Labour Market Profile - NCTVA...Labour Market Profile 2015 Sierra Leone 2015 Page iii Sierra Leone Labour Market Profile EXECUTIVE SUMMARY fter the end of the civil war in 2002, Sierra

LABOUR MARKET PROFILE

2015 Sierra Leone

LO/FTF Council’s Analytical Unit

Copenhagen, Denmark

Danish Trade Council for International Development and Cooperation

Labour Market Profile 2015

Sierra Leone 2015 Page ii

PREFACE

The LO/FTF Council presents this Labour Market Profile as

a yearly updated report that provides an overview of the

labour market's situation.

This country profile presents the recent main developments

and is not an in-depth analysis. Nevertheless, it shows a

wide range of data in a reader-friendly style. Certain

key findings of this report can be found on the Executive

Summary.

The report is divided in 11 thematic sections, which

includes trade unions, employers’ organizations, tripartite

structures, national labour legislation, violations of trade

union rights, working conditions, situation of the workforce

(with subsections such as unemployment, sectoral

employment, migration, informal economy, child labour,

gender, and youth), education (with subsection vocational

training), social protection, general economic

performance, and trade. Additionally, the reader may

find, an appendix including a list of the ratified ILO

Conventions.

As indicated, the report is driven by statistical data

selection from international databanks, surveys and

reports (e.g. the International Labour Organization (ILO),

the International Trade Union Confederation (ITUC), the

World Bank, WageIndicator Foundation, the Africa

Labour Research & Educational Institute (ALREI), etc.) as

well as national statistical institutions and ministries, and

others. Moreover, narrative inputs are collected from

international news sources (e.g. The Economist, the British

Broadcasting Corporation (BBC), LabourStart, The

Guardian, etc.) together with local sources such as trade

unions centers, NGOs, local news, the LO/FTF Council’s

Sub-Regional Office, among others.

This report also collects references from several indexes,

e.g. Global Rights Index, Doing Business Index, the

Governance Indicators, and the Human Development

Index. The indexes’ methodologies and the data quality

can be followed by the sources websites.

All sources, indicators and/or narrative inputs that are

used are available by links through footnotes.

It is noteworthy to highlight that although most of the

statistical data is available, there were some problems

with availability and reliability of the data. In particular,

the data collection of trade union membership, Collective

Bargaining Agreements (CBAs), women’s trade union

membership and occupational health and safety (OHS)

committees are a challenge. Therefore, used data from

these abovementioned indicators should be interpreted

with some reservations.

ACKNOWLEDGMENT

This Labour Market Profile is prepared by the LO/FTF

Council’s Analytical Unit in Copenhagen with support from

our Sub-Region Office in West Africa as well as our local

partners in terms of data collection of trade union

membership.

All other labour market profiles of the countries where

LO/FTF Council operates are available at our website:

http://www.ulandssekretariatet.dk/content/landeanalyse

r

Should you have questions about the profiles you can

contact Mr. Kasper Andersen ([email protected]), Manager of

the Analytical Unit.

Cover photo: Carsten Snejbjerg

Editing, design and layout: Adriana Romero

http://www.ulandssekretariatet.dk/content/landeanalyser

http://www.ulandssekretariatet.dk/content/landeanalyser

mailto:[email protected]



Sierra Leone 2015 Page iii

Sierra Leone Labour Market Profile

EXECUTIVE SUMMARY

fter the end of the civil war in 2002, Sierra Leone’s democratic and economic development has

gradually moved forward. The country experienced a volatile economic growth since 2000, mainly due to its agricultural and mining sectors. Labour productivity has improved, but remains quite low in comparison to other Sub-Saharan Africa’s average. Nonetheless, like other neighbouring countries they were hit hard by an Ebola epidemic in 2014. As a result, it affected the economy and the labour movement on many levels, such as disruption of farming and trading activities as well as a high pressure on the health sector’s staff and expenditure. The country has some legal restrictions and flaws on the labour legislation. Moreover, there have been registered systematic violations of labour rights. Many of the obsolete labour laws, dating back to the 1960s, are currently undergoing updates. Yet, this process was delayed because of the Ebola epidemic. Other issues are that workers are mostly unaware of the existing labour regulations, the weak incentives to formalize business as well as public sources to enforce standards. It can be argued that there has been no trickle-down effect on its economic growth. Around 83% of workers in employment are working poor (living with below US$2 per day) and a narrow middle-class has not been able to evolve. On a positive note, the minimum wage was increased often throughout recent years. This wage is mainly reaching workers from the formal sector, which could be interpreted as a minority. In practice, a massive majority (92%) is employed in the informal economy. Hence, they are not covered by the minimum wage. In addition, wages have been somewhat affected by consumer price inflation. An impact of the minimum wage increases appears to have provoked many permanent workers' positions turned into casual labour. Although the estimations of unemployment rates are quite low at 3.2%, a more structural unemployment is projected to reach 70% during upcoming years. On the grounds that the formal sector does not create sufficient decent work and workers are stalled in the informal economy to earn money to survive.

In the case of the education system, it received a negative impact due to the 1991-2002 civil war. For instance, the no-schooling rate is very high at 65% while the education average year is low. For Vocational training, it has been under-prioritized in the system. Clearly the school system continues to be weak because of the widespread child labourers in the region. It is expected that the education system is bouncing back, though. Presently, there is a rapid urbanization with many young people moving into the cities, seeking better incomes. With little urban job creation, most find work as self-employed in the informal economy. Also a Foreign Workers Law is planned to strengthen workers protection against trafficking and forced labour practices by recruitment and employment agencies. Currently, there are more emigrate than immigrate in Sierra Leone, but the migration sector remains a very limited part of the economy.

The trade union movement is under development. The Sierra Leona Labour Congress (SLLC) registered a membership increase of paid members at 24% from 2009 to 2014. This was mainly due to a massive influx of members from affiliated unions from the informal economy. Trade union members to waged workers have been estimated at 39%; and seven Collective Bargaining Agreements are registered and cover around 45,000 workers.

On one hand, Sierra Leone experiences a very weak social protection with extremely low coverage. On the other hand, several reforms such has free and universal healthcare services have be launched in 2010. This has been reinforced to the active involvement of trade union movements. Likewise, the National Social Protection Policy was also adopted in 2011, to broaden its coverage, to include the informal economy. Lastly, a Social Safety Net program, which was launched in March 2015, plans to implement two pilot districts for workers from the informal economy but it has not yet set dates for the start.

A



Sierra Leone 2015 Page iv

COUNTRY MAP

Source: The CIA World Factbook



Sierra Leone 2015 Page v

Table of Contents Preface ..................................................................................................................................................................................................................... ii

Acknowledgment .................................................................................................................................................................................................... ii

Executive Summary ............................................................................................................................................................................................... iii

Country Map .......................................................................................................................................................................................................... iv

Trade Unions ........................................................................................................................................................................................................... 1

Employer’s Organizations .................................................................................................................................................................................... 3

Central Tripartite Structures ................................................................................................................................................................................. 3

Mediation and Arbitration............................................................................................................................................................................... 3

National Labour Legislation ................................................................................................................................................................................. 3

Constitution .......................................................................................................................................................................................................... 3

Labour Code ....................................................................................................................................................................................................... 3

ILO Conventions ...................................................................................................................................................................................................... 4

Trade Union Rights Violations .............................................................................................................................................................................. 4

Working Conditions ............................................................................................................................................................................................... 5

Workforce ............................................................................................................................................................................................................... 5

Unemployment and Underemployment ........................................................................................................................................................ 6

Sectoral Employment ........................................................................................................................................................................................ 7

Migration ............................................................................................................................................................................................................. 8

Informal Economy .............................................................................................................................................................................................. 9

Child Labour ....................................................................................................................................................................................................... 9

Gender ................................................................................................................................................................................................................ 9

Youth.................................................................................................................................................................................................................. 10

Education ............................................................................................................................................................................................................... 11

Vocational Training ........................................................................................................................................................................................ 11

