The UK’s development finance institution, British International Investment (BII), has partnered with Ecobank Sierra Leone in a $25 million risk-sharing agreement aimed at accelerating private sector growth in Sierra Leone. This initiative seeks to address the capital constraints faced by small and medium-sized enterprises (SMEs) in the country, which form the backbone of Sierra Leone’s economy by employing roughly 70% of the population.
The deal includes a comprehensive technical assistance program designed to enhance Ecobank’s lending capacity, particularly to businesses operating in high-impact sectors. These sectors are essential for economic growth but have been held back by limited access to capital and investment. The facility aims to foster a stronger business environment by supporting local currency lending, easing the path for businesses to access the funds they need for expansion.
Anneliese Dodds, the UK Minister for Development, highlighted the significance of the agreement, stating, “This facility will inject much-needed capital into sectors with high development impact, directly contributing to job creation and economic growth.” She also emphasized that the partnership underscores BII’s pioneering role in investing in countries that are often overlooked by traditional investors.
The private sector in Sierra Leone, which largely consists of SMEs, faces significant challenges in accessing capital due to factors such as high collateral requirements and limited availability of financial products. This agreement is expected to provide these businesses with better access to financial resources, empowering them to scale their operations and drive broader economic development in the country.
Sebastian Ashong-Katai, Managing Director of Ecobank Sierra Leone, expressed his optimism for the collaboration, stating, “We are delighted to have secured the support of British International Investment. This boosts our lending capacity and strengthens our commitment to being the leading bank for businesses in Sierra Leone.”
Ecobank Sierra Leone aims to leverage this facility to support SMEs and other high-impact businesses that are critical to the country’s economic progress. The bank is expected to play a crucial role in facilitating increased lending, which will help bridge the funding gap that has long hindered business growth in Sierra Leone.
This investment forms part of BII’s Africa Resilience Investment Accelerator, a strategic initiative designed to unlock financing in challenging frontier markets. The accelerator has also partnered with institutions like the Dutch entrepreneurial development bank, FMO, to further development goals across Africa. BII’s ongoing commitment to frontier markets positions the institution as a key player in driving economic resilience and sustainable growth across the continent.
In addition, Ecobank Nigeria, a subsidiary of the Ecobank Group, has recently partnered with EStars, a leader in the e-sports industry, to advance e-sports education in Nigeria. This initiative aims to equip students with vital life skills, positioning Ecobank as an influential player in fostering education and entrepreneurship across Africa.
This $25 million risk-sharing agreement is poised to be a game-changer for Sierra Leone’s private sector, particularly for SMEs seeking financial resources to grow. Through this collaboration, BII and Ecobank Sierra Leone aim to drive economic growth, job creation, and business expansion in a country where investment and capital access have long been significant barriers to development. With the support of BII, Ecobank is set to enhance its role as a key financial partner for businesses in Sierra Leone, paving the way for long-term economic resilience.
