By Sallieu S. Kanu
Sierra Leone — December 1, 2025: Minister of Finance Sheku Fantamadi Bagura has presented ‘The Appropriation Act 2026’ to Parliament, outlining government expenditure plans and fiscal priorities for the year ahead. The Act authorises spending from the Consolidated Revenue Fund for the services of Sierra Leone in 2026.
Key Objectives of the 2026 Budget
The Minister described the 2026 Budget as both pro-poor and pro-business, with the overarching goal of intensifying domestic revenue mobilisation while sustaining fiscal consolidation. Specific objectives include:
- Expanding tax measures that support businesses and protect vulnerable households.
- Leveraging innovative revenue sources alongside traditional streams.
- Consolidating public finances through prudent expenditure management while safeguarding pro-poor programmes.
- Preserving macroeconomic stability by maintaining single-digit inflation, stabilising the exchange rate, and addressing debt vulnerabilities.
- Supporting the Feed Salone Initiative to boost food production, improve food security, create jobs, and raise rural incomes.
- Continuing investments in human capital development to build a healthy, skilled workforce.
- Expanding infrastructure in roads, energy, water supply, and technology to attract investment.
- Streamlining public sector structures to improve efficiency and strengthen governance.
Global and Regional Outlook
Global growth is projected to slow from 3.3% in 2024 to 3.1% in 2026, with inflation moderating to 3.7%. Sub-Saharan Africa is expected to grow at 4.4% in 2026, supported by policy reforms and improved macroeconomic conditions. Commodity prices remain subdued, with oil averaging US$69.9 per barrel in 2025, iron ore stabilising at US$99.5 per ton, and diamonds continuing to struggle.
Sierra Leone’s Economic Performance in 2025
GDP Growth is Projected at 4.4%, above the Sub-Saharan Africa average, driven by agriculture, manufacturing, and services.
Inflation fell to 4.4% in October 2025, the lowest in 20 years, due to prudent policies and increased food production.
Trade Balance: Deficit narrowed to US$262.3 million, supported by higher exports and reduced imports.
Exports rose to US$1.2 billion, with agricultural exports up 12% (cocoa exports alone reached US$111 million).
Imports declined by 9.1% to US$1.4 billion, mainly due to reduced food and fuel imports.
Reserves: Gross international reserves stood at 1.7 months of import cover.
Debt: Public debt estimated at US$3.2 billion (external debt US$1.8 billion, domestic debt US$1.4 billion).
Fiscal Performance
Revenue: Domestic revenue reached NLe13.4 billion (8.1% of GDP) by September 2025, projected at NLe17.9 billion (10.8% of GDP) for the year.
Expenditure: Total spending estimated at NLe30 billion (18% of GDP), with wages and salaries at NLe5.3 billion and capital expenditure at NLe4.8 billion.
Overall budget deficit projected at NLe9 billion (5.4% of GDP) by year-end.
Surplus: For the first time in years, Sierra Leone recorded a domestic primary surplus of NLe1.4 billion by September 2025, reflecting fiscal consolidation efforts.
Conclusion
Minister Fantamadi Bangura emphasised that the 2026 Budget is designed to preserve macroeconomic stability, strengthen resilience, and improve living standards. By balancing fiscal discipline with pro-poor and pro-business measures, the government aims to accelerate growth, reduce poverty, and position Sierra Leone for sustainable development.