With global aid declining and international economic shifts reshaping fiscal opportunities, Sierra Leone is intensifying efforts to generate sustainable domestic revenue to fund national development priorities.
At the FY2026 Budget National Policy Hearing, Minister of Finance Sheku Ahmed Fantamadi Bangura unveiled innovative strategies aimed at mobilising both traditional and emerging revenue sources to finance the government’s flagship “Big Five Game Changers”.
Minister Bangura emphasised that the FY2026 priorities are aligned with the Medium-Term National Development Plan (2024–2030), focusing on food security, building a healthy and inclusive workforce, advancing gender equality, and scaling up investments in infrastructure and technology.
He reported significant economic progress, highlighting that inflation dropped from 9.23% in April 2025 to 6.45% in July 2025. This achievement, he said, reflects a stable exchange rate, moderated global food and energy prices, improved domestic food production, and tighter monetary policies implemented by the Bank of Sierra Leone, supported by fiscal consolidation.
On the extractives sector, Bangura pointed out that despite Sierra Leone’s wealth of minerals including iron ore, diamonds, bauxite, and gold the benefits have not equitably reached citizens. Over the past six years, mineral exports were valued at US$4 billion, yet only US$187 million (4.6%) accrued to government revenue. In 2023 alone, extractive exports reached US$1.2 billion, while revenue to the state was just US$48 million.
Turning to debt management, Bangura revealed that Sierra Leone’s public debt-to-GDP ratio stood at 48.9% in 2024, with total debt stock continuing to rise. However, the government is actively managing debt risks, supported by an IMF 38-month arrangement worth US$248.5 million, approved in October 2024. The first disbursement of US$46.6 million has already been received, and the government is implementing agreed reforms to secure further disbursements following reviews later this year.
Minister of Planning and Economic Development, Madam Kenyeh Ballay, described the FY2026 budget theme as both timely and necessary, stressing that global financing systems are shrinking and leaving least-developed countries like Sierra Leone more vulnerable. She urged Ministries, Departments, and Agencies (MDAs) to prioritise ongoing capital projects, noting that no new projects will be financed in 2026.
Delivering the keynote address, Vice President Mohamed Juldeh Jalloh observed that global crises have forced wealthier nations to prioritise their domestic needs over foreign aid, underscoring the urgency for Sierra Leone to boost its own revenue streams. He called for the digitalisation of tax administration to increase compliance, curb leakages, and fund critical services such as education, healthcare, and infrastructure.
The Vice President further urged government to broaden the tax base, rationalise exemptions, and invest in technologies that reduce human interaction in revenue collection.
Parliamentary Finance Committee Chair Hon. Kaisamba and Program Chairman Ambros James echoed these recommendations, stressing the need for fiscal discipline and efficiency in resource mobilisation.
Looking ahead, the FY2026 budget will prioritise strengthening traditional tax sources while exploring innovative approaches such as climate finance, carbon trading, debt swaps, and state participation in mining through the establishment of a Mineral Wealth Fund.
The budget preparation process continues with bilateral discussions between MDAs and stakeholders, scheduled for September 18–27, 2025 at the Ministry of Finance conference rooms.
Copyright –Published in Expo Times News on Wednesday, 16th September, 2025 (ExpoTimes News – Expo Media Group (expomediasl.com)
