Sierra Leone’s Ministry of Finance has outlined new strategies for domestic revenue generation as international aid declines and the global economy changes. At the FY2026 Budget National Policy Hearing, Minister of Finance Sheku Ahmed Fantamadi Bangura discussed approaches to mobilize both new and traditional sources of revenue to support the government’s “Big Five Game Changers.”
Minister Bangura said that priorities for fiscal year 2026 are in line with the Medium Term National Development Plan 2024-2030. These include financing key government initiatives, achieving food security, building a strong and inclusive workforce, and investing in infrastructure and technology.
He reported progress in economic stability, citing single-digit inflation at 6.45% in July 2025. According to him, this was due to a stable exchange rate, moderate global food and energy prices, improved domestic food production, and tighter monetary policy by the Bank of Sierra Leone along with fiscal consolidation measures.
Bangura also addressed Sierra Leone’s mineral wealth, noting that despite resources such as iron ore, diamonds, bauxite, and gold, the current model of private sector extraction has not produced fair benefits for citizens. He stated: “Over the past six years, the value of mineral exports amounted to $4 billion, yet only $187 million(4.6 per cent), and in 2023 extractive exports reached $1.2 billion, but government revenue stood at a mere $48million.”
He further highlighted that public debt-to-GDP ratio was 48.9% in 2024 with rising total debt stock. The minister pledged continued management of debt levels to reduce its effect on national finances.
Bangura noted that the International Monetary Fund (IMF) Executive Board approved a 38-month arrangement for Sierra Leone in October 2024 with access to about $248.5 million; an initial disbursement of $46.6 million was made immediately.
“The implementation of the new program is fully on course, and we are taking corrective actions agreed with the Fund geared towards meeting all structural benchmarks and commitments by the end of November 2025. We are hopeful that the combined first and second reviews of the country’s economic performance under the program will lead to a second disbursement,” he noted.
Minister of Planning and Economic Development Kenyeh Ballay commented on changing global financial conditions affecting Sierra Leone’s economy: “The theme for this year is timely and necessary as the global shift continues to affect our economy and fiscal space.” She said it is increasingly important to focus on domestic revenue mobilization as international financing options become more limited.
Ballay called on Ministries, Departments, and Agencies (MDAs) to concentrate on existing capital projects for 2026 since no funding would be provided for new projects next year.
Vice President Mohamed Juldeh Jalloh addressed broader challenges from multiple crises affecting even strong economies: “Over the years, multiple crises have erupted and impacted stronger economies, leaving developed countries prioritising their people more than foreign aid.”
He added that digitalizing tax administration could improve compliance and reduce leakages: “Digitalising tax administration would enhance compliance and reduce leakages, thereby providing the funds to finance key government expenditure on schools, hospitals, and critical infrastructure projects.” Jalloh advised broadening the tax base, rationalizing exemptions, increasing collection efforts, and investing in technologies to limit human involvement in revenue processes.
Other speakers included Ambros James (Chairman of the Program) and Honourable Kaisamba (Chairman of Parliament’s Finance Committee), who echoed similar advice regarding budgetary processes.
The FY2026 policy aims to improve traditional domestic revenue through efficient tax management using technology while also exploring climate finance strategies such as carbon trading, debt swaps, and state participation in mining via a Mineral Wealth Fund.
Bilateral budget discussions with MDAs and stakeholders are scheduled from September 18th to 27th at Ministry of Finance conference rooms as part of ongoing preparations for FY2026.