By Sulaiman Jalloh
Sierra Leone’s Minister of Finance, Sheku Ahmed Fantamadi Bangura, on Tuesday presented the Supplementary Appropriation Act, 2025 during a plenary sitting of the Sixth Parliament of Sierra Leone, on Tuesday July 29, 2025.
Describing the proposal as a “fiscal consolidatory” budget — not an austerity plan — Minister Bangura emphasized the government’s ongoing commitment to economic stability and growth, while safeguarding key social investments.
Speaking on the state of the economy, Minister Bangura noted that Sierra Leone’s post-pandemic recovery has been strong, with an average growth rate of 5.6% between 2021 and 2023. In 2024, the economy grew by 4.4%, and is projected to reach 4.5% in 2025.
He credited this growth to increased activity in the agriculture and services sectors, underpinned by a stable macroeconomic environment and improved performance in exports, inflation, and exchange rates.
Among the government’s most significant achievements, Bangura stated, is the dramatic drop in inflation. From a peak of 54.5% in October 2022, inflation decreased to 13.8% in December 2024, and further to 7.1% by June 2025.
The Minister highlighted continued strength in the external sector. Exports between January and March 2025 totaled NLe 424.1 million, an 11% increase compared to 2021.
Minerals accounted for 75% of total exports, with iron ore alone generating NLe 221.5 million. Other key exports included diamonds (NLe 13M), bauxite (NLe 4.8M), gold (NLe 3.7M), and agricultural products worth NLe 86.9M.
On the import side, total imports rose to NLe 537 million, up from NLe 514.2 million in 2021 — mainly driven by food (NLe 123.6M) and petroleum products (NLe 217.7M). However, the trade deficit narrowed to NLe 117.7 million, down from NLe 143.9 million in 2021, thanks to stronger export performance.
Sheku Ahmed Fantamadi Bangura reported that the Leone remained stable against the U.S. dollar, with a slight 1% appreciation between June 2024 and June 2025. However, gross international reserves declined, covering just 1.8 months of imports by mid-2025, down from 2 months a year earlier.
He said as of December 2024, total public debt stood at NLe 3.1 billion, comprising NLe 1.8 billion in external debt and NLe 1.3 billion in domestic debt.
Thanks to fiscal discipline and declining inflation, interest rates on government securities dropped significantly — from 41.3% in mid-2024 to 14.8% by June 2025.
On revenue Collection Challenges; Bangura disclosed that the first half of 2025, domestic revenue amounted to NLe 8.9 billion, equivalent to 4.6% of GDP. However, this fell short of projections due to underperformance in import duties, GST compliance, and non-iron mineral royalties.
Despite the shortfalls, income tax revenues exceeded targets, driven by strong corporate tax collection. Additionally, excise duties on petroleum products surpassed expectations, aided by full pass-through of global price changes.
Minister Bangura concluded his presentation with optimism, noting that despite fiscal and external pressures, Sierra Leone’s economy is demonstrating clear resilience. “This budget is not about austerity,” he said. “It is about consolidation, efficiency, and building the foundation for long-term prosperity.”
Copyright –Published in Expo Times News on Wednesday,30th July, 2025 (ExpoTimes News – Expo Media Group (expomediasl.com)
