An IMF mission led by Mission Chief Christian Saborowski concluded talks in early May 2026, announcing a staff-level agreement on the third review of Sierra Leone’s programme under the Extended Credit Facility, alongside a request for additional support through the Resilience and Sustainability Facility (RSF).
The IMF said policy reforms implemented over recent years have delivered tangible results. Sierra Leone recorded a domestic primary surplus of 1.3% of gross domestic product in 2025, supported by improved tax collection and controlled spending. Combined with tighter monetary policy, these measures have helped stabilise the exchange rate, reduce inflation and ease borrowing costs, while improving access to credit for the private sector.
However, the Fund warned that maintaining this progress is becoming more difficult. Revenue performance in early 2026 has been weaker than expected, while spending pressures have increased. The government is also facing external shocks, including higher global energy and food prices linked to the conflict in the Middle East.
To mitigate the impact of rising fuel prices, the authorities introduced temporary subsidies in April. The IMF said these measures should remain time-bound and transparent, while efforts continue to secure donor support to strengthen social safety nets.
Inflation is projected to rise to about 11.6% by the end of 2026 before easing to single digits by 2027, reflecting ongoing global price pressures. The IMF said monetary policy remains appropriate but may need to tighten further if inflation persists.
Economic growth, which strengthened in 2025, is expected to slow to about 4% in 2026 due to external headwinds, before gradually recovering to around 4.5% over the medium term as reforms continue.
The IMF also highlighted risks to the outlook, including prolonged global instability, climate shocks and potential domestic challenges such as reform fatigue and election-related uncertainty.
Looking ahead, the Fund said policy priorities should focus on maintaining fiscal discipline while protecting social spending, improving revenue mobilisation and strengthening public financial management. Continued reforms in the financial sector and governance were also identified as critical.
The proposed RSF is expected to support climate-related reforms, including improved investment planning and strengthening resilience to environmental shocks.
The IMF said the programme provides a framework to sustain economic stability while supporting long-term development and resilience.
–ChannelAfrica–
