The UK Government, through its development finance institution, British International Investment (BII), has announced a $25 million risk-sharing initiative with Ecobank Sierra Leone. This partnership aims to stimulate private sector growth in key economic sectors by providing crucial support to ambitious local businesses.

This facility includes technical assistance to help Ecobank expand its lending services, particularly benefiting small and medium-sized enterprises (SMEs). In Sierra Leone, SMEs employ about 70% of the population but often face significant challenges in accessing capital due to limited financial options, high collateral demands, and short loan durations.

BII's investment is a pioneering move, promoting local currency lending and helping Ecobank increase credit limits and extend loan terms. This will expand Ecobank's loan portfolio, driving business expansion, job creation, and broader private sector contributions to the economy.

This partnership is the first investment under the Africa Resilience Investment Accelerator (ARIA), a joint initiative by BII and the Dutch development bank FMO. ARIA focuses on promoting investments in frontier markets like Sierra Leone.

Sierra Leone’s economy has been under strain due to a depreciating currency, a large trade deficit, and insufficient infrastructure investment. BII’s investment will target vital sectors such as renewable energy, agriculture, agro-processing, infrastructure, and manufacturing, all of which are critical to spurring economic growth.

UK Minister for Development, Anneliese Dodds, expressed optimism about the partnership’s impact, noting that it will boost local lending, inject much-needed capital into high-growth sectors, and support job creation. Samir Abhyankar, Managing Director of Financial Services at BII, emphasized the potential of this initiative to provide essential capital for local businesses to thrive and generate employment.

Sebastian Ashong-Katai, Managing Director of Ecobank Sierra Leone, highlighted the importance of this partnership in strengthening Ecobank's ability to support local businesses. Alex Kucharski, BII's Head of West Africa for ARIA, also emphasized that this investment will provide much-needed growth capital for underserved businesses in Sierra Leone.