Sierra Leone’s development vision is bold and clearly articulated – to achieve a middle-income country status by 2039. The Medium-Term National Development Plan (2024–2030) and the Big Five Game - Changers set out the country’s ambitious priorities: transforming agriculture, expanding energy access, creating jobs for young people, strengthening human capital and building resilience to climate shocks.  

But ambition requires investment — and investment requires trust and confidence.

In today’s global financial system, investor confidence is currency. It shapes how investors assess risk, how much countries can pay to borrow, and whether private capital flows towards infrastructure, industry, and productive sectors. Sovereign credit ratings are this confidence marker, as well as the development strategy by which countries are perceived in international capital markets, to gauge their credit worthiness and investment readiness. 

Why Sovereign Credit Rating Matters Now for Sierra Leone

Sierra Leone operates in a challenging macroeconomic environment. In recent history, external shocks, global inflationary pressures and rising debt servicing costs have narrowed Sierra Leone’s fiscal space. A significant share of domestic revenue is absorbed by debt obligations, leaving limited room for capital investment; and increasing dependency on expensive domestic debt to bridge emerging financing gaps. It is estimated that Sierra Leone needs almost US$3 billion in additional resources to meet its financing needs for the MTNDP 2024-2030.

Therefore, access to affordable and sustainable financing is both critical and urgent for Sierra Leone.

By undertaking a Sovereign Credit Rating Readiness Assessment, Sierra Leone took the first step in getting recognition from institutional investors and capital markets for its development progress. Supported by UNDP, the assessment offers a comprehensive diagnostic of Sierra Leone’s macroeconomic position, debt sustainability profile, and institutional performance. It reflects aspects of the methodologies of three major credit rating agencies, to determine Sierra Leone’s perceived risk and investment profile. 

While this assessment does not assign an official rating, it provides clarity and pathways to attaining a full sovereign credit rating. The process evaluated the strengths, vulnerabilities and suggested reform priorities to ensure financing and investor readiness based on the national data. 

Despite earlier efforts to get a rating, Sierra Leone has never been rated. 

The process underscored the critical determinants for the country’s credit worthiness. It outlined a mix of macroeconomic position, governance and institutional effectiveness, transparency and reform credibility as measures for competitiveness and preconditions for accessing external financing

Based on the findings, strengthening domestic revenue mobilization would be a good signal of fiscal discipline and revenue capacity for Sierra Leone. Publishing regular debt sustainability analyses would reduce uncertainty, improving macroeconomic data quality enhance credibility and reliability, while institutionalizing fiscal risk assessments demonstrates forward planning.

According to UNDP’s 2025 report titled “Sovereign Credit Ratings: Perspectives for Africa’s Development”, lowering perceived risk can translate into reduced borrowing costs; reduced borrowing costs free up fiscal space. Expanded fiscal space enables greater investments in health and education (SDG 3 & 4), agriculture (SDG 2), infrastructure (SDG 9), job creation (SDG 8), and climate resilience (SDG 13). 

With fiscal stability comes sovereign credibility, which is another positive indicator for a conducive investment climate for the private sector. When macroeconomic policies are predictable and institutions are transparent, domestic and foreign investors are more likely to commit long-term capital.

This assessment therefore serves as a reform compass, identifying practical steps that can gradually strengthen sovereign standing without increasing fiscal risk.

The Sierra Leone assessment report cautions against premature market exposure and encourages strengthening of governance institutions, data credibility and consistency to anchor decisions for expanded borrowing. It recommends a phased approach that involves strengthening public financial management systems, enhancing debt transparency, deepening revenue reforms, and improving macro-fiscal coordination. This will require strong parliamentary oversight, credible data systems, and consistent implementation of policy.

Therefore, Sierra Leone stands at a pivotal moment to leverage this assessment by addressing critical gaps and leveraging existing opportunities. The ensuing roadmap will foster country ownership, sustain partnerships and establish milestones that align to ongoing reforms, and gradually strengthen its sovereign credibility, while unlocking more affordable financing options.

Obtaining sovereign credit rating for the first time is essential for Sierra Leone to attain its development aspirations. It can be the difference in the cost of debt premiums paid and a necessary catalyst for financial sector development, in turn contributing to sustainable development.  

UNDP’s support for Sovereign Credit Ratings in Africa

UNDP’s role is to support this process — through high-level technical advice, focused policy dialogues, and institutional capacity development. UNDP works alongside the Ministry of Finance and other national institutions, helping ensure that reforms are sequenced carefully and aligned with the Medium-Term National Development Plan. This involves technical assistance and capacity building for countries seeking credit ratings and enhancing through the UNDP Concilium of Credit Rating Experts and the Africa Credit Ratings Resources Platform.