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The World Bank Board of Executive Directors, in a press release dated December 13, 2024, announced the approval of an $80 million financing package to support Sierra Leone in restoring macro-fiscal stability and strengthening economic resilience.
The package includes a $60 million International Development Association (IDA) grant for budget support and an additional $20 million through a Catastrophe Deferred Drawdown Option (Cat DDO) to assist the country in responding to natural disasters.
Sierra Leone has grappled with severe economic and climate challenges over the past decade, including the Ebola epidemic, natural disasters, and the COVID-19 pandemic. These crises, compounded by policy missteps, have disrupted growth and worsened economic imbalances. The financing package is aimed at addressing these challenges through reforms targeting fiscal management, financial sector stability, energy access, and climate resilience.
“This financing package underscores the strong partnership between the World Bank and the Government of Sierra Leone,” said Abdu Muwonge, World Bank Country Manager for Sierra Leone. “It will support critical reforms to improve fiscal management, enhance access to finance and reliable energy, and boost climate and disaster resilience. These efforts are crucial for achieving sustainable growth and reducing poverty.”
The Sierra Leone Macro Stability and Resilience Development Policy Operation with a Cat DDO is the first of three planned operations aimed at fostering sustainable growth. It supports reforms to increase domestic revenue, enforce spending discipline, safeguard financial sector stability, and promote private sector participation in the energy sector. These measures aim to improve the financial and operational performance of the Electricity Distribution and Supply Authority (EDSA) and enhance climate and disaster resilience.
The operation aligns with Sierra Leone’s Medium-term National Development Plan (MTNDP 2024–2030) and builds on prior initiatives under the Inclusive and Sustainable Growth Development Policy Financing series.
World Bank officials emphasized the importance of these reforms for the nation’s recovery. “The reforms supported by this operation are crucial for restoring macroeconomic stability and building resilience against future shocks,” said Smriti Seth, Senior Economist, and Francis Samson Nkoka, Senior Disaster Risk Management Specialist, Co-Task Team Leaders for the initiative.
This financing package is expected to help Sierra Leone lay the foundation for sustainable economic growth while preparing for potential future challenges.
