Sierra Leone Telegraph: 16 December 2024:
The World Bank Board of Executive Directors last Friday, approved an $80 million financing package to support Sierra Leone’s efforts to restore macro-fiscal stability and strengthen economic resilience.
This financing includes a $60 million International Development Association (IDA) grant as budget support, and an additional $20 million for a Catastrophe Deferred Drawdown Option (Cat DDO), which will be available to the government in the event of a natural disaster, the Bank says.
According to the published statement by the Bank, Sierra Leone has faced significant economic and climate challenges over the past decade, including the Ebola crisis, natural disasters, and the COVID-19 pandemic.
These incidents, the Bank says, in addition to policy missteps, have disrupted growth and exacerbated macroeconomic imbalances. The new financing aims to address these challenges through a comprehensive reform program.
Commenting on this latest package of support for Sierra Leone, Abdu Muwonge, World Bank Country Manager for Sierra Leone said: “The approval of this financing package is a testament to the strong partnership between the World Bank and the Government of Sierra Leone.
“We are committed to supporting Sierra Leone in its journey towards economic stability and resilience, and this operation will help the country implement critical reforms to improve fiscal management, enhance access to finance and reliable energy, and boost climate and disaster resilience,
“By addressing these key areas, the World Bank aims to support the Government in achieving sustainable growth and reducing poverty.”
The Sierra Leone Macro Stability and Resilience Development Policy Operation with a Catastrophe Deferred Drawdown Option is the first in a programmatic series of three that will support the Government of Sierra Leone’s efforts to restore macroeconomic stability and lay the foundations for more sustainable and resilient economic growth.
The operation supports reforms to address constraints to domestic revenue mobilization and enforce spending discipline, improve access to finance for the private sector by safeguarding financial sector stability, and enable private sector participation in the energy sector to improve the financial and operational performance of the Electricity Distribution and Supply Authority (EDSA). It will also support the government’s efforts to build climate and disaster resilience.
Smriti Seth (Senior Economist) and Francis Samson Nkoka (Senior Disaster Risk Management Specialist), Co-Task Team Leaders said: “The reforms supported by this operation are crucial for restoring macroeconomic stability and building resilience against future shocks. We look forward to working closely with the Government to ensure the successful implementation of these reforms.”
This operation is closely aligned with the Government of Sierra Leone’s Medium-term National Development Plan (MTNDP 2024-2030) priorities, and builds on the strong foundation established by the previous Inclusive and Sustainable Growth Development Policy Financing series and earlier operations, the Bank’s statement reads.
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