Freetown, Sierra Leone//— To help address financing gaps, strengthen private sector growth, and promote inclusive economic development in Sierra Leone, IFC today announced a partnership with Access Bank (Sierra Leone) Ltd (ABSL) to increase access to finance for small and medium-sized enterprises (SMEs) in the country, particularly those owned and led by women.
Under the partnership, IFC will provide ABSL an unfunded risk-sharing facility of up to $10 million in local currency equivalent Sierra Leonean Leones, which is expected to support up to $20 million equivalent in new SME loans. ABSL will direct at least 25 per cent of the financing to women-owned SMEs as part of its strategy to more than double their share in ABSL’s SME portfolio to over 50 per cent within five years.
The risk-sharing facility is part of IFC’s Small Loan Guarantee Program (SLGP), which supports efforts to de-risk and scale up financing for SMEs in fragile and/or low-income markets. The SLGP benefits from a pooled first loss guarantee of $120 million provided by the International Development Association’s (IDA) Private Sector Window Blended Finance Facility (IDA PSW BFF). By providing local currency funding, IFC is helping ABSL hedge against currency fluctuations.
In addition to the facility, IFC will offer advisory support to help ABSL strengthen its operations and internal capacity for SME lending. The partnership also includes a component to provide training to employees at 50 SMEs, including women-led businesses, in financial and business management to enhance their credit readiness and long-term sustainability.
“Through our collaboration with IFC, Access Bank Sierra Leone is unlocking new opportunities for women entrepreneurs, extending access to finance in underserved markets, and strengthening the resilience of local businesses,” said Ganiyu Sanni, Managing Director of Access Bank Sierra Leone. “Together, we are driving inclusive finance and supporting sustainable growth across Sierra Leone.”
“This partnership with Access Bank Sierra Leone demonstrates IFC’s commitment to expanding access to finance in underserved markets and to unlocking the potential of women entrepreneurs,” Abdu Muwonge, WBG Joint Country Representative for Sierra Leone said. “SMEs are essential to driving job creation, and boosting resilience and growth in Sierra Leone, where they create the vast majority of jobs. With this partnership, we will help many access the financing they need to grow.”
According to the World Bank Group, SMEs, including micro-enterprises, account for nearly 90 percent of Sierra Leone’s private businesses and provide livelihoods for about 70 percent of the population. Yet, access to finance remains a major constraint, with only around 17 percent of these enterprises able to secure formal loans or credit. the financing gap.
IFC’s current investment portfolio is $43.5 million in Sierra Leone, with a focus on agribusiness and financial sector. IFC is actively engaged in energy, telecommunications, and agriculture value-chains. On the advisory side, IFC is working to expand financial inclusion and to strengthen ecosystems across key agricultural value chains.