By: Audrey Raymonda John
As international aid continues to decline and global economic conditions shift, Sierra Leone faces increasing pressure to boost domestic revenue to meet national priorities.
At the FY2026 Budget National Policy Hearing, Minister of Finance Sheku Ahmed Fantamadi Bangura presented innovative strategies aimed at mobilizing both new and traditional sources of revenue to fund the government’s Big Five Game Changers.
Minister Bangura emphasized that the priorities for the 2026 fiscal year align with the objectives of the Medium-Term National Development Plan 2024-2030. The key goals are to finance the Big Five Game Changers, achieve food security, develop a vibrant and inclusive workforce, and invest in infrastructure and technology.
He also outlined the progress made in managing the economy. For instance, inflation dropped from 9.23% in April 2025 to 6.45% in July, which he attributed to the stability of the exchange rate, moderate global food and energy prices, increased domestic food production, and tight monetary policies implemented by the Bank of Sierra Leone, alongside fiscal consolidation measures.
Minister Bangura acknowledged Sierra Leone’s abundant mineral resources, such as iron ore, diamonds, bauxite, and gold. However, he pointed out that the current model of private sector extraction has not equitably benefited the Sierra Leonean people.
“Over the past six years, the value of mineral exports reached $4 billion, yet government revenue from this sector amounted to only $187 million (4.6%),” he stated. “In 2023, extractive exports were valued at $1.2 billion, but government revenue stood at a mere $48 million.”
The Minister also addressed the issue of Sierra Leone’s public debt, which stood at 48.9% of GDP in 2024. He acknowledged the rising debt stock but reassured that the government is working hard to manage it and minimize its impact on fiscal operations.
He noted that in October 2024, the IMF Executive Board approved a 38-month arrangement for Sierra Leone, with an access request of approximately $248.5 million. The IMF immediately disbursed $46.6 million. The Minister highlighted that the implementation of this new program is on track, with corrective actions being taken to meet structural benchmarks by November 2025.
“We are hopeful that the combined first and second reviews of the country’s economic performance will lead to a second disbursement,” he added.
The Minister of Planning and Economic Development, Madam Kenyeh Ballay, emphasized the need for domestic revenue mobilization, especially in light of the changing global financing landscape. She noted that international development financing is declining, making it more critical for countries like Sierra Leone to focus on internal revenue generation.
Madam Ballay also called on Ministries, Departments, and Agencies (MDAs) to prioritize existing capital projects for 2026, as there will be no new funding for projects next year.
Vice President Mohamed Juldeh Jalloh, in his keynote address, acknowledged that multiple crises have impacted even stronger economies, causing developed countries to prioritize their own citizens over foreign aid. He stressed the importance of digitalizing tax administration to increase compliance, reduce leakages, and finance critical government priorities such as education, healthcare, and infrastructure.
The Vice President also advised the government to broaden the tax base, rationalize tax exemptions, and invest in technologies to reduce human interactions in the revenue collection process.
The Chairman of the Program, Ambros James, and Honourable Kaisamba, Chairman of the Finance Committee in Parliament, both echoed the need for effective tax management. They advised that the FY2026 budget should enhance traditional revenue sources through technology while exploring innovative strategies such as climate finance, carbon trading, debt swapping, and participation in mining through the Mineral Wealth Fund.
The FY2026 budget preparation process will continue with bilateral budget discussions with MDAs and stakeholders, which will be held from September 18th to 27th, 2025, at the Ministry of Finance conference rooms.