The UK’s development finance institution, British International Investment (BII) has sealed $25 million risk-sharing agreement with Ecobank Sierra Leone to bolster private sector growth in the country.
The statement by Ecobank stated that the facility, which included a technical assistance programme, is designed to support Ecobank in increasing lending to businesses in Sierra Leone.
“British International Investment, the UK’s development finance institution and impact investor, today announced a $25m risk-sharing facility with Ecobank Sierra Leone to boost private sector growth in high-impact sectors of the economy. The risk sharing facility, which includes a comprehensive technical assistance programme, will support Ecobank to increase lending to ambitious businesses in a frontier market where economic growth is hampered by a lack of capital and investment,” it stated.
According to the bank, the private sector is a vital component of Sierra Leone’s economy, comprising primarily small and medium-sized enterprises that provide employment for about 70 per cent of the population.
It added, however, that those businesses often struggled to access capital due to factors, such as high collateral requirements and limited financial products.
“This agreement will support local currency lending, bringing much-needed capital into sectors with a high development impact, thereby contributing to job creation and economic growth,” said UK Minister for Development, Anneliese Dodds.
The Managing Director and Head of Financial Services at BII, Samir Abhyankar, highlighted the significance of the partnership.
He stated, “The signing of this agreement with Ecobank Sierra Leone underscores BII’s pioneering role to lead investments in countries that are often overlooked by investors. This facility will be a game-changer for Sierra Leone, providing much-needed capital for ambitious local businesses to accelerate their growth.”
Also, the Managing Director of Ecobank Sierra Leone, Sebastian Ashong-Katai, expressed optimism about the agreement.
“We are delighted to have secured the support of British International Investment in boosting Ecobank’s vital lending capacity for Sierra Leone businesses. This further strengthens our intent to be the bank of choice for Sierra Leone’s businesses,” the Punch newspaper report quoted the managing director as saying.
The statement added that the investment was part of BII’s Africa Resilience Investment Accelerator, which aimed to unlock investment in frontier markets and had previously collaborated with the Dutch entrepreneurial development bank, FMO, to drive development initiatives.
GIK/APA