Final-Sierra-Leone-Data-

Test-Report.pdf

CDC, 2014. Center for disease control and prevention, 2014 Ebola Ebola Outbreak in West Africa; available at http://www.cdc.gov/vhf/ebola/outbreaks/2014-west-africa/case-counts.html

CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES, The Economic Impact of the Ebola

Outbreak Daniel F. Runde and Conor M. Savoy,

http://csis.org/files/publication/141117_Runde_Savoy.pdf

Heath, C. (2009) Diasporas: Doing Development or Part of Development A study of two

Sierra Leonean diaspora organisations in London, SPIRU Working Paper 24, Overseas

Development Institute, http://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-

opinion-files/4253.pdf

IMF, 2015. Sierra Leone's Economy in the Post-Ebola Era.

IOM (2005) “Engaging Diasporas as Agents for Development” was carried out by the

International Organization for Migration (IOM) in 2005,

35

https://www.iom.int/jahia/webdav/site/myjahiasite/shared/shared/mainsite/policy_and_re

search/research/Diaspora%20questionnaire%20analysis.pdf

L. Le De • J. C. Gaillard • W. Friesen • F. Matautia Smith (2015) Remittances in the face of disasters: a case study of rural Samoa, Environment, Development and Sustainability - A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Volume 17 Number 3: 653 – 672 L. Le De, J. C. Gaillard & W. Friesen (2015): Poverty and Disasters: Do Remittances Reproduce Vulnerability?, The Journal of Development Studies, June DOI:10.1080/00220388.2014.989995 L. Le De, J.C. Gaillard, W. Friesen, M. Pupualii, C. Brown & A. Aupito (2015): Our family comes first: migrants’ perspectives on remittances in disaster, Migration and Development, DOI: 10.1080/21632324.2015.1017971 McNee J (2009) Sierra Leone in Transition to stable Democracy depends on Government Providing “Peace Dividend”, Security Council Told. Available at http://www.un.org/press/en/2009/sc9740.doc.htm Rajkotia, R. Addy, E (2008). Remittance corridor: sender-end country (UK) available at file://C:User/OREEP/Downloads/SNHSierra LeoneReportFinal.PDF.

Ratha Dilip (2013) Impact of Remittances on Economic Growth and Poverty Reduction,

Policy Brief, Migration Policy Institute, No. 8, September 2013

Sandbox Networks, (2016). Sierra Leone. Available at http://www.infoplease.com/country/sierra-leone.html Savage, K., Harvey, P (2007). Remittances during crises: Implications for humanitarian response. Humanitarian Policy Group, Overseas Development Institute London. Briefing paper 26. The Socio-Economic Impacts of Ebola on Households in Sierra Leone http://www.poverty-action.org/study/socio-economic-impacts-ebola-households-sierra-leone

The World Bank (2014) The Economic Impact of the 2014 Ebola Epidemic: Short and

Medium Term Estimates for Guinea, Liberia, and Sierra Leone, http://www-

wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/09/17/000470435

_20140917071539/Rendered/PDF/907480REVISED.pdf

UNCTAD (2012) Harnessing Remittances and Diaspora Knowledge to Build Productive

Capacities, THE LEAST DEVELOPED COUNTRIES REPORT 2012,

http://unctad.org/en/PublicationsLibrary/ldc2012_en.pdf

Understanding the Economic Effects of the 2014 Ebola Outbreak in West Africa,

http://www.brookings.edu/blogs/africa-in-focus/posts/2014/10/01-ebola-outbreak-west-

africa-sy-copley

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UNDP (2011) Remittances Strategy Framework For Sustainable Development In Sierra Leone, http://www.sl.undp.org/content/dam/sierraleone/docs/focusareadocs/undp_sle_remittances.pdf United Nations Development Group (2015) “Socio-Economic Impact of Ebola Virus Disease in West African Countries - A call for national and regional containment, recovery and prevention” https://undg.org/wp-content/uploads/2015/07/ebola-west-africa.pdf

United Nations Economic Commission for Africa (2015) Socio-economic Impacts of Ebola on

