By Hassan Osman Kargbo
The Government of Sierra Leone and the OPEC Fund for International Development (OPEC Fund) have signed a landmark $260 million financing agreement to accelerate national development across critical sectors, including agriculture, infrastructure, energy, and water management. This three-year partnership aims to drive President Julius Maada Bio’s Feed Salone initiative and broader economic transformation agenda by addressing key bottlenecks in food production, rural connectivity, and energy access.
The agreement, signed on July 2, 2025 in Vienna, Austria, will support several projects, including
– Agricultural Finance Bank: $50 million will be invested in establishing Sierra Leone’s Agricultural Finance Bank to improve access to finance for farmers and agribusinesses.
– Irrigation and Water Management: $55 million will support the development of irrigation and water management infrastructure to promote climate-resilient agriculture.
– Renewable Energy: $45 million will be allocated to upgrade the Bumbuna 1 Hydropower facility, boosting renewable energy supply for the country.
– Rural Infrastructure: $50 million has been allocated for the construction of the Kambia to Kychom road, enhancing rural mobility and trade opportunities.
– Rice Value Chain: Another $50 million will strengthen the rice value chain in Kambia District, improving food security and reducing dependence on rice imports.
– Capacity Building: $10 million will be used for capacity building and policy support to ensure the long-term success of these initiatives.
– Climate Finance and Energy Innovation Hub: $200,000 will be invested in establishing a Climate Finance and Energy Innovation Hub to promote green growth and sustainable energy solutions.
The partnership reflects Sierra Leone’s commitment to building resilient infrastructure, improving agricultural productivity, and advancing clean energy solutions for inclusive and sustainable development. According to OPEC Fund President Abdulhamid Alkhalifa, the agreement is “an important step to reaffirm our commitment and deepen our cooperation”
Minister of Finance, Sheku A.F. Bangura, expressed delight in signing the accord, stating that it marks a significant milestone in Sierra Leone’s sustainable development journey. The funding will enable the country to access affordable capital, take charge of its development, and welcome credible partners to join in.
This agreement is part of a larger effort to support Sierra Leone’s development, following a 2024 roundtable hosted by the OPEC Fund in Vienna, where President Julius Maada Bio secured $800 million in pledges from various development finance institutions, multilateral development banks, and the Arab Coordination Group.
The OPEC Fund has a long history of supporting Sierra Leone, having signed its first loan with the country in 1976 and approving over $230 million for public sector projects in infrastructure, energy, water & sanitation, and other sectors.
This landmark agreement is expected to have a significant impact on Sierra Leone’s development, promoting economic growth, reducing poverty, and improving the lives of its 8.5 million inhabitants.
