By Saidu Jalloh
Sierra Leone’s Minister of Finance, Sheku Ahmed Fantamadi Bangura, has projected that inflation will ease further to 4.5% by the end of 2025, driven by ongoing fiscal reforms and stable macroeconomic conditions.
Minister Bangura made these remarks during the launch of the Budget Policy Hearing held at the Bintumani Conference Center on Thursday, 11th September 2025.
He noted that Sierra Leone has already made significant progress in stabilizing economic fundamentals. “We have recorded single-digit inflation since April 2025, currently standing at 9.3%,” he said, adding that the country’s economic growth is projected to reach 4.5% this year.
The Minister further revealed that the government has secured a second financing program from the International Monetary Fund (IMF) the Resilience Sustainability Facility valued at $210 million, to be disbursed over the next 24 months. Alongside the existing Extended Credit Facility, this funding will support the national budget and reinforce reforms in taxation, mining equity participation, and climate financing aimed at sustaining growth and funding social priorities.
“Domestic resource revenue capacity is tantamount to state capacity,” Bangura emphasized. “Without robust local revenue mobilization, Sierra Leone risks falling short in critical sectors such as education, health, infrastructure, and other key development areas.”
He acknowledged the ongoing global challenges impacting Sierra Leone’s economy, including the COVID-19 pandemic, the Russia-Ukraine conflict, and shifting priorities in Western aid, all of which have led to reduced development assistance and tighter fiscal conditions. “We must look inward, innovate, and invest in systems that enable us to generate our own resources,” he stated.
To strengthen revenue generation, Bangura outlined measures including modernizing the tax system, broadening the tax base, rationalizing exemptions, improving VAT collection, combating illicit financial flows, and formalizing the informal sector. He also highlighted innovative financing options such as diaspora bonds, a petroleum stabilization fund, support for startups and small businesses, and digital risk-mitigation tools designed to attract private capital.
“Accountability and transparency measures will be enhanced. Tax and customs authorities will implement strict automation and risk profiling to ensure efficient tax collection for the public good,” he added.
While celebrating recent achievements including inflation dropping to 6.4% and increased exports of local goods Bangura cautioned that rapid population growth remains a significant challenge. He also identified opportunities in climate financing, green investments, and diversification of pension and insurance funds into productive local ventures as promising avenues for sustainable revenue growth.
“If we are to secure Sierra Leone’s future, we must take bold and deliberate steps to strengthen our domestic revenue base and invest in infrastructure that supports sustainable growth,” Bangura concluded.