By: Aminata Sesay
The Minister of Finance, Hon. Sheku Fantamadi, has informed Parliament that Sierra Leone’s economy ended 2025 on a strong footing, marked by lower inflation, a stable exchange rate, disciplined budget execution, and renewed confidence from international partners, as the country prepares for a critical International Monetary Fund (IMF) review in February.
Addressing members of the Parliamentary Finance Committee during an engagement at the House of Parliament, the Minister said key macroeconomic indicators performed better than earlier projections. He noted that inflation fell to 4.3 percent in December, below the figure announced during the 2025 national budget presentation.
He added that the exchange rate remained largely stable, depreciating by only 0.8 percent during the period, while interest rates averaged around 16 percent, which he described as sustainable in the current economic environment.
Minister Fantamadi told lawmakers that the 2025 national budget was implemented within the parameters approved by Parliament, including supplementary appropriations, and that overall fiscal performance met both domestic targets and international benchmarks.
He disclosed that the government’s performance has positioned the country for continued engagement with international partners, confirming that an IMF mission is expected in-country by mid to late February to assess compliance with programme conditions required for ongoing financial support.
According to the Minister, preliminary internal assessments indicate that Sierra Leone is comfortably meeting these conditions, a development he said has already resulted in approved European Union disbursements and sustained support from institutions such as the World Bank and the IMF.
Fantamadi further stated that the government, working closely with the Bank of Sierra Leone, is taking active steps to strengthen foreign exchange reserves, describing reserve accumulation as critical to maintaining currency stability and investor confidence.
Looking ahead, the Minister said the government’s priority for 2026 is to preserve macroeconomic stability while intensifying domestic revenue mobilization, which he identified as the central pillar of the current fiscal strategy.
He confirmed that budget allocations for all Ministries, Departments and Agencies (MDAs) have been finalised, enabling the timely release of funds for programme implementation and the continued operation of government activities.
Minister Fantamadi also noted that several new tax and fiscal laws passed by Parliament took effect on 1 January, with implementation underway in collaboration with the National Revenue Authority, including system upgrades to support enforcement. He cited the publication of the petroleum pricing formula as part of efforts to improve transparency and ensure compliance with the legal framework governing fuel price adjustments.
Placing Sierra Leone’s economic outlook within a global context, the Finance Minister warned that shifting international dynamics such as policy changes in the United States and Europe’s increasing focus on domestic security spending are affecting the flow of overseas development assistance, underscoring the need for countries to rely more on internally generated revenue.
He said the reforms approved by Parliament are critical in providing the government with the legal and institutional tools required to mobilize revenue and safeguard economic gains in a volatile global environment.
Fantamadi emphasized that sustaining the economic stability achieved so far would require close coordination between the Executive and Parliament, particularly in ensuring accountability, effective oversight, and the timely delivery of approved programmes.
The engagement also brought together heads of key financial institutions, including the Bank of Sierra Leone, National Revenue Authority, Financial Intelligence Agency, commercial banks, and the Insurance Commission, as Parliament indicated plans for further sector-specific engagements in the coming weeks.