By Alpha Abu
50,000 small and medium businesses nationwide are to benefit from a 100 billion Leone loan scheme over the next three years. This was disclosed by Shiaka Sannoh the Chief Executive Officer of Small and Medium Scale Enterprises Development Agency (SMEDA) during a collaborative seminar with the National Civic Education body, NaCCED on developing the appropriate messaging system for the scheme dubbed “Munafa Fund”.
He told the gathering at the Youyi building in Freetown yesterday, 4th February 2021 that the implementation of the credit facility should have commenced last year but that there were a number of issues that had to be first addressed. The initial phase of the credit facility will be rolled out between the first and second quarter of this year with the provision of 26.5 billion Leones to service 4,100 beneficiaries who stand to receive 5 million Leones for micro-trade and 10 million Leones for registered small businesses.
The SMEDA boss however was not definitive on the actual sum that would be given to Medium businesses that he said may have relatively larger operations and with more people involved as employees.
Those incorporated are to pay 9% interest and the principal money within a 12 month period, with the first 3 months reserved as a non- payment window so as to allow them to settle well in their businesses.
10 Financial Service Providers (FSPs) who went through a successful vetting and screening process are to practically receive the monies from SMEDA for onward transfer to those successful beneficiaries who must register with the Agency.
According to the agreement between SMEDA and the FSPs, the latter is to deduct 6% percent of the interest for their operational costs, with the remaining 3% and Principal amount going back to the Bank of Sierra Leone as a revolving fund for continuation of the scheme. The FSPs are to be properly monitored to ensure that they have a separate account for the Munafa fund for accountability purposes.
Sannoh said the Fund was a fulfilment of President Bio’s New Direction manifesto in which he promised to develop the private sector and boost the financial base of small business holders.
He stated the fund should not be seen as a political reward for anyone but for all those targeted to grow, and that they must use the opportunity “to move themselves from the vicious cycle of poverty’’.
He pointed out that the facility will reach all the districts of the country and would not be discriminatory or partisan in nature, saying it is for the people of Sierra Leone.
The SMEDA boss explained that the Agency will conduct training sessions for beneficiaries to know their obligations and rights in dealing with the credit facility and warned against any soliciting of bribes by crooks who might want to defraud unsuspecting people by asking for monies to register for inclusion in the process.
On proper messaging for the fund, the Permanent Secretary in the Ministry of Trade and Industry Augustine Sheku said NaCCED having been entrusted with the task of disseminating messages to the public on the Munafa Fund, should place premium on clarity and attention- commanding attributes in the information sharing which he stressed should permeate right across to rural areas.
NaCCED Chairman Kalilu Totangi emphasised the importance of consistency in the messages which his office will embark on spreading, noting that everything about the process should be apolitical as the fund is for all, irrespective of political affiliation, tribe or regional background.
SMEDA was formed by an act of parliament in 2016 to address issues related to small businesses in the private sector.
