Sierra Leone Stakeholders Examine Financing Options for Feed Salone

Government officials, financial institutions and development partners have held discussions in Freetown on expanding agricultural financing and attracting more private-sector investment under Sierra Leone’s Feed Salone initiative.

The engagement brought together the Ministry of Agriculture and Food Security, the Bank of Sierra Leone, the United Nations Capital Development Fund, commercial banks, microfinance institutions and international development partners, including the European Union. The meeting took place at the Radisson Blu Hotel in Freetown.

Participants examined financing opportunities in the rice, poultry and onion value chains, with discussions covering the needs of businesses involved in farming inputs, cultivation, processing, storage, transportation and marketing.

Focus on agricultural lending

The discussions also considered challenges affecting agricultural lending and possible measures to make the sector more attractive to commercial investors. The roundtable was intended to strengthen cooperation between policymakers and financial institutions while identifying ways to channel additional private capital into productive agricultural activities.

Dr. Henry Musa Kpaka, Minister of Agriculture and Food Security, encouraged banking executives to identify practical incentives, financing arrangements and policy interventions that could support increased lending to agriculture.

Dr. Ibrahim Stevens, Governor of the Bank of Sierra Leone, reaffirmed the central bank’s commitment to a financial environment that promotes responsible lending, private-sector participation and greater investment in agriculture.

Matching Grant Facility

A key financing instrument discussed was the €6 million Matching Grant Facility established under the European Union-funded Salone Access to Finance programme. The facility combines commercial loans with grants for eligible businesses, with the aim of improving access to finance, reducing borrowing costs and addressing barriers to agricultural investment.

The facility is expected to create opportunities for farmers, agricultural entrepreneurs and established agribusinesses seeking to expand operations, improve productivity and strengthen their participation in domestic agricultural value chains.

Representatives of Vista Bank and Safe Capital Microfinance shared their experiences implementing the Matching Grant Facility. They highlighted the importance of proper financial records, credible business plans and reliable business operations for businesses seeking commercial financing.

The discussions did not establish the amount of funding already approved or disbursed through the facility, and no specific eligibility criteria or application process was provided.

Supporting Feed Salone objectives

Feed Salone prioritizes increased agricultural production, improved food security, job creation and reduced dependence on imported food products. Investment in agricultural infrastructure, modern farming technologies, processing facilities and reliable market systems has been identified as important to achieving those objectives.

The participating institutions are seeking stronger partnerships to improve access to investment capital and support commercially sustainable agribusinesses. The engagement also highlighted blended finance mechanisms, which combine development assistance with commercial lending to support viable agricultural enterprises.