Freetown, 1 August 2025 — Sierra Leone’s total public debt has surged to US$3.1 billion (approximately NLe 67.7 billion) as of December 2024, according to figures presented to Parliament by Minister of Finance Sheku Ahmed Fantamadi Bangura.
The country’s rising debt burden continues to weigh heavily on public finances, significantly constraining fiscal space.
Breaking down the figures, Minister Bangura revealed that external debt stands at US$1.8 billion, while domestic debt amounts to US$1.3 billion (around NLe 28.4 billion).
He noted that debt servicing consumed 50% of the country’s domestic revenues in the first half of 2025, exceeding budget expectations due to higher Treasury Bill rates and larger-than-planned principal repayments on maturing debt.
“High debt service payments have been the greatest challenge in implementing the budget in recent years,” Minister Bangura told lawmakers during the presentation of the Supplementary Budget and Statement of Economic and Financial Policies for FY2025 on 29 July.
To address the situation, the government has outlined a set of debt management reforms aimed at restoring fiscal stability. These include reducing weekly public sector borrowing by enhancing domestic revenue mobilization and tightening public spending. Authorities also plan to issue longer-term Treasury bonds, some with variable interest rates, to replace short-term Treasury bills, which have proven costlier.
In a bid to attract a more diversified pool of investors, the government will target non-bank financial institutions, including the National Social Security and Insurance Trust (NASSIT). The Bank of Sierra Leone is also expected to tighten rules on the use of Treasury bonds as collateral in repurchase (Repo) agreements, applying stricter risk-based valuation methods.
Additionally, plans are underway to implement tougher regulatory oversight for institutional investors and to pursue more concessional loans and grants from international development partners to reduce reliance on domestic borrowing.
Sierra Leone’s debt servicing challenges have long been a barrier to investment in critical sectors such as infrastructure, health, and education. With rising interest costs and limited revenue growth, the government faces the complex task of balancing debt sustainability with the need to stimulate economic development.
