Minister of Finance Sheku Ahmed Fantamadi Bangura has reiterated the government’s commitment to implementing robust economic reforms aimed at boosting revenue and achieving effective fiscal consolidation. This assurance was given during a recent meeting with Dr. Robert Taliercio O’Brien, the World Bank Country Director for Sierra Leone, Ghana, and Liberia, who is on a three-day working visit to Freetown.
During the briefing, Minister Bangura highlighted several recent economic achievements, including a significant reduction in inflation from 54% to 38%, a stable exchange rate, and strong fiscal consolidation efforts. Despite these gains, he expressed concerns over the lagging impact of new revenue measures on overall revenue targets. Bangura called for enhanced support from the World Bank and partners to maximize the revenue potential through reforms and the introduction of technology in tax collection.
Dr. Taliercio O’Brien commended the government for its progress amidst numerous challenges but noted the World Bank’s ongoing concerns about inflation, debt service, and revenue mobilization. He urged the government to utilize Development Policy Operations (DPO) triggers to further improve the economic situation.
Financial Secretary Matthew Dingie provided an update on several fiscal consolidation and revenue mobilization reforms, acknowledging that the impact of these reforms takes time to materialize. Dingie highlighted the challenges posed by debt servicing and energy subsidies and appealed for support to address these issues, thereby freeing up resources for social services such as education, agriculture, and health.
In extensive discussions with the Ministry of Finance officials, the World Bank team explored various models and ideas to tackle the country’s debt, revenue challenges, and the ongoing energy crisis. The potential for a $65 million budget support package for 2024 was also a key topic of discussion.
Dr. Taliercio O’Brien’s visit includes meetings with key stakeholders such as the Bank of Sierra Leone, the National Revenue Authority, the Ministry of Energy, the Electricity Distribution and Supply Authority (EDSA), the President, the private sector, and civil society organizations.
This series of high-level discussions aims to align the World Bank’s interventions with the government’s efforts to stabilize and grow Sierra Leone’s economy in the face of persistent challenges.
