Sierra Leone has officially launched its National Payment Switch, a groundbreaking initiative poised to revolutionize the country’s financial landscape and boost regional economic integration.
The launch ceremony, held at the Radisson Blu Mammy Yoko Hotel on Thursday, February 13, 2025, featured a keynote address by Vice President Mohamed Juldeh Jalloh.
The National Payment Switch enables instant payments between banks and mobile money operators, eliminating the need for traditional methods like checks.
Dr. Ibrahim Stevens, Governor of the Bank of Sierra Leone (BSL), announced at a press briefing earlier in the week that seven banks and two mobile network operators are already connected to the service. He emphasized the system’s potential to streamline transactions and improve efficiency, noting that similar systems are in use in countries like Nigeria.
“This system allows for direct payments from one bank to another or between mobile networks, eliminating the need for cheques and waiting periods,” Dr. Steven explained. He emphasized that the IPS would enhance transaction efficiency, financial security, and transparency, while also supporting digital commerce and innovation.
The National Payment Switch is being rolled out in phases. Phase 1, completed in May 2023, introduced ATM and point-of-sale (POS) interoperability. Phase 2, launched this week, focuses on real-time, interoperable transactions. Phase 3, expected to integrate the system with international payment gateways, will further position Sierra Leone as a key player in global digital finance.
Dr. Steven announced that the Bank of Sierra Leone has set April 1, 2025, as the deadline for full integration of all banks and mobile money operators into the system. He urged financial institutions to embrace the platform, assuring them of the central bank’s commitment to addressing any challenges during the integration process.
VP Jalloh highlighted the transformative potential of the switch, stating it will be crucial for driving economic reform and positioning Sierra Leone as a regional hub for digital financial services. He emphasized its importance for e-government services, including tax and fee payments, and its potential to enhance transparency and accountability in public finance management.
The initiative aligns with Sierra Leone’s commitment to regional financial integration, complementing the Pan-African Payment and Settlement System (PAPSS) under the African Continental Free Trade Area (AfCFTA). VP Jalloh expressed optimism that the switch will reduce transaction costs, promote digital trade, and strengthen economic ties across Africa. He urged all financial institutions, businesses, and government agencies to fully integrate the Instant Payment Services into their operations.
Finance Minister Sheku A. F. Bangura stressed the importance of stable economic policies and robust financial infrastructure for regional integration. He called for inclusive policies that drive sustainable growth and pointed to the European Union’s journey to the Eurozone as an example of long-term vision.
World Bank Country Manager Abdu Muwonge commended Sierra Leone for this milestone, drawing parallels with successful implementations in other countries. He emphasized the importance of adoption and urged mobile money providers to maximize transaction volumes through the system. He also highlighted the next phase of financial inclusion, which will focus on providing credit lines for youth and women entrepreneurs.
