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British International Investment Boosts Private Sector Growth in Sierra Leone With Ecobank Partnership


The United Kingdom Government, through its development finance institution, British International Investment (BII) has announced a $25 million risk-sharing facility with Ecobank Sierra Leone to stimulate private sector growth in high-impact sectors of the economy.

The facility, which includes a comprehensive technical assistance program, will support Ecobank in increasing lending to ambitious businesses in this frontier market.

The private sector plays a crucial role in Sierra Leone’s economy, primarily through small and medium-sized enterprises (SMEs) that employ around 70% of the population. However, these businesses often struggle to access capital due to various factors, including limited financial products, high collateral requirements, and short-term loan tenors.



The new facility will support local currency lending, demonstrating BII’s ability to act as a first mover in frontier markets. By increasing credit limits and extending loan tenors, the investment will help Ecobank Sierra Leone grow its loan book and boost business growth, job creation, and private sector contribution to the economy.

This transaction marks a significant milestone as the first investment under the Africa Resilience Investment Accelerator (ARIA), a collaborative initiative launched by BII and FMO, the Dutch entrepreneurial development bank. ARIA aims to boost investment in frontier markets like Sierra Leone.

The Sierra Leone economy faces challenges including a depreciating currency, a large trade deficit, and insufficient infrastructure investment. BII’s investment targets critical sectors such as renewable energy, agriculture, agro-processing, infrastructure, and manufacturing to spur economic growth and development.

UK Minister for Development, Anneliese Dodds, expressed her delight at the partnership, stating that it will support local currency lending, bring much-needed capital into high-impact sectors, and contribute to job creation and economic growth.

Samir Abhyankar, MD and Head of Financial Services at BII, highlighted the facility’s potential to be a game-changer for Sierra Leone, providing much-needed capital for local businesses to accelerate their growth, spur job creation, and deepen impact.

Sebastian Ashong-Katai, Managing Director of Ecobank Sierra Leone, expressed his enthusiasm for the partnership, emphasizing its importance in boosting Ecobank’s lending capacity and supporting Sierra Leone businesses.

Alex Kucharski, BII’s Head of West Africa for ARIA, added that ARIA aims to unlock investment in Sierra Leone and that the investment in Ecobank Sierra Leone will bring much-needed growth capital to underserved businesses in the country.



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Bank of Sierra Leone Warns of Illegal Super Advertis Investment Scheme


The Bank of Sierra Leone (BSL) issued a strong warning today against an online entity called “SUPER ADVERTIS” that is illegally soliciting investments through mobile money platforms.

The BSL emphasized that it has not licensed SUPER ADVERTIS for any financial activity, and engaging with them for investments poses a real risk to the public’s finances.

According to the BSL’s public notice, SUPER ADVERTIS appears to be enticing individuals to invest in a secretive financial scheme using mobile money platforms, which involves accepting deposits from the public. However, the BSL clarifies that “SUPER ADVERTIS” operates without the necessary license, making their operations illegal and potentially fraudulent.



The BSL urged the public to exercise extreme caution and refrain from any financial transactions with SUPER ADVERTIS. To ensure their safety, the BSL advised everyone to verify the presence of a valid BSL-issued license displayed in the premises of any financial institution before engaging in any transaction.

The BSL’s warning extends to all similar unlicensed businesses operating in Sierra Leone. The notice stresses that such illegal schemes pose a significant threat to the stability and safety of the nation’s financial system.

This timely intervention by the BSL highlights the growing concern over unregulated financial activities, particularly those targeting mobile money users. As mobile money transactions become increasingly popular, ensuring user protection and preventing fraudulent schemes remains a crucial challenge for financial authorities across Africa.

The BSL’s public notice serves as a wake-up call for Sierra Leoneans, urging them to prioritize caution and due diligence when considering any investment opportunity, especially if it involves mobile money or operates outside the official financial system.



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Financial Intelligence Unit Launches Investigation Into Super Advertis For Alleged Investment Scam


The Financial Intelligence Unit (FIU), an institution dedicated to combating financial crime, has initiated an investigation, in collaboration with key stakeholders, into the suspected unlawful activities of Super Advertis.

This entity has been using various mobile money platforms in Sierra Leone to accumulate deposits from the public, falsely presenting itself as an investment opportunity.

Super Advertis stands accused of engaging in unlicensed and unregulated financial services, particularly utilizing mobile money agents to amass supposed investment funds.



This alleged scam, resembling a “PONZI SCHEME,” operates by reimbursing existing investors from contributions made by new investors, rather than generating legitimate profits from a lawful business. Investors are misled into believing that profits stem from genuine business operations, while they actually originate from new investors’ deposits.

Major mobile money service providers, including Orangemoney and Afrimoney, have implemented measures to limit access to the third-party accounts utilized by the suspected fraudsters. They are actively collaborating with relevant authorities in the ongoing investigations.

The FIU issues a cautionary advisory to the public, urging vigilance when encountering individuals or entities offering investment opportunities. It emphasizes the importance of conducting thorough due diligence, ensuring complete satisfaction regarding the legitimacy of any business before engaging in financial investments.

Safeguarding the public’s interests and preserving the integrity of financial systems remain paramount for the FIU. The unit assures the public of further updates as the investigation progresses.

Individuals are encouraged to promptly report any suspected dubious financial activities to the FIU or relevant authorities, contributing to efforts in combating fraudulent financial schemes.



