Sierra Leone’s economy is showing signs of stability despite global economic challenges, according to the latest World Bank Sierra Leone Economic Update released in Freetown. The report projects that the country’s growth will reach 4.3 percent in 2025 and increase to 4.6 percent by 2027, driven by gains in agricultural productivity, an expanding mining sector, and steady performance in services.
The new report, titled "Enabling the Private Sector for Growth and Job Creation," identifies significant obstacles facing private businesses and emphasizes the importance of private sector development for long-term economic progress and job creation.
“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 Group Country Manager for Sierra Leone. “Sustaining the current reform trajectory to restore macroeconomic stability, 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.”
According to the report, Sierra Leone must create at least 75,000 new jobs annually to maintain its current employment-to-population ratio. However, limited activity in the private sector as well as restricted access to finance, land, electricity, and skilled labor continue to hinder both growth and employment opportunities.
Revitalizing private business activity is considered essential for unlocking further economic potential. Subika Farazi, World Bank Senior Economist and co-author of the report stated: “Revitalizing Sierra Leone’s private sector is essential for unlocking the country’s growth potential and creating more jobs. As highlighted in the new World Bank Group flagship report, B-READY 2024, there is room to improve and strengthen Sierra Leone’s regulatory environment and service delivery. By doing so, the country can foster a more dynamic, resilient, and competitive business climate that empowers entrepreneurs and attracts investment."
The report offers several policy recommendations:
- Improve fiscal management through better revenue collection practices, stricter expenditure controls, and stronger tax administration.
- Enhance competitiveness by simplifying business regulations for entry or exit from markets while reducing trade barriers.
- Expand access to finance via modernized collateral registration systems and greater transparency.
- Invest in infrastructure such as reliable energy supplies as well as transportation or digital networks.
- Streamline regulations on foreign direct investment alongside reforms aimed at attracting capital into key industries.
Michael Saffa, World Bank Senior Country Economist and lead author of the report commented: “Unlocking Sierra Leone’s private sector potential to create jobs and drive development should be prioritized. 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. Without decisive reforms, the country risks falling short of its development objectives.”
The annual Economic Update tracks recent macroeconomic trends in Sierra Leone while providing a medium-term outlook with policy advice. The latest edition notes that during early 2025 government spending remained restrained even though revenues were below target levels. Monetary policy has been tightened which helped slow inflation; by September 2025 inflation had eased to 5.4 percent after reaching higher rates earlier in the year. Borrowing costs also declined significantly between April (41 percent) and September (16 percent) of 2025 due partly to reduced domestic borrowing needs. Despite these improvements however debt distress risks remain high due mainly to external debt servicing costs which have affected national reserves.