Freetown 25th August 2025- Sierra Leone’s public debt surged to NLE 61.1 billion by the end of December 2024, representing 37% of the country’s GDP, according to fiscal data from the country’s Ministry of Finance.
These figures are drawn from the Government of Sierra Leone’s General Purpose Financial Statements (GPFS) for the Consolidated Fund, covering the fiscal year ended 31st December 2024. The report offers a comprehensive snapshot of the nation’s financial position, detailing revenue performance, expenditure trends, debt obligations, and cash flow movements across key sectors.
The debt surge was driven largely by domestic borrowing, which rose sharply during the year, signaling mounting pressure on the government’s financing strategy.
Domestic debt stock rose from NLE 13.8 billion in FY2023 to NLE 18.3 billion in FY2024, a net increase of NLE 4.5 billion. This expansion was fueled by the rollover of short-term treasury bills and long-term treasury bonds, with treasury bills alone accounting for NLE 13.2 billion of the total. The government also drew NLE 431.9 million in Ways and Means Advances, while long-term securities stood at NLE 4.9 billion.
Notably, there was no outstanding bridging loan owed to the Bank of Sierra Leone at year-end, suggesting a shift toward market-based instruments for short-term liquidity.
Domestic interest payments spiked to NLE 4.4 billion, up from NLE 2.9 billion in FY2023, a 52% increase driven by rising treasury bill rates. This surge underscores the cost of short-term borrowing and its impact on the national budget.
External debt rose modestly from NLE 40.4 billion to NLE 42.7 billion, with multilateral creditors holding the lion’s share at NLE 38.1 billion. Bilateral and commercial creditors accounted for NLE 4.5 billion and NLE 160.9 million, respectively.
External debt servicing totaled NLE 1.93 billion, comprising NLE 1.64 billion in principal repayments and NLE 285 million in interest payments. These figures reflect a steady but manageable external debt profile though analysts warn that rising global interest rates could pose future risks.
With debt now approaching critical thresholds, economists are urging the government to adopt a more disciplined borrowing strategy, prioritize concessional financing, and improve transparency in debt reporting.
“The debt trajectory is concerning not just for its size, but for its composition,” said one business and finance analyst. “Heavy reliance on short-term instruments exposes the government to rollover risks and rising interest costs.”
Freetown 25th August 2025- Sierra Leone’s public debt surged to NLE 61.1 billion by the end of December 2024, representing 37% of the country’s GDP, according to fiscal data from the country’s Ministry of Finance.
These figures are drawn from the Government of Sierra Leone’s General Purpose Financial Statements (GPFS) for the Consolidated Fund, covering the fiscal year ended 31st December 2024. The report offers a comprehensive snapshot of the nation’s financial position, detailing revenue performance, expenditure trends, debt obligations, and cash flow movements across key sectors.
The debt surge was driven largely by domestic borrowing, which rose sharply during the year, signaling mounting pressure on the government’s financing strategy.
Domestic debt stock rose from NLE 13.8 billion in FY2023 to NLE 18.3 billion in FY2024, a net increase of NLE 4.5 billion. This expansion was fueled by the rollover of short-term treasury bills and long-term treasury bonds, with treasury bills alone accounting for NLE 13.2 billion of the total. The government also drew NLE 431.9 million in Ways and Means Advances, while long-term securities stood at NLE 4.9 billion.
Notably, there was no outstanding bridging loan owed to the Bank of Sierra Leone at year-end, suggesting a shift toward market-based instruments for short-term liquidity.
Domestic interest payments spiked to NLE 4.4 billion, up from NLE 2.9 billion in FY2023, a 52% increase driven by rising treasury bill rates. This surge underscores the cost of short-term borrowing and its impact on the national budget.
External debt rose modestly from NLE 40.4 billion to NLE 42.7 billion, with multilateral creditors holding the lion’s share at NLE 38.1 billion. Bilateral and commercial creditors accounted for NLE 4.5 billion and NLE 160.9 million, respectively.
External debt servicing totaled NLE 1.93 billion, comprising NLE 1.64 billion in principal repayments and NLE 285 million in interest payments. These figures reflect a steady but manageable external debt profile though analysts warn that rising global interest rates could pose future risks.
With debt now approaching critical thresholds, economists are urging the government to adopt a more disciplined borrowing strategy, prioritize concessional financing, and improve transparency in debt reporting.
“The debt trajectory is concerning not just for its size, but for its composition,” said one business and finance analyst. “Heavy reliance on short-term instruments exposes the government to rollover risks and rising interest costs.”
