By Alpha Abu
Six months into the pilot phase of government’s Munafa Fund that provides soft loans to private business owners, a 46.91% repayment has so far been made by the borrowers who manage Small and Medium Enterprises (SMEs).
This was disclosed by Shaka Sannoh the Chief Executive Officer (CEO) of Small and Medium Enterprises Development Agency (SMEDA) the fund’s supervisory institution during an engagement with stakeholders of the scheme at Sierra Bay hotel in Freetown on Wednesday 29 September 2021.
The CEO who was giving an overview of the scheme disclosed that the percentage recorded represents Le8, 502,712, 293 (Eight Billion, five hundred and two million, seven hundred and twelve thousand, two hundred and ninety-three Leones). An outstanding sum of 18,223,941, 209(Eighteen Billion, two hundred and twenty-three million, nine hundred and forty-one thousand,two hundred and nine Leones) should be recovered in the last half of the 12 months scheme. In all 26,726,653,502 (Twenty-six Billion, seven hundred and twenty-six million, six hundred and fifty-three thousand, five hundred and two Leones) was issued out.
Distribution of the funds to SMEs began in the last week of March this year with an initial target of 4,100 beneficiaries but due to the demand in the operational areas of some of the FSPs had to produce extra funds from their coffers so that more people will benefit which swelled the number to 5,328.
The SMEDA boss said more women numbering 4,038 got the Munafa fund, highlighting the desire of President Julius Maada Bio from the onset, for more women involved in the venture. 1,290 are male borrowers.
He expressed his appreciation for the performance of the Financial Service Providers (FSPs) in the management and supervision of the loan scheme. He particularly thanked Eco Bank for being the only banking institution that embraced the Munafa fund. The other nine FSPs are private lending institutions.
He said SMEDA has no control in determining who gets the loan, which is purely the prerogative of the FSPs who have laid down criteria for access to such a facility. He also pointed out that the Ministry of Finance manages the account of the Munafa fund and not SMEDA.
The meeting which was to have a reflection on the status of the scheme saw FSPs highlighting a few concerns in the implementation process such as finding themselves placed in far-flung harder to reach operational areas, thereby resulting in them having to incur unbudgeted costs.
The target by SMEDA is to have 50,000 beneficiaries by 2023. Small business holders have been encouraged to form themselves into groups for the scheme. President Bio officially launched the loan scheme in Magburaka in March in fulfillment of his manifesto pledge to support small businesses with loans.
Copyright © Politico Online (05/10/21)
