The Board of Directors of the African Development Bank Group has approved a new Country Strategy Paper (CSP) for Sierra Leone for 2025–2030, committing approximately $500 million over the next five years to foster sustainable economic growth, strengthen resilience to fragility, and promote inclusive development.
The strategy is built around two key priorities: developing sustainable infrastructure to enhance private sector competitiveness and supporting agricultural value-chain development to boost job creation and food security.
These focus areas directly target Sierra Leone’s core development challenges, notably infrastructure gaps, limited private sector value addition, and high vulnerability to climate change.
With an estimated $2.1 billion in total financing, including co-financing from development partners, the CSP aligns with the government’s National Development Plan (2021–2025) and Vision 2030, which aim to position Sierra Leone as a middle-income economy.
Flagship infrastructure initiatives will focus on expanding renewable energy generation, increasing electricity access from 41% in 2024 to 60% by 2030—alongside upgrading climate-resilient road networks and improving water and sanitation systems to provide an additional 1.2 million people with access to safe drinking water.
The agricultural component prioritizes agro-industrial transformation, aiming to reduce food import dependency, currently at 70% for staple crops like rice, while creating over 500,000 jobs, particularly for women and youth, through support for small and medium-sized enterprises.
Sierra Leone's economy has demonstrated resilience with real GDP growth averaging 6.7% from 2020-2024, driven by the agriculture and services sectors. The new strategy builds on this momentum and leverages the Bank's existing portfolio of 10 ongoing projects worth $150 million, which have already improved road connectivity and energy access.
"This strategy represents a bold step toward building a resilient and inclusive economy in Sierra Leone. By investing in sustainable infrastructure and agriculture, we are empowering communities, creating jobs, and supporting Sierra Leone's vision for transformative growth," said Halima Hashi, Country Manager, Sierra Leone
The current financial landscape for women
When we look at how people in Sierra Leone manage their money, it's clear that women often face a different set of challenges compared to men. While access to basic financial tools like bank accounts or mobile money services is important for everyone, for women, it's particularly tied to their ability to build businesses, invest in their families, and generally improve their lives.
Despite some laws aiming for equality, like the Gender Equality and Women’s Empowerment Act from 2022, putting these into practice hasn't been straightforward. Many women still experience discrimination, which affects how they can use financial services.
Barriers to formal financial services
Getting formal financial help can be tough for many in Sierra Leone. Studies show that only about a quarter of women have access to these services. Why is that? Well, banks often ask for things like property as security, which many women don't have. There's also the issue of financial literacy – understanding how banking works can be a hurdle. Then there's the digital divide; not everyone has a smartphone or knows how to use online banking.
Even when services are available, they might not be designed in a way that makes sense for people running small businesses, like market traders or farmers.
The role of informal financial systems
Because formal banking can be difficult, many women rely on informal ways to save and borrow money. Think of groups like 'Osusu', where people contribute regularly and take turns receiving a lump sum. These systems work well because they're built on trust between people who know each other, and they're flexible.
They fit into people's lives easily. However, this reliance on informal methods also highlights a gap. When women do try to use formal banks, they sometimes report feeling uncomfortable or even disrespected by staff. This lack of a welcoming atmosphere, combined with products that don't seem to fit their needs, means many prefer to stick with the familiar, trusted informal arrangements, even if they aren't always the most efficient or secure.
Government and institutional efforts to advance inclusion
Sierra Leone's government and its financial institutions are making moves to improve financial inclusion. The Bank of Sierra Leone, for instance, is looking at ways to make things fairer. They're working on better ways to protect people who use financial services and improving how credit information is handled.
They're even considering using mobile money records when deciding if someone can get a loan, which could open doors for many. The Ministry of Gender and Children's Affairs is also on board, pushing for changes in laws and running campaigns to let people know about their financial rights. They're keen to see new ideas tested, especially with microfinance groups and tech companies, to turn discussions into real action. It's a complex picture, but there's a clear recognition that structural changes are needed to make sure everyone, especially women, can access and benefit from financial services.
Private Initiatives
Programmes such as the Bank's Affirmative Finance Action for Women in Africa (AFAWA) will provide targeted financing and training to women-led agribusinesses, while digital tools will enhance supply chain efficiency and market access throughout the agricultural sector.
The CSP aligns with Sierra Leone's Medium-Term National Development Plan and the African Union's Agenda 2063, and the Bank’s Ten Year Strategy. The strategy also supports Sierra Leone's commitments under the African Continental Free Trade Area (AfCFTA) by enhancing trade infrastructure and agricultural exports.
