On 7 June 2021, the Government of Sierra Leone, through the Ministry of Planning and Economic Development (MoPED), together with the United Nations Development Programme (UNDP), hosted a high-level dialogue to discuss the findings of the Development Finance Assessment (DFA) and their implication for the development of the country’s INFF.
At the dialogue, Mr Mohamed Aziz-Shyllon, UNDP Project Coordinator for the domestic resources mobilisation program, presented the key findings of the DFA. Through the DFA process, UNDP developed a comprehensive picture of existing and potential sources of public and private finance and development finance, mapped trends, and assessed opportunities. This presentation provides an overview of some of the most valuable lessons from the DFA:
- Government borrowing is crowding out loans to the private sector;
- Remittances channelled in alternative ways, for example, through diaspora bonds, could be a significant source of funds for development investment;
- Most official development assistance (ODA) goes to the health sector, but there is potential in other sectors, for example, funds focused on climate change.
The presentation also highlights the 18 recommendations for financing options that emerged from the DFA and will inform the INFF process. The INFF prescribes instruments and policies the Government may use to promote growth and resource mobilisation towards the financing of the MTNDP and Sustainable Development Goals.
The Government of Sierra Leone, with support from UNDP and the UN Capital Development Fund (UNCDF), is currently working on the development and implementation of the INFF through a joint program funded by the Joint SDG Fund.
