UNCDF in Sierra Leone
West and Central Africa and the Caribbean Region
Loans
Guarantees
Investment grants
The United Nations Capital Development Fund in partnership with the Government of Sierra Leone, development partners and private sector players, is leveraging its financial instruments to play a catalytic role for the economic growth of the agriculture sector. Through innovative financing models, UNCDF is developing a facility to unlock private sector investments and contribute to sustainable and inclusive economic development whilst creating jobs.
Under its €12 million euros flagship project funded through the EU Jobs and Growth Programme, UNCDF is facilitating access to finance for Agri-MSMEs under four critical pillars, aligned with the strategic objective of the Government of Sierra Leone's Medium Term National Development Plan, and BIG FIVE CHANGERS:
- Investment;
- Insurance;
- Digitalization and;
- Business environment
Unlocking Investment for Agri-MSME Growth
UNCDF in partnership with the Government of Sierra Leone and financial institutions, is deploying a matching grant facility designed to crowd in funding from private sector FSPs whilst extending credit to 400+ Agri MSMEs. This facility blends grants with bank loans alongside from selected participating financial institutions, resulting in the mobilization of private sector capital, in derisking downstream the bank loans with actors in the agrobusiness value chain, and in the moderation of loan interest rates for end beneficiaries. Additionally, the facility will strengthen financial institutions’ agricultural finance capacity and support MSMEs with pre- and post-investment assistance. The intervention will mobilise at least 7M USD from private sector capital to be directed to the agribusiness sector, increasing the portfolio share of agribusiness in the participating FSPs.
Protecting farmers with Sierra Leone’s first weather index insurance
UNCDF, in collaboration with the Ministry of Agriculture and Food Security, the national regulator (Sierra Leone Insurance Commission) and Activa International piloted and deployed a pioneering ‘Weather Index Insurance Product’ targeting 4000+ Agri MSMEs. This climate risk insurance product addresses key climate-related financial risks, including drought and excess rainfall, which threaten smallholder incomes and productivity. In addition, this intervention was paired with a targeted customer sensitization campaign, strengthening understanding and adoption of insurance products among agricultural value chain, and enhancing the resilience for these 4000+ farmers against climate shocks.
Launch of the first Weather Index Insurance in Sierra Leone. Left to Right: Commissioner of Sierra Leone Insurance Commission, Arthur Yaskey, Minister of Agriculture and Food Security, Dr. Henry Kpaka, Managing Director of Activa International, Festus Awuah, and UNCDF Programme Manager Firuz Shukurov. Photo: UNCDF/Sierra Leone.
Participant during the launch of Guarantee Trust Bank’s Agri-focused Innovative Agency Banking Model for farming communities. Photo: UNCDF/Sierra Leone.
Enabling financial services for agribusiness through digital solutions
In partnership with local financial institutions and mobile network operators, UNCDF is rolling out Agri-focused digital financial services (DFS) solutions to expand access to financial services to underserved farming communities through technology-enabled delivery channels.
Two initiatives are currently on the way:
1. Banking Access Initiative: UNCDF is working with Rokel Bank and Guarantee Trust Bank to deploy an Agri-agency banking model. This will establish up to 900 new banking agents in hard-to-reach areas across 15 districts in the country by mid-2026, effectively doubling the country’s existing agent network and bringing financial services closer to rural agribusinesses.
2. PayGo Smartphone Solution: UNCDF has partnered with Africell Mobile Money (Afri Mobile Money) to develop and promote a pay-as-you-go (PAYGO) smartphone solution to targeting 6,500 farmers across six districts (Bo, Kambia, Moyamba, Kailahun, Tonkolili, and Kenema districts. This intervention aims to at bridge the digital divide between farming communities, particularly for women and youth, by enabling access to essential digital, financial and non-financial services.
Strenghtening regulatory frameworks for agri-insurance and agri-financing
Under Pillar 4, UNCDF, in partnership with the Bank of Sierra Leone (BSL), Sierra Leone Insurance Commission (SLICOM), and the Ministry of Agriculture and Food Security, is developing critical regulatory frameworks, policies, and guidelines for Agri-Insurance and Agri-financing.
To advance this work, the project team is convening regular multi-stakeholder engagements with government institutions, regulators, and private sector actors. These dialogues are helping to align policy priorities, identify regulatory gaps, and shape reforms that support inclusive financial services for farming communities.
Together, these actions are laying out the foundation for a more resilient agricultural finance ecosystem that can better respond to climate and market risks while expanding access to finance for smallholders and agri-MSMEs.
UNCDF in partnership with the Bank of Sierra Leone (BSL), conducted a market gap assessment to examine how agricultural finance regulatory policies enable or constrain access to finance for agri-MSMEs. The assessment resulted in the publication of the Landscape Report on Agricultural Finance Regulatory Policies in Sierra Leone.
In parallel, UNCDF has supported the SLICOM in drafting Agri-Insurance Regulatory Guidelines. Together, these efforts aim to strengthen the policy and regulatory environment for agricultural finance, support the development of appropriate financial and insurance products, and improve market confidence for agri-MSMEs and smallholder farmers.
Strengthening economic resilience of youth bike riders for peace
Under a joint project with UNDP and in collaboration with the Government of Sierra Leone through the Ministry of Youth Affairs and the Sierra Leone Bike Riders Union, UNCDF is empowering bike riders across five districts: Bombali, Kenema, Bo, Western Area Rural, and Western Area Urban Districts.
The intervention aims to empower female and male youth bike riders as sustainable agents of peace, by strengthening their economic resilience. It targets 6,000 youth bike riders through entrepreneurship, business and financial skills training, vocational skills development for alternative livelihoods, and the deployment of a tailored financial product for bike riders. This initiative is funded by the United Nations Peace Building Fund.
To date 4,742 youth bike riders have been trained in financial literacy; 20,000 youth and community members reached through bulk SMS messaging on alternative livelihoods, and 1,088 bike riders introduced to digital savings platforms.
Female bike rider in Kenema District, Sierra Leone. Photo: UNCDF/Sierra Leone.
User at the Public toilet built in Kamayama, Sierra Leone. Photo: UNCDF.
Transforming water access into investment platforms for peace
Under the Blue Peace Financing Programme, UNCDF uses water as an entry point for multi-stakeholder cooperation, transforming water services into investment platforms.
In December 2020, UNCDF, the Freetown City Council (FCC), and the Swiss Agency for Development and Cooperation (SDC) jointly launched the Freetown Blue Peace Financing Initiative to mobilize innovative finance for sustainable water projects in Sierra Leone’s capital. The initiative aims to deliver safe, affordable and sustainable water, sanitation, and hygiene facilities (WASH) as an extension of delivering safe, affordable, sustainable while demonstrating viable financing models for water infrastructure in least developed countries.
The programme initially proposed 40 water kiosks and 15 public toilets. By 2022, additional capital was mobilized, enabling the construction of 25 additional water kiosks, with support from the UN Peacebuilding Fund.
Across these initiatives, the United Nations Capital Development Fund continues to deploy innovative finance solutions to drive sustainable development and economic resilience in Sierra Leone.
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Our partners
UNCDF’s work in Sierra Leone is made possible through funding from the European Union, the United Nations Peacebuilding Fund (UNPF) and the Swiss Agency for Development and Cooperation (SDC), and through close collaboration with the United Nations Development Programme (UNDP) and the Government of Sierra Leone.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
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Contact us
For inquiries about UNCDF’s work in Sierra Leone, including partnerships, investment opportunities, or ongoing initiatives, please contact our team at wcac.region@uncdf.org.