Africa, Addis Ababa, Ethiopia

World Bank (2014), GDP growth (annual %); available at http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-last&sort=desc World Bank (2015) Migration and Remittances Fact Book 2016 http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1199807908806/4549025-1450455807487/Factbook2016_Countries_M-Z_Glossary.pdf World Bank Group (2014) The Economic Impact of the 2014 Ebola Epidemic: Short and Medium Term Estimates for West Africa, ZAYID, Jamal E. Sierra Leone 2015; http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/CN_data/CN_Long_EN/Sierra_Leone_GB_2015.pdf

Annex 2 – Questionnaires

KII for Partners/Government/Stakeholders (This KII guide is intended to assist consultant to generate information among Key Stakeholders and non-state actors. The interviews would center on policy, guidelines, stakeholders, formal and informal sectors, knowledge of funds transfer from abroad, perceived development that government of S/Leone can derive from remittances, gaps in existing method of fund transfer, and innovation/ best practices and lessons learnt would be explored with interviewees.) Introduction and ice breaker: The Interviewer would introduce the topic and appropriately explain the purpose for the interview.

What is the main source of income for citizens of Sierra Leone?

Are there other sources of income for citizens of Sierra Leone, e.g. fund transfers

from relations living abroad?

How can you describe the inflow of funds transferred from abroad in recent time,

has it been increasing or decreasing?

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What could have affected the change in inflow, could it be attributed to the Ebola

recovery

How can you describe the kind of impact remittances from abroad may have had on

the lives of recipients, community and the nation? Probe more for impact on the

nation (Sierra Leone)

Do you believe that migration can contribute to the development of Sierra Leone?

How?

In what ways do you think government of Sierra Leone can bridge the gap between

migration and development?

Do you have any suggestion as to how to harness the contribution of remittances to

promote the development of S/Leone?

Are you aware of any migrants remittance related policy in S/Leone? Probe for

guidelines or related document

How are national and international remittances transfers regulated?

What kinds of institution are involved in remittances transfer (e.g. banks,

microfinance institutions, mobile phone providers, money transfer operators1)

Do you know of any organizations/individuals that provide platform for migrants to

send money home eg travel agents/individuals.

Do you know anyone who benefitted from this remittances and what it was used

for?

Where does the largest share of remittances come from?

With which organization (eg NSA) or individual do you think we can speak to about

migrants and remittances (Sierra Leoneans living abroad, funds transfers to families

in S/Leone?

What do you think could be done to promote funds transfer through formal settings?

Probe for activities that can be implemented for Technical assistance intervention.

THANK YOU

Questionnaire

38

(This questionnaire is intended to assist consultant to generate information among Key Stakeholders and non-state actors. The interviews would center on policy, guidelines, stakeholders, formal and informal sectors, knowledge of funds transfer from abroad, perceived development that government of S/Leone can derive from remittances, gaps in existing method of fund transfer, and innovation/ best practices and lessons learnt would be explored with interviewees.) Introduction and ice breaker: The Interviewer would introduce the topic and appropriately explain the purpose for the interview. Quantitative tool

1. During outbreak of Ebola, Sierra Leone Diaspora organizations helped to raise funds and supplied items to support people and government of Sierra Leone. Are you aware of this? a. Yes b. No c. I don’t know

2. What kinds of institution are involved in remittances transfer: a. Banks b. Microfinance institutions c. Mobile phone providers d. Money transfer operators eg western union, person2person money transfer,

Afro International, MoneyGram, Kanson services, Skye Bank, Fadugu

3. Remittances constitute about 12% of S/Leone GDP, it could be more if all sources including informal sectors are captured. These informal sectors include: a. Person2person money transfers b. Travel agents c. Others:………………………… c. I don’t know

4. Are you aware of any policy/framework/guidelines on remittances a. Yes b. No c. I don’t know

5 Are you aware of any Diaspora and Migration Policy or guidelines a. Yes b. No c. I don’t know

5. Are you aware if there is any incentives for those sending money home a. Yes b. No c. I don’t know

6. Are you aware of any policy document/guidelines for cash transfer from countries outside S/Leone? a. Yes b. No c. I don’t know

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7. Apart from the Bank of Sierra Leone, what kinds of institution are involved in

collecting remittance data? a. Microfinance bank b. Research agencies c. Travel agents d. Others: namely……………………………………………………

8. Which method is used for remittance data collection? a. Household survey b. Estimation c. Econometric model calculation d. Reports from the payments system e. A combination of methods, namely ...

