IMF Approves Immediate Disbursement of US$31.72 Million to Government of Sierra Leone

The Executive Board of the International Monetary Fund (IMF) has completed the Third Review of Sierra Leone’s Extended Credit Facility (ECF) Programme, unlocking an immediate disbursement of approximately US$31.72 million to support the Government’s ongoing economic reform agenda.

The latest disbursement brings total IMF support under the ECF arrangement to approximately US$158.6 million, underscoring the Fund’s continued confidence in Sierra Leone’s economic management and reform efforts.

In a major boost to the country’s climate resilience agenda, the IMF Executive Board also approved a new arrangement under the Resilience and Sustainability Facility (RSF) amounting to approximately US$211.45 million. The facility will support Sierra Leone’s efforts to strengthen resilience to climate-related shocks, enhance external stability, and promote sustainable economic growth.

The IMF acknowledged that the Government’s prudent macroeconomic policies and fiscal reforms have contributed significantly to stabilizing the exchange rate, reducing inflationary pressures, lowering borrowing costs, and restoring access to credit for the private sector. These achievements reflect the Government’s unwavering commitment to maintaining macroeconomic stability despite a challenging global economic environment.

While recognizing the adverse impact of ongoing geopolitical tensions and the conflict in the Middle East on the global economy, the IMF noted that Sierra Leone’s economic outlook remains broadly stable. The institution emphasized the importance of sustaining fiscal consolidation efforts, strengthening domestic revenue mobilization, and advancing structural reforms to maintain debt sustainability and support long-term economic growth.

The newly approved RSF programme will focus on strengthening climate-sensitive public investment management, enhancing climate resilience, improving fiscal planning, supporting social protection systems, and addressing climate-related risks in the financial sector. These reforms are expected to bolster Sierra Leone’s capacity to withstand future climate shocks while promoting sustainable development.

According to the Minister of Finance, Sheku Ahmed Fantamadi Bangura, this approval and disbursement from the IMF reflect sustained efforts in macroeconomic reforms over the last two years that we must preserve.

He noted that these reforms resulted in Sierra Leone gaining access to the largest quota disbursement from the IMF. He reiterated the government’s commitment to deepen economic reforms for sustainable development.

Minister Bangura welcomes the IMF’s continued partnership and support, which aligns with its broader development objectives under the Medium-Term National Development Plan and the Big Five Game Changers.

The additional financing will further support efforts to build a resilient economy, strengthen public finances, protect vulnerable populations, and accelerate sustainable development.