Freetown, 6th November 2025- Sierra Leone’s economy is projected to grow by 4.3% in 2025, rising to 4.6% by 2027, according to the World Bank’s latest economic update. The report, launched in Freetown today November 6, signals cautious optimism for a country navigating global headwinds, domestic fiscal pressures, and a youth-heavy labor market.
The growth forecast is underpinned by improved agricultural productivity, expansion in mining, and steady service sector performance. But the headline numbers mask a deeper challenge: Sierra Leone must generate at least 75,000 new jobs annually just to maintain its current employment-to-population ratio.
The World Bank’s report, titled “Enabling the Private Sector for Growth and Job Creation,” identifies the private sector as the linchpin for sustainable development. Yet, it remains stifled by limited access to finance, unreliable electricity, land constraints, and skills mismatches.
“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 Country Manager. He emphasized that macroeconomic reforms, a better investment climate, and stronger social spending are essential to inclusive growth.
The report outlines a reform blueprint to stimulate private sector dynamism and job creation:
Strengthen fiscal management: Improve tax administration and control spending to reduce reliance on expensive domestic borrowing.
Simplify business regulations: Make it easier to start, operate, and exit businesses while reducing trade barriers.
Expand access to finance: Modernize credit reporting and collateral systems to unlock capital for entrepreneurs.
Invest in infrastructure: Prioritize reliable energy, transport, and digital networks to cut costs for firms.
And Attract foreign investment: Streamline FDI rules and reform sector restrictions to draw in capital and expertise.
Subika Farazi, Senior Economist and co-author of the report, pointed to the B-READY 2024 flagship study, which ranks Sierra Leone’s regulatory environment as ripe for reform. “By strengthening service delivery and reducing red tape, the country can build a more competitive and resilient business climate,” she said.
While the projected GDP uptick is encouraging, the real test lies in translating growth into jobs. With a youthful population and rising expectations, the risk of economic exclusion looms large.
Michael Saffa, lead author of the report, was blunt: “Without decisive reforms, Sierra Leone risks falling short of its development objectives.”