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34,000 Workers to Benefit From ARISE IIP Multi-Million Dollars First Phase Investment


In a strategic move to showcase Its ongoing progress on the construction of their industrial Zone, Arise Integrated Industrial Platforms [ARISE IIP] has conducted a special visitation tour with Journalists, Community stakeholders to monitor construction work on Friday 20th October, 2023 at Koya.

The ongoing construction work is part of the project, which was launched by His Excellency President Julius Maada Bio on 26th April 2023, marking as a pivotal moment for the foundation of the Special Koya Industrial Zone (SIZ-Koya) in Koya Chiefdom, Port Loko District



Speaking on the rationale behind ongoing Project, Ambassdor Anthony Navo thanked the government and the Koya community stakeholders for being very supportive to make the project success. He revealed that this is the first media tour at the Koya Sierra Leone Industrial zone since his Excellency President Julius Maada Bio launched the Project some months adding that the work commenced on the 1ST of September with a 24 months Plan to complete the first phase of the Project.

“In the first Phase we are going to build the first set of factories with 15O hectares land space. This factory will also have to transport local produce across the country because ARISE also support farmers across Sierra Leone because we are doing a 500 megaton rice mill here. If farmers are planting rice, they will be give seed money, fertilizers and after harvesting they sell to ARISE. That is why we are praying for us to get the transportation train to bring these various produce inside the zone because it’s a twin project. You went to Gabon and see how train went to up country pick produce and come to the zone and it is the same format. For the entire Project in Phase one we target to employ 34,000 workers before we go to phase 2 and 3,”  Navo stated.

He further revealed that the estimated worth of the first Phase project is 410 million dollars and they are also planning to build a 200megwatts powers to generate electricity for the Industrial zone sell some to the government. He affirmed that if all things being equal the first phase is expected to be completed in 24 months.

Appreciating the groundbreaking investment, Paramount Chief Bai Kompa Bomboli 111 of Koya Chiefdom Port Loko started by thanking the almighty God and the various institutions for witnessing the historic development. He recalled that when the President commissioned the Project he spoke with them and encouraged the entire people of Koya Chiefdom to embrace the Project. He confirmed that when the initiative was brought to him about the construction of ARISE industrial Zone he was a bit worried. However, considering the fact that Koya has 19 or Area or rural Chiefdoms, a boundary with Moyamba District, Western Area rural and Urban and he is unable to create Jobs for them adding that he believes this investment will change the narrative. He thanked the ARISE Investors and President Bio for being very kind to his community.

He urged Journalists to do proper investigative Journalism and report fairly. He recalled that at first people were attributing the launching of the project as a political stunt but now politics is over and the Project is ongoing. He emphasized that if the Industrial Zone is created thousands of youths will benefits the youths Sierra Leone devoid of background or region. He affirmed that the Jobs that ARISE will be providing will help to reduce unemployment and crime rates in the country. He encouraged Journalist to reach out to them if they have any doubts or want to make clarifications.

The Construction Manager  Santosh  Goham pointed out that ARISE believes that the investment in Sierra Leone will to create a sustainable economic development  for the country and their operational areas. He confirms that they have already started to construct a boundary wall which covers 150 Hectares of land. He assured that they will achieve the construction of International Ideal Production standards which include roads, water, electricity supply system, storage, warehouse facilities and Logistics adding they will make provision for the Inland Container Port in collaboration with the Port authorities. He emphasized that in the first phase their commitment will cover the Manufacturing of Rice Mill, Pharmaceuticals, Tiles, Recycling, Paints, amongst others small and large scale Manufacturing. He confirmed that they are also working simultaneously with their International Partner for the creation of Power to provide sustainable electricity for effective production in the Industrial Zone.

ARISE Integrated Industrial Platforms (ARISE IIP) is also expecting the arrival of Passenger Railcars in the country. This initiative is part of a broader strategy to revamp the mining sector, offering improved access to rail and port facilities and stimulating economic activities.

 



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Sierra Leone SME Finance And Investment Summit to Address SME-Finance Challenges


The African SME Finance and Investment Network (ASFIN) will bring together key stakeholders across the country for a one-day Sierra Leone SME Finance and Investment on 31st August, 2023, at the Radisson Blu Hotel, to address some of the major challenges SMEs face in accessing finance.

According to Peter SaSellu, President and CEO of ASFIN, “In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs.” He says that access to finance is a key constraint to SME growth. It is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries, especially in Africa.

Small and Medium Enterprises (SMEs) are less likely to be able to obtain bank loans than large firms; instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises. The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending. About half of formal SMEs don’t have access to formal credit. The financing gap is even larger when micro and informal enterprises are taken into account.



Ashma Jalloh, the Coordinator of the Summit says the Sierra Leone SME Finance and Investment is timely. She says, “The Objective of the Summit is to focus discussions on adequate funding, access to finance and financial inclusion. This will take care of some of the problems such as provision of modern technology and low managerial skills.”

She says “the SME Finance and Investment Summit will examine the financing of SMEs in Sierra Leone and the various financing options available to SMEs. This will involve looking at debt financing by considering the role commercial, microfinance banks and other financial institutions and investors play in the financing of SMEs in the country. It will also consider the role of equity financing through venture capital and business angels financing. Efforts will aim at adequate funding of SMEs in Sierra Leone.”

According to Rebecca Paulson, Executive Director of ASPIN, “SMEs play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to World Bank’s estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.”



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