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Effectiveness of Own-Source Revenue Generation at 22 Local Councils in Sierra Leone as a Driver of Local Development

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  • Alusine Boys Conteh

    (Belt and Road School, Beijing Normal University, Beijing, China & Ernest Bai Koroma University of Science & Technology, Sierra Leone.)

  • Qingzhong Pan

    (Schwarzman College, Tsinghua University, China.)

Abstract

Sierra Leone operates as a constitutional republic with a separation of powers among the executive, legislature, and judiciary. Local governance is managed through 22 local councils, consisting of six city councils, one municipal council, and 15 district councils. While there is no specific constitutional provision for local government, the Local Government Act of 2004 serves as the primary legal framework. The Ministry of Local Government and Rural Development is responsible for implementing decentralization and local governance reforms. Local councils are empowered to raise revenue through taxes, property rates, licenses, fees, charges, and mining revenues, while also receiving transfers from the national government in the form of grants for administrative functions, devolved services, and development initiatives. This study evaluates the effectiveness of own-source revenue generation across nine local councils: Port Loko City Council, Freetown City Council, Kenema City Council, Makeni City Council, Port Loko District Council, Western Area Rural District Council, Kambia District Council, Kailahun District Council, and Bombali District Council. The research focuses on nine key revenue streams common to these councils. The study reveals that while some local councils have effectively generated revenue from certain streams, others have struggled due to limitations in capacity and technical expertise. The nine revenue sources, including business licenses, property rates, and surface rent, are key but inconsistently effective across the councils. As a result, local councils are unable to leverage revenue generation fully to drive development in their communities. The study concludes that the ineffectiveness of own-source revenue generation, driven by systemic issues such as lack of capacity, insufficient technical know-how, and poor mobilization strategies, hampers local development. These challenges are prevalent across all councils included in the study.

Suggested Citation

  • Alusine Boys Conteh & Qingzhong Pan, 2024. "Effectiveness of Own-Source Revenue Generation at 22 Local Councils in Sierra Leone as a Driver of Local Development," Journal of Scientific Reports, IJSAB International, vol. 7(1), pages 334-348..
    • Handle: RePEc:aif:report:v:7:y:2024:i:1:p:334-348.
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    References listed on IDEAS

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    2. Doyle, Jeffrey & Ge, Weili & McVay, Sarah, 2007. "Determinants of weaknesses in internal control over financial reporting," Journal of Accounting and Economics, Elsevier, vol. 44(1-2), pages 193-223, September.
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