By Daniel Flynn, James Harding Giahyue and Saliou Samb
DAKAR/MONROVIA/CONAKRY, Feb 27 (Reuters) - In the marbleatrium of the Mammy Yoko hotel in Freetown, manager Nuno Neveshas spotted something he has not seen since the Ebola virusstruck Sierra Leone nine months ago: foreign businessmen.
The Radisson Blu chain opened the four-star hotelin April to cater for investors in one of Africa'sfastest-growing economies. A month later, Ebola crossed theborder from Guinea and those investors fled.
For months, Sierra Leone was cut off from the world amidpanic at the worst recorded outbreak of the hemorrhagic fever, which has killed more than 9,500 people in Sierra Leone, Guineaand Liberia and infected over 23,500.
Nine of the 11 airlines serving Freetown, including BritishAirways, suspended flights. Miners pulled out foreignstaff, and banks declined credit for local companies.
To stave off closure, Neves cut working hours and salaries.What saved the 170-room hotel was an influx of foreign aidworkers in October.
But with infection rates slowly declining, investors havebegun to talk about post-Ebola reconstruction. Neves has notedthe return of businessmen not seen since the hotel opened.
"They don't bring their teams. They just come to see what isgoing on and then they leave," he said, adding that 'business asusual' remains far off. "This will be a year focused on Ebola.First the fight to end Ebola and then reconstruction."
For Sierra Leone, Guinea and Liberia, the timing isterrible. As they struggle with Ebola, they have been hit by acommodities slump: the price of iron ore, the largest exportfrom Liberia and Sierra Leone, roughly halved last year.
Between Ebola and the commodities rout, the World Bankestimates the three countries will lose at least $1.6 billion inoutput this year, or over a tenth of their combined GDPs.
Sierra Leone, the worst affected by Ebola, has also beenhardest hit economically. From 11 percent growth in 2013, its $5billion economy is forecast to contract 2.5 percent this year.
Its two largest employers, Africa Minerals andLondon Minerals, have halted iron ore production following theprice slump. With more than half Sierra Leone's 6 million peopleliving in poverty, Ebola has destroyed a further 180,000 jobs asit ravaged agriculture and services, the World Bank said.
Clive Dawson, head of the British Chamber of Commerce inSierra Leone, is working with companies to identify investmentopportunities in agriculture, health and construction that couldcreate urgently needed jobs.
"The world climate has changed completely," he said. "Butfor the ones who are brave, the opportunities are enormousbecause the government is bending over backwards to helpinvestors."
'SITUATION DRAMATICALLY IMPROVING'
Not all mining investors have been deterred by the pricefall. London-listed Sable Mining signed a deal lastmonth to send iron ore from a planned mine in Guinea by rail toLiberia's port of Buchanan.
"Ebola hasn't made it easy. We haven't been able to travelto Liberia for some time," CEO Jim Cochrane said. "But thesituation is dramatically improving and these countries will bemuch better prepared in the future."
Liberia weathered Ebola more quickly than its neighbours,thanks to massive U.S. support. It now has only a handful ofcases and its economy is forecast to grow 3 percent this year,despite ArcelorMittal scrapping plans to triple iron ore outputdue to low prices.
Chinese firms, which last year stopped major road projects,have restarted construction.
Nearly a fifth of Liberians laid off during Ebola havereturned to work in the last month, the World Bank said thisweek. But it warned that food insecurity remained rife.
Martha Wessh, 35, a mother of three, said her family eatsonce a day since her husband was laid off by a logging firm. "Werely on friends and relatives to survive," she said.
Global charity Oxfam has called for a post-Ebola "MarshallPlan" to support basic services like health and sanitation, andprovide jobs and cash for families hit by the crisis.
Between lost taxes and higher spending, Ebola countries facemassive deficits. According to the United Nations, Liberia isheaded for a deficit of more than 7 percent of GDP this year.
EBOLA AGGRAVATED EXISTING PROBLEMS
Attempts are being made to tackle a collapse in credit whichhas hit small businesses hard. In Sierra Leone, the Britishgovernment and Standard Chartered have launched a $50 millionlending scheme, while in Guinea the World Bank's private lendingarm, the IFC, will invest $30 million this year.
The World Bank expects Guinea's economy to shrink 0.2percent this year before returning to growth in 2016.
Major investments -- from Rio Tinto's Simandou ironmine to a bauxite project led by Mubadala and Dubai Aluminium --have been slowed after miners repatriated foreign staff.
Emmanuel Sossouadouno, head of the economic studies at thefinance ministry, said Guinea's main problems were structural: "We don't produce enough electricity and our infrastructure hasdeteriorated ... Ebola just aggravated an existing situation."
With President Alpha Conde seeking reelection this year, hewants to jump-start growth. He is pressing ahead with the saleof offshore oil blocks and an auction for the northern half ofSimandou, despite litigation with former owner BSG Resources.
The government faces difficulties in securing investment inmining and oil, said Africa Risk Consulting's West AfricaManager, Trent Baldacchino. "But in 2016, Guinea should get backon its economic trajectory." (Additional reporting by Matthew Mpoke Bigg in Accra, EmmaFarge in Dakar, Silvia Antonioli in London, Stephanie Nebehay inGeneva; Editing by Giles Elgood)
