July 29, 2021
Albert Baron Ansu
A release from the IMF has noted that Sierra Leone is evincing early signs of economic recovery. The prediction comes in the wake of a release of USD 44.2 Million credit facility intended to reinforce the country\s economic recovery from the pandemic, preserving macroeconomic stability and sustaining inclusive long term growth This credit facility is based on the good rating of the third review that has confirmed improved governance reform of the President Bio administration. The third and fourth review also notes safeguards in macroeconomic stability. According to the IMF release: ““The Extended Credit Facility arrangement provides a critical policy anchor, including for the post-crisis recovery. The arrangement will help meet external and fiscal financing needs and support the authorities’ reform agenda amidst heightened uncertainty. The authorities continue to strengthen governance, including by making progress with the fraud prevention policy and the internal audit function at the Bank of Sierra Leone, and transparent reporting of COVID-19 related spending.”
The release notes that COVID 19 has strained Sierra Leone’s effort to address its large development needs and exacerbated a difficult financing situation. It states that the authorities have embarked on strong economic and health responses that have helped mitigate the immediate impact of the crisis. However there is concern that new third wave of the virus and difficulties in vaccine roll out could delay the return to pre crisis growth.
IMF believes that: “Looking ahead, continued strong policy efforts are needed to help the recovery while safeguarding macroeconomic stability. With a high risk of debt distress, this requires enhanced revenue mobilization, prudent expenditure management, and continued external grant support. Mindful of the price stability objective, monetary and exchange rate policy should remain flexible to support the recovery while rebuilding external buffers and monitoring closely financial stability risks.”