Sierra Leone’s economy is demonstrating renewed resilience amid global challenges, with growth projected to reach 4.3 percent in 2025 and 4.6 percent by 2027, according to the latest World Bank Sierra Leone Economic Update (SLEU) launched in Freetown. The report attributes this positive outlook to improvements in agricultural productivity, expansion in the mining sector, and steady performance across the services industry.
Titled “Enabling the Private Sector for Growth and Job Creation,” the report emphasizes the critical role of private sector reforms in sustaining economic progress and generating meaningful employment opportunities for Sierra Leone’s growing population.
“Unlocking the potential of the private sector remains critical to diversifying Sierra Leone’s economy and creating more meaningful jobs,” said Abdu Muwonge, World Bank Country Manager for Sierra Leone. “Sustaining the current reform trajectory, improving the investment climate, and strengthening social spending will foster inclusive growth and development. The World Bank remains committed to supporting Sierra Leone’s journey toward inclusive and sustainable growth.”
The report highlights that Sierra Leone must create at least 75,000 new jobs each year to maintain its current employment-to-population ratio. However, limited private sector dynamism, inadequate access to finance, unreliable electricity supply, and skill shortages continue to constrain growth and employment opportunities.
“Revitalizing Sierra Leone’s private sector is essential for unlocking the country’s growth potential and creating more jobs,” said Subika Farazi, World Bank Senior Economist and co-author of the report. “As the World Bank Group’s B-READY 2024 report points out, strengthening Sierra Leone’s regulatory environment and service delivery will be key to fostering a resilient and competitive business climate that empowers entrepreneurs and attracts investment.”
The SLEU calls for strengthened fiscal management through improved revenue collection, tighter expenditure controls, and enhanced tax administration to reduce dependence on costly domestic debt. It recommends boosting private sector competitiveness by simplifying business regulations, promoting market competition, and removing trade barriers. Expanding access to finance through improved credit reporting systems, modernized collateral registration, and increased financial transparency is also essential to support inclusive growth. Furthermore, investing in reliable energy, transport, and digital infrastructure will help reduce operational inefficiencies for businesses, while streamlining foreign direct investment regulations and strengthening investor protection will attract greater private capital.
“Sierra Leone’s prospects for growth and poverty reduction depend on strengthening fiscal discipline, improving the business environment, and fostering private sector–led job creation,” said Michael Saffa, World Bank Senior Country Economist and lead author of the report. “Without decisive reforms, the country risks falling short of its development goals.”
The Sierra Leone Economic Update serves as the World Bank’s annual flagship publication for the country, tracking recent macroeconomic and social trends and offering short- to medium-term policy guidance. Fiscal performance in early 2025 remained broadly in line with targets, as authorities maintained spending restraint despite lower-than-expected revenue collection. With tight fiscal and monetary policies, a stable exchange rate, and easing global food and energy prices, inflation steadily declined throughout 2024, reaching 5.4 percent by September 2025. The cost of domestic debt also fell sharply, with one-year treasury bill rates dropping from 41 percent in April 2025 to 16 percent in September 2025, reflecting reduced government borrowing and improved fiscal discipline.
Despite these positive developments, the report cautions that debt distress risks remain elevated and that the foreign reserves position has weakened due to high external debt servicing costs. The World Bank underscores that sustained private sector reforms, prudent fiscal management, and investment in productive sectors will be vital to ensuring Sierra Leone’s long-term economic stability, job creation, and inclusive growth.
