IMF Supports Sierra Leone’s Economic Recovery
Sierra Leone has secured more than US$243 million in new financial support from the International Monetary Fund (IMF) following the approval of the third review of the country’s Extended Credit Facility (ECF) programme and the endorsement of a new Resilience and Sustainability Facility (RSF).
The IMF Executive Board’s decision unlocks immediate financing of approximately US$31.7 million under the ongoing ECF arrangement, bringing total disbursements under the programme to about US$158.6 million. In addition, Sierra Leone will access a new US$211.5 million RSF package aimed at supporting climate resilience, strengthening economic stability, and advancing long-term structural reforms.
The approval represents a significant boost to government’s ongoing efforts to stabilise the economy, improve public financial management, and create conditions for sustainable growth amid global and domestic economic pressures.
In its assessment, the IMF noted that Sierra Leone has continued to make progress in implementing key economic policies despite a difficult international environment marked by rising costs, geopolitical tensions, and financial uncertainties.
The Fund highlighted improvements in several areas of the economy, including greater exchange rate stability, declining inflation, reduced domestic borrowing costs, and a recovery in private sector credit growth.
Inflation, which had reached elevated levels in previous years, declined sharply to about 4.3 percent by the end of 2025. The IMF attributed the reduction to tighter monetary policy measures, increased domestic food production, and improved stability of the Leone against major foreign currencies.
However, the IMF warned that Sierra Leone continues to face significant economic vulnerabilities. These include limited foreign exchange reserves, a high risk of debt distress, global economic uncertainty, increased energy costs linked to international conflicts, domestic political pressures, and potential delays in implementing critical reforms.
According to the Fund’s projections, Sierra Leone’s economy is expected to grow by 4.0 percent in 2026, compared to an estimated 5.0 percent growth recorded in 2025. The slowdown is expected to be influenced by higher energy prices and continued fiscal consolidation measures. Economic growth is projected to rebound to approximately 4.7 percent in 2027 as reforms take stronger effect.
The IMF also forecasts that inflation could rise to about 11.6 percent by the end of 2026, mainly due to continued pressure from global commodity prices and other external factors affecting domestic markets.
On fiscal performance, the Fund projects further improvements in Sierra Leone’s budget position, with the overall fiscal deficit expected to narrow. Public debt is projected to decline from 49.3 percent of Gross Domestic Product (GDP) in 2025 to 47.3 percent in 2026, while foreign exchange reserves are expected to gradually strengthen.
The newly approved Resilience and Sustainability Facility will provide additional support for reforms focused on climate-sensitive public investment planning, disaster preparedness, and strengthening the resilience of key sectors of the economy.
The IMF stressed that the financing is particularly important for Sierra Leone due to the country’s vulnerability to climate-related challenges, including flooding, coastal erosion, and disruptions to agricultural production, which continue to threaten food security, livelihoods, and economic development.
The Fund further encouraged the government to maintain the momentum of reforms by improving domestic revenue mobilisation, enhancing public financial management systems, strengthening transparency and accountability, and promoting policies that support private sector-led growth.
The latest IMF financing package comes at a time when Sierra Leone is pursuing a broad economic reform agenda aimed at restoring macroeconomic stability, reducing vulnerabilities, and laying the foundation for inclusive and sustainable development.