| Ten
years of war resulted in a sharp decline in social indicators, putting
Sierra Leone at the bottom of the United Nations’ Human Development
Index. More than 80 percent of the population lives below the poverty
line, earning less than US$1 per day.
While financial services are a key component to rebuilding the country, few small and microentrepreneurs have access to even basic credit or savings. To address this situation, international donors and the Government of Sierra Leone are working together to find ways to rapidly increase the availability of financial services to the poor. A “National Microfinance Policy”, given
government approval in 2003, is providing a guide for sector development. The
Bank of Sierra Leone is pursuing a robust and innovative strategy
to increase the rural financial infrastructure through community
banks. The on-going privatization of large corporations, including
banks, opens the possibility for bank downscaling in the future.
An association of microfinance institutions has been established
to exchange information and advance sector development. Moreover,
the professionalization of MFIs and introduction of new MFIs to
the sector is being facilitated through MITAF services. The maps below show the micro loan client coverage per Chiefdom throughout Sierra Leone in January 2005, July 2005, January 2006 and December 2006
In 2003 it was estimated that of the 90,000 to 160,000 potential microfinance clients in Sierra Leone, fewer than 15,000 had access to financial services. Today, over 40,000 people have access to financial services. There is an ongoing need to boost such services and increase the rate of growth. MITAF, through its training, technical assistance and financing is supporting potential industry leaders to increase outreach. |
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