By Chernor M. Jalloh
The recent approval of a $248.5 million concessional loan by the IMF has once again put Sierra Leone at a critical juncture. The funds, aimed at supporting economic stability and growth, could indeed spark positive change. But without robust accountability and strategic investment, this loan risks deepening Sierra Leone’s debt without yielding real benefits for its people. As Dambisa Moyo, author of Dead Aid, warns, foreign aid often serves as a vehicle for dependency rather than development. Her critique of aid echoes Sierra Leone’s own struggle: when concessional loans fall into the hands of complacent governance, they may become burdens, exacerbating the cycle of “debt accumulation without development.”
The principle behind loans is simple: they should fuel transformative projects—building roads, schools, hospitals, and ultimately, a resilient economy. Yet, in Sierra Leone, where systemic corruption and weak governance are well-documented, the transformative power of these loans is often undercut by misallocation and misuse. Each borrowed dollar should strengthen the country’s economic foundations, yet far too often, funds are siphoned away, leaving Sierra Leone burdened by debt without corresponding growth. Instead of benefiting citizens, the country finds itself diverting resources to service debt, pulling funds away from health, education, and essential infrastructure.
Moyo argues that unchecked reliance on foreign aid fosters a dangerous dependency, insulating governments from enacting necessary reforms and fostering complacency. In Sierra Leone’s case, this means that rather than focusing on innovation or empowering local industries, reliance on foreign loans merely sustains the status quo, deferring crucial economic reforms that could lead to self-sufficiency. These funds, meant to be life-sustaining infusions of growth, end up being lifelines for complacency—a trap where Sierra Leone’s economy remains reliant on international goodwill rather than robust local industries.
This “debt-without-development” cycle has profound consequences. As debt servicing consumes more of the national budget, resources that should go toward education, healthcare, and infrastructure are diverted. Sierra Leone’s youth—the very generation that loans aim to uplift—are instead left with inadequate schools, limited healthcare access, and few employment opportunities, perpetuating the cycle of poverty. Moyo’s words ring true: aid without accountability can erode democratic foundations, prioritizing debt repayment over the well-being of citizens and stifling public trust.
To break free from this dependency, Sierra Leone needs to commit to a new vision—one of self-reliance. Moyo’s insights suggest a clear path forward: embracing trade, cultivating entrepreneurship, and prioritizing high-impact, sustainable projects. This concessional loan must not be seen as a stopgap but as an opportunity to build a stronger, more resilient economy. Each dollar should be invested in ways that foster lasting, visible change for the people. By focusing on transparency and holding officials accountable, Sierra Leone can transform borrowed funds into real development—ensuring that every cent spent reflects a step toward economic independence.
The $248.5 million from the IMF offers Sierra Leone a fresh chance to break the chains of debt dependency. But success hinges on using this loan responsibly, not merely as a temporary fiscal relief but as a catalyst for meaningful reform. Sierra Leone must reject complacency and prioritize impactful investments that promise genuine economic returns. Only by heeding Moyo’s call for self-sufficiency can the nation begin to reverse the tide of “debt without development” and finally set a course for sustainable, homegrown prosperity.
The road to independence is not easy, but it is a journey Sierra Leone must undertake if it hopes to offer its people a future free from the shackles of debt. The onus is on the country’s leaders to prove that this time, the loans will spark real change, fostering an economy where prosperity is built by and for Sierra Leoneans, not perpetually borrowed from others.