(Ecofin Agency) - The IMF's support is designed to make Sierra Leone's economy more resilient, lift living standards, and fight poverty through structural reforms and focused social programs.

Sierra Leone will receive $248.5 million in financial support from the International Monetary Fund (IMF) to boost its economic resilience. Announced on October 31, the funding comes through a 38-month Extended Credit Facility, with an initial disbursement of $46.6 million.

This program aims to support Sierra Leone's 2024-2030 National Development Plan, with a focus on ensuring long-term economic stability. Key priorities include reducing inflation, improving public debt sustainability, rebuilding foreign reserves, and enhancing governance.

The IMF commended Sierra Leone’s recent economic reforms, which have led to significant progress. Inflation dropped from 55% in October 2023 to 25% in August 2024, and the currency exchange rate stabilized. “The authorities’ recent ambitious reform efforts are commendable. Tighter macroeconomic policies contributed to a substantial decline in inflation, helped stabilize the exchange rate, and built policy credibility,” the IMF noted.

Despite these gains, challenges remain. Inflation is still high, and public debt, at 78.47% of GDP in 2023, poses a high risk of over-indebtedness. The IMF stressed the importance of maintaining strict macroeconomic policies to manage debt, further reduce inflation, and strengthen international reserves. The IMF also highlighted the need to protect vulnerable populations while fostering inclusive growth.

Sierra Leone’s economy, largely reliant on mining and agriculture, grew over 5% in 2022-2023, driven mainly by mining expansion. The IMF projects that growth will stabilize at 4.6% in the medium term.