By Christian.conteh@awokonewspaper.sl
Freetown, Sierra Leone – Over the past decade, Sierra Leone’s economy has suffered repeated shocks from health crises, natural disasters, and global economic disruptions, leading to persistent fiscal imbalances and rising debt levels. The Disaster Risk Financing Strategy & Implementation Plan (2024-2029) by the Ministry of Finance outlines the economic toll of these events and the challenges ahead.
The economy contracted by more than 20% in 2014 due to the Ebola Virus Disease (EVD) outbreak and the sharp decline in international iron ore prices. While modest recovery followed, the 2017 Freetown mudslides and floods caused an estimated $16.8 million in damages and $14.9 million in economic losses. Despite affecting only a few communities, the disaster strained budget implementation and revenue mobilization.
Between 2016 and 2019, economic growth averaged 4.6%, driven by agriculture, mining, and services. However, macroeconomic instability persisted. From 2014 to 2020, Sierra Leone’s budget deficit averaged 5.7%, while domestic revenue mobilization stood at 12.7% of GDP, leaving an estimated tax gap of 4.5% of GDP. Public debt escalated from 69.1% of GDP in 2018 to 72.9% in 2021, raising concerns over fiscal sustainability.
The COVID-19 pandemic in 2020 led to another economic contraction of 2%, reversing gains in poverty reduction. GDP per capita declined by 4%, and the national poverty rate increased from 40.6% in 2019 to 43.5% in 2020, with urban households being the hardest hit. The crisis also disrupted private sector income, particularly for non-farm households reliant on self-employment or salaried work.
Further compounding these challenges, Sierra Leone continues to face annual flood-related damages. A multi-city hazard and risk assessment estimates that combined fluvial and pluvial flooding causes an annual average loss of $2.8 million to buildings in Freetown, Makeni, and Bo.
Despite government policy interventions, fiscal imbalances and macroeconomic stress remain key obstacles to achieving the country’s 2019-2023 National Development Plan, which prioritizes economic diversification and strategic investments in human and physical capital. As the nation looks toward recovery, addressing revenue mobilization gaps and managing rising debt will be critical in fostering long-term economic resilience. CC/1/4/2025
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