BRITISH International Investment (BII), the UK’s development finance institution and impact investor, has announced a $25 million risk-sharing agreement with Ecobank Sierra Leone. This partnership aims to support the growth of private sector businesses in key sectors of Sierra Leone’s economy, particularly small and medium-sized enterprises (SMEs) that form the backbone of the nation’s economic landscape.
SMEs are crucial to Sierra Leone’s economy, employing around 70 percent of the population. However, many of these businesses face significant challenges accessing capital, with limited financial products available, high interest rates, and stringent collateral requirements. The new facility will help address these barriers by boosting local currency lending, enabling Ecobank Sierra Leone to extend credit limits and offer loans with terms of up to five years—options previously unavailable in the market.
The investment also marks a significant milestone as the first deal under the Africa Resilience Investment Accelerator (ARIA), a collaborative initiative by BII, co-funded with FMO, the Dutch entrepreneurial development bank. ARIA aims to increase investment in frontier markets like Sierra Leone.
This new facility will help Ecobank increase its loan book, supporting ambitious local businesses, creating more jobs, and expanding the private sector’s role in Sierra Leone’s economic development. Sectors targeted for growth include renewable energy, agriculture, agro-processing, infrastructure, and manufacturing—all critical areas for addressing the country’s economic challenges.
British International Investment previously partnered with Ecobank in 2021 on a $50 million trade finance facility, helping to expand financial access in frontier markets like Burkina Faso, Chad, and Togo. This latest initiative builds on that progress, demonstrating BII’s commitment to stimulating growth in underserved regions.
Anneliese Dodds, UK Minister for Development, praised the partnership, stating, ‘This new risk-sharing facility with Ecobank Sierra Leone will bring much-needed capital into high-impact sectors, supporting local lending and fostering economic growth in Sierra Leone.’
BII’s Managing Director for Financial Services, Samir Abhyankar, described the agreement as a ‘game-changer’ for Sierra Leone, while Ecobank Sierra Leone’s Managing Director, Sebastian Ashong-Katai, welcomed the support, noting the deal will help bolster the bank’s lending capacity for local businesses.
As Sierra Leone continues to navigate economic challenges, including inflation, a trade deficit, and underinvestment in infrastructure, this risk-sharing facility aims to provide a vital boost, spurring business growth, creating jobs, and ultimately contributing to the nation’s economic stability and progress.
