By: Marian Magdalene Bangura
The Government of Sierra Leone has raised concerns over the recent surge in global petroleum prices, largely triggered by the ongoing conflict in the Middle East, which has begun affecting fuel pump prices in the country.
During a press conference held to update the public on the situation, government officials outlined the potential economic implications and measures being considered to cushion the impact on citizens.
Speaking at the briefing, Chief Economist Alimamy Bangura reflected on Sierra Leone’s economic trajectory, noting that the country was making steady progress between 2018 and 2020 before the COVID-19 pandemic disrupted global and domestic economies.
He explained that the post-COVID period presented significant challenges for Sierra Leone, including a 70 percent depreciation of the national currency, difficulties in revenue collection, and a sharp rise in borrowing costs, with interest rates reaching between 40 and 41 percent.
Despite these setbacks, Bangura said collaborative efforts between government ministries and the Bank of Sierra Leone have produced encouraging results. He pointed to improvements such as relative exchange rate stability, a reduction in inflation from 55 percent in October 2023 to 4.4 percent by December, and increased domestic revenue mobilization.
According to him, government revenue has improved from 7.2 percent of GDP in 2022 to about 10.8 percent currently, with a target of 11.8 percent by 2025.
However, Bangura warned that ongoing global conflicts, particularly in the Middle East, could place additional pressure on the country’s economy by increasing fuel prices and the cost of imported goods.
He assured the public that the government is developing a response programme aimed at cushioning the effects of rising fuel prices on citizens, like the interventions introduced during the COVID-19 pandemic.
Bangura emphasized that the government remains committed to proactive economic management to mitigate the effects of external shocks and maintain economic stability in the country.
