The government is facing mounting pressure from rising debts owed to private energy companies, known as independent power producers (IPPs). According to the latest World Bank Sierra Leone Economic Update (7th Edition), debts owed by the Electricity Distribution and Supply Authority (EDSA) to IPPs, excluding the Electricity Generation and Transmission Company (EGTC), rose sharply from $70.6 million in December 2024 to $91 million in July 2025.
The Bank stated that the problem with EDSA stems from the commercial and technical losses it continues to accrue, coupled with its inability to collect enough money from customers to pay the power producers that keep the lights on, despite receiving government subsidies.
In 2024, the World Bank noted that the government spent the equivalent of 0.7 percent of the country’s total economic output (GDP) on energy subsidies, slightly more than in 2023. Yet, these efforts have not stopped EDSA’s losses from growing.
The report says EDSA had agreed to a payment plan, which included a down payment of US$17.5 million in April 2024 and monthly payments of US$1.5 million to clear the arrears. Despite these efforts, the debts continue to climb.
EDSA’s mounting debt poses a serious risk to government finances. It presupposes that if EDSA cannot pay the IPPs, they might find it difficult to keep the lights on, leading to potential blackouts and further government spending just to keep the sector running.
Economists warn that without strigent reforms to improve EDSA’s revenue collection, reduce power theft, and ensure better financial discipline, the energy sector will continue to drain the national budget and threaten overall economic stability.
. These debts pose a serious threat to the country's economic stability and its energy supply, according to the recent World Bank report.){kind=link}