The strategy incorporates cross-cutting themes including climate change mitigation, gender equality, and youth empowerment. It aims to reduce Sierra Leone's carbon footprint through renewable energy projects and promote climate-smart agriculture to mitigate impacts from floods and droughts that have increasingly affected the country.
Implementation commences immediately with close coordination between the government, private sector, and civil society to maximize impact and ensure alignment with national priorities. Environmental and social safeguards will ensure compliance with national regulations, including Sierra Leone's 2022 Environmental Protection Act.
The potential of mobile money and fintech
Mobile phones have really changed the game when it comes to accessing financial services. It's not just about making calls anymore; these devices have become a gateway to payments, savings, and even credit for many people who were previously left out. Think about it – no more needing to travel miles to a bank branch or deal with complicated paperwork. This shift has been particularly significant in places like Sierra Leone, where mobile money platforms are becoming increasingly common. These services allow for quicker, safer, and cheaper transactions, giving individuals more control over their finances. The growth of fintech companies is also playing a big part, bringing new ideas and tools to the table that can help reach more people.
Addressing digital exclusion and literacy
While technology offers a lot of promise, we can't forget that not everyone has the same access or understanding. There's a real challenge with digital exclusion, meaning some people might not have a smartphone, reliable internet, or even the basic skills to use these new tools. Financial literacy is also a big hurdle; people need to feel confident and knowledgeable about how to use digital financial services safely and effectively. Without addressing these issues, we risk creating new divides. It's important to think about how to make these technologies accessible to everyone, regardless of their background or current skill level.
Innovations in digital identity and blockchain
Looking ahead, there are even more exciting technological developments on the horizon. Digital identity solutions are becoming more sophisticated, making it easier to verify who someone is without needing traditional documents, which can be a barrier for many. Then there's blockchain technology. While it might sound complex, its core idea is about creating secure, transparent, and shared records. In finance, this could mean faster international payments, better ways to manage loans, and even new opportunities for people to invest. These advanced technologies have the potential to fundamentally change how financial services work, making them more open and efficient for everyone.
Product innovation and tailored financial services
Designing products for market needs
It's not enough to just offer financial services; they need to actually fit what people need and can use. For too long, financial products have been designed without really asking the people who are meant to use them. This means many products, especially for women in Sierra Leone, just don't work for their daily lives. We need to move beyond generic solutions and create things that address specific challenges, like saving for school fees or managing unpredictable income. Thinking about how people actually live and earn is key to making financial products useful. This requires a deep look at local economies and social structures.
The promise of non-interest banking
For some communities, traditional interest-based banking is a non-starter due to religious or ethical beliefs. Non-interest banking, often called Islamic banking, offers an alternative that aligns with these values. This approach focuses on profit-sharing and ethical investments, which can be more appealing to a wider segment of the population. It's about building financial systems that respect diverse worldviews and provide access without compromise. This could open doors for many who have felt excluded from formal finance for ethical reasons.
Leveraging mobile money data for credit
Mobile money has become a common tool, and the data it generates is a goldmine for understanding financial behaviour. Instead of relying on traditional credit scores, which many unbanked individuals lack, financial institutions can use mobile money transaction history to assess creditworthiness. This allows for more accurate and accessible credit decisions, helping people get loans for small businesses or emergencies. It's a smarter way to assess risk and provide much-needed capital to those who have previously been overlooked by the banking sector.
Bridging the trust deficit in financial services
Understanding women's preference for informal systems
Many women in Sierra Leone tend to stick with informal financial groups, like the 'Osusu' system. This isn't just about habit; it's often because these informal setups feel more accessible and flexible. They're built on personal relationships and a shared understanding, which creates a sense of security that formal banking hasn't always managed to replicate. This reliance on personal trust is a significant hurdle for formal financial institutions to overcome.
Improving customer service and dignity in banking
When women do interact with formal banks, the experience can sometimes be off-putting. Reports suggest that poor customer service and a lack of respect can make women feel belittled. This kind of treatment understandably makes them hesitant to move away from the familiar comfort of their informal savings circles. Making banking interactions more respectful and dignified is key to drawing people in.
Engaging women as co-creators of financial products
Often, financial products are designed without really asking the people who will use them what they need. It's like trying to sell a tool without knowing what job it's meant to do. Instead of expecting women to fit into existing banking models, institutions should consider adapting their services to better suit the realities of women's lives and work. This means involving women directly in the design process, making them partners rather than just customers.
