By Christian.conteh@awokonewspaper.sl
Freetown, Sierra Leone – Sierra Leone is staring at a significant fiscal challenge as disaster-related losses continue to outpace available government funding. According to the latest risk assessment, the country faces an average annual disaster response cost of $20 million, yet the government’s capacity to mobilize emergency funds remains severely constrained.
Simulated disaster scenarios indicate that severe events, occurring once every 100 years, could cost over $70 million, underscoring the country’s vulnerability to climate shocks and other crises. Meanwhile, disasters with a 1-in-50-year probability carry an estimated fiscal burden of $61 million, while those with a 1-in-25-year return period could cost $52 million.
Historical data further highlights the financial strain. The highest recorded disaster cost was $59 million during the 2020 pandemic, a level of loss that is projected to occur approximately every 40 years. In contrast, smaller-scale events like the 2017 Freetown landslide, which incurred $16 million in costs, have a 50% likelihood of occurring in any given year, demonstrating the frequency of mid-range disasters.
Despite these risks, the Government of Sierra Leone (GoSL) has limited fiscal buffers to respond effectively. The country’s budget reallocation and contingency reserve fund can only mobilize up to $10 million per year, leaving a consistent funding shortfall. In extreme disaster years like 2020, the government could face a $50 million deficit, significantly hampering recovery efforts.
The Public Financial Management Act (2016)stipulates that the contingency budget reserve should not exceed 2% of non-extractive revenue, limiting the government’s financial flexibility. Given this constraint, disaster-related budget gaps are likely to persist, posing a major risk to fiscal stability and economic resilience.
As climate change and global uncertainties increase the frequency and severity of disasters, financial preparedness remains a pressing issue. Experts warn that without improved disaster risk financing mechanisms—such as sovereign insurance, emergency credit lines, or disaster resilience funds—Sierra Leone will struggle to absorb future shocks, potentially derailing economic growth and poverty reduction efforts.
The government and international development partners are urged to explore sustainable financing solutions to bridge the funding gap and enhance disaster resilience. With estimated annual losses from floods alone reaching $2.8 million in Freetown, Makeni, and Bo, proactive risk management strategies are crucial to mitigating economic and social disruptions.
Sierra Leone’s fiscal resilience remains under pressure, and without urgent reforms, the country risks deepening economic instability in the wake of future crises. CC/1/4/2025