Social Protection .................................................................................................................................................................................................. 12

General Economic Performance ....................................................................................................................................................................... 13

Trade ..................................................................................................................................................................................................................... 15

Trade agreements .......................................................................................................................................................................................... 15

Export Processing Zones (EPZ) ..................................................................................................................................................................... 16

Appendix: Additional Data .............................................................................................................................................................................. 17

Ratified ILO Conventions in Sierra Leone .................................................................................................................................................. 17

References ............................................................................................................................................................................................................ 18



Sierra Leone 2015 Page vi

Tables

Table 1: Trade Unions in Sierra Leone .............................................................................................................................................................. 1 Table 2: Trade Unions Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health Committees .............................................................................................................................................................................................................. 2 Table 3: Sierra Leone: Global Rights Index (2014) ....................................................................................................................................... 4 Table 4: ILO Complaints Procedure Freedom of Association Cases (2015, October) ........................................................................... 4 Table 5: Wages and Earnings Monthly Average and Legal Minimum Wage ......................................................................................... 5 Table 6: Employment rates (%) in Siera Leone ............................................................................................................................................... 6 Table 7: Inactivity Rate in Sierra Leone (2013), Total & Youth, % ............................................................................................................ 6 Table 8: Comparative Average Growth of GDP per capita, Employment & WAP (2004-2013), % Change on average ......... 6 Table 9: Unemployment (2013) ........................................................................................................................................................................ 7 Table 10: Employment (2004) & GDP Share (2013) Sector & Sex distribution .................................................................................... 7 Table 11: Status of employment in Sierra Leone (2004), % ....................................................................................................................... 8 Table 12: Migration .............................................................................................................................................................................................. 8 Table 13: Working children Proportion of all children ................................................................................................................................. 9 Table 14: Highest Level Attained & Years of Schooling in Population ................................................................................................... 11 Table 15: Vocational Training (2001) ........................................................................................................................................................... 11 Table 16: Public Spending on Social Protection Schemes (2009) ............................................................................................................ 12 Table 17: Benefits, Coverage and Contributions to Pension Schemes (2010) ...................................................................................... 12 Table 18: Key Facts (2014 est.) ...................................................................................................................................................................... 13 Table 19: Working Poor Age 15+ ................................................................................................................................................................. 14 Table 20: Sierra Leone’s Ease of Doing Business ......................................................................................................................................... 14 Table 21: Governance Indicators .................................................................................................................................................................. 15 Table 22: Trade and Foreign Direct Investment ........................................................................................................................................... 15 Table 23: Ratified ILO Conventions in Sierra Leone ................................................................................................................................... 17

Figures

Figure 1: Trend of SLLC members and affiliated organizations from the informal economy (IE) (2010-2014) .............................. 1 Figure 2: Employment Participation and Inactivity in Sierra Leone - (1991-2013), Total & youth, %............................................... 6 Figure 3: Labour Productivity .............................................................................................................................................................................. 6 Figure 4: Unemployment rate trends in Sierra Leone and the Sub-Saharan Africa (2000-2013), Total & youth, % .................... 7 Figure 5: Sierra Leone: Sector Share of GDP (2000-2013), % of GDP .................................................................................................. 8 Figure 6: Net Migration and Remittances Trends ........................................................................................................................................... 8 Figure 7: Knowledge & attempts to formalize businesses in Sierra Leone (2006) ................................................................................. 9 Figure 8: Females in Management and Ownership ..................................................................................................................................... 10 Figure 9: Youth Unemployment Rates in Sierra Leone ............................................................................................................................... 10 Figure 10: Standard and Structural Youth Unemployment rates of Selected African Countries (%) ............................................... 11 Figure 11: Healthcare Expenditure not financed by private household's out-of-pocket Payments (1995-2011) ......................... 12 Figure 12: GDP growth per capita (2000-2014), Sierra Leone and the Sub-Saharan Africa, Annual % .................................... 13 Figure 13: GDP per capita trend and forecast ........................................................................................................................................... 13 Figure 14: Inflation trend and forecast (2002-2018), % .......................................................................................................................... 13 Figure 15: Gross Fixed Capital Formation .................................................................................................................................................... 14 Figure 16: Middle class' trends in Sierra Leone and the Sub-Saharan Africa (SSA), (2002/03-2011) (%) ................................. 14 Figure 17: Sierra Leone's products share of main exports (2012) .......................................................................................................... 15



Sierra Leone 2015 Page 1

TRADE UNIONS

Sierra Leone is considered to have one of oldest trade

union movements in Africa. In fact, their earliest strikes

were recorded in 1874.1

The Sierra Leone Labour Congress (SLLC), which was

founded in 1976, is the umbrella organisation of trade

unions in Sierra Leone and has 27 affiliated unions

and/or organisations. It is believed that SLLC maintains

amicable relationship with the government.

The government generally protects the right to

Collective Bargaining Agreements (CBAs) in practice

and is widespread in the formal sector. Most enterprises

are covered by CBAs on wages and working

conditions.2

According to the U.S. Annual Human Rights Report

2014,3 most industrial actions are against the

government. They are often related to protest against

unpaid salaries and reduced benefits. Among others,

health-care workers used a ‘work stoppage’ as a means

to demand more resources for an ongoing public health

crisis during August-October 2014. The government

generally does not interfere with peaceful

demonstrations and attempts to negotiate with workers

and labor unions in good faith.

This report has registered seven CBAs that are

considered to protect 45,000 workers. This estimates

that 1.9% of the labour force is covered by CBAs. The

reason why these estimates are not higher is because a

very large majority of the labour force operates in the

informal economy.

Table 1: Trade Unions in Sierra Leone4

Number of trade unions (SLLC) 27

Dues (standard) N/A

Members of trade unions (paid members) 147,500

Declared trade union members share of labour force

9.0 %

Total trade union members share of labour force

2.5 %

Trade union members to waged workers (without informal sector unions)

39 %

Female member share of trade unions N/A

Members of affiliated trade unions from the informal economy (2014)

455,000

Number of CBAs (SLLC) (2009)5 7

Workers covered by CBAs 45,000

Share of workers covered by CBA 1.9 %

Labour force (2013) 2,401,000

Estimates have shown that 39% of waged workers in

the formal economy are unionized. The Sierra Leone

Labour Congress (SLLC) has approximately 72,000

members from the formal sector, whereas the Central

Confederation of Trade Unions (CCOTU) has 8,340

members. In 2009, SLLC had registered 75,000

members from affiliated unions from the informal

economy. But by 2012, around 300,000 self-employed

market vendors were organised, along with 147,000

taxi “moto-bikers”.

The monthly membership for affiliated contributors cost

100 Leones (US$0.03). It is important to note that such

affiliated organizations tend to declare there are a

lower number of members that pay a membership even.

For example the photographers’ union has around

8,000 members, yet they only declare 500 paid

memberships. On another note, the SLLC has noted that

between 2009 and 2014, a 30% increase of paid

members from the informal economy (See Figure 1). This

meant an increase to 67,000 members.6

Figure 1: Trend of SLLC members and affiliated

organizations from the informal economy7 (IE) (2010-2014)

There are two informal trade unions that seem to be

organizing all types of traders in the streets and

markets. These include: hairdressers, tailors and

dressmakers, among others. It has been recognized that

they are represented in all nine regions of Sierra Leone

and have members at the local community level across

the country. Nearly 75% of their members are women.

Very few women are so far represented in their

leading structures, but gender sensitized is integrated

into all trainings for trade union leaders and

representatives. Furthermore, many traders migrated to

the big cities to make a living. These two trade unions

represent a diversity of ethnicities.

Across the country, the motorcycle union is mainly

organizing those young men working as taxi drivers on

motorcycles, predominantly in the capital Freetown.

