Sierra Leone’s economic growth in 2023 surprised on the upside, reaching 5.7 percent, but the economy is projected to slow in 2024. While repeated spending overruns have cast doubt on fiscal sustainability, the energy sector poses a significant fiscal risk. There is an urgent need to improve Electricity Distribution and Supply Authority (EDSA) operational and commercial performance and transition away from expensive liquid fuel-based power generation to reduce the negative fiscal impact. The reserves position has deteriorated despite improvements in the current account. The financial sector in Sierra Leone appears stable but is characterized by a significant sovereign-bank nexus. Growth in Sierra Leone is projected to average 4.7 percent in the medium term, supported by mining, agriculture and a recovery in services. Inflation is expected to ease but remain in double digits as global prices moderate and the Leone shows relative strength. Based on the discussion with various stakeholders and the current sector crisis, an Action Plan 2030 is proposed with an aim to make the sector financially sustainable.
Authors
- Citation
- “ World Bank . 2024 . Sierra Leone Economic Update: Unlocking the Potential of the Power Sector in Sierra Leone Breaking the Crisis Cycle . © Washington, DC: World Bank . http://hdl.handle.net/10986/42341 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- Economic Updates and Modeling
- Identifier externaldocumentum
- 34402347
- Identifier internaldocumentum
- 34402347
- Pages
- 46
- Published in
- United States of America
- Region country
- Sierra Leone
- Report
- 193883
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- EFI-AFR2-MTI-MacroFiscal-2 (EAWM2)
- URI
- https://hdl.handle.net/10986/42341
- date disclosure
- 2024-10-31
- region administrative
- Africa Western and Central (AFW)
Files
Table of Contents
- TABLE OF CONTENTS 4
- ACRONYMS 6
- Bank of Sierra Leone 6
- Côte dIvoire Liberia Sierra Leone and Guinea 6
- Coronavirus Disease of 2019 6
- Electricity Generation and Transmission Company 6
- Electricity Distribution and Supply Authority 6
- Electricity and Water Regulatory Commission 6
- Gross Domestic Product 6
- Heavy Fuel Oils 6
- Integrated Financial Management Information System 6
- International Monetary Fund 6
- Independent Power Producer 6
- Ministries Departments and Agencies 6
- Ministry of Energy 6
- Ministry of Finance 6
- Megawatts 6
- New Leones 6
- National Power Authority 6
- Power Purchase Agreement 6
- Purchasing Power Parity 6
- Regional Emergency Solar Power Intervention Project 6
- Sub-Saharan Africa 6
- Statistics Sierra Leone 6
- United States Dollars 6
- ACKNOWLEDGEMENTS 7
- EXECUTIVE SUMMARY 8
- RECENT ECONOMIC DEVELOPMENTS 11
- AND OUTLOOK 11
- Global and Regional Trends 12
- Recent Developments in Sierra Leone 13
- Outlook Risks and Policies 27
- UNLOCKING THE POTENTIAL OF THE 33
- POWER SECTOR IN SIERRA LEONE 33
- Introduction 34
- Electricity Sector Performance 34
- Sector Turnaround - Setting the Sector on a Financially Sustainable Path 39
- Projecting Action Plan Outcomes Increased Access and Reduced Fiscal Dependency 42