9. Does data collection differentiate between the following forms of remittance, and how are they collected? a. Permanent remittances b. Seasonal remittances c. Transfer of goods d. Informal remittances

10. How are national and international remittances transfers regulated? a. Regulatory body b. Law c. Task force d. Others:……………….. e. I don’t know

11. Where does the largest share of remittances come from? a. Italy b. Netherlands c. UK d. USA e. Others…………….

12. Has any research been carried out into the macroeconomic effects of remittances? If so, is there any information available on the relationship between remittances and: a. growth b. investment c. productivity d. inflation e. exchange rates f. poverty reduction g. inequality h. human capital i. crises in the sending or receiving country?

13. Have any (household) surveys been carried out documenting the receipt of remittances? a. If so, what proportion of households does receive remittances? b. Is there any information to show which generation of migrants is sending

remittances? c. What proportion of household incomes derive from remittances?

14. Have any surveys been carried out to examine the use of remittances?

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a. If so, what proportion of remittances are used for: i. Food ii. housing, construction or repairs iii. education iv. health v. business start-ups vi. conspicuous consumption (consumption of luxury goods) vii. saving viii. repayment of loans

15. Are there exists website for sending or receiving money back home in S/Leone?

a. Yes b. No

16. Has there been capacity building and networking of microfinance institutions to help

them participate in international transfer of remittances a. Yes b. No

THANK YOU

Annex 3 – List of key informants

Annex 3: List of Keys Informants Bank of Sierra Leone

Name Position Organization Contact Details

Date of the Meeting

Comments on contact

Joseph Lansana

Private Sector Manager

Diaspora Affairs

076-336014

5/4/16

Willim Jarett Director BSL 078-863402

5/4/10

Kombo Allieu HR Officer SSL 078-024004

5/4/16

Sheku MS Tarleh

Snr Manager BSL 078711243 5/4/16

Sammy Koroma

Consultant MD SALPOST 076580784 5/4/16

I.W Sesay Snr Officer BSL 088462729 5/4/16

I.K. Lamin Director BSL 076604243 5/4/16

Mangeh Sesay

NPO IOM 076509895 5/4/16

Awoleye Joshua

IOM consultant IOM 078509895 5/4/16

National Statistics Institute of Sierra Leone

Name Position Organization Contact Details

Date of the Meeting

Comments

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Samuel Turay

Principal Statistician

Statistics sierra Leone (SSL)

076659458 5/4/16

Shar Yambasu

Principal Statistician

SSL 076456488 5/4/16

Alfred Conteh

Internal Auditor

SSL 078111561 5/4/16

Janson Kanneh

Director SSL 078615739 5/4/16

Samuel Bangura

Admin Manger

SSL 076674515 5/4/16

Mohamed king Koroma

SG SSL 076610014 5/4/16

Andrew Johnny

Director SSL 076830333 5/4/16

Peter s. bangura

Director DSSD

SSL 076869801 5/4/16

Mangeh Sesay

NPO IOM 076509895 5/4/16

Awoleye Joshua

IOM IOM 078509895 5/4/16

Diaspora association

Name position organization Contact details

Date of the Meeting

Comments

Ben Turay Consultant SLCU

SLCU 077834070 6-04-2016

James o’ lewil

coordinator RIPSTA culture

6-04-2016

Mohamed Salami

Secretary general

Ripsta culture GEDO

077494686 6-04-2016

Sorie Obai Kamara

CEO Ripsta culture GEDO int.

079663521 6-04-2016

Randoulph L.A Wilson

Secretary general

diaspora focus

07666041 030256603

6-04-2016

Emmauel J.M Stafford

director Diaspora focus int.

