The International Monetary Fund (IMF) has completed Sierra Leone’s first and second reviews under the Extended Credit Facility (ECF), granting waivers for missed 2024–25 program targets. The decision comes amid fiscal deficit overruns and significant reserve losses, which the Fund warned could undermine economic stability if left unchecked.
In its assessment, the IMF acknowledged the government’s efforts to maintain reform momentum but stressed that corrective measures are now unavoidable. The Fund is demanding a package of fiscal tightening measures, including tax increases equivalent to 1.5% of GDP, the resolution of distressed banks, and the introduction of a comprehensive Finance Bill in 2026.
Officials noted that while the waivers provide temporary relief, Sierra Leone must accelerate structural reforms to restore confidence and safeguard macroeconomic stability. The IMF emphasized that stronger revenue mobilization, disciplined spending, and financial sector clean-up are critical to ensuring the country’s medium-term growth prospects.
The government is expected to present the 2026 Finance Bill later this year, outlining new tax measures and fiscal consolidation strategies. Analysts say the reforms will test Sierra Leone’s political resolve, as higher taxes and tighter spending controls could prove unpopular but are seen as necessary to stabilize the economy.