Official forecasts, that I have read from the International Monetary Fund and crossed referenced with other sources, including independent estimates, show that Sierra Leone’s economy steadily gained traction in 2025. Growth, which has been reviewed a number of times, was widely projected around 4.3–4.4 percent, with further modest acceleration expected in 2026 to near 4.8 percent.

Although output was comparatively slower in 2024, we saw indications that reflected stronger performance in mining, services, and agriculture. It was also during when we saw the precursors to inflation easing markedly from triple digits a few years back to single digits in 2025, bringing more predictability to markets, especially in the last two quarters of the year.

For many families and small traders in the southern district headquarter town of Pujehun, where my friend and lecturer colleague, Dr Isaac Massaquoi, came from and Kono, in the east, where my other brother, Umaru Fofana, and I came from, that drop in inflation meant that rice, palm oil, and other staples were no longer rising in price every week.

In fact, food prices have fallen sharply across the country, with imported rice down 18 percent nationwide, cassava down 16 percent, gari down 12 percent, and local rice dipping by about 3 percent, according to the UN World Food Programme’s Q2 2025 bulletin. The report also showed stronger purchasing power, as the monthly minimum wage of NLe800 could buy 50 kilograms of imported rice compared to 33 kilograms in 2024.

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Government Policies That Mattered

From my quick study before writing this article, I saw a handful of specific policy steps that may have helped stabilise the macroeconomy and encourage investment in the last year.

Fiscal Consolidation and Tax Reform.

Updating customs tariffs and tightening tax-filing rules in the Finance Act 2025 may sound like bureaucratic housekeeping, but in practice these changes help Sierra Leone edge closer to several important national targets. The clearer tariff structure, for instance, means fewer disputes at the port in Freetown, which traders in Kissy and Calaba Town often complain add days or even weeks to the arrival of their goods.

When importers know exactly what duty applies to rice, steel rods, cooking gas or beverages, they can price more accurately, and that predictability filters down to market sellers in places like Kenema and Koidu who depend on stable wholesale prices to keep their businesses afloat.

Better compliance rules also help the government meet revenue goals under the IMF programme, something most people don’t associate with daily life until they see the ripple effects. In Bo, school administrators have explained that delays in subventions often stall minor repairs, so a steadier revenue stream makes it more likely that funds arrive on time. In Makeni, local council staff say that when national revenue is more predictable, grants for waste collection and road patching come with fewer interruptions. These may seem like small improvements, but residents feel them directly.

Stronger enforcement of return-filing obligations also reduces tax evasion, which is important for meeting domestic revenue benchmarks. An NRA officer in Port Loko noted in a radio interview earlier this year that late or incomplete filings by medium-sized firms had long contributed to shortfalls. Under the new rules, penalties are clearer and harder to avoid, and businesses are starting to comply earlier to avoid steep fines. One small hotel owner in Lungi said the new filing deadlines forced him to organise his accounts better, something he admitted was helpful even if inconvenient.

The Finance Act also supports Sierra Leone’s goal of a more predictable macroeconomic environment. Importers in the construction sector, especially those bringing in steel rods and fittings for housebuilding in Waterloo and Goderich, say the updated tariff schedule helps them forecast costs over several months rather than guessing shipment by shipment. That level of certainty is crucial at a time when urban households are increasingly building in phases, and unexpected price jumps often halt projects.

On the excise side, revisions to alcohol and tobacco duties align with health and revenue objectives. Sellers at dancehalls in Kailahun and pubs in Bombali say the updated excise rates make stock pricing clearer, while health officials argue that consistent duties help discourage the rapid spread of cheap, unregulated spirits that have caused poisoning incidents in recent years.

The tightening of exemption rules for NGOs also supports debt-management targets by reducing lost revenue. In Kambia, a civil society leader acknowledged that while the stricter rules on vehicle exemptions were inconvenient for some organisations, they made sense in a context where exemptions had often been misused. The updated framework ensures only bona fide charitable operators benefit, limiting the leakage that donors and government auditors have repeatedly flagged.

For the private sector, predictability is the real incentive. Even though the Act doesn’t introduce new tax breaks for agriculture or renewable energy, shop owners on Sani Abacha Street and small factory operators in Wellington say that consistent rules matter just as much as incentives. When they know the penalties for late GST returns or income tax filings, they can plan their paperwork and cash flow better. A small sachet-water producer in Kenema said the new GST timelines forced him to formalise his accountant’s role, which reduced the confusion that previously led to last-minute payments and unexpected penalties.

All these seemingly technical reforms help Sierra Leone move toward bigger goals: stronger revenue mobilisation, smoother business operations, and a more reliable fiscal environment. And while most citizens may never read the Finance Act, they experience its effects every time market prices stabilise a little, a school receives its funds on schedule, or a small business owner finally feels confident enough to plan beyond the next few months.
Engagement with IMF and Development Partners.

A key stabilising factor has been Sierra Leone’s ongoing arrangement with the International Monetary Fund under an Extended Credit Facility. In late 2025 the IMF completed its first and second reviews, unlocking nearly $80 million in disbursements and affirming progress on fiscal and monetary reforms. While reserves remain tight, the overall signal was one of confidence in the country’s trajectory.

These programmatic supports go hand in hand with work from the World Bank and African Development Bank. The World Bank’s periodic economic updates underscore the importance of private sector reform and job creation, especially given the need to absorb tens of thousands of new workers each year.