079818321 6-04-2016

Umu hawa Barrie

Ambassador SLCU

Sierra leone central union Holland SLCU

078341514 6-04-2016

Jospeh Lansana

PSM ODA 076336014 6-04-2016

Sesay Mangeh

NPO IOM 078509595 6/4/2016

Awoleye Joshua

Consultant IOM 078509895 6/4/2016

Civil Society Organization

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Name Position organization Contact details

Date of the Meeting

Comments

Victor M Boima

Community officer

CeYEC-SL 076-576-470

7-04-2016

Abubakarr Kargbo

coordinator CeYEC-SL 030-820-563

7-04-2016

Tommy Festus Kajue

Case Manager

ACIC 088-036-123

7-04-2016

James Thaduba Conteh

Project Coordinator

SWD-SL 076-785-551

7-04-2016

Abraham Cobbo Sesay

Out reach Cordinator

SWD-SL 078-489-564

7-04-2016

Janet Nickel Technical Adviser

World Hope International

076-698-237

7-04-2016

Donald Thompson

Executive Director

FFALD 076-277753 7-04-2016

Jospeh Lansana

PSM ODA 076336014 7-04-2016

Omar Abdulai Sheriff

Executive Director

SWD-SL 076-601-167

7/04/2016

Awoleye Joshua

consultant IOM 078509895 7/4/2016

Sesay Mangeh

NPO IOM 078509595 7/4/2016

Ministry of Finance and Economic Development

Name Position Organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595 8-04-2016

Sallu McCarthy

Senior economists

MoF ED 076-353506 8-04-2016

Abubakarr Trawalie

Assistant Director

MoF ED 076-304587 8-04-2016

Lansana Fofanah

Senior economists

MoF ED 078-674-222 8-04-2016

Alimamy Bangura

Director MoF ED 076625 621 8-04-2016

Samuel Koroma

MD SALPOST 076-580-784 8-04-2016

Jospeh Lansana

PSM ODA 076336014 8-04-2016

Awoleye Joshua

consultant IOM 078509895 8/4/2016

Sierra Leone Commercial Bank

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Name Position Organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595 8th April 2016

Fatimata Samai

Head of corporate banking

SLCB 078596463 8th April 2016

Alhaji F. Kamara

Consultant to SLCB

SLCB 076617892 8th April 2016

Abdul H. Bagura

Relationship manager

SLCB 076637860 8th April 2016

Donald Davies

SLCB 076350056 8th April 2016

Joseph Lansana

PSM ODA 076336014 8th April 2016

Awoleye Joshua

consultant IOM 078509895 8/4/2016

World Bank Sierra Leone

Name Position Organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595 8th April 2016

Awoleye Joshua

consultant IOM 078509895 8th April 2016

Yusuf Foday Economist World Bank 076794206 8th April 2016

Interesting topic of discussion

Paramount Bureau De Change

Name Position Organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595 8th April 2016

Awoleye Joshua

Consultant IOM 078509895 8th April 2016

Ibrahim Sankoh

Cashier Paramount Bureau 079283636 088125717

8th April 2016

EU Delegation in Sierra Leone

Name Position organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595 8th April 2016

Awoleye Joshua

Consultant IOM 078509895 8th April 2016

Inga Krastina Head of the Political

EU 088136000 8th April 2016

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Press & Information Section

Office of Diaspora Affairs Authority

Name Position organization Contact details

Date of the meeting

Comments on contact

Mangeh Sesay

NPO IOM 078-509-595 4th April 2016

Awoleye Joshua

consultant IOM 078509895 4th April 2016

Kallay Musa Conteh

Director ODA 076268326 088268326

4th April 2016

Jospeh Lansana

PSM ODA 076336014 4th April 2016

Sierra Leone Postal Service (SALPOST)

Name Position organization Contact details

Date of the meeting

Comments

Mangeh Sesay

NPO IOM 078-509-595

4th April 2016

Awoleye Joshua

consultant IOM 078-509-895

4th April 2016

Samuel Koroma

Director SALPOST 076-580-784

8-04-2016

Annex 4 – Data on key Non-State Actors

Data on key Non-State Actors Please add a separate table for each key NSA stakeholder identified

Full name of the organization and acronym (if available)

World Hope International (WHI)

Organization address and general contact details

2 UN Drive Off Wilkinson Road Freetown. Sierra Leone

Contact person details Salifu Samura – Project Manager-078463323 Victoria Chan, Grants Development -079164448

Background World Hope International is a Christian relief and development organization working in 15 of the world’s poorest countries to alleviate poverty, suffering, and injustice. WHI partners with local communities to determine the most sustainable, grassroots solutions with the ultimate goal of transferring ownership of all development initiatives to the community. WHI’s priority programme areas act as a comprehensive response to poverty, providing clean water for those who thirst, opportunity for

45

entrepreneurs, education to those without, freedom to survivors of slavery, food security for the hungry, emergency aid to those in need, and health support for the sick and vulnerable.

