The International Monetary Fund (IMF) and Sierra Leone have reached a staff-level agreement on the first and second reviews of the country’s Extended Credit Facility (ECF) program.

If approved by the Fund’s Executive Board, the agreement will unlock roughly US$78.8 million in financial support for Sierra Leone.

The deal follows a period of fiscal strain in 2024, marked by unplanned government spending (mainly on road construction) and diminishing foreign reserves.

But recent steps have improved the outlook: Sierra Leone is on track for a domestic primary surplus in 2025, and monetary policy has been adjusted, including a cut in the central bank’s policy rate, as inflation eases and economic stability begins to strengthen.

Still, major challenges remain. The central bank’s reserves remain low, and the authorities must now ramp up revenue mobilization, restrain spending, safeguard social programs, and accelerate structural reforms to ensure long-term fiscal and debt sustainability.