Corruption Drains Trillions from Sierra Leone’s Economy, New IMF Report Reveals

A new report has revealed a major corruption scandal involving the previous government. The Sierra Leone Governance and Corruption Diagnostic 2025 released by the International Monetary Fund (IMF) shows that from 2016 to 2018, Sierra Leone lost an estimated 10.45 to 15.9 trillion old Leones (SLL), equivalent to USD 458 million to USD 698 million, more than the country’s total revenue collection of 8.8 trillion SLL during the same period.

A Staggering Economic Loss

According to the report, corruption drained 12.7% of Sierra Leone’s GDP every year, a figure the IMF describes as “dangerously high and “severely damaging to economic growth.”

The IMF also notes that governance vulnerabilities remain strongly linked to the unequal distribution of benefits from gold and diamond mining and trade. These inequalities fueled frustration among marginalized groups and contributed to the outbreak of the civil war (1991–2002).

Structural Impact Beyond Lost Revenue

The report warns that corruption continues to weaken Sierra Leone’s economic foundations by reducing tax compliance and limits the government’s ability to mobilize domestic revenue.

It also warns that investors’ confidence is also undermined, slowing both local and foreign investment. At the same time, rising public debt threatens long-term fiscal sustainability and puts additional pressure on national development.

According to the IMF, from 2016 to 2018, corruption in Sierra Leone does more than drain state resources. It erodes public trust, destabilizes the financial system, and limits Sierra Leone’s ability to fund critical national projects.

Reforms Not Enough as Corruption Persists

Although the Government of Sierra Leone has introduced multiple anti-corruption reforms over the years, the IMF report concludes that corruption remains deeply entrenched across key sectors.

A Call for Stronger Governance

For Sierra Leone to escape the cycle of corruption and economic vulnerability, the IMF says there is a need for deeper governance reforms and consistent enforcement across all sectors.

The report concludes that Sierra Leone must accelerate action if it hopes to strengthen state institutions, stabilize the economy, and protect its development gains