Resources WHI Sierra Leone is led by a team of skilled local staff who manage more than 100 employees to drive forward WHI’s mission to alleviate poverty, suffering, and injustice. A combination of professional training, experience, and expertise support WHI’s long-standing history of driving sustainable change through Sierra Leone since 1998 and will continue to promote success throughout the proposed programme.

Core mandate of the organization

WHI began work in Sierra Leone in 1998, providing relief assistance to internally displaced war victims through Limbs of Hope – a programme that restored war amputees to physical and emotional wholeness. The programme, which included an Amputee Care Centre that provided thousands of war victims with prosthetic limbs, had been acclaimed by the United Nations and the U.S. Department of State. Since 2000 WHI has transitioned to implementing more sustainable development and economic growth programmes throughout the country. WHI’s strongest presence is throughout Bombali District, where staff is implementing development efforts in more than 1,700 communities. Reaching people in all 14 districts of the country, programming interventions span the following sectors: health and nutrition, education, agriculture, clean water and sanitation, rural economic development, anti-trafficking, and emergency response. Some of WHI’s major organizational accomplishments in Sierra Leone include an instrumental role drafting and revising the first law abolishing human slavery; establishing the first ever aftercare shelter for survivors of human trafficking; drilling over 250 water wells, supporting the Bombali District in implementing the first comprehensive law on maternal child health, and managing 15 community care centres throughout the Ebola

Legal status in the country

International Non-Governmental Organization(INGO)

Ongoing activities For over five years, WHI has been working with CHWs in Bombali District to implement a maternal child health programme with specific attention on Mother Support Groups (MSGs), who work with mothers to promote child nutrition, exclusive breastfeeding, and infant and child care, and, more recently, Ebola prevention. In partnership with UNICEF, WHI is also supporting 750 CHWs in hard to reach communities in Bombali. This includes training CHWs on Maternal and Newborn Health (MNH) with focus on antenatal care, post-natal care and iCCM for malaria, pneumonia and diarrhoea and providing monthly community screening of children 6-59 months to identify malnutrition and make appropriate referrals. Additionally, through this project, WHI is setting up a database for all communities/villages in Bombali district, which continually registers newborns and pregnant and

46

lactating women. WHI’s community, school, and medical clinic water supplies meet government and UNICEF standards and produce a water supply that is year round and safe for drinking. In unison with water well construction, WHI trains local water committees to ensure wells remain maintained and functioning and promotes proper hygiene education throughout intervention communities. Continuing efforts to promote healthy child development, in 2015 WHI began integrating physiotherapy and occupational therapy for children with disabilities into its programming umbrella. In this effort, a team of WHI staff trains local physiotherapists and occupational therapists to provide hands-on care and support to children living with disabilities and initiative provides support to a small number of patients in the form of school fees and uniforms, which affords for these children that are otherwise unlikely opportunity to attend school. The programme also provides small-business start-up grants to families who’ve had to change their pattern of work to allow for care to be provided for the child at home. Finally, staff work with local carpenters, tailors, and technicians to provide specialized equipment for children with disabilities, including specially-designed chairs, standing frames, leg gaiters (to support standing and walking), and drop-foot supports. Improving education outcomes in Sierra Leone, WHI’s Child Sponsorship programme provides tuition assistance, food support, and school supplies for children and has recently paired with WHI’s Village Partnerships Programme to provide more comprehensive support within communities. Beyond education assistance, WH’s Village Partnership Programme supports communities by providing capacity building for local leadership development, seed loans, grain stores, animal multiplication, drying floors, water and sanitation facilities, and health and hygiene training throughout communities. Complementing the aforementioned interventions, for more than a decade WHI has been promoting child protection through efforts to prevent and respond to human trafficking – a severe human and child rights abuse -- around Sierra Leone and across West Africa and South East Asia. Since 2004 WHI has formed and trained 58 Village Parent Groups throughout the country who work at the grassroots level and with existing community structures to educate individuals on human trafficking, to detect children who have been or are at-risk of being trafficked, and to support victims to obtain legal and emotional support. Further supporting these efforts, WHI also trains partnering organizations and provides direct shelter and support for rescued victims of trafficking and sexual exploitation their families. Staff visit patients in their homes and teach families and caregivers

