Freetown, 5th January 2026 – The Ministry of Finance has cautioned that Sierra Leone’s 2026 national budget faces significant risks from global economic uncertainties, domestic revenue challenges, and potential natural disasters. In its Citizen’s Guide to the National Budget 2026, Finance Minister Sheku Ahmed Fantamadi Bangura outlined both the threats and the government’s strategies to safeguard fiscal stability.
According to the report, eight critical risks could undermine budget implementation:
Global trade tensions – Prolonged tariff disputes could weaken demand for Sierra Leone’s exports, particularly iron ore, reducing commodity revenues.
Conflict and supply chain disruptions – Escalating conflicts worldwide may drive up food and petroleum import prices, fuelling inflation and increasing government spending.
Slow growth in advanced economies – A downturn in developed countries could cut tourism earnings and reduce remittance flows, impacting consumption-based revenues.
State-Owned Enterprises (SOEs) – Operational inefficiencies and stalled energy sector reforms could increase subsidies, diverting funds from priority areas.
Delayed reforms and donor support – Failure to implement IMF-backed reforms and agreements with the World Bank, EU, and African Development Bank could delay disbursements and complicate budget execution.
Weak domestic revenue mobilisation – Falling short of revenue targets could force cuts in poverty-related programmes such as Feed Salone and Free Quality School Education, or lead to higher borrowing and debt service costs.
Falling export prices – A decline in iron ore and other key minerals could reduce government revenues.
Natural disasters and health emergencies – Floods, mudslides, building collapses, Mpox outbreaks, and rising narcotics abuse could trigger unplanned expenditures.
To counter these risks, the Ministry of Finance has proposed several mitigation measures including the Implementing prudent macroeconomic policies to build fiscal and external buffers, strengthening oversight of SOEs to improve efficiency and reduce subsidies and closely monitoring and reporting on reform implementation with development partners.
Other measures include, rolling out the Medium-Term Revenue Strategy (MTRS) and adjusting fiscal measures when necessary and activating the Contingency Fund to respond to emergencies such as disasters or health crises.
Minister Bangura emphasized that the government’s focus remains on “Enhancing Domestic Revenue Mobilisation for Economic Stability and Improved Service Delivery.” He noted that while external shocks and domestic challenges are inevitable, proactive planning and disciplined fiscal management will be key to protecting essential services and sustaining development.
The 2026 budget, he added, is designed not only to meet immediate needs but also to strengthen Sierra Leone’s resilience against future uncertainties.
