The United Nations today has launched a two-year programme “Strengthening Domestic Resources Mobilization for SDGs Financing” to support Sierra Leone’s efforts in mobilizing much-needed public domestic resources to achieve the Sustainable Development Goals.

The two-year programme implemented by the United Nations Development Programme (UNDP) and United Nations Capital Development Fund (UNCDF) aims to improve the environment for domestic resource mobilization.

The programme is designed to realize two key activities: 1) enhance government revenue collection, and 2) increase domestic capital accumulation with expanded financial inclusion. It will focus on removing policy, institutional, and access barriers, while promoting governance and coordination among government, private sector, and civil society actors.

“Making progress on the SDGs will send a strong message to donors, the private sector, and other stakeholders, that the Government of Sierra Leone is committed to sound fiscal policy and to maximizing the potential of domestic financial resources for development.,” said Dr. Francis Kai Kai, Minister, Ministry of Planning and Economic Development, who represented the government.

The progress towards the SDG achievement is now threatened by the current COVID-19 crisis. In this context, it is even more crucial to leverage domestic sources of development finance. But in Sierra Leone, the fiscal space is severely constrained. Low volume of revenue collection limits the level of resources available to invest in Sierra Leone’s 2019 Medium-Term National Development Plan, which is anchored in the SDGs.

Some of the challenges that affect domestic resource mobilization in Sierra Leone include: a large informal sector; limited tax collection from property; narrow tax bases in a resource-rich country; high reliance on trade taxes or a small number of large taxpayers; weak tax agencies unable to design and implement sound tax policies or to counter tax evasion and avoidance; and abusive or corrupt administrative practices.

“Ensuring macro-economic stability and accountability for revenue collection, expenditure management and public service delivery is central to the county’s development. The Government recognized this by developing the Public Financial Management Reform Strategy. This project will support Sierra Leone.” said Dr. Babatunde Ahonsi, United Nations Resident Coordinator, Sierra Leone, who officiated the launch of the project.

The programme approaches the strengthening of domestic resource mobilization not just from a raising revenue angle, but also from the design of an environment that promotes inclusiveness, encourages good governance, matches society’s views about appropriate income and wealth equity, institutional capacity development, and promotes social justice.