116120 139120 144,120

47000 61856 66856 75000

455000 455000

0

100000

200000

300000

400000

500000

2010 2012 2014SLLC, paid members Paid members from IE

Affiliated members from IE




Many of these young men are ex-combatants from the

civil war (1991-2002) who are mostly uneducated. In

some cases, many have also migrated to the bigger

towns in search of a livelihood; and many different

ethnicities are represented. They play a role for cheap

transport of people in cities where public transport is

almost non-existent. It was confirmed that due to the

Ebola outbreak, bike riders limited their daily

operations from 7:00am to 7:00pm. They were also not

left out the group of affected workers in the country by

the outbreak of the Ebola disease. As a result of the

restriction of movement of people, from one place to

another and the continued quarantining of places,

drivers can no longer commute passengers from one

place to another.

Table 2: Trade Unions Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health Committees8

Trade Union / Trade Union Centre

Affiliation To national trade union

centre

Declared Members (2014 est.)

Total Members

(2014)

Dues US$

No. of CBAs

Workers covered by CBAs

No.of OSH committees

at workplaces

SLLC Sierra Leone Labour Congress 147,460 535,604 - 7 45,000 - CCOTU Central Confederation of Trade Unions

8,340

(2011)9 - - - - -

Trade Union

Artisans public works of services employees union

SLLC 1,600 - - - - -

Clerical banking insurance accounting petroleum union

SLLC 2,010 - - - - -

Construction workers union SLLC 1,500 - - - - -

Electicity employees union SLLC 1,200 - - - - - Hotel food drinks tobacco entertainment workers unions

SLLC 2,100 - - - - -

Union of mass media, financial institutions, chemical industries & general workers

SLLC 500 - - - - -

Martime & waterfront workers union SLLC 1,000 - - - - - Motor drivers & general transport workers union

SLLC 1,000 - - - - -

Municipal & general government employees union

SLLC 1,000 - - - - -

National union of civil servants SLLC 1,000 - - - - - National union of forestry & agricultural workers

SLLC 1,100 - - - - -

Sierra Leone fishermen’s union SLLC 400 - - - - -

Sierra Leone dockworkers union SLLC 1,000 - - - - - Sierra Leone health services union SLLC 2,010 - - - - -

Sierra Leone national seamen’s union SLLC 1,000 - - - - -

Sierra Leone teachers’ union SLLC 36,000 - - - - - Sierra Leone union of postal & tel. employees union

SLLC 1,054 - - - - -

Sierra Leone reporter union SLLC 450 - - - - - Sierra Leone union of security, watchmen & gen. workers

SLLC 2,500 - - - - -

Skilled & manual productive workers union

SLLC 510 - - - - -

United mineworkers union SLLC 902 - - - - -

Informal Sector Unions / Organisations

Indigenous petty traders association SLLC 1,000 300,000 0.03 - - -

Indigenous photographers’ union SLLC 500 8,000 0.03 - - - Sierra Leone artisanal fishermen’s union

SLLC 17,106 - - - - -

Sierra Leone traders union SLLC 3,000 - - - - -

Sierra Leone musicians union SLLC 250 - - - - -

Bike riders Union SLLC 40,000 147,000 0.03 - - -




EMPLOYER’S ORGANIZATIONS

Sierra Leone Employers Federation (SLEF)

SLEF is the main employers’ organization in Sierra

Leone. It is led by Mr. Leslie Thomas, Executive

Secretary. SLEF has a relatively small membership base

and collaborates with ILO for institutional

development.10 It has also collaborated with ILO, SLLC

and the National HIV and AIDS Secretariat on other

occasions and is present in the board of the National

Social Security and Insurance Trust.

SLEF has agreed on the idea of an employment forum

as an ideal forum to discuss wider issues in addition to

the joint national negotiating board, the outcome of

which will then be incorporated in the government’s

agenda for prosperity.11

SLEP has also promoted a two-day Human Resource

Management Conference in May 2014 assessing some

of the challenges in their various institutions, ranging

from poor labour laws, politics in management, lack of

required skills to make operations smooth, low level of

encouragement to capacitate staff and public sector

reforms which is very slow.12

CENTRAL TRIPARTITE STRUCTURES

Joint National Negotiating board (JNNB)

The tripartite Joint National Negotiation Board, sets the

minimum wages in Sierra Leone, however it has not

convened for some years.13

Mediation and Arbitration

Individual grievances at workplaces are first handled

by the shop steward and the sectional head, if that fails

then the head of Personal affairs tries to resolve it, but

if not then it is transferred to the Secretary General of

the relevant union. This procedure takes 13 days, if that

fails the parties can report it to the Commissioner of

Labour and the Minister of Labour14

No information on the handling of collective labour

disputes was available.

Other bi/tripartite organs15

o Trade Group Negotiating Council (TGNC)

o Joint Consultative Committee (JCC)

o Trade Group Negotiating Council (TGNC)

o Joint National Negotiating Board (JNNB)

o National Social Security and Insurance Trust

(NASSIT)

o Women’s Vocational Training Centre

o National Budgetary Committee

o Regulating Committee on Fuel and Transport Fares

councils.

NATIONAL LABOUR LEGISLATION

Constitution16

The constitution of Sierra Leone was established in

1991, and has not been amended after the civil war

(1991-2002). The constitution protects the freedom of

association, health and safety at work, fair working

conditions, equal pay for equal work and fair

compensation. The constitution has been under review

since 2013 and has been expected to be adopted by

referendum during 2015.

Labour Code17

Many of the important laws regulating the labour

market in Sierra Leone date back to 1960s, a year

before independence from the United Kingdom. These

include the Employers and Employed Ordinance and

the Trade Unions Ordinance. The labour laws are

currently being revised in Sierra Leone. It was estimated

that the process was concluded at the end of 2014, but

it remains ongoing. However, a new draft of the

Employment Law already exists.

Several other legislations and acts exist, which regulate

and set standards and restrictions for the labour

market.18 International Trade Union Confederation

(ITUC) has registered a wide range of flaws on the

current legal framework regarding freedom of

association, collective bargaining and the right to

strike.19 There are, among others, registered that the

Labour Code does not establish an independent body for

a trade union or its members to take recourse in the event

that the Minister of the Interior refuses to issue a

certificate recognizing the trade union. In addition, this

Code does not establish a legal mechanism by which a

representative trade union can compel an employer to

enter into collective bargaining negotiations, nor it

provides no specific protection to workers who take part

in a strike.

The U.S. Country Reports on Human Rights Practices for

2014 also noted that although the government

generally protects the right of workers in the private

sector to form or join unions, the government has never




been called upon to enforce applicable laws through

regulatory or judicial action.20 Moreover, in practice,

laws and standards continue to be violated primarily

due to a lack of enforcement.

ILO CONVENTIONS

Due to arrears in the payment of its financial

contribution to the ILO, Sierra Leone lost since June 5,

2014, its Voting Rights in the organization’s governing

bodies. However, the Conference may permit a

Member to vote if it is satisfied that the failure to pay is

due to conditions beyond the control of the Member.

Since 1992 ILO has continued to register the

government’s failure to adopt specific provisions with

sufficiently effective penalties for the protection of

workers and workers’ organizations against acts of

antiunion discrimination and acts of interference.21

ILO took notes in 2014 with 'serious concern' that Sierra

Leone’s government has not replied to previous

comments and asked the government to report on the

submission of the instruments adopted by the

Convention Minimum Age for Admission to Employment

(No. 146) and the Collective Bargaining Convention

(No. 154).22

TRADE UNION RIGHTS VIOLATIONS

The International Trade Union Confederation’s (ITUC)

Global Rights Index 2014 ranked Sierra Leone as 4 out

of a 5+ ranking (see below). As already mentioned,

there are a series of legal provisions that undermine the

freedom and action of the trade unions that makes it

easy entering illegality.

Table 3: Sierra Leone: Global Rights Index (2014) 23

4 out of 5+

o Systematic violation of rights

o Unions in country with the rating of 4

have reported systematic violations

against workers. The government

and/or companies are engaged in a

serious effort to crush the collective

voice of workers putting fundamental

rights under continuous threat.

