By Sallieu S. Kanu
As Sierra Leone faces shifting global economic tides and declining international aid, the Ministry of Finance has outlined a robust strategy to boost domestic revenue generation for the 2026 fiscal year. At the National Policy Hearing for the FY2026 Budget, held in Freetown, Minister of Finance Sheku Ahmed Fantamadi Bangura presented a comprehensive roadmap aimed at financing the government’s flagship “Big Five Game Changers” through innovative and traditional revenue sources.
The hearing, attended by senior government officials, development partners, and civil society stakeholders, focused on aligning fiscal priorities with the Medium-Term National Development Plan (2024–2030). Key goals include achieving food security, building a healthy and inclusive workforce, and investing in infrastructure and technology.
Minister Bangura highlighted recent economic gains, citing a drop in inflation from 9.23% in April to 6.45% in July 2025. He attributed this to exchange rate stability, improved domestic food production, and tighter monetary policy by the Bank of Sierra Leone, supported by fiscal consolidation efforts.
Despite Sierra Leone’s rich mineral resources—including iron ore, diamonds, bauxite, and gold—the Minister expressed concern over the limited fiscal returns from extractive industries. “Over the past six years, mineral exports totaled $4 billion, yet government revenue amounted to just $187 million,” he noted. In 2023 alone, extractive exports reached $1.2 billion, but only $48 million was captured in government revenue.
Bangura emphasized the need for a new model of state participation in mining through the proposed Mineral Wealth Fund, aimed at ensuring equitable benefits for citizens.
Debt Management and IMF Support
The Minister also addressed public debt concerns, revealing that Sierra Leone’s debt-to-GDP ratio stood at 48.9% in 2024. He assured stakeholders that the government is actively managing debt levels to minimize fiscal risks. He further disclosed that the IMF Executive Board approved a 38-month arrangement in October 2024, granting access to approximately $248.5 million, with an initial disbursement of $46.6 million.
“The program is on track, and we are implementing corrective actions to meet all structural benchmarks by November 2025,” Bangura stated, expressing optimism about future disbursements following performance reviews.
Minister of Planning and Economic Development, Madam Kenyeh Ballay, echoed the urgency of domestic revenue mobilization, noting that global financing systems are shrinking and least developed countries like Sierra Leone are increasingly vulnerable. She urged Ministries, Departments, and Agencies (MDAs) to prioritize existing capital projects, confirming that no new projects will be funded in 2026.
Vice President Mohamed Juldeh Jalloh, in his keynote address, underscored the importance of digitalizing tax administration to improve compliance and reduce leakages. He called for broadening the tax base, rationalizing exemptions, and investing in technology to enhance revenue collection.
Innovative Revenue Pathways
The FY2026 policy framework includes a mix of conventional and forward-looking revenue strategies. These include: Enhanced tax management through digital systems; climate finance and carbon trading; debt-for-development swaps; and State commercial participation in mining
Chairman of the Program, Ambros James, and Hon. Kaisamba, Chair of the Finance Committee in Parliament, both endorsed the proposed strategies and urged continued collaboration across sectors.