Announcements

With declining international aid and global economic shifts, Sierra Leone must generate more domestic revenue to meet national priorities.
Minister of Finance Sheku Ahmed Fantamadi Bangura presented innovative domestic revenue strategies at the FY2026 budget National Policy Hearing. The focus is on mobilising new and traditional sources to fund the Big Five Game Changers.

He stated that the priorities for fiscal year 2026 align with the aspirations of the Medium Term National Development Plan 2024-2030, to finance the Big Five Game Changers, achieve food security, build a vibrant, healthy, inclusive, and gender-sensitive workforce, invest in infrastructure, and technology.

He outlined the progress made so far in the economy, noting the 6.45% single-digit inflation in July 2025. This, he said, is a result of stability of the exchange rate, moderate global food and energy prices, improved domestic food production, and tightened monetary policy, implemented by the Bank of Sierra Leone, backed by fiscal consolidation measures.

Minister Bangura mentioned that Sierra Leone is endowed with abundant mineral resources like iron ore, Diamonds, Bauxite, gold, and more, but further stated that the current model of private sector extraction has not delivered equitable benefits for the people of Sierra Leone.

“Over the past six years, the value of mineral exports amounted to $4 billion, yet only $187 million(4.6 per cent), and in 2023 extractive exports reached $1.2 billion, but government revenue stood at a mere $48million”, he added.

The Minister of Finance further stated that Sierra Leone’s public debt-to-GDP ratio in 2024 was 48.9% with the total debt stock increasing, and commits to effectively managing debt levels to reduce its impact on overall fiscal operations.

He noted that the IMF Executive Board approved a 38-month arrangement in October 2024 with requested access of approximately $248.5 million, and the IMF immediately disbursed $46.6 million.

“The implementation of the new program is fully on course, and we are taking corrective actions agreed with the Fund geared towards meeting all structural benchmarks and commitments by the end of November 2025. We are hopeful that the combined first and second reviews of the country’s economic performance under the program will lead to a second disbursement,” he noted.

The Minister of Planning and Economic Development, Madam Kenyeh Ballay, mentioned that the theme for this year is timely and necessary as the global shift continues to affect our economy and fiscal space.

She added that the international financing landscape is changing drastically, and efficient development systems are declining, global economies are tough, and developing countries, like Sierra Leone, are exposed, making it more important to focus on domestic revenue mobilisation.
Minister Ballay called on MDAs to focus on existing capital projects for 2026, stating that there will be no funding for new projects next year.

The Vice President, Mohamed Juldeh Jalloh, in his keynote address, stated that over the years, multiple crises have erupted and impacted stronger economies, leaving developed countries prioritising their people more than foreign aid. V.P. Jalloh noted that digitalising tax administration would enhance compliance and reduce leakages, thereby providing the funds to finance key government expenditure on schools, hospitals, and critical infrastructure projects.

He advised the government to broaden the tax base, rationalise tax exemptions, increase revenue collection, and invest in technologies to reduce human interactions in revenue collection.

The Chairman of the Programme, Ambros James, and Honourable Kaisamba, Chairman of the Finance Committee in Parliament, shared similar sentiments and advised on the process.

FY 2026 Policy aimed at enhancing traditional sources of domestic revenue through effective and efficient tax management using technology, while exploring other innovative strategies on climate finance, carbon trading, debt swapping, and state commercial participation in mining of natural resources through the Mineral Wealth Fund.

The FY 2026 Budget preparation process continues with bilateral budget discussions with MDAs and stakeholders from September 18th to 27th, 2025, at the conference rooms of the Ministry of Finance.
Credit: MOF Communications