Note: Five clusters in total with ratings from 1 to 5. A country is assigned the rating 5+ by default, if the rule of law has completely broken down.

The International Trade Union Confederation (ITUC)

registered one case in 2014/2015 (October)24 . It was

related to the Sierra Leone Seamen’s Union (SLSU)

report made in May of 2014. It’s intensive with threats

against trade unionists by the management of a

company. According to ITUC, workers were informed

they would be dismissed and blacklisted if they

continued to demand the negotiation of a collective

agreement.

The U.S. Country Reports on Human Rights Practices did

not report the violence, threats, or other abuses

targeting union leaders and members by government or

employers during 2014. On the other hand, the report

noted that there were concerns that some union

leadership did not effectively represent the interest of

members. There had also been observed that some

private industries, such as the private security and

domestic workers sectors, employers are known to

intimidate workers to prevent them from joining a union.

Since the outbreak of the epidemic in Sierra Leone in

2014, the most affected sector in terms of exposure,

deaths, displacement, and stigmatization by

communities is the health sector. The health sector has

been colossally devastated with low morale among

health workers. There are reported cases of harassment

and forceful eviction from homes by landlord for being

considered as Ebola virus carriers.

In carrying out their work in combating the Ebola virus

and care giving to infected persons, health workers are

being constraint by inadequate supply of Personal

Protective Equipment (PPE). Where they are being

supplied, cases of substandard PPE have been reported

and this has accounted for health personnel contracting

the virus in the course of their duty. Hence, the high toll

of death on health personnel of recent times.

ILO's Committee of Freedom of Association has no Freedom of Association cases or follow-up cases.

Table 4: ILO Complaints Procedure Freedom of Association

Cases (2015, October)

Active 0

Follow-up 0

Closed 3




WORKING CONDITIONS

Table 5: Wages and Earnings Monthly Average and Legal Minimum Wage

Source

Current Leone

Current US$

Minimum wage (2015)

JobSearch25 500,000 116

Minimum wage for a 19-year old worker or an apprentice (2013) Doing

Business26

150,691 35

Ratio of minimum wage to value added per worker (2013)

0.04

Real minimum wage (2015)

Global Wage Database27

451,005 104

Wage Share Unadjusted (average, 2001-2007)

47 %

Ratio of minimum wage to value added per worker denotes the minimum wage share of labour productivity. Reported as ratio of minimum wage to value added per worker in the Doing Business Report.

The Wage Share is the share of GDP that goes to wages and other forms of labour compensation. It is not adjusted for the self-employed, and can therefore underestimate the amount of GDP that goes to workers, if there are many self-employed in the economy.

The Joint Negotiation Board agreed a new minimum

wage that was compared with other neighboring

countries. The adjusted minimum wage, which covering

all occupations, including in the informal sector, was

raised to 500,000 Leones (US$116) per month per

January 1, 2015. The real minimum wage has been

somewhat reduced by the consumer price inflation (see

Table 5 above).

Since many small-businesses and individuals have

benefitted by using the archaic former minimum wage,

which was set at 21,000 Leones (US$19) in 1997, they

are likely to be affected by the labour cost increase. It

has triggered some conflicts during revision of workers’

contracts, e.g. employees demand more productivity

with half the time or even terminate contracts. In

addition, it can generate using more casual labour

instead of maintaining permanent workers.

The poverty line is placed at 133,000 Leones (US$31)

per month.28 It is quite low in terms of the minimal wage

level. However, the minimum wage compliance is quite

difficult to monitor in the informal economy. In practice,

the minimum wage is frequently not applied in this

dominating 'sector'. Most workers support an extended

family, commonly pooling incomes and to supplement

wages with subsistence farming and child labor.

Inflated food prices and job losses as an impact of the

Ebola Virus Disease (EVD) epidemic, which hit the

country hard in 2014, have affected many workers.

Especially those around the borders like farmers, rural

dwellers, and informal urban workers whose subsistence

and survival are the main economic concerns.

The official work day is 8 hours, but in reality the

average working hour amounts to 12 hours. This is

especially higher in the informal sector. In addition,

there is no prohibition on excessive compulsory

overtime.29

According to ILO’s Decent Work Country Programme,

workplaces are hazardous in Sierra Leone. The working

conditions and health hazards in the mines are

particular dire, and the Occupational Safety and

Health inspection is not functioning.30

The Ministry of Health and Sanitation is responsible for

setting and enforcing safety and health standards.

According to the U.S. Country Reports on Human Rights

Practices, the government did not effectively enforce

these standards in all sectors. There is often no

information available on working conditions like in the

artisanal mining sector. Violations of wage and

overtime are frequent. For example, violations are

common among street vendors and market stall workers,

rock crushers, and day laborers.

There have been numerous complaints of unpaid wages

and lack of attention to injuries caused by the job.

Unfortunately many victims do not know where to turn

for recourse, or their complaints are unresolved.

WORKFORCE

The total population of Sierra Leone is 5.7 million and

its labour force account to 2.4 million people. Around

63% of the population is on the age of 25 years or

below.31 The employment rate has been estimated at

65% with a very small gender gap at 2% among men

and women (see Table 6).




Table 6: Employment rates (%) in Siera Leone32 2013, Age and Sex Distribution

The employment participating trend has been on a

narrow increase, while the inactivity rate decreased.

This trend has been slightly more prevalent among

youth. Among youth, women have a higher employment

rate (47%) than men (38%). This is related to that more

youth men are present in the education system as well

as with higher inactivity and unemployment rates.

Figure 2: Employment Participation and Inactivity in Sierra Leone - (1991-2013), Total & youth, %33

One out of three (33%) of the working age population

(WAP, 15+) and a little more than one out of two

(56%) of the youth population (15-24 years old) are

inactive on the labour market; and with some gaps

between men and women (See Table 7).

Table 7: Inactivity Rate in Sierra Leone (2013), Total &

Youth, %34

Total Male Women

Inactivity rate 33 % 31 % 34 %

Inactivity rate, youth 56 % 60 % 52 %

According to ILO estimations, there has been an

increase in the productivity in Sierra Leone since 2000,

i.e. more effective work by those who are employed.

The improvements are related to an expansion in

agricultural production, services, construction as well as

an increased access to electricity. The productivity is

likely to have decreased due to the Ebola epidemic

during 2014. Sierra Leone’s labour productivity

continues to be far below the Sub-Saharan Africa’s

average.

Figure 3: Labour Productivity35 (1992-2012), Output per unit of labour input based on

GDP constant 2005 US$; and labour productivity indexed year 2000 (=100)

The labour productivity is defined as output per unit of labour input, i.e. GDP per person engaged and GDP per hour worked as an index with base year 2000 (= 100).

Based on a basis calculation of the growth in GDP per

capita and the employment rate, the labour

productivity has been relatively high growth at 2.0%

per year on average over the period 2004-2013. It is

notably that this growth was in the period 2009-2013

at 4.8% while it declined at -0.7% in the period 2004-

2008. The employment ratio fell by -0.4% in the period

2004-2013 in relation to the WAP growth. This

suggests that the growth of GDP per capita is only due

to labour productivity during this period not an

increasing employment rate (see Table 8 below).

Table 8: Comparative Average Growth of GDP per capita, Employment & WAP (2004-2013), % Change on average36

Years GDP/

employment GDP/ WAP

Employment/ WAP

2004-08 -0.7 % -1.8 % -1.0 %

2009-13 4.8 % 5.1 % 0.3 %

2004-13 2.0 % 1.6 % -0.4 %

Note: The columns above reflect: i) GDP per capita/employment equals GDP per worker (i.e. labour productivity); ii) GDP/WAP equals GDP per capita; and iii) employment/WAP equals the employment rate (ratio of workers to working-age population (15+)).

Unemployment and Underemployment The unemployment rates in Sierra Leone are low and

stable since 2000; and far below the Sub-Saharan

Africa’s average. But given the large informal sector

and the little coverage of social security systems, they

are notable. Both unemployment and youth

unemployment are relatively higher for men than for

women.

