Agriculture is at the core of Sierra Leone’s economy, contributing around 31% of GDP and providing a livelihood for about 60% of the population. However, the sector, which is exposed to climate variability, seasonality and fluctuating incomes is often perceived as too risky for commercial lenders. Micro, Small, and Medium-sized Enterprises (MSMEs) and cooperatives are among the most affected by this perception of risk. Although they need capital to invest in storage, equipment, and inputs, many remain excluded from formal finance.

Uncertain returns, irregular cash flow, and limited collateral, make it difficult for many agri-MSMEs to meet standard lending requirements. In Sierra Leone, credit to the private sector represents only about 5% of GDP, limiting the ability of small businesses to invest, grow, and build a track record with formal financial institutions.

To address this gap, UNCDF, with funding from the European Union, launched a €6 million agricultural financing facility in 2025 under the Salone Access to Finance Project. The initiative is designed to expand access to credit for agri-MSMEs by attracting private sector lending through targeted risk-sharing mechanisms.

Through the facility, UNCDF partners with Vista Bank and Safe Capital Microfinance to unlock financing for MSMEs. Under the model, selected enterprises receive a combination of grant support from UNCDF and loans from the financial institutions. This blended finance approach helps reduce the cost and risk of borrowing for businesses, while giving financial institutions greater confidence to lend to enterprises and sectors they have historically considered too risky.

Launched in 2025, the facility generated strong demand from the outset, with more than 500 applications received in the initial phase alone. As it remains open, new applications continue to be submitted, and additional disbursements are underway.

From this pipeline, eight enterprises were selected for the first round of financing. Early results are already emerging, with businesses such as Sinava Women’s Agricultural Business and Ever Green Women’s Agricultural Business investing in equipment, increasing production, and creating jobs.

Financing women-led agribusinesses with growth potential

In Bo District, Sinava Women’s Agricultural Business processes cassava into higher-value products, strengthening local supply chains and creating income opportunities. In Kenema District, Ever Green Women’s Agricultural Business focuses on rice production and processing, working closely with farmers to boost yields and supply quality rice to local markets.

At the time of application, both enterprises were operating on a modest scale but showed strong potential. Sinava employed nine staff and worked with around 220 out grower farmers, processing 20 bags of cassava per month, each weighing 50 kg. Ever Green employed 20 staff, supported 900 farmers, and produced 22.9 tons of rice annually.

Based on performance, cash flow, and growth potential, each enterprise secured SLE 400,000 (approximately $16,800) through a bank-led selection process. Half of this amount is repaid as a loan, while the other half is provided as a grant, reducing the financial burden on the business and lowering the exposure of participating financial institutions.

Expanding rice production in Kenema District

With access to financing, both businesses invested immediately. Ever Green upgraded its processing capacity, acquiring peeling and sealing machines, a grinder, and a boiler. Within less than four months, rice production increased from 22.9 to 109 tons, nearly five times higher. This rapid increase illustrates how appropriately structured finance can help agri-MSMEs invest quickly, increase output, and respond to market demand.

