3.3. ECONOMIC GOVERNANCE AND MANAGEMENT S IERRA LEONE’s economic growth has been driven by mining - particularly iron ore and diamonds as these are principal export earners. The Ebola outbreak of 2014 and 2015, combined with falling global commodities prices, caused a significant contraction of economic activity in all areas. In spite of these shocks, Government took great strides to ensure economic recovery and growth. Sierra Leone has also been adhering to the honouring of the following standards, codes and conventions bordering on economic governance and management: • International Financial Reporting Standards • Generally Accepted Accounting Practice • International Standards in Auditing • Good Practices on Fiscal Transparency • Guidelines on Public Debt Management • Best Practices for Budget Transparency The APRM Governance thematic area of Economic Governance and Management has 6 objectives that Sierra Leone has during the reporting period been trying to address in terms of recommendations made by the APRM Country Review Report of 2012 as shown below: OBJECTIVE 1: Promoting macroeconomic policies that support sustainable development 3.3.1. Economic reform programme achieved key objective of ensuring inclusive growth – In spite of the exogenous shocks of the Ebola outbreak and the shrinking international prices of iron ore, the country’s economy recovered with a projected growth of 4.9 percent in 2016 from a contraction of 21percent in 2015. Real GDP growth was projected to grow by 5.4% in 2017, to steadily increase to 6.1% in 2019 (H.E.s Parliamentary Speech 2016) . The IMF’s conclusion of the 6th and final review of the Extended Credit Facility (ECF) commended Sierra Leone for strong actions and economic policies. 3.3.2. Remarkable progress in poverty –related spending- Remarkable progress was made in pov- APRM Sierra Leone | Annual Progress Report erty-related spending. Most of the key sectors that account for the bulk of pro-poor expenditure were able to deliver services as expected. With Schools reopened; all hospitals operating at capacity; agricultural activities increased as a result of interventions; and most of the infrastructure projects in roads, water supply and energy resumed, 2015 ended boozing with activities. 3.3.3. Post-Ebola recovery boosted monetary sector development- Monetary sector developments in 2015 were heavily influenced by the post-Ebola recovery and the winding down of related transfers. During the same period, net foreign assets of the banking system expanded as banks both held more foreign currency and placed more foreign currency deposits with overseas banks (mainly their parent banks). Meanwhile, credit to the private sector rose by 3.2 percent. While credit growth is consistent with the gradual resumption of economic activities, it is still low, reflecting challenges in the banking system, such as credit risk and high non-performing loans. On the liabilities side, currency in circulation and transferable deposits recorded significant growth reflecting increased demand as the economy began to recover. Reserve money grew by 10.4 percent in 2015, well above the targeted rate of 7.1 percent. There was a marginal decline in the interest rates of commercial banks and the Monetary Policy Rate has remained at 9.5 percent since March 2015. In 2016, the implementation of monetary policy was challenged by the continuing depreciation of the Leone with the consequent increase in inflationary pressures. In response, the Bank of Sierra Leone adopted a tight monetary policy stance by increasing the Monetary Policy Rate (MPR) from 9.5 percent to 10.5 percent in September 2016. 3.3.4. The National Public Procurement Authority (NPPA) has worked to strengthen the Public Procurement Act 2016 and updated related regulations, and is currently in the process of introducing an E-Procurement at the NPPA to improve transparency and accountability in procurement processes. A revised medium-term wage and pay reform strat- 35