The Ministry of Agriculture and Food Security, in partnership with the Bank of Sierra Leone and the United Nations Capital Development Fund, is working to increase agricultural financing and attract private-sector investment in Sierra Leone's agricultural sector. A high-level Banking Executives' Roundtable was held in Freetown, bringing together commercial banks, microfinance institutions, and development partners to explore ways to improve access to finance for farmers and agribusinesses.
The roundtable focused on financing opportunities across key agricultural value chains, including rice, poultry, and onions, covering activities from agricultural inputs and production to processing, storage, and trade. Discussions also examined measures to address barriers to affordable financing and encourage greater participation by financial institutions in the sector. The European Union-funded Salone Access to Finance programme was highlighted, which includes a EUR 6 million Matching Grant Facility.
The Matching Grant Facility combines commercial loans with grant support to reduce borrowing costs and improve access to financing for eligible businesses. Participating financial institutions, including Vista Bank and Safe Capital Microfinance, shared their experiences in implementing the facility. They emphasised the importance of sound financial records, viable business plans, and reliable business operations in helping farmers and agribusinesses access financing.
Minister of Agriculture and Food Security, Dr Henry Musa Kpaka, called on banking executives to identify incentives and policy measures that could stimulate greater investment in agriculture. He stressed the need for stronger collaboration between government and financial institutions to unlock financing opportunities and support agricultural development.
Governor of the Bank of Sierra Leone, Dr Ibrahim Stevens, reaffirmed the Bank's commitment to fostering a financial environment that encourages increased lending and private-sector investment in agriculture. The roundtable supports the Government's Feed Salone initiative, which seeks to increase domestic food production, strengthen agricultural value chains, and improve food security.
The Ministry's engagement with financial institutions and development partners forms part of broader efforts to improve access to finance, expand agricultural investment, and advance food security in Sierra Leone. The initiative aims to promote a more productive and commercially viable agricultural sector. Cooperation among government, financial institutions, and development partners is being reinforced to mobilise investment and strengthen agribusinesses.
The collaboration between the Ministry of Agriculture and the banking sector is expected to have a positive impact on Sierra Leone's agricultural sector. By increasing access to finance and encouraging private-sector investment, the sector can become more productive and commercially viable, ultimately contributing to the country's economic growth and development. Key stakeholders will continue to work together to address the challenges facing the sector and unlock its full potential.
Key points
- The Ministry of Agriculture and Food Security, Bank of Sierra Leone, and UNCDF are working together to expand agricultural financing and attract private-sector investment in Sierra Leone.
- A EUR 6 million Matching Grant Facility has been established to reduce borrowing costs and improve access to financing for eligible businesses.
- The initiative supports the Government's Feed Salone initiative, which aims to increase domestic food production, strengthen agricultural value chains, and improve food security.
