December 16, 2025: The Executive Board of the International Monetary Fund (IMF) has approved the first and second reviews of Sierra Leone’s programme under the Extended Credit Facility (ECF), paving the way for an immediate disbursement of about US$79.8 million.
The latest approval brings total IMF funding released to Sierra Leone under the ECF arrangement to approximately US$127.8 million, since the programme was approved in October 2024.
The reviews had earlier been delayed due to fiscal overruns, reserve depletion and slow implementation of reforms in 2024. However, the IMF said programme performance has since improved following corrective measures taken by the authorities.
Despite the fresh inflow of funds, the IMF cautioned that Sierra Leone’s debt remains at high risk of distress, while foreign exchange reserves have fallen to about 1.5 months of import cover as of September 2025. The Fund stressed the need for stronger fiscal discipline, improved debt management and tighter control of government spending, particularly foreign exchange expenditures.
The IMF also underscored the importance of securing more grants and concessional financing, extending debt maturities and issuing government securities at sustainable interest rates to ease pressure on public finances.
Sierra Leone’s economy is projected to grow by 4.4 percent in 2025, supported mainly by mining and agriculture, while inflation has eased to single digits. However, the IMF warned that maintaining financial stability will depend on strict adherence to fiscal reforms and continued efforts to rebuild reserves.
The ECF programme is aimed at stabilising the economy, reducing inflation, rebuilding reserves and strengthening governance, while protecting social spending for the most vulnerable.
