By Alpha Abu
President Julius Maada Bio on Friday 12th February 2021 handed over cheques with a total value of 26 billion Leones to ten Financial Service Providers (FSP) during the launch of the Munafa Fund loan scheme initiated by the government for petty traders and medium business owners.
The event which was held at the Magburaka town field in the Tonkolili district marked a significant step towards actualizing the scheme that is being facilitated by the Small and Medium Enterprises Development Agency (SMEDA). Every district in Sierra Leone will benefit from this pilot phase of the exercise targeting 4,100 beneficiaries and a total of 100 Billion Leones is expected to be allotted to 50,000 business people by the close of the cycle within a 3 year period.
President Bio told the gathering that the micro- credit facility aims to help improve the lot of especially women and youths who play a pivotal role in the development of the country. He said his government prioritizes human capital development and affirmed that the realization of the Munafa Fund was a testament to honoring his government’s manifesto commitment to improve the livelihood of the people.
The president encouraged those who will benefit from the fund to seize the opportunity and expeditiously manage their businesses for them to be able to take care of their families.
Representatives of all 10 institutions or Financial Service Providers (FSP) that met SMEDA’s criteria to operate the scheme for the beneficiaries were then presented with the cheques. Notable micro-finance entity Lift above Poverty or LAPO received 4 billion Leones to support businesses in Kambia, Kailahun, Western Area Urban and Rural. CEDA also got 4 billion Leones and will target people in the districts of Bombali, Koinadugu, Falaba, Moyamba and Tonkolili.
Ecobank’s Micro Finance is to operate with 3.9 billion Leones with business owners in Bo, Kenema, Bombali and Koinadugu districts as well as the Freetown Western Urban. Imperi Trust will work with traders and other business holders in Bonthe and Moyamba districts for which it has been entrusted with the sum of 1.4 billion Leones. Win Trust to operate in Bo and Trust Micro Finance in Kenema both received 1 billion and 1.5 billion Leones respectively.
Quick and Reliable Micro –Finance will distribute 2 billion Leones to beneficiaries of the scheme in Portloko and Western Urban area. Mopanda with 4 billion Leones in its kitty will deal with business owners in the districts of Bo, Kailahun, Kono and Pujehun whilst Harvest Micro- Finance with 2.5 billion Leones will work in Freetown Urban and Kono district.
SMEDA will train selected business people and those eligible for the loans are to make full repayment of the principal money and a 9% interest in 12 months. 5 and 10 million Leones is the ceiling for a start of the scheme, with no repayment in the first 3 months to allow recipients to settle in so they could pay back in the subsequent 9 months. The FSPs will get 6% for operational expenses and the 3% together with the principal amount are to be forwarded to the Bank of Sierra Leone.
The Munafa Fund is wholly financed by the government of Sierra Leone.
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