The government is to rollout a core investment facility of US1.5 million dollars under the Sierra Leone Economic Diversification Project (SLEDP) to de-risking on-lending to small and medium scale Enterprises (SME) in the economy next year.

This move forms one of the government’s strategies to buoy up activities in the SME sub sector would mitigate the risks associated with lending to small and medium scale enterprises in the country. In addition to this, the government is also in discussions with the World Bank for additional funding to further support SMEs.

In the current year, the Sierra Leone Economic Diversification Project (SLEDP), in collaboration with the Small and Medium Enterprises Development Agency (SMEDA), is said to have disbursed a total of US$3.0 million in 2024 to support the growth of about 102 SMEs, over 50 percent of which are women-owned enterprises.

To improve access to finance for businesses, the Bank of Sierra Leone, with support from SLEDP, continues to implement the upgraded collateral registry. This initiative has successfully unlocked US$39.3 million in loans by using immovable and movable assets as collateral. These efforts have resulted in the creation of more than 2,000 jobs in sectors such as light manufacturing, innovation, tourism, agri-business, and the creative and circular economy.” Finance Minister Mr Ahmed Bangura recently stated this as he addressed the parliament on the economy.

“You may recall that the government established the MUNAFA Fund in 2021, initially capitalized with NLe30.0 million to improve capital access for SMEs”.

The fund, he said, has recorded a recovery rate of 63 percent so far. “Consequently, the government is urging Financial Services Providers (FSPs) to intensify their efforts to recover loans and repay the principal to SMEDA, which will enable more businesses to benefit from the fund”.