Washington, DC: An International Monetary Fund (IMF) mission, led by Mr. Christian Saborowski, visited Sierra Leone from October 3 to 10, 2025, for the first and second reviews of Sierra Leone’s economic program supported by the Extended Credit Facility (ECF), approved on October 31, 2024 (See Press Release No. 24/402).
At the conclusion of the mission, Mr. Saborowski issued the following statement:
“The Sierra Leonean authorities and the IMF staff team have reached a staff-level agreement on the first and second reviews of Sierra Leone’s ECF-supported program. Subject to approval by the IMF Management and Executive Board, completion of the reviews would unlock about US$78.8 million in financing.
“The fiscal policy stance tightened 1.9 percentage points of GDP less than expected in 2024 due to substantial unbudgeted spending, largely on road construction. These overruns increased demand for domestic financing, contributing to continued high borrowing costs. The authorities are on track to achieve a domestic primary surplus of 0.6 percent of GDP in 2025, representing a 3.3 percentage points of GDP consolidation relative to 2024. However, agreed commitments to scale up social spending have not been met.
“Monetary policy is shifting from a tightening toward a neutral stance amid low inflation and continued fiscal consolidation. Reserve money is growing broadly in line with program targets, and the Bank of Sierra Leone (BSL) has reduced the policy rate by 6 percentage points to 18.75 percent since May.
“Sierra Leone’s economy has shown resilience to the macroeconomic policy tightening. Growth is projected at 4.4 percent in 2025, and inflation declined to 4.4 percent in October. T-bill rates fell from over 40 to around 17 percent since May. However, the drop in BSL reserves to 1.5 months of imports as of end-September remains a significant concern.
“The authorities and IMF staff agreed that a larger fiscal effort is needed to correct last year’s policy slippages and reduce reliance on domestic financing, ensuring debt remains on a sustainable path. The revenue mobilization strategy will center on 1.5 percentage points of GDP in tax policy measures alongside efforts to reinforce tax compliance and administration. Expenditure restraint will also remain critical, while social spending needs to be protected.
“The BSL will continue to transition monetary conditions toward a neutral stance. Modernizing the monetary policy framework and implementing BSL safeguards will improve policy effectiveness.
“Rebuilding BSL reserve adequacy is an urgent priority. This will require ambitious efforts to purchase foreign exchange from market participants while sharply reducing government spending on imports of goods and services and curtailing energy subsidies. Maintaining a flexible exchange rate system will remain critical to supporting the required adjustment.
“The authorities are committed to accelerating structural reforms. Strengthening public financial management will support fiscal adjustment, while stronger debt management will help reduce debt service needs. Persistent solvency challenges in the banking system need to be addressed alongside efforts to reinforce oversight, regulation, and the safety net. Governance reforms should focus on implementing the recommendations of the Governance and Corruption Diagnostic.
“Macroeconomic conditions are expected to remain stable over the medium term. Growth is projected to reach 4.6 percent, while inflation is expected to remain in single digits. However, risks to this outlook are high. Reform fatigue is a significant risk given the still large adjustment need. In addition, slower global growth, tighter global financial conditions, and geopolitical uncertainty could dampen external demand and worsen fiscal and external accounts.
“The staff team expresses its sincere appreciation to the authorities for the open and productive discussions aimed at ensuring success of their economic program supported by the IMF. The team held meetings with Finance Minister Bangura, Governor Stevens, and other senior government officials. It also engaged with stakeholders from civil society, the private sector, and development partners.”
More information about ECF: Extended Credit Facility
