By Amin Kef (Ranger)
In a Press Release dated November 1, 2024, the Ministry of Finance announced that the International Monetary Fund (IMF) Executive Board has approved a new US$253 million Extended Credit Facility (ECF) for Sierra Leone. This 38-month program, approved following the 2024 Article IV Consultations on October 31, will assist Sierra Leone in strengthening economic stability, promoting inclusive growth and advancing structural reforms aligned with the country’s Medium-Term National Development Plan (MTNDP) for 2024-2030.
The ECF program is designed to support macroeconomic stability by addressing debt vulnerabilities, reducing inflation and rebuilding international reserves. Additionally, it will drive poverty reduction and structural reforms while bolstering social spending. The program further aims to enhance governance and institutional strength, which are essential components of Sierra Leone’s goals for sustainable development and poverty reduction as outlined in the MTNDP.
During their deliberations, IMF Executive Board members commended the Government of Sierra Leone for its ongoing commitment to reforms and efforts to stabilize the economy despite significant challenges, including the lingering effects of pandemics and security-related pressures. The Board emphasized the importance of continued adherence to the ECF framework, encouraging the Government to implement targeted reforms in areas such as reducing gender disparities, enhancing customs efficiency, strengthening social safety nets and managing climate risks.
Minister of Finance, Sheku Ahmed Fantamadi Bangura, expressed gratitude to the IMF Executive Board, emphasizing that these reforms are in the nation’s best interest. He underscored the Government’s commitment to transparent and accountable public financial management to reduce poverty and improve access to essential social services for all citizens. The Minister also reaffirmed Sierra Leone’s dedication to ensuring robust ownership of the ECF program, pledging decisive action and contingency measures to restore macroeconomic stability, secure debt sustainability and foster inclusive growth.
This new ECF arrangement stands as a key milestone in Sierra Leone’s journey toward economic resilience and sustainable development, reinforcing the Government’s commitment to advancing the goals outlined in the National Development Plan.