0%

20%

40%

60%

80%

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Participation - 15+ Participation - 15-24Inactivity - 15+ Inactivity - 15-24

112 113 107

100 100 107 111 113

122 126

147

0

50

100

150

200

0

5000

10000

15000

20000

25000

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Sierra Leone SSA

World Sierra Leone - year 2000 (=100)

Sex Age Employment rate

Men & Women

Total 15+ 65 %

Youth 15-24 42 %

Adult 25+ 77 %

Men Total 15+ 66 %

Youth 15-24 38 %

Adult 25+ 81 %

Women Total 15+ 64 %

Youth 15-24 47 %

Adult 25+ 73 %




Table 9: Unemployment (2013) 37

Unemployment Youth

Unemployment

Total 3.2 % 4.7 %

Male 4.3 % 6.6 %

Female 2.1 % 3.0 %

Figure 4: Unemployment rate trends in Sierra Leone and the

Sub-Saharan Africa (2000-2013), Total & youth, %38

There has been argued that youth unemployment was a

major cause of the outbreak of civil conflict in Sierra

Leone back in the 1990s. Today, youths’ employment

situation in Sierra Leone continues to be critical. A point

is that approximately 70% of youth (age 15-35) are

technically not unemployed but underemployed. Other

estimations suggest that about 400,000 youths are

jobless (not working or studying). The youth

unemployment is projected to reach over 70% during

the next five years.39 This latter estimation diverges

methodically from the ILO’s more strictly definition of

unemployment on the table on this page. There is an

approximation of a need to create over 300,000 jobs

to engage different categories of unskilled and skilled

youths.40

Moreover, illiteracy remains a persistent challenge and

youth lacking skills and education find it extremely

difficult to compete for the limited jobs available.41 ILO

has also estimated a share of youth unemployed in total

unemployed at 32% in 2013.42

The country is undergoing a rapid urbanization with the

influx of young people into the larger cities. An

estimated 800,000 youth today are actively searching

for employment. As already mentioned, the urban

areas are likely not able to generate the amount of

employment needed, let alone in the formal sector, and

lack of employment opportunities.43

Youth unemployment is a high political priority in Sierra

Leone. A National Youth Commission was created in

2009 to deal with these issues.44 (See also Youth

section).

Sectoral Employment Agriculture is the largest sector employing about 67%

of the workforce and contributing at 53% to GDP.

Trade, Hotels and Restaurants has most women to men

employed, but with a low contribution to GDP relative

to the number of workers in the sector. The diamond

and mineral mining are prominent industries in Sierra

Leone. The Ebola epidemic has hard hit the tourism

industry adversely. This epidemic has accounted for

about 98% of checkouts in all hotels nationwide due to

the cancellation of flights from and to Sierra Leone.

Most road building has been suspended affecting

mostly youths on basic wages.

Agriculture is the largest sector employing about 67%

of the workforce and contributing at 53% to GDP.

Trade, Hotels and Restaurants has most women to men

employed, but with a low contribution to GDP relative

to the number of workers in the sector. The diamond

and mineral mining are prominent industries in Sierra

Leone. The Ebola epidemic has hard hit the tourism

industry adversely. This epidemic has accounted for

about 98% of checkouts in all hotels nationwide due to

the cancellation of flights from and to Sierra Leone.

Most road building has been suspended affecting

mostly youths on basic wages.

Table 10: Employment (2004) & GDP Share (2013) Sector & Sex distribution 45

0

2

4

6

8

10

12

14

Sierra Leone - unemployment rateSierra Leone - Youth unemployment rateSSA - unemployment rateSSA - youth unemployment rate

Sector Male

employment Female

employment

GDP share per

Sector

Mining and quarrying

59,311 9,663 12 %

Manufacturing 7,397 2,015 2.1 %

Electricity, gas & water

7,104 1,243 0.2 %

Construction 28,239 10,829 1.3 %

Trade, restaurants & hotels

104,831 169,595 9.1 %

Transport and communication

14,425 1,257 4.6 %

Finance, real estate and business services

9,468 8,251 6.6 %

Public administration, education & health

54,232 26,155 4.9 %

Other services 50,914 44,707 6.9 %

Agriculture 651,245 672,128 53 %




Since 2001 the country has experienced a sector share

of GDP increase in the agricultural sector while a

decrease in services. The industry sector has also slowly

declined. The sharp changes of the sector shares in the

beginning of 2000 are related to the end of the Sierra

Leone’s Civil War (1991-2002), which devastated the

country’s development.

Figure 5: Sierra Leone: Sector Share of GDP (2000-2013), % of GDP46

The available data from 2004 showed that wage and

salaried workers constituted around 8% of the workers

in employment in Sierra Leone. Men are dominating this

segment. Self-employment is covering 92% of the

country’s labour market’s workforce: Own account

workers are the largest part (74%) while contributing

family workers (18%) are less present. All of them are

in vulnerable employment. Since the industry and the

service sectors have not gone through a transformation

that can produce more jobs in the formal sector in the

last decade there are indications that the status of

employment has probably not changed.

Table 11: Status of employment in Sierra Leone (2004), %47

Wage & salaried workers

Self-employed workers

Self-

employed*

Own

account

Family

workers

Total 7.6 % 92 % 74 % 18 %

Male 11.3 % 89 % 74 % 15 %

Female 3.7 % 96 % 75 % 22 % *) Self-employment is a sum of the own account workers and the family workers employment.

Migration

Sierra Leone previously experienced an influx of

migrants as refugees returning after the civil war, but

the migration trend has changed in recent years. Now,

in the period 2008-2012, the net migration is -21,000,

which is 1 out of every 1,370 Sierra Leonean. It is still

higher than the Sub-Saharan Africa’s average and the

borders are porous.

Table 12: Migration48

Net migration (2008-2012)

Sierra Leone -21,000

Net migration to average population per year (2008-2012)

Sierra Leone -1 : 1,370 inhabitants

Sub-Saharan Africa

-1 : 2,838 inhabitants

Remittances received, % of GDP (2012)

Sierra Leone 1.6 %

Sub-Saharan Africa

2.0 %

Net migration is the net total of migrants during the period, i.e. the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

Remittances play a limited role in Sierra Leone's

economy, providing to 1.6% of the country's GDP. As

already mentioned, there is also a massive internal

rural-urban migration. It has been assessed as a

negative impact on the agriculture sector’s production.49

Many of those who migrated to Freetown to seek

employment out of desperation were vulnerable to

exploitation in order to earn enough for a day’s meal.

Due to an critical shortage of skilled workers,

companies in Sierra Leone are frequently seeking

foreign workers in managerial and technical positions.

However, the immigrations policy operates with

cumbersome and costly procedures to obtain the

permits.

Figure 6: Net Migration and Remittances Trends50 (2000-2012), Net total of migrants during five years and remittances comprise personal transfers and compensation

of employees

0

10

20

30

40

50

60

70

Agriculture Industry Services

500000

60000

-21000 0

0.5

1

1.5

2

2.5

3

3.5

4

-100000

0

100000

200000

300000

400000

500000

600000

Net migration - persons (Sierra Leone)Remittances - % of GDP (Sierra Leone)Remittances - % of GDP (SSA)




Informal Economy The formal sector only absorbers a rough 9% of the

total labour force. In contrast, it was estimated in 2004

that the informal economy employs 2 million people

(92%) of the economically active population, which has

half of them being women. As it occurs in least

developed countries, Sierra Leone’s informal economy

covers both the rural and urban areas. Workers in the

informal economy are mainly in agriculture in the rural

areas and are closely followed by wholesale, retail,

petty trading and artisans’ activities in the urban areas.

Other important informal ‘sector’ occupations include

mining, transport service, construction and services

delivery workers, among others.51

A survey of businesses in the informal economy in Sierra

Leone showed that a main reason to remain informal is

based on the total costs of entering the formal sector

(see graph). But it is also related to a generally lack of

information of the labour market and personal

knowledge about steps to operate with a formalized

enterprise. Close to three out of four (73%) have never

tried to formalizing their enterprises.