Mining, Agriculture, and the Private Sector

These sectors still remain the backbone of Sierra Leone’s real economy. Mining has long been central to headlines because of iron ore, diamonds, and now emerging gold projects. Even though global prices for iron and diamonds can fall, increased production volumes have helped offset price swings. Much of the activity is with foreign operators, but royalty streams and employment in towns like Koidu (before Koidu Limited, Sierra Leone’s largest diamond producer laid off over 1,000 workers following a protracted dispute over poor pay and working conditions in May 2025) and Tonkolili have contributed to local spending and small business growth.

In Bo District, the ongoing development of a hybrid solar and thermal power station tied to a new gold mine, Baomahun Gold Mine, shows how infrastructure and extractives can intersect. This project not only brings jobs directly to the local economy but may also help stabilise power for mining operations that might otherwise struggle under unreliable grids. Agriculture remains essential for food security and rural incomes. The government’s Feed Salone initiative and related programs aimed at boosting local processing and crop yields are modest in scale.

The private sector was a theme in most official commentary in 2025. World Bank analysis repeatedly pointed to the need to make it easier to start and grow firms, improve access to credit, and expand electricity and digital services. These constraints are real: a small salon owner in Waterloo, for example, is more likely to access loans from microfinance groups, rather than banks, as often the only options, but unreliable power supply might still drive up her costs.

Multilateral and Bilateral Support

Support from the IMF was the most visible anchor for macroeconomic stability. That financing helped shore up reserves and gave the government space to continue services and capital projects while keeping fiscal discipline in view.

The World Bank’s dual reports on economic and climate development highlighted how policy choices now affect resilience later, especially given Sierra Leone’s vulnerability to climate shocks. These reports, and associated dialogues with Sierra Leone’s policymakers, weave climate adaptation into the broader economic strategy.

The African Development Bank also kept a steady presence, affirming its support for reforms aimed at domestic resource mobilisation and private sector development. That global engagement provided credibility at home. For example, when Finance Minister Sheku Fantamadi Bangura spoke to diaspora audiences about inflation coming down and stable exchange rates, he was echoing the same broad themes from multilateral partners that reassure potential investors.

Ordinary Sierra Leoneans and Local Entrepreneurship

What often goes unremarked in big forecasts is how people on the ground respond. Farmers across the country have shared stories of pooling savings with neighbours to collectively hire tractor services from providers such as Pee Cee Agriculture and local mechanisation centres supported by the Ministry of Agriculture, cutting land-preparation costs and improving yields.

Traders in Aberdeen Market, Freetown, told local radio and business pages that they were investing more confidently in stock after seeing price volatility ease over the year, particularly in imported food items and basic household goods.

Young tech entrepreneurs have begun to see new opportunities through digital training programmes such as ITC’s Ready Salone, GIZ DigiSkills Salone, and private hubs like iDT Labs, with some launching small e-commerce ventures on platforms like Salone Market and WhatsApp-based stores offering local crafts and food products nationally and to the sub-region, a modest but meaningful sign of diversification.

Air Sierra Leone’s launch of regional flights in early 2025, even if initially limited to West African routes, created new opportunities for traders moving between Freetown, Accra and Lagos, improving turnaround time for business travel and light cargo and boosting confidence in regional connectivity.
In rural communities around Makeni, farmer groups used small grants from development organisations such as World Vision Sierra Leone and GOAL to build simple storage facilities for maize and cassava, reducing post-harvest losses and giving farmers more control over when they sell, with these small interventions translating into steadier cash flow during the rainy season.

Looking Ahead to 2026: Prospects and Challenges

The overall picture for 2026 is cautiously optimistic, but cautious is the right mood.

Growth forecasts expect continued expansion to near 5 percent or just below, buoyed by mining, services, and agriculture.
Looking ahead, Sierra Leone’s economic prospects could strengthen if private sector reforms deepen and create space for more small and medium enterprises to scale up, generating jobs in trade, agribusiness, and light manufacturing.

Continued investment incentives, particularly tax breaks linked to local employment, have the potential to attract additional foreign and domestic capital. At the same time, major infrastructure projects such as the proposed Lungi Bridge, if implemented on schedule, could open new corridors for commerce and tourism and significantly improve connectivity and investor confidence.

Despite recent stabilisation, several challenges remain for Sierra Leone’s economy. Public debt continues to be a major constraint, and even with IMF and donor support, careful management is required to ensure that financing needs do not crowd out essential social and development spending.

At the same time, skill gaps in the workforce persist, with many employers pointing to shortages of trained technicians and managers, underscoring the need for greater investment in education and vocational training.

In addition, electricity supply and transport infrastructure still lag behind business needs, and without more reliable services, many firms are likely to remain cautious about expanding their operations.

Policy Lessons for 2026

Looking ahead to 2026, Sierra Leone’s policy direction should remain anchored in fiscal discipline while ensuring that essential social services are protected and adequately funded. Tax and investment incentives need to be more deliberately targeted at labour-intensive sectors such as agro processing, where growth can translate directly into jobs and incomes.

Strengthening local supply chains is also critical so that small towns and rural communities are better connected to national markets and can participate more fully in economic activity. At the same time, micro and small enterprises should receive tailored financial support and practical business training to improve their resilience and productivity.

Finally, Sierra Leone must deepen its partnerships with multilateral institutions to strengthen its capacity to withstand climate risks and global economic shocks. I see that the Climate Adaptation Technology and Business Model Innovations and Entrepreneurship under SMEDA and UNIDO are doing a great job in this direction.

In the end, 2025 wasn’t a breakthrough year, but it was one where steady policy choice helped Sierra Leone move from crisis toward sustainability. Real-life signs of that shift were visible in markets, farms, and businesses across the country. And if those lessons are applied in 2026, the country might just have a clearer path to more inclusive and stable growth.