The International Monetary Fund (IMF) has reached a staff-level agreement with the Government of Sierra Leone on policies needed to complete the first and second reviews of the country’s Extended Credit Facility (ECF) programme. Once approved by IMF Management and the Executive Board in the coming weeks, the reviews will unlock about US$78.8 million in financing.
The IMF mission, led by Christian Saborowski, visited Sierra Leone from October 3-10, 2025. The first review had been delayed due to unbudgeted spending, reserve losses, and slow progress on reforms. According to the IMF, performance has improved as the government tightened fiscal policy, maintained prudent monetary measures, and completed key reforms, although pressure on the Bank of Sierra Leone’s reserves remains high.
In its statement, the IMF noted that Sierra Leone recorded significant overruns in 2024, mostly from unbudgeted road construction, which raised domestic borrowing needs and kept interest rates high. The government is now on track to reach a domestic primary surplus of 0.6% of GDP in 2025, marking a major fiscal adjustment compared to the previous year. However, planned increases in social spending have not been achieved.
The IMF also highlighted improvements in inflation, which fell to 4.4% in October, and a drop in Treasury bill rates from over 40% to around 17%. Economic growth is projected at 4.4% in 2025. However, the fall in foreign reserves to 1.5 months of imports at the end of September remains a major concern.
The Fund stressed the need for stronger fiscal measures, including raising an additional 1.5 percentage points of GDP in tax revenue and maintaining tight control over government spending. Protecting social spending and rebuilding foreign reserves were identified as urgent priorities.
The statement also noted ongoing efforts to modernize monetary policy, improve debt management, strengthen financial sector oversight, and implement governance and anti-corruption reforms.
The IMF team thanked the government, including Finance Minister Bangura and Bank of Sierra Leone Governor Stevens, for what it described as open and productive discussions.