47

how to support children with disabilities using play, developmental positioning, and feeding support. This allows families the opportunity to learn to provide at-home care and treatment to children in a manner that is sustainable in their everyday lives. This programme also provides support for the family unit as parents, siblings, and caregivers learn to look after the child and provide a loving, nurturing home life. As cultural beliefs lead many mothers to place blame upon themselves when a child is born with a disability, staff also educates parents on the specifics of each child’s medical case. Supplemental to this programme, a school sponsorship

Past activities relevant to the subject

WHI is committed to bringing positive change to the lives of Sierra Leone’s children, proven through years of work to raise awareness around child health and protection issues. WHI has been leading anti-trafficking programming in West Africa and beyond since 2004, and has been active in protecting children from trafficking in persons (TIP) in Sierra Leone since 2004 when it received its first grant from the United States Department of State Office to Monitor and Combat Trafficking in Persons (J/TIP). Since then, WHI has played an instrumental role in drafting and revising the first law abolishing human slavery in-country, protecting countless children from child labour; has worked as an effective catalyst establishing anti-trafficking networks; and serves as a member of the national TIP Task Force. Through the current UNICEF-funded iCCM/Nutrition programme WHI also promotes exclusive breastfeeding and participates in nation-wide health campaigns including World Breastfeeding Week, Maternal and Child Health Week, and child annual vaccinations campaigns.

Field presence in the country

WHI’s strongest presence is throughout Bombali District, where staff is implementing development efforts in more than 1,700 communities. Reaching people in all 14 districts of the country, programming interventions span the following sectors: health and nutrition, education, agriculture, clean water and sanitation, rural economic development, anti-trafficking, and emergency response.

Data on key Non-State Actors Please add a separate table for each key NSA stakeholder identified

Full name of the organization and acronym (if available)

ASSOCIATIO FOR CHILDREN IN CRISIS, ACIC

Organization address and general contact details

45 REGENT ROAD, FREETOWN e-mail; tomkajue@yahoo.co.uk

Contact person details Director/Manager level Tommy Festus Kajue Case Manager +23278-224456/ +23288-036123

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E-mail: tomkajue@yahoo.co.uk

Background Years of activities in the country, vocation, area of work, targeted beneficiaries, donors, partners, etc. The ACIC was founded in 2005, shortly after the civil war. This was as a result of a large number of children that were made orphaned by the war and were not cared for by no particular person or organization. For a better care of the children, women eventually also became target beneficiaries of our interventions. ACIC has over the 15years period been engaged on social work for the protection of children and women found in difficult circumstances. We operate in the western area rural and urban district of the country, however, by virtue of our key mandate which is identification of vulnerable/ stranded young migrants, we also operate in the key border crossing areas of the country. This key donor partner of this organization is the International Social Services –ISS Geneva through the West Africa Network for the Protection of Children WAN, whose Head office is in Ouagadougou, Burkina Faso. Our target beneficiaries therefore, are mainly foreign children and young stars that are stranded and seen to be vulnerable. By reason of being victims of trafficking, unaccompanied minors and other causes of movement of these children and youths. Our operational activities include; identification, emergency support, Family Tracing and Reunification-FTR, Support for life Project for the victims reunified in our country and monitoring. In the past three years we have identified and returned 102 foreign children to different parts of West Africa, but mainly Nigeria, Guinea, Niger, Ghana, and Ivory Coast. We have received 32 children from partners of the WAN Network who are reunified with their families in Sierra Leone and are taking care of their life projects, follow up on their social status and giving regular guidance and counselling to all clients in our care.

