By Kadiatu A. Turay.
In a significant move towards building resilience against natural and man-made disasters, the Ministry of Finance has introduced a comprehensive Disaster Risk Financing Strategy as part of the 2025 Budget Hearing. The unveiling of this strategy, which took place on September 10, 2024, marks a critical step in mitigating the economic impact of disasters on Sierra Leone’s economy.
Addressing stakeholders at the hearing, the Minister of Finance, Hon. Sheku Bangura, emphasized the growing threat of climate change and other unforeseen disasters. “In recent years, Sierra Leone has faced increasing environmental and economic vulnerabilities. This strategy is designed to ensure that we have a robust financial response mechanism in place to manage and mitigate risks more effectively,” he stated.
The Disaster Risk Financing Strategy aims to establish a disaster fund, provide contingency budgeting, and facilitate access to financial instruments like insurance and risk-sharing arrangements. The initiative also focuses on improving the country’s capacity to respond swiftly and efficiently to disasters, thus preventing future economic downturns.
A reserve specifically set aside for disaster-related emergencies.
Risk Transfer Mechanisms: Partnerships with insurance firms to share the financial burden of large-scale disasters.
Risk Reduction Investments: Financing projects that minimize the likelihood and impact of disasters, including early warning systems and infrastructure improvements.
Hon. Bangura noted that the strategy aligns with Sierra Leone’s broader economic goals, ensuring that the country’s development is not derailed by unexpected crises. “This plan not only safeguards our economy but also protects the livelihoods of our people,” he added.
The 2025 budget will allocate initial funding to kickstart the Disaster Risk Financing Strategy, with future allocations based on the evolving risk landscape. The move has been widely praised by stakeholders and development partners who see it as a crucial element in Sierra Leone’s sustainable development agenda.
The strategy will now undergo further consultations and revisions before its final adoption as part of the 2025 financial year.
