By: Aminata Sesay
The Government of Sierra Leone is seeking a greater commercial stake in the country’s mining sector while expanding the use of Public-Private Partnerships (PPPs) to finance major infrastructure projects, Finance Minister Sheku Ahmed Fantamadi Bangura has told Parliament.
The Minister made the disclosure while concluding debate on the 2026 Supplementary Budget, where he defended the Government’s fiscal strategy and assured lawmakers that ongoing economic reforms were strengthening Sierra Leone’s financial position.
Bangura maintained that although Sierra Leone remains at high risk of debt distress, the country’s debt situation is sustainable and investor confidence in the economy continues to improve.
He explained that ongoing macroeconomic reforms have enhanced confidence among international lenders, allowing the country to access external financing at lower interest rates compared to domestic borrowing.
“Our macroeconomic fundamentals are solid,” the Minister told Parliament, noting that foreign borrowing currently attracts interest rates of about 9.5 percent, compared to approximately 17 percent for domestic borrowing.
He further disclosed that the Government is working with the Bank of Sierra Leone to restructure portions of the domestic debt portfolio, a move expected to improve debt sustainability and strengthen fiscal management.
Defending the contingency allocation included in the supplementary budget, Bangura described it as a necessary financial cushion that would allow Government to respond quickly to unforeseen economic shocks and emergencies without disrupting approved development programmes.
Finance Minister also responded to concerns over the construction of the new international conference facility at Freetown International Airport, rejecting claims that the project had increased public debt.
He explained that the facility was developed through a Public-Private Partnership arrangement approved by Parliament, with the private partner responsible for financing and construction while Government’s obligation is limited to agreed lease payments.
“They built the facility in record time without a single penny being spent from the Government’s budget,” he said, describing the project as an example of how PPPs can support infrastructure development without creating additional borrowing pressures for the State.
He added that similar financing models are being explored for other strategic projects, including ports and related infrastructure.
In a major policy position, Bangura called for a new approach to Sierra Leone’s mining industry, arguing that Government should move beyond relying mainly on royalties and take a more active commercial role in profitable mining ventures.
While acknowledging that mining remains the country’s largest source of foreign exchange earnings, he said the State currently receives only a limited share of the sector’s overall value.
“We are a mining country. The largest source of foreign exchange comes from mining, but Government is not participating effectively,” the Minister stated.
He argued that acquiring equity stakes in commercially viable mining operations would allow Sierra Leone to secure greater long-term benefits from its natural resources and increase national revenue.
Finance Minister also warned that Sierra Leone must prepare for a possible decline in international grant support, noting that the country cannot continue to depend heavily on donor funding to finance development.
He emphasized that stronger domestic revenue mobilization, reforms in the mining sector, and innovative financing mechanisms would be essential to building a more self-reliant and sustainable economy.
Concluding his presentation, Minister Bangura moved that the Supplementary Appropriation Bill, 2026 be read for the second time, paving the way for further parliamentary consideration and approval of the revised budget aimed at addressing emerging fiscal pressures while maintaining key government programmes.