IMF talks on sustained reform momentum & efforts to improve macroeconomic conditions in Sierra Leone

In a letter dated 31st October 2024 addressed to the Minister of Finance Sheku Ahmed Fantamadi Bangura, the executive board of the International Monetary Fund (IMF) informed him of the decision on the concluded 2024 Article IV and approval of the new $253 million 38-month Extended Credit Programme.

The Directors commended the authorities for the sustained reform momentum and efforts to improve macroeconomic conditions despite the fragile socio-economic environment, compounded by pandemics and security spillovers. They welcomed their Medium-Term Revenue Strategy (MTRS), designed to help strengthen compliance and tax administration while supporting efforts to enhance mining revenues. Further, they emphasised the need for sustained expenditure restraint while cushioning the most vulnerable households against rising food and energy prices.

The ECF Programme would support restoring stability through a continued macroeconomic adjustment to address debt vulnerabilities, reduce inflation, and rebuild international reserves; bolster inclusive growth and poverty reduction through structural reforms and targeted social spending; and revitalise the reform agenda to strengthen governance and institutions in advancing the poverty reduction and growth aspirations outlined in the Medium-Term National Development Plan (MTNDP) 2024-30.

Minister of Finance Mr. Sheku Ahmed Fantamadi Bangura, expressed appreciation to the Executive Board of the IMF, stating that the reforms are in the best interest of the country and, therefore, reiterates the government’s commitments to a transparent and accountable public financial management that will help reduce poverty and provide social services to the people of Sierra Leone.

He commits to strong program ownership and steadfast implementation under the new ECF arrangement, including contingency measures that would be vital to restore macroeconomic stability and debt sustainability and foster inclusive growth.

Financial Secretary Matthew Dingie stated that this approval comes after months of negotiation led by the Minister of Finance, Sheku Ahmed Fantamadi Bnagura, the Governor of the Bank of Sierra Leone, the Commissioner General of NRA, and other actors in the country’s economic management.

He further stated that in the last two months, the government has successfully negotiated and secured approval for the MCC’s $480 million and the IMF’s $253 million under the new ECF programme.

According to the Financial Secretary, this demonstrates the confidence of international and development partners in the economic reforms the government is implementing.