Sierra Leone Lost Over 15 Trillion Leones to Corruption in Just Three Years

Sierra Leone Lost Over 15 Trillion Leones to Corruption in Just Three Years

Sierra Leone is confronting a severe crisis where losses due to corruption exceed its total national revenue, as highlighted in the International Monetary Fund's (IMF) Sierra Leone Governance and Corruption Diagnostic 2025. The report emphasizes that pervasive corruption fundamentally undermines the country's post-conflict recovery and long-term economic trajectory.

Between 2016 and 2018, the nation incurred estimated losses ranging from 10.45 to 15.9 trillion old Leones (USD 458 million to USD 698 million). This financial depletion surpassed the combined government revenue of 8.8 trillion old Leones generated over the same three-year interval. On average, corruption accounted for an annual forfeiture equivalent to 12.7 percent of the country's Gross Domestic Product (GDP).

The IMF report identifies the unequal distribution of wealth derived from gold and diamond extraction and trade as a key driver of Sierra Leone's governance deficits. It notes that public discontent over these economic disparities contributed to the ignition of the 1991–2002 civil war.

Despite the implementation of various reforms intended to reinforce accountability mechanisms, corruption remains deeply entrenched within public institutions. The IMF cautions that the resulting impact is both financial and structural, adversely affecting multiple sectors of the economy.

Specific consequences detailed in the report include diminished tax compliance, which constrains domestic revenue mobilization; reduced investor confidence, which restricts both foreign and local investment; elevated lending risks, which increase borrowing costs; and a surge in public debt, which jeopardizes fiscal stability.

Beyond direct financial losses, corruption continues to erode public trust and weaken institutional governance. The IMF warns that these systemic issues severely restrict the country's capacity to adequately fund essential public services, upgrade critical infrastructure, and achieve self-sustaining economic growth.

While acknowledging existing anti-corruption efforts, the report concludes that overcoming Sierra Leone's recurring economic vulnerabilities necessitates closing persistent governance gaps, enforcing significantly stronger oversight in the management of natural resources, and comprehensively strengthening accountability systems.