By zainab.joaque@awokonewspapersl.com
Freetown, Sierra Leone – Sierra Leone’s economy delivered a much-needed boost in late 2024 as its trade deficit shrank by a staggering 59.83% in the fourth quarter, signaling stronger external sector performance amid global economic turbulence.
Fresh data from the Bank of Sierra Leone’s Monetary Policy Statement reveals the deficit narrowed sharply from 183.44million in Q3 to just 73.68 million in Q4 2024—the most dramatic quarterly improvement in years. The turnaround was fueled by rising mineral exports and falling imports, offering hope for the country’s balance of payments.
The rebound was powered by stronger export earnings, particularly from the mining sector, while import demand eased. At the same time, Gross International Reserves climbed to 2.2 months of import cover, up from 1.8 months in Q3, thanks to:
– Higher export receipts
– Disbursements from international partners
– Tighter foreign exchange management
The Leone held steady against major currencies, a sign that the central bank’s efforts to reduce forex market bottlenecks are gaining traction.
“This stability didn’t happen by accident—it’s the result of deliberate policy measures,” the Monetary Policy Committee (MPC) noted. “But we can’t take our foot off the pedal yet.”
The government’s books also improved, with the fiscal deficit slashed by half—falling from NLe3.30 billion in Q3 to NLe1.64 billion in Q4 2024. Key drivers included:
– Stronger tax collection
– Higher foreign grants
– Tighter spending controls
The primary deficit (excluding interest payments) also narrowed to NLe1.60 billion, down from NLe1.89 billion.
“Revenue growth is encouraging, but sustainability depends on keeping expenditures in check,” the MPC warned, signaling that wasteful spending remains a risk.
Despite the progress, Sierra Leone’s economy remains vulnerable to:
– Global commodity price swings
– Over-reliance on imports
– Underinvestment in agriculture
The MPC doubled down on calls for more investment in farming and local production to reduce import dependency. “Agriculture isn’t just about food—it’s about economic security,” the report emphasized.
With reserves improving and deficits shrinking, Sierra Leone has breathing room—but the central bank insists reforms must continue. Key priorities include:
– Boosting exports beyond mining
– Maintaining forex stability
– Controlling government spending
“We’re moving in the right direction, but the job isn’t done,” the MPC concluded.
For businesses and investors, the message is clear: Sierra Leone’s economy is stabilizing, but long-term growth depends on smarter policies and diversification. ZIJ/2/4/2025