Resources Office/s, staff Offices- 2 office spaces; 1in Freetown, Western Urban and 1 in the Rural District of Waterloo Staff; 16 staff; 7 females and 9 males

Core mandate of the organization

Areas of expertise

Child Protection:-identification , FTR, Monitoring, Life support to beneficiaries

School Support for children

Advocacy/ Media Talk programs and jingles on Gender

Listening and Assessing the situation of the child/client

Result based Reporting to donors and partners

Family Mediation

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Legal status in the country

Non-governmental organization, faith-based organization, academic institution, etc. Non Governmental Organization Registered with the,

Ministry of social welfare Gender and Children’s Affairs- MSWGCA,

Sierra Leone Association of Non-Governmental Organization-SLANGO

Ministry of Finance and Economic Development-MoFED

Ongoing activities Ongoing activities (sector of intervention, activities, beneficiaries, duration, budget, etc.)

Identification of stranded young migrants

Emergency support to beneficiaries

Family Tracing and Reunification

Support the return of stranded migrants to their country of origin within the West Africa sub region Budget 1. Coordination cost; $6,000.00 Quarterly ($24,000.00

annually) 2. Other costs are funded by activity

Duration Yearly ( Renewable after end of year)

Past activities relevant to the subject

Previous activities (sector of intervention, activities, beneficiaries, duration, budget, etc.) during last 3 years

Family Tracing and Reunification

Reintegration of children into families and communities

Return of children and young migrants to their country of origin.

Sensitization on risks of unguided migrations Beneficiaries Stranded and Vulnerable migrants. Duration 4years Budget

Coordination cost$24,000.00x3= $ 72,000.00 Other activities $ 140,000.00 $ 212,000.00

Field presence in the country

Location of offices in the country/Operational presence in the country

Western Area Urban

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Western Area Rural

Border towns –Pujehun District, Kambia District

Email: socialworkerdevelopment@gmail.com Contact: +232-76601167/+232-88-182066/+232-76785551

Address: 5 Mary Street, Circular Road, Freetown

FULL NAME OF THE ORGANIZATION AND ACRONYM

SOCIAL WORKERS for DEVELOPMENT – SIERRA LEONE SWD – SL

ORGANIZATION ADDRESS AND GENERAL CONTACT DETAIL

5 MARY STREET, OFF CIRCULAR ROAD, FREETOWN, SIERRA LEONE

CONTACT PERSON DETAILS

+23276 – 601 – 167 / +23276 – 785 – 551

BACKGROUND Social Workers for Development – Sierra Leone (SWD-SL) were founded by Omar Abdulai Sherriff, on the 14th November, 2007. And it is a Non-governmental Organization. It was established purely because there were a lot of trafficking in persons and child labor in and around the country and government of Sierra Leone was doing little about it. Ever since it was established, we have branches in Koinadugu, Kono, Kailahun and Zimi magbay in the Pujehun district. These areas were targeted because child trafficking were very common as they share borders with neighboring countries. We target everyone irrespective of age, sex, status, etc. But we are more focus on vulnerable children. We help create an atmosphere wherein children are giving their right and responsibilities in areas like education, health, good governance, justice and peace, etc. Presently there is no direct source of funding. We only raise fund from friends and people who are passionate about what we are doing. This is one of the reasons why we are unable to focus more on our already established provincial branches. We are partners with World Hope , Action for women and children in crisis in Sierra Leone (AWoCC-SL), Ministry ofSocial Welfare, Gender and Children Affairs.

RESOURCES Our office is located at No. 5 Mary Street. It is a ground office with three (3) closed offices and an open office. Currently there are fifteen (15) workers with educational background ranging from diplomas to first Degrees. Currently, there is no salary, but workers are receiving stipends

CORE MANDATE OF THE ORGANIZATION

The mandate of the organization is to ensure that a just society is being created wherein the under privileged children and women and the youths get access to Education, Health Care, Justice and Good Governance, and further enhance that the

51

government of Sierra Leone get what its deserved for the good of the country.

LEGAL STATUS IN THE COUNTRY

The Social Workers for Development in Sierra Leone is registered with the Master Registrar General and with the Ministry of Social Welfare, Gender and children Affairs.

ONGOING ACTIVITIES The SWD-SL is still putting forward cases, especially with regards to the issue at the i.e. the Repatriation of Sierra Leoneans in Kuwait and Lebanon, especially those being abused.

PAST ACTIVITIES The last 3 years we have been able to successfully tracked and repatriated 18 Sri Lankans Nationals form Sierra Leone who came to work but were abused by their agents.

