The Government of Sierra Leone has secured major financing boosts for its economy after the International Monetary Fund approved a new climate-linked facility and disbursed funds under its ongoing loan programme, while two development partners also extended trade and housing support.
The IMF approved a US$211.5 million arrangement under its Resilience and Sustainability Facility, RSF, aimed at helping the country address climate change vulnerabilities and strengthen long-term fiscal resilience. The RSF provides longer-term, concessional funding tied to reforms in climate policy, debt management, and public investment.
Alongside the RSF approval, the IMF completed the third review of Sierra Leone’s Extended Credit Facility, ECF, and released US$31.7 million immediately. That brings total disbursements under the ECF to US$158.6 million since the programme began. The ECF supports the government’s efforts to restore macroeconomic stability, increase revenue, and protect social spending.
“The completion of the third ECF review and approval of the RSF reflect progress on reforms and provide critical financing to support Sierra Leone’s development and climate goals,” the IMF said in a statement after its board decision.
In parallel financing moves, Sierra Leone secured a US$10 million deal with Shelter Afrique Development Bank to expand access to affordable housing. The funds are expected to support housing projects targeting low- and middle-income families.
The Arab Bank for Economic Development in Africa, BADEA, also disbursed US$30 million under a US$60 million trade credit facility. The facility is earmarked for imports of rice and other essential commodities to stabilise supply and prices on the domestic market.
Ministry of Finance officials said the combined financing will help ease pressure on foreign exchange, support food security, and fund infrastructure and climate adaptation projects as the country works to sustain growth.