Sierra Leone: Selected Issues

IMF Staff Country Reports, July 29, 2022

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Sierra Leone: Selected Issues

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Bibliographic details

• Published: July 29, 2022
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400216176.002

Main focus and framing

• The paper focuses on mainstreaming adaptation in Sierra Leone.
• Emphasizes the strong linkage between climate vulnerability and development, requiring adaptation to be integrated into the national development agenda.
• Highlights macro vulnerability that requires fiscal policies to balance climate actions and debt sustainability.

Key findings

• Climate-related shocks have caused heavy casualties and economic losses, underlining the importance of investing in adaptation for infrastructure to reduce vulnerability.
• Enhancing capacity to tap into external grants is critical to fulfill climate commitments while maintaining debt sustainability.
• Macro-fiscal policies would benefit from being supported by frameworks that link climate risks to debt sustainability analysis.
• Gradually adapting existing Personal Financial Management (PFM) practices to integrate climate targets within and beyond the budget cycle will help mainstream adaptation and prioritize climate projects.

Policy recommendations

• Calibrate climate costs and adaptation benefits and integrate adaptation into fiscal policies.
• Enhance capacity to access external grants to finance climate commitments without jeopardizing debt sustainability.
• Develop frameworks that explicitly link climate risks to debt sustainability analysis to inform macro-fiscal policy choices.
• Implement Green PFM reforms to adapt existing PFM practices, integrate climate targets within and beyond the budget cycle, and prioritize climate spending.

Subject areas and keywords (as listed)

• Subject: Asset and liability management, Education, Environment, International organization, Labor, Monetary policy, Prices
• Keywords: Africa, baseline debt anchor, Central Africa, Climate change, climate commitment, debt anchor, Debt limits, Education policy, financing mix, Global, Human capital, Inflation, inflation driver, model description, panel data regression, Sub-Saharan Africa, West Africa

Content in this bundle

• Sierra Leone: Selected Issues; IMF Country Report No. 22/260; June 13, 2022
  • Sierra Leone: Selected Issues; IMF Country Report No. 22/260; June 13, 2022 (Markdown version)
  • Sierra Leone: Selected Issues; IMF Country Report No. 22/260; June 13, 2022 (PDF)