By Alusine Sesay
Freetown, July 1, 2025 — Sierra Leone’s economy is poised for a rebound, according to the African Development Bank’s 2025 Country Focus Report, which outlines key economic trends, risks, and development strategies.
The report highlights a slight slowdown in real GDP growth to 3.9% in 2024 from 5.7% the previous year, largely due to lingering inflationary pressures. However, the economic outlook remains optimistic, with growth projected at 4.4% in 2025 and 4.8% in 2026, driven by steady performance in the services, mining, and agriculture sectors.
Inflation fell significantly from 47.0% in 2023 to 30% in 2024, aided by a tighter monetary policy and stabilization of the Leone at SLL 22.6 per USD. Meanwhile, the fiscal deficit narrowed to 3.2% of GDP, and the current account deficit improved slightly to 4.4%, supported by strong mineral exports.
Although public debt remains sustainable at 46.5% of GDP, the report shows the risk of debt distress is still high. The report underscores the need for stronger fiscal efficiency and reforms aimed at boosting private sector participation, addressing infrastructure deficits, and improving the investment climate.
To sustain long-term growth, the AfDB recommends targeted investments in health, education, and structural reforms to improve governance and reduce illicit financial flows. The banking sector remains stable, with a capital adequacy ratio of 42% and a declining rate of non-performing loans, indicating overall resilience.
Despite notable improvements, the report stresses that growth must become more inclusive to benefit the broader population and drive Sierra Leone toward sustainable development.
The Country Focus Report 2025 for Sierra Leone highlights the country’s economic growth and development strategies. The report emphasizes the importance of boosting domestic capital mobilisation and efficient utilisation to support economic growth. It also discusses the effectiveness of domestic capital mobilisation in Sierra Leone, including fiscal, natural, business, financial, and human capital.
The report is part of the African Development Bank’s efforts to foster policy dialogue on macroeconomic performance and outlook, providing insights on mobilising private sector and natural capital finance to drive the continent’s climate resilience and green growth policies. It contains several short, medium, and long-term policies to accelerate African countries’ economic growth and build resilience to shocks.