FIELD PRESENCE IN THE COUNTRY

Freetown, Kono, Koinadugu, Kailahun and Zimi Magbey.

Full name of the Organization and acronym

Centre for Youth and Exploited Children Sierra Leone (CeYEC-SL)

Organization Address and general Contact Details

Room 39-40 National Stadium, Main Bowl, Youth Development Division, Brookfields, Freetown +23276 576473, ceyecsl@yahoo.com, ceyecsl@gmail.com

Contact persons Details

Mr. AbuBakarrKargbo– National Coordinator +232 30 820563 abualaska2006@yahoo.co.uk

Background The Centre for youths and exploited children Sierra Leone (CeYEC-SL) is an independent, nongovernmental organization comprises human right and civil society activists committed to the fight against child neglect, abuse and exploitation in post-conflict Sierra Leone. CeYEC has its origin in January 2010 from the tireless and relentless efforts of some committed Human Right activists, and over 50 affected parents of the flawed Help a Needy Child International debacle in taking scores of Sierra Leonean children out of the country without the consent of their biological parents during the rebel war, by the notorious defunct Help a Needy child International. CeYEC is committed in preventing child exploitation through the organization of national campaigns and distribution of free resources that promote positive and practical actions to stop child abuse and all forms of exploitation. We work with other Civil Society Organizations and non-government organizations to develop and advocate child protection legislation, policies & practices that are in the best interests of children for policy makers. Our Area of Work are as Follows: To fight against child labour, human trafficking and all forms of abuses against children ac. Campaign to prevent Drug abuse and trafficking

52

To increase awareness, the causes and possible solutions for all forms of child neglect and exploitations To support national efforts to promote and protect the Rights of the Child To improve the quality of current efforts to detect, treat and prevent child exploitation To facilitate the exchange of best practice and partnership with other national and international human rights organizations. To design and deliver comprehensive training programs to human rights activist and concerned volunteers engaged in efforts to treat and prevent child exploitation We give voice to the oppressed and hold oppressors accountable for their crimes. Our rigorous, objective investigations, strategic, targeted advocacy build intense pressure for action against human rights abuse and exploitation. BENEFITIARIES-Deprived and Vulnerable Children, and Youths DONORS/PERTNERS- Center for Accountability and the Rule of Law (CARL) Foundation for Democratic Initiatives and Development (FDID) Defense for Children International- Sierra Leone Campaign for the Voiceless (CAMPVO) Child Right Coalition (C R C-SL) Trafficking in Persons Taskforce (TIP) Human Right Commission

Resource Staff: 1 National Coordinator 1 Program Officer 1 Communication Officer 1 Gender Officer Administrative and Finance Officer 5 Field Officers

Core Mandate of the Organization

a. Child abuse and neglect b. Human trafficking c. Drug abuse and trafficking d. Child Labour

Legal Status in the country

Non-Governmental Organization

Ongoing Activities Advocating for the bringing and reuniting of the children that were Illegally Adopted by HANCI

Awareness raising campaign on human trafficking

Awareness raising campaign on Child labour, abuse and exploitation

Mining, Quarries and Wharf visit

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Visitations of bars, Hotels and entrainment spots

Police Visitations

Court Monitoring

Past Activities relevant to the subject

Activity

Year

Budget

Media Engagement through Radio and TV Discussion, Press Conference on the HANCI Trafficking Saga, Child Abuse and Neglect, Human Trafficking, Child Labour and Exploitation

2014 Le 42,000,000

Training of Youth and Community Members on the effect Child Abuse Within the Family, Human Trafficking, Child Labour, Abuse and Exploitation

2014

Le 35,000,000

Awareness raising in 20 schools in the Western Rural District about the dangers posed by human trafficking, Child labour, abuse and exploitation.

2013

Le 21, 000,000

House to house outreach with slum dwellers in Moa Wharf about the dangers posed by human trafficking, Child labour, abuse and exploitation.

2014

Le 45,000,000

Media engagement, radio discussion on, Child Abuse within the family, child labour, human trafficking and exploitation of Children

Field presence in the country

Operational Presence: Western Rural, Western Urban, Bo,Makeni and Port Loko With plans to extend to Kono