Publication: Sierra Leone Economic Update: Unlocking the Potential of the Power Sector in Sierra Leone Breaking the Crisis Cycle
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2024-10-31
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2024-10-31
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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.
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“World Bank. 2024. Sierra Leone Economic Update: Unlocking the Potential of the Power Sector in Sierra Leone Breaking the Crisis Cycle. © World Bank. http://hdl.handle.net/10986/42341 License: CC BY-NC 3.0 IGO.”
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