The International Monetary Fund (IMF) has approved a $96 million 3-year enhanced credit facility for Sierra Leone, as it plans to support economic development and poverty reduction in the country.
When disbursed, the fund will assist in facilitating the country’s growth and investment plans.
Sierra Leone, which was torn apart by a civil war that lasted 11 years, is slowly recovering. Investor and consumer confidence have continued to rise, adding impetus to its economic recovery.
Commending the West African nation’s progress, the IMF noted that the country, which has a population of over six million people, still faced several social and economic challenges, urging its government to step up efforts in strengthening public financial management.
“Poverty and unemployment are still high, and access to public and social services is limited. Growth prospects are hindered by numerous obstacles, including insufficient power supply, road networks, and limited access to financial services,” the global financial body said in a statement.
Mr Min Zhu, IMF’s Deputy Managing Director, said the commission would seek to improve these conditions by enhancing revenue mobilisation, Reuters reported.
According to him, the country has achieved strong macro-economic gains in recent years, and the “facility would be critical to propel its fiscal strategy.”
He listed remarkable components in Sierra Leone’s economic strategy, including tax administration improvements and the adoption of a comprehensive fiscal regime for the natural resources sector.
The financial regulator, which aims to reduce poverty and foster the world’s economies, noted that the fund-supported programme will further the country’s development, and promote its poverty-reduction strategy.”
Zhu concluded by revealing that with the approval, the country could get around $13.7 million as first instalment.
