The British set up a trading post near present-day Freetown in the 17th century. Originally the trade involved timber and ivory, but later it expanded into slaves. Following the American Revolution, a colony was established in 1787 and Sierra Leone became a destination for resettling black loyalists who had originally been resettled in Nova Scotia. After the abolition of the slave trade in 1807, British crews delivered thousands of Africans liberated from illegal slave ships to Sierra Leone, particularly Freetown. The colony gradually expanded inland during the course of the 19th century; independence was attained in 1961. Democracy is slowly being reestablished after the civil war (1991-2002) that resulted in tens of thousands of deaths and the displacement of more than 2 million people (about one third of the population). The military, which took over full responsibility for security following the departure of UN peacekeepers at the end of 2005, has developed as a guarantor of the country's stability; the armed forces remained on the sideline during the 2007 and 2012 national elections. In March 2014, the closure of the UN Integrated Peacebuilding Office in Sierra Leone marked the end of more than 15 years of peacekeeping and political operations in Sierra Leone. The government's stated priorities include furthering development - including recovering from the Ebola epidemic - creating jobs, and stamping out endemic corruption.
Sierra Leone is extremely poor and nearly half of the working-age population engages in subsistence agriculture. The country possesses substantial mineral, agricultural, and fishery resources, but it is still recovering from a civil war that destroyed most institutions before ending in the early 2000s.In recent years, economic growth has been driven by mining - particularly iron ore. The country’s principal exports are iron ore, diamonds, and rutile, and the economy is vulnerable to fluctuations in international prices. Until 2014, the government had relied on external assistance to support its budget, but it was gradually becoming more independent. The Ebola outbreak of 2014 and 2015, combined with falling global commodities prices, caused a significant contraction of economic activity in all areas. While the World Health Organization declared an end to the Ebola outbreak in Sierra Leone in November 2015, low commodity prices in 2015-2016 contributed to the country’s biggest fiscal shortfall since 2001. In 2017, increased iron ore exports are expected to support modest economic growth. Non-mining activities will remain constrained by inadequate infrastructure, such as power and roads, even though power sector projects may provide some additional electricity capacity in the near term.Continued economic growth will depend on rising commodities prices and increased efforts to diversify the sources of growth. Pervasive corruption and undeveloped human capital will continue to deter foreign investors. Sustained international donor support in the near future will partially offset these fiscal constraints.