Sierra Leone Economy

Sierra Leone Economy

Annual production of Sierra Leone’s diamond estimates range between US$250 million–$300 million. Some of that is smuggled, where it is possibly used for money laundering or financing illicit activities. Formal exports have dramatically improved since the civil war, with efforts to improve the management of them having some success. In October 2000, a UN-approved certification system for exporting diamonds from the country was put in place and led to a dramatic increase in legal exports. In 2001, the government created a mining community development fund (DACDF), which returns a portion of diamond export taxes to diamond mining communities. The fund was created to raise local communities’ stake in the legal diamond trade.