By: Mohamed Sahr
The International Monetary Fund (IME) Executive Board has approved a $ 253
million new 38-month Extended Credit Facility (ECE) Program for Sierra Leone. The announcement was made in a press release dated Friday, 1st November 2024.
This commitment marks a significant financial boost to Sierra Leone’s economic resilience arrangement valued at $253 million.
The IMF’s Executive Board ratified it on October 31, 2024. It provides an ongoing effort to stabilize Sierra Leone’s economy, address structural challenges, and support the country’s ambitious development goals.
The IMF-facilitated ECF program is designed to help Sierra Leone navigate complex economic challenges, including inflation, debt vulnerabilities, and limited international reserves. The funding aims to support the government’s efforts to achieve inclusive economic growth, reduce poverty, and advance reforms under Sierra Leone’s Medium-Term National Development Plan (MTNDP) 2024–2030.
Sheku Ahmed Fantamadi Bangura, Minister of Finance, said the Ministry was pleased to inform the General Public that the Executive Board of the International Monetary Fund (IMF) concluded the 2024 Article IV Consultations on 31 October 2024 and approved a new USS253 million 38-month Extended Credit Facility (ECF) Arrangement for Sierra Leone.
He stated that the ECF Programme would support restoring stability through the continued macroeconomic adjustment to address debt vulnerabilities, reduce inflation, and rebuild international reserves; bolster inclusive growth and poverty reduction through structural reforms and targeted social spending; and revitalize the reform agenda to strengthen government and institutions in advancing the poverty reduction and growth aspirations outlined in the country’s Medium Term National Development Plan (MTNDP) 2024-30.
“In their deliberations, the IMF Board of Directors commended the Government of Sierra Leone for the sustained reform momentum and efforts to improve macroeconomic conditions despite the fragile socio-economic environment, compounded by pandemics and security spillover,” Bangura said.
The Minister mentioned that the Board urged the Government to sustain the implementation of agreed reforms under the ECF arrangement to achieve the objectives of the National Development Plan (NDP 2024-2030). Specifically, implementing measures to narrow gender gaps, bolster customs administration, build a strong social safety net, and proactively deal with climate-related risks.
Fantamadi Bangura expressed appreciation to the Executive Board of the IMF, stating that the reforms are in the country’s best interest and, therefore, reiterated the Government’s commitments to transparent and accountable public financial management that would help reduce poverty and provide social services to the people of Sierra Leone.
He outlined his commitment to strong program ownership and steadfast implementation under the new ECF arrangement, including contingency measures that would be vital to restoring macroeconomic stability, debt sustainability, and inclusive growth.