Figure 7: Knowledge & attempts to formalize businesses in

Sierra Leone (2006)52

Similarly, as explained in the Trade Unions section, the

SLLC has seen a massive increase in organizing self-

employed informal workers during the last couple of

years. The organization has moreover provided training

for the leadership of informal economy unions to

develop a business plan53 as well as implementing

conferences for informal economy workers and local

authorities.

Child Labour

Sierra Leone has ratified the ILO core Convention on

the Worst Forms of Child Labour or the Convention on

Minimum Age. A Child Rights Act has been

implemented, but it has received criticisms for

underemphasising the responsibilities of a child.54 In

addition, the Act lacks prohibiting the use of children in

illicit activities and there is limited funding for

enforcement efforts or social programs.55

There is widespread child labour in Sierra Leone. A

50% of children are involved in child labour, which is

more than double the Sub-Saharan Africa's average.

Child labour is more common among the poorest quintile

of households (57%) compared to the richest (34%),

more common the rural areas (53%) than urban (42%).

Table 13: Working children Proportion of all children Region Age Year Type Proportion

Sierra Leone56 5-14 2010 Child labourers

50 %

Sub-Saharan Africa57

5-14 2008

Children in employment

28 %

Child labourers

25 %

Hazardous work

13 %

Children in employment include all children who conduct some kind of work, whereas child labourers are a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

Child labour is predominantly highest in the group age

5-11 (63%). This involves more than one hour of

economic work a week. Whereas the age group 12-14

(15%) is much lower since it is more than 14 hours of

economic work. As school attendance was also higher

among child labourers, it indicates that although most

children do work, most is not full time and less harmful

than what is common among child labourers.

Lately, the Government launched the Agenda for

Prosperity, which includes strategies to address child

labour and participate in social programs to address

child labor and child trafficking. Nonetheless, child

labours is mostly found in the sectors of agriculture yet

worse within mining.

Gender In terms of gender, Sierra Leone has made significant

progress in addressing the wide-range of issues that

are meant to mitigate the vulnerabilities of women and

girls. Though, shortfalls persist due to the existence of

legal frameworks that stumbles the implementation of

the gender-related structural changes, e.g. at the level

of local courts, customary law often discriminates

against women.58 The Gender Equality and Women’s

Empowerment Policy is currently being drafted. This will

precede the adoption of the Gender Equality Bill.

Know nothing; 36%

Know few

details; 39%

Know something; 18%

Relatively

well inform

ed ; 6%

Know exactly

; 1%

Yes; 27%

No; 73%




Females are under-represented in paid employment in

the non-agricultural sector, as well as in politics and

public life.59 They have little or no access to credit

facilities, improved technologies, extension services and

post-harvest technologies.

Work made on gender equality continues with reviews

made by trade unions. They are focus in

accommodating more women in union structures. This

means that formed women committees within the region

will enable women members to raise any concern to

union leaders. Cases like HIV/AIDS under health and

safety have received attention thus, served to address

some issues of particular importance to women.

Trainings regarding occupational health and safety

disseminated HIV/AIDS information and also distributed

condoms. Consequently, the national women’s committee

remains vibrant.60

An Enterprise Survey reported that 8% (Figure 8) of

firms had female participation in ownership,

considerably lower than the Sub-Saharan Africa's

average at 29%, and that 17% of full time employees

were women, which was also lower than the Sub-

Saharan Africa's average at 24%.

Figure 8: Females in Management and Ownership61

Youth According to the post-war Truth and Reconciliation

Report, the youth unemployment was a leading factor in

the prolongation of the brutal ten-year conflict. In the

early 1990s, young people with few job prospects

joined rebel groups and engaged in criminal activities

and armed conflict.62

As mentioned in previous Workforce section, youth

unemployment rates have been stable and relatively

low. Men supersede women’s rate (Figure 9). The youth

unemployment has also slightly decreased in terms of

the total unemployment.

However, youth unemployment is a challenging social

problem in Sierra Leone. The age group faces high

rates of inactivity, underemployment and poor working

conditions such as long working hours and low pay.

Youth have fewer opportunities for salaried

employment compared with those above a thirty-five

age bracket. Employment opportunities are significantly

lower for youth, regardless of their qualifications. Public

sector employment opportunities tend to exclude youth

on the basis of age and experience.63

Figure 9: Youth Unemployment Rates in Sierra Leone 64 Gender gaps & Share of Youth Unemployed in total

Unemployed (%)

In 2013, Sierra Leone launched its first “Status of the

Youth” report, which argues that the country is making

strides to reverse negative development trends, but the

structural underemployment remains quite high, also in

terms of regional comparison. Youth structural

unemployment has been projected to reach over 70%

during the upcoming years. It shows a need to create

over 300,000 jobs to engage different categories of

unskilled and skilled youths.65 Thus, the government has

implemented new legislation for youth-friendly

initiatives that aim to provide youth development,

employment, and empowerment (see also Figure 10).

8%

17%

29%

23%

30%

21%

0%

5%

10%

15%

20%

25%

30%

35%

Females in ownership Full-time female workers

Sierra Leone Sub-Saharan Africa Low income countries

34% 34%

36%

37%

36%

34% 34%

36%

35% 35%

34%

32%

28%

30%

32%

34%

36%

38%

0%

2%

4%

6%

8%

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Youth unemployment - MaleYouth unemployment - FemaleShare of youth unemployed in total unemployed (%)




Figure 10: Standard and Structural Youth Unemployment rates of Selected African Countries (%)66

A Youth Report67 from 2012 showed that less than 50%

of young workers in Sierra Leone receive payment for

their labor, compared with two thirds of adults. In

addition, most private companies pay between US$30

to 37 per month as a basic salary, reaching US$58 to

70 at the top supervisory levels.

EDUCATION

Sierra Leoneans have an average of 3.3 years of

schooling in total, largely because 65% of the

population has never been to school. Sierra Leone is a

very poor country and has been through a decade of

long civil war. Due to war, many in the age group 15-

35 have no schooling background.

Table 14: Highest Level Attained & Years of Schooling in Population68

(2010, Population 25+, Total and Female

Highest Level Attained

Total Women

No Schooling 65.1 % 74.0 %

Primary Begun 0.5 % 0.3 %

Completed 19.5 % 16.1 %

Secondary Begun 12.3 % 8.2 %

Completed 1.2 % 0.7 %

Tertiary Begun 0.4 % 0.2 %

Completed 0.9 % 0.4 %

Average Year of Total Schooling 3.3 Years 2.3 Years

Educational Gini Coefficient 0.70 0.77 Primary, secondary and tertiary is the internationally defined distinction of

education. In Denmark these corresponds to grundskole, gymnasium & university.

The educational Gini Coefficient is similar to the Gini Coefficient, but instead of measuring the distribution of income in a population, it measures the distribution

of education measured as years of schooling among the population.69

Of those who have education it is both remarkable and uncommon, that almost all have completed primary education, and many have begun secondary education.

There are clear differences in gender roles, as women

have less education than men. The graph on Table 14

shows the educational attainment of all Sierra Leoneans

above 25 years, therefore gives a glance of the human

capital of the labour force.

There is insufficient data regarding the education

enrolment rates in Sierra Leone. Gross enrolment into

primary education was 125% in 2011, whereas it was

99% for Sub-Saharan Africa in 2010. Gross enrolment

is the ratio of total enrolment, regardless of age, to the

population of the corresponding official school age.

Gross primary enrolment can therefore be higher than

100% if more children enrol than are children of that

age. The attendance rates in primary education are

62% and 64% for males and females respectively, and

for secondary school the attendance rates are 31%

and 35% for males and females.70 Sierra Leone’s

education system does therefore suggest to be bouncing

back from the civil war.

