Freetown, Sierra Leone – An International Monetary Fund (IMF) mission has concluded a visit to Sierra Leone, conducted from 1st April to 11, 2025, to review the country’s performance under its new economic programme. The mission involved both virtual and in-person engagements with senior Government officials.
The visit follows the IMF’s approval of a new three-year Extended Credit Facility (ECF) arrangement for Sierra Leone in November 2024. The programme, valued at US$253 million, was granted in recognition of the country’s sound economic management in 2023 and 2024 and the Government’s commitment to a medium-term reform agenda.
In its assessment, the IMF noted that Sierra Leone’s economy continues to show resilience. Economic growth reached 4.0% in 2024 and is projected to increase to 4.5% in 2025. Inflation has declined sharply from a peak of 54.5% in October 2023 to 13.1% in February 2025. The exchange rate has remained broadly stable since mid-2023.
The Government has made notable progress in fiscal consolidation, reducing the budget deficit from 6.1% of GDP in 2022 to 4.8% in 2024. However, unanticipated capital spending on roads and energy infrastructure in late 2024 resulted in missed targets for Net Credit to Government, Net Domestic Assets, and Net International Reserves.
To address these shortfalls, the Government and the IMF have agreed on a set of corrective measures aimed at strengthening revenue collection and ensuring expenditure stays within the approved budget. These efforts are geared toward meeting key performance criteria by June 2025, which will unlock the next tranche of IMF financial support for the year.
Achieving these targets is also expected to facilitate additional support from the World Bank and the European Union, and bolster Sierra Leone’s ongoing discussions on accessing the IMF’s Resilience and Sustainability Facility. This facility could provide an additional US$207 million to US$415 million to enhance long-term economic stability and climate resilience.
The Government has reiterated its strong commitment to the IMF programme and the broader reform agenda, aimed at safeguarding macroeconomic stability, promoting inclusive growth, and improving the living standards of the people of Sierra Leone.
