Sierra Leone has secured more than US$243 million in new financial support after the International Monetary Fund (IMF) approved the third review of the country’s Extended Credit Facility (ECF) programme and endorsed a new Resilience and Sustainability Facility (RSF).
The decision by the IMF Executive Board paves the way for the immediate release of approximately US$31.7 million under the ECF arrangement, increasing total disbursements under the programme to about US$158.6 million.
In addition, the country will benefit from a new US$211.5 million RSF package aimed at strengthening climate resilience and supporting long-term economic reforms.
The IMF said Sierra Leone has made notable progress in implementing economic policies despite a challenging global environment. It noted improvements in macroeconomic stability, including a more stable exchange rate, declining inflation, reduced domestic borrowing costs, and renewed growth in private sector lending.
Inflation, which had remained elevated in recent years, fell significantly to around 4.3 percent by the end of 2025, supported by tighter monetary policies, improved food production, and relative stability of the Leone.
Despite these gains, the Fund cautioned that Sierra Leone continues to face significant economic risks. It pointed to low foreign exchange reserves, a high risk of debt distress, global economic uncertainty, rising costs linked to conflicts in the Middle East, domestic political tensions, and the possibility of slowing reform momentum.
According to IMF projections, Sierra Leone’s economy is expected to expand by 4.0 percent in 2026, down slightly from an estimated 5.0 percent growth in 2025, largely due to higher energy costs and continued fiscal tightening. Growth is, however, forecast to recover to about 4.7 percent in 2027.
The Fund also expects inflation to increase to 11.6 percent by the end of 2026 as global commodity prices continue to exert pressure on domestic markets.
On the fiscal front, Sierra Leone’s budget position is projected to improve, with the overall fiscal deficit narrowing and public debt declining from 49.3 percent of GDP in 2025 to 47.3 percent in 2026. Foreign exchange reserves are also expected to strengthen gradually.
The newly approved Resilience and Sustainability Facility will support reforms designed to improve climate-sensitive public investment planning, strengthen disaster resilience, and reinforce financial sector stability.
The IMF said the programme is particularly important for Sierra Leone, which remains highly vulnerable to climate-related disasters, including floods, coastal erosion, and disruptions to agricultural production that threaten food security and economic development.
The latest financing comes as the government continues efforts to implement fiscal reforms, improve domestic revenue collection, strengthen public financial management, and enhance transparency and accountability.
