Sierra Leone’s economy is demonstrating resilience amidst global challenges, with growth projected at 4.3% in 2025 and expected to rise to 4.6% by 2027, according to the latest World Bank Sierra Leone Economic Update (SLEU) launched today in Freetown. This positive outlook is supported by anticipated improvements in agricultural productivity, growth in the mining sector, and a steady performance in services.
The report, titled “*Enabling the Private Sector for Growth and Job Creation,” underscores the key constraints faced by the private sector and emphasizes the critical role of private sector development in sustaining economic progress and generating jobs for Sierra Leone’s growing population.
“Unlocking the potential of the private sector is critical to diversifying Sierra Leone’s economy and creating more meaningful jobs,” said Abdu Muwonge, World Bank Group Country Manager for Sierra Leone. “Sustaining the current reform trajectory to restore macroeconomic stability, improving the investment climate, and enhancing social spending will foster inclusive growth and development. The World Bank remains committed to supporting Sierra Leone’s journey toward inclusive and sustainable growth.”
The report highlights the challenge of creating sufficient jobs for Sierra Leone’s expanding workforce. The country needs to create at least 75,000 new jobs annually to maintain the current employment-to-population ratio. However, growth and employment opportunities are hindered by limited private sector activity, restricted access to finance, land, electricity, and skills.
Subika Farazi, World Bank Senior Economist and co-author of the report, emphasized: “Revitalizing Sierra Leone’s private sector is essential to unlock the country’s growth potential and create more jobs. As outlined in the World Bank Group’s flagship report B-READY 2024, there is room to improve Sierra Leone’s regulatory environment and service delivery. This would foster a more dynamic, resilient, and competitive business climate, empowering entrepreneurs and attracting investment.”
The report offers several key policy recommendations to drive private sector growth and job creation including enhance revenue collection, improve expenditure controls, and strengthen tax administration to reduce reliance on expensive domestic debt and restore fiscal credibility.
Simplify regulations for business entry, operation, and exit; encourage market competition; and reduce trade barriers.
Expand credit reporting, modernize collateral registration, and enhance transparency to unlock inclusive finance and support the growth of the private sector.
Invest in reliable energy, transportation, and digital networks to reduce operational inefficiencies for businesses. Reform investment regulations and protections, and address restrictions in key sectors to attract essential capital.
Michael Saffa, World Bank Senior Country Economist and lead author of the report, concluded, “Unlocking Sierra Leone’s private sector potential to create jobs and drive development must be a top priority. Sierra Leone’s prospects for growth and poverty reduction depend on strengthening fiscal discipline, improving the business environment, and fostering private sector-led job creation. Without decisive reforms, the country risks falling short of its development goals.”
The SLEU is the World Bank’s annual flagship publication for Sierra Leone, tracking macroeconomic and social developments, offering a medium-term outlook, and providing policy recommendations. The report outlines the challenges facing Sierra Leone’s economy and highlights the importance of the private sector in job creation, economic diversification, and growth.
Fiscal performance in the first half of 2025 was largely in line with targets, with authorities exercising spending restraint despite lower-than-expected revenues. Tightened monetary policy has helped rein in inflation, which steadily decreased throughout 2024, reaching 5.4% by September 2025. The cost of domestic debt (one-year treasury bills) sharply declined from 41% in April 2025 to 16% in September 2025, aided by reduced borrowing appetite. However, external debt servicing remains high, and Sierra Leone’s reserves position has worsened, putting the country at risk of debt distress.