Economic Rehabilitation and Recovery Credit III

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The Third Economic Rehabilitation and Recovery Credit (ERRC III) to the Government of Sierra Leone (GOSL) is the third in the series of three starting with the ERRC I in 2000. The ERRC III assists GOSL in moving from the transitional phase of peace building to the medium term phase of Sierra Leone's strategy of poverty reduction, founded on good governance and economic growth. It will provide critical resources to finance activities associated with: (I) consolidating progress made in governance, including improved management of public resources and decentralization of government, empowering local agencies to manage the delivery of basic services throughout the country; and (ii) stimulating economic growth by establishing an enabling environment for private sector- led investment. This includes maintaining macroeconomic stability, revising the investment code to make it more transparent and competitive to attract investors, further liberalizing the trade regime, pursuing its divestiture strategy and implementing reforms in the mining sector. The credit will allow the import of essential commodities, including food products, petroleum products, and the raw materials and intermediate goods required for economic reconstruction and rehabilitation of social and economic infrastructure country-wide. Adequate funding will also facilitate the preparation of a fully participatory PRSP by December 2003.