This brings total disbursements under the facility to roughly $127.8 million.
The IMF approved the ECF arrangement on October 31, 2024, to support debt sustainability, curb inflation, rebuild foreign reserves, strengthen governance and institutions, and support economic growth. Progress under the programme had been delayed in 2024 due to spending overruns, reserve depletion and reform slippages, some of which were financed through central bank purchases of government securities. The Fund says performance has since improved.
As part of the review, the Executive Board approved waivers for missed performance criteria related to net credit to government, net domestic assets and net international reserves at end-December 2024, as well as the end-June 2025 target on net international reserves. The IMF said these waivers were granted on the basis of corrective actions taken by the authorities.
Sierra Leone’s economic outlook is described as stable. Growth is projected to reach 4.4% in 2025, driven mainly by the mining and agriculture sectors. Inflation fell to 4.4% in October 2025 following tighter macroeconomic policies and a stable leone, and is expected to remain in single digits over the medium term.
However, challenges remain. Foreign exchange reserves declined to 1.5 months of import cover by the end of September, while public debt continues to face a high risk of distress. The IMF warned of significant risks to the outlook, including the possibility of reform fatigue given the scale of the required fiscal adjustment.
Acting Chairperson and Deputy Managing Director Bo Li said the authorities had succeeded in bringing the programme back on track after setbacks in 2024, noting falling inflation, stable growth and lower borrowing costs. At the same time, he stressed the need for tighter fiscal policy, stronger revenue mobilisation, improved public financial management and better debt management practices.
The IMF also underscored the importance of rebuilding reserves, maintaining exchange rate flexibility, curbing government foreign exchange spending, and pressing ahead with financial sector and governance reforms, including the implementation of the Governance and Corruption Diagnostic report.
–IMF/ChannelAfrica–
