Sierra Leone has secured new funding from the International Monetary Fund as the West African nation steps up efforts to strengthen its economy against climate-related shocks.

The IMF approved a new arrangement under its Resilience and Sustainability Facility worth about $211.5 million. The program is aimed at improving climate resilience, strengthening public investment and supporting financial stability.

The fund also completed the third review of Sierra Leone’s Extended Credit Facility program, clearing the way for an immediate disbursement of about $31.7 million.

The latest support comes at a time when Sierra Leone is facing inflation pressures and external challenges linked to global conflicts. While the country’s economy expanded last year, the IMF said spillover effects from the war in the Middle East are expected to weigh on growth in 2026.

Despite those headwinds, the IMF said Sierra Leone’s overall economic outlook remains stable.

Climate funding targets long-term resilience

According to the IMF, the new facility will support reforms in climate-sensitive public investment, social protection, fiscal planning and financial risk management.

The program is also expected to strengthen external stability and improve the country’s ability to cope with future climate shocks, which have increasingly affected vulnerable economies across Africa.

IMF sees risks from inflation and debt

The IMF projects Sierra Leone’s economy will grow by 4 percent in 2026, while inflation is expected to end the year at 11.6 percent.

The lender warned that rising political tensions ahead of elections, the economic impact of the Middle East conflict and slower reform efforts could pose risks to the outlook. It added that foreign exchange reserves remain low and public debt is still at high risk of distress.

Authorities urged to maintain reforms

Kenji Okamura, acting chair and deputy managing director of the IMF, said recent policy measures have helped stabilize the exchange rate, ease inflation and improve access to private sector credit.

He said continued fiscal discipline would be necessary to keep debt sustainable while protecting critical social spending. The IMF also called for stronger tax administration, improved mining revenue collection and further reforms in public financial management and the banking sector.

According to the fund, these measures will help Sierra Leone build a stronger and more resilient economy over the long term.