Vocational Training

The latest data available for Sierra Leone’s vocational

training is based on 2001. Based on this data, Sierra

Leone had on average more students in vocational

training than the Sub-Saharan Africa's (SSA) with 44%

of them being females. In some way, this data can be

positively accepted since there is a fair number of

Sierra Leoneans with secondary education level.

Table 15: Vocational Training (2001) 71

Pupils in vocational training Sierra Leone

21,454

Pupils in vocational training (women)

Sierra Leone

44 %

SSA 36 %

Ratio of pupils in vocational student to all pupils in secondary education

Sierra Leone

13 %

SSA 6.8 %

Ratio of pupils in vocational training out of 15-24 year olds

Sierra Leone

2.4 %

SSA 1.3 % Note: Ratio average data from SSA covers the period 2007-2011.

It has been registered that many young people have

low interest on technical and vocational education and

training (TVET). They consider that the sector is using

outdated equipment, poor funding for TVET programs,

and the general lack of strategic thrust and quality. The

public budgetary allocation to the education sector is

lowest for TVET, declining from 4.2% in 2008 to only

2% of the sector budget in 2010.72

5% 5%

14%

1%

21% 25%

60%

88%

46% 50% 48%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sierra Leone Liberia Botswana Malawi Zambia Zimbabwe

Standard unemployment Structural unemployment




SOCIAL PROTECTION

Public spending on social protection schemes is growing.

So far, the public social protection spending covers

0.6% of GDP (table 16), excluding health. It is very low

also in comparison with an average at 1.8% of GDP in

other African countries.73 Public health expenditure is

also quite low, but on a noteworthy rise. The presented

tables in this section moreover show huge coverage

gaps, e.g. only 5% are active contributors to a pension

scheme and 1% of the pensionable age receiving an

old age pension. The social assistance programs are

without a doubt affected by insufficient spending.

Table 16: Public Spending on Social Protection Schemes (2009) 74

Public Social Protection

Expenditure, excl. Health

Sierra Leonean 50.7 billion

US$ 15 million

% of GDP 0.6 %

per capita 2.7 US$

% of government expenditure

5.5 %

Public Healthcare % of GDP 1.5 %

Health Social Protection Coverage

% of population 0.0 %

Trends in government

Expenditure in Health

% changes per year (2007-2011)

14.5 %

Table 17: Benefits, Coverage and Contributions to Pension Schemes (2010) 75

Social benefits for the active age

% of GDP 0.2 %

Pensionable age receiving an old age pension (age 60+)

Proportion of total

0.9 %

Old age effective coverage as proportion of programs

Contributory 0.9 %

Active contributors to a pension scheme

15-64 years

4.6 %

Figure 11: Healthcare Expenditure not financed by private

household's out-of-pocket Payments (1995-2011) Public & private expenditure, Selected West African

countries, %

In 2001, at the end of the civil war, Sierra Leone

established a social security scheme and the National

Social Security and Insurance Trust (NASSIT), with a

tripartite board of trustees. The institution provides

pensions to old age, disability, and survivors. NASSIT is

voluntary for self-employed or informal workers. The

organization’s pension members have increased their

insured populations from 179,000 in 2011 to 223,000

in 2014. Of these, 39% are in the public sector and

61% are in the private sector.76 On average, each

pensioner received 961,000 Leones a year (US$220).77

Recently it was revealed that there were many

shortcomings and flaws in the payment of retirement

benefits to pensioners of the NASSIT.78 The Trust lacks a

file tracking and retrieving system.

Few systematic health care services exist and those that

exist are largely donor funded and supported by

NGOs. However, a free and universal health care

service for pregnant and breastfeeding and children

under the age of five was introduced in 2010.79

Several cash transfer programs also exist, e.g. the

government runs several Social Safety Net (SSN)

programs. A study from 2013 argued that such

programs risk crowding-out resources for existing

programs and the traditional welfare services.80

The traditional 'osusu' savings mechanisms provide

income, which can be used in times of illness,

unemployment or maternity. The arrangement focuses

mostly on microfinance savings and credit schemes

rather than broad social security overage schemes.

They provide very little protection for individuals and

families that face recurring life risks.81 The rotating

savings scheme operates not only among informal sector

operators, but also among formal sector workers. In

addition, SLLC has established relations with micro-

finance institution and secured informal economy

members possibility of accessing loans.

As previously indicated, the social protection programs

depend heavily on external financing. It is estimated

that 85% of social assistance expenditures are financed

by external resources.82 The Cabinet adopted a

National Protection Policy in March of 2011. This policy

will have a much coverage to include among others the

informal economy. SLLC is a strong proponent of the

system and was actively engaged in policy discussions.

The government plans to pilot this to two districts for

informal economy workers, but a date has not be set

yet.

0%

50%

100%

1995 2000 2005 2006 2007 2008 2009 2010 2011Benin Ghana NigerSierra Leone Togo




A National Social Protection Strategy and

Implementation Plan were launched in May 2015. The

strategy attempts to improve coordination in this sector

as well as a system that will help government gather

and manage relevant information.

GENERAL ECONOMIC PERFORMANCE

There has been a notable increase on the growth of

GDP per capita from 3.6% in 2011 that peaked in

2013 at 18% in 2013 (Figure 12). This growth is due to

commencing of iron ore production, an expansion in

agricultural production, services, and construction.

However, the outlook of the economic growth has been

changed due to the Ebola epidemic in 2014 and

international iron ore price falls. The GDP per capita

was estimated to fall to 4.7% in 2014

Table 18: Key Facts (2014 est.) 83

GDP GDP real growth84

Doing Business85

HDI86 (2013)

Gini Index (1989)

5.4 billion US$

4.7 % 140 of 189

countries

0.374 62.9

183 of 187 countries

4 of 141 countries

A high ranking on the Ease of Doing Business Index means the regulatory environment is more conducive to the start-up and operation of a local firm.87 The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. The first country in the Gini Index’s ranking has the highest inequality while the number 141 has the highest equality.

A growth projection for the 2015 has currently been estimated at -2%. In addition, Ebola’s impact has created a budget deficit and investment funds were leaving the country.88

Figure 12: GDP growth per capita (2000-2014), Sierra Leone and the Sub-Saharan Africa, Annual %89

Sierra Leone is at the bottom of the Human

Development Index (Table 18: Key Facts (2014 est.) ).

GDP per capita measured in Purchasing Power Parity

(PPP) is also very low and is not projected to reach

levels near the Sub-Saharan Africa's average.

Figure 13: GDP per capita trend and forecast90 (2002-2018), Current US$, Purchasing Power Parity (PPP)

The inflation of consumer prices declined since 2011.

Despite an economic impact of the Ebola epidemic the

inflation was estimated at around 8% in 2014 (Figure

14while food price inflation has been only slightly

higher at 8.5.91 Estimations for 2015 suggest it was

hover around 10% in 2015.

Figure 14: Inflation trend and forecast (2002-2018), %92

The country has relied heavily on its natural resources,

such as cacao as well as aluminium and iron ores.

Diamonds have also contributed to growing the

economy, but this has led to conflict and corruption. This,

and the declining international iron prices, could to

some extent explain why the capital formation trend

that sky rocked from 10% of GDP in 2009 to 40% in

2011, reversed to 16% in 2013 (see Figure 15).

-15

-10

-5

0

5

10

15

20

25

Sierra Leone Sub-Saharan Africa

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

201

1

20

12

20

13

20

14

20

15

20

16

20

17

20

18


-5%

0%

5%

10%

15%

20%

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8





Figure 15: Gross Fixed Capital Formation93 (2000-2013), % of GDP

Sierra Leone has experienced a decrease of working

poor living below US$1.25 a day from 61% of total

employment in 2003 to 55% in 2011. There was only a

marginal drop from 84% to 83% working poor below

US$2 per day in the same period. The tempo of

reduction working poor in Sierra Leone is lower than

the Sub-Saharan Africa’s (Table 19).

Table 19: Working Poor Age 15+94

Share of workers

in Total Employment

Region 1.25 US$

a day 2 US$ a day

Sierra Leone (2003) 61 % 84 %

Sierra Leone (2011) 55 % 83 %

Sub-Saharan Africa (2003) 53 % 74 %

Sub-Saharan Africa (2011) 42 % 65 % Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Additionally, data reveals that Sierra Leone has a

smaller middle-class. For instance, it was reported that

in 2011, 14% of Sierra Leoneans lived for US$2-4 a

day and 3% for US$4-20 a day. In comparison, Sub-

Saharan Africa's averaged at 20% and 10% for

US$4-20 a day, respectively (Table 19). Thus, the

evolution of a middle-class has not been on a rise in

Sierra Leone. One reason of this is related to skills

gaps. As an example, in the mining sector only around

23% on middle level and 12% on senior level staff are

Sierra Leone nationals.

Figure 16: Middle class' trends in Sierra Leone and the Sub-Saharan Africa (SSA), (2002/03-2011) (%)95

The Doing Business indexed Sierra Leone at 140 out of

189 countries in 2015; with no change from 2014. The

country scores low in terms of getting electricity (172

out of 189 countries), registering property (158) and

getting credit (151). Although getting electricity remains

cumbersome, slight improvements have occurred. The

country eliminated the need for customers to submit an

application letter inquiring about a new connection

before submitting an application—and made the

process faster by improving staffing at the utility.96

This Doing Business Index has been controversial due to

flawed data in some sections, e.g. undervalued paying

taxes.97 However, the table below can still be used as

indicative measurement with reservations.

Table 20: Sierra Leone’s Ease of Doing Business98

Topics 2015 2014 Change

Starting a Business 91 87 -4

Dealing with Construction Permits 120 119 -1

Getting Electricity 172 183 11

Registering Property 158 161 3

Getting Credit 151 147 -4

Protecting Minority Investors 62 61 -1

Paying Taxes 130 123 -7

Trading Across Borders 133 137 4

Enforcing Contracts 109 109 No change

Resolving Insolvency 143 143 No change

Doing Business 2014 indicators are ranking from 1 (top) to 189 (bottom) among other countries. The rankings tell much about the business environment, but do not measure all aspects of the business surroundings that matter to firms and investors or that affect the competitiveness of the economy. Still, a high ranking does mean that the government has created a regulatory environment conducive to operating a business.

Sierra Leone has weak government effectiveness,

control of corruption, rule of law as well as regulatory

quality. Also people’s voice and politicians’

accountability as well as the political stability are

below a medium (Table). It is striking that the country

basically has not experienced evolutions on the

governance environment during the last five years.

0

5

10

15

20

25

30

35

40

45

Sierra Leone Sub-Saharan Africa (all income levels)

0%

5%

10%

15%

20%

2002/03 2011

Middle class US$2-4 (Sierra Leone) Middle class US$4-20 (Sierra Leone)Middle class US$2-4 (SSA) Middle class US$4-20 (SSA)

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#starting-a-business

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#dealing-with-construction-permits

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#getting-electricity

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#registering-property

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#getting-credit

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#protecting-investors

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#paying-taxes

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#trading-across-borders

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#enforcing-contracts

http://www.doingbusiness.org/data/exploreeconomies/nicaragua/#resolving-insolvency




Table 21: Governance Indicators 2009-2014), Score & percentiles, and change99

Year Voice and

Accountability Political Stability

Government Effectiveness

2009 -0.26 / 40%

-0.30 / 35%

-1.22 / 9%

2014

-0.31 / 38%

-0.22 / 37%

-1.22 / 11%

Year Regulatory

Quality Rule of Law

Control of Corruption

2009 -0.78 / 24%

-

-0.92 / 19%

-0.94 / 18%

2014

-0.81 / 24%

-0.92 / 18%

-0.95 / 16%

Note: The Governance Indicators score from -2.5 to +2.5 while the percentiles rank from 0 (lowest) to 100 (highest).100

TRADE

Trade has become an important role in the country's

economy, with exports increasing fast and has reached

41% of GDP. Imports are also on an increase and are

estimated at 38% of GDP (Table 22). A few years

back, the vast majority of export went to the European

Union (EU), but it has very fast been dominated by

China. Cacao beans followed by aluminium ore and

glass bottles are the majority of Sierra Leone’s export

products.

Table 22: Trade and Foreign Direct Investment101 (2014 est.), US$ and % of GDP

Exports Imports FDI flow102

(2009-13, average) FDI Stock

2.2 billion US$

2.1 billion US$

334 million US$

2.7 billion US$

41 % of GDP

38 % of GDP

6.2 % of GDP 50 % of GDP

Sierra Leone is endowed with many natural resources.

Cash crops, mainly cocoa production, are more labour

intensive productions. They were projected to

increase103, but due to the Ebola epidemic, trade has

lost its flow.

Figure 17: Sierra Leone's products share of main exports (2012) 104

Figure 18: Sierra Leone's main export markets (2013)

More foreign companies, in particular from Europe and

the USA, are investing in the extracting of natural

resources, which can generate as many as 25,000 new

jobs. Diamonds miners are in the artisanal sector

operate largely informally, are not regulated and have

no written agreements with their employers. A review

estimated that there were between 120,000 and

200,000 artisanal diamond miners.

The national control mechanisms have been extremely

weak, and diamond smuggling has been substantial,

perhaps even bigger than legitimate exports.105 As a

result, the government attempts to review existing

agreements with mining companies but any changes are

likely to be gradual, as it is eager not to scare off

investors.106

Trade agreements

Sierra Leone is part of the Economic Community of the

West African States. The treaty from 1993, which was

revised in 2005, contains labour provisions with the

following: 1) cooperation regarding harmonization of

labour law and social security, 2) promotion of

women’s, youth and professional organizations, and 3)

consultation of the social partners.107

Sierra Leone is in the 2000 Cotonou Agreement on

development cooperation between EU and African,

Caribbean and Pacific (ACP) countries, which reaffirms

commitment to ILO’s Fundamental Conventions and

includes provisions on cooperation on various labour

and social issues.108

Since 2002, Sierra Leone has benefitted from the

United States’ African Growth and Opportunity Act

(AGOA), which is a Generalised System of Preferences

(GPS). It allows duty and quota free access for some

products.

Sierra Leone can be removed from AGOA, if the United

States deems that Sierra Leone among other human

Cocoa Beans; 19%

Aluminium Ore; 16%

Glass Bottles ; 15%

Niobium, Tantalum,

Vanadium & Zirconium Ore;

8,9%

Titanium Ore ; 6,7%

Scrap Vessels; 5,8%

Scrap Iron; 3,9%

Others; 25%

EU; 12%

US; 2%

Australia; 1%

Turkey; 1%

China; 79%

Others; 4%




rights issues do not seek to uphold the ILO Core Labour

Standards and have acceptable minimum wages, hours

of work and occupational safety and health.109

Export Processing Zones (EPZ) There are several EPZ in Sierra Leone. Unfortunately,

there is limited information about EPZs. An EPZ from

2005 attracted investments from Chinese private

enterprises. In 2011, the first fruit- processing plant

went into production and has been expected to employ

80 workers, earning between 80 euros a month for

loaders and fruit sifters, while 300 euros a month for

more skilled workers.110




APPENDIX: ADDITIONAL DATA

Table 23: Ratified ILO Conventions in Sierra Leone

Ratified ILO Conventions111

Subject and/or right Convention Ratification date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1961

C098 - Right to Organise and Collective Bargaining Convention, 1949 1961

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1961

C105 - Abolition of Forced Labour Convention, 1957 1961

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 2011

C182 - Worst Forms of Child Labour Convention, 1999 2011

Elimination of discri-mination in employment

C100 - Equal Remuneration Convention, 1951 1968

C111 - Discrimination (Employment and Occupation) Convention, 1958 1966

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 1961

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 Not ratified

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1985

Up-to-date Conventions

Wages C094 - Labour Clauses (Public Contracts) Convention, 1949 1961

C095 - Protection of Wages Convention, 1949 1961

Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.




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