The International Monetary Fund (IMF) has approved a 38-month Extended Credit Facility (ECF) program worth $253 million for Sierra Leone, aimed at addressing the nation’s debt vulnerabilities and fostering economic stability and growth.
The decision, made on October 31 following the 2024 Article IV consultations, marks a significant step in supporting Sierra Leone’s ongoing reforms under its Medium Term National Development Plan (MTNDP) 2024-2030.
The Ministry of Finance welcomed the IMF’s support, emphasizing the facility’s role in achieving macroeconomic stability, reducing inflation, rebuilding reserves, and supporting structural reforms and social spending.
The Ministry in a press statement stated, “The ECF Program is designed to support Sierra Leone’s journey towards poverty reduction and sustainable growth through targeted reforms in governance, social safety nets, and institutional development.”
The IMF Executive Board commended Sierra Leone’s sustained reform efforts amid challenging socio-economic conditions.
“The Board acknowledges the government’s resilience in pursuing reforms to improve macroeconomic stability, even in a fragile environment affected by pandemics and regional security risks,” an IMF representative noted.
Minister of Finance Sheku Ahmed Fantamadi Bangura expressed gratitude to the IMF, affirming the government’s dedication to responsible financial management.
“These reforms are in the best interest of our country. The government remains committed to transparency and accountability in managing public finances to help reduce poverty and enhance social services for Sierra Leoneans,” Bangura stated.
Bangura underscored the importance of “program ownership” and pledged strong implementation of the ECF arrangement, which includes specific measures to narrow gender gaps, strengthen customs administration, and build climate resilience. He added that these efforts are essential for “restoring macroeconomic stability, achieving debt sustainability, and fostering inclusive growth.”
The IMF also urged the Sierra Leonean government to stay the course on its reform agenda, emphasizing that such efforts will be critical to achieving the MTNDP’s objectives and ultimately improving livelihoods across the nation.
