Sierra Leone: First and Second Reviews Under the Extended Credit Facility Arrangement, Request for Waivers of Nonobservance of Performance Criteria-Press Release; and Statement by the Executive Director for Sierra Leone

This paper presents Sierra Leone’s First and Second Reviews under the Extended Credit Facility Arrangement, Request for Waivers of Nonobservance of Performance Criteria. Sierra Leone’s economic outlook remains stable, with growth projected to reach 4.4 percent in 2025, supported by the mining and agriculture sectors. Inflation declined to 4.4 percent in October 2025 amid the ambitious macroeconomic policy tightening and a stable Leone and is projected to remain in single digits over the medium term. The authorities’ plans to tighten fiscal policy more than previously anticipated given the previous fiscal slippages is imperative. Steadfast implementation of recent revenue measures will be key, alongside improvements in tax compliance and administration. Public financial management reforms will help avoid fiscal overruns and support expenditure restraint, but social spending needs to be protected. Progress with structural reforms will underpin Sierra Leone’s growth potential. The publication of the Governance and Corruption Diagnostic report is welcome. The authorities should now focus on its steadfast implementation to enhance governance and address corruption vulnerabilities.