By: Saidu Jalloh
Minister of Finance Karefa AF Kargbo has placed domestic revenue generation at the centre of Sierra Leone’s FY2027 Budget, stressing that stronger revenue mobilization is critical to financing national development priorities.
Kargbo said improved macroeconomic conditions and progress in structural reforms contributed to the completion of the IMF’s third review under the Extended Credit Facility (ECF) in June 2026.
He disclosed that the review triggered a US$31.7 million disbursement for budget and balance-of-payments support, adding that discussions with the IMF are continuing ahead of a full review expected in December 2026.
The Minister further noted that the IMF Executive Board had approved a Resilience and Sustainability Facility (RSF) arrangement for Sierra Leone valued at about US$211.45 million.
He explained that access to the resources is tied to the implementation of nine reforms during 2026 and 2027, covering public financial management, energy, agriculture, water resources, transport and environmental stewardship.
According to Kargbo, the reforms are designed to integrate climate priorities into the country’s fiscal framework, improve transparency and strengthen Sierra Leone’s resilience to climate change and other long-term structural challenges.
The Finance Minister urged institutions responsible for implementing the IMF-related reforms to treat them as priorities and include the associated costs in their 2027 budget submissions.
Kargbo also pointed to the contribution of development partners, including the World Bank, European Union and African Development Bank, in providing budget support.
He explained that such assistance helps government finance national priorities and maintain macroeconomic stability, but is linked to agreed policy reforms, performance indicators and prior actions.
For the FY2027 Budget, Kargbo said government would seek to maintain a balance between recurrent and capital expenditure, while urging budgetary agencies to prepare realistic annual and multi-year budgets within approved ceilings.
He identified financial inclusion, increased access to finance for women-led micro and small enterprises, private investment in cocoa, rice and other value chains, and the promotion of climate-smart technologies among key priorities.
The Minister also listed human capital development, entrepreneurship, domestic revenue mobilization, improved mining revenue governance, healthcare and education financing, the 2026 Population and Housing Census, constitutional review and electoral reforms as areas requiring government attention.
Kargbo stressed that increasing domestic revenue mobilization remains critical, noting that Sierra Leone’s revenue-to-GDP ratio is among the lowest in Africa.
He argued that stronger domestic revenue collection is necessary to finance infrastructure, healthcare, education and social services, particularly as overseas development assistance faces increasing constraints.