An International Monetary Fund (IMF) mission led by Mr. Christian Saborowski visited Sierra Leone from April 20 to May 1, 2026, and reached a staff-level agreement on the country’s third review under the Extended Credit Facility (ECF) arrangement, as well as on a new request for an arrangement under the Resilience and Sustainability Facility (RSF) in Washington DC on 10th June 2026.
The IMF Executive Board is expected to consider both requests in the coming weeks.
At the conclusion of the mission, Mr. Saborowski noted that Sierra Leone’s ongoing policy adjustments have produced tangible results. In 2025, the domestic primary balance recorded a surplus of 1.3% of GDP, supported by stronger tax revenues and controlled public spending. Combined with a tighter monetary policy stance, these fiscal efforts have helped stabilize the exchange rate, reduce inflation, lower borrowing costs, and improve private sector access to credit.
However, he cautioned that policy implementation is becoming more difficult. Revenue performance earlier in the year was weaker than expected, while spending pressures have increased. Although the authorities have some fiscal space to respond to external shocks, continued fiscal consolidation while safeguarding priority social spending remains essential for maintaining debt sustainability.
In response to rising fuel costs and limited social protection capacity, the government introduced temporary fuel subsidies in April to prevent sudden price shocks. The authorities have committed to treating these subsidies as short-term measures, keeping them within agreed cost limits, and ensuring transparency within the fuel pricing framework. Efforts are also expected to continue to mobilize donor support to strengthen social safety nets.
The IMF noted that the current monetary policy stance is broadly appropriate but may need tightening if global energy-driven inflationary pressures persist. Inflation is projected to rise to about 11.6% by the end of 2026 before declining to single digits by the end of 2027. The Fund also emphasized the importance of continued foreign exchange reserve accumulation and reducing government FX-related spending.
The banking sector remains profitable and generally resilient, though it is still exposed to sovereign risk. Strengthening financial sector supervision is seen as key to maintaining stability and supporting private credit growth.
Economic growth accelerated in 2025 but is expected to slow to around 4.0% in 2026 due to external spillovers linked to global geopolitical tensions. Growth is projected to recover to about 4.5% over the medium term as shocks ease and reforms continue. However, risks remain high, including prolonged geopolitical conflict, reform fatigue, election-related uncertainty, and climate-related shocks.
The IMF outlined key policy priorities going forward: continuing fiscal consolidation while temporarily accommodating external shocks; improving revenue collection through stronger tax and customs administration; enhancing public financial management and debt sustainability; reforming the monetary policy framework and rebuilding reserves; and implementing governance and anti-corruption reforms.
The proposed RSF arrangement is intended to strengthen Sierra Leone’s long-term resilience to climate change and support macroeconomic stability. It will focus on climate-sensitive public investment management, climate resilience strategies, and financial sector stability, while also helping to mobilize climate and development financing with support from the IMF and development partners.
The IMF mission expressed appreciation for the constructive engagement with Sierra Leonean authorities, including meetings with President Julius Maada Bio, Finance Minister Sheku Ahmed Fantamadi Bangura, and Central Bank Governor Dr. Ibrahim L. Stevens, as well as representatives from civil society, the private sector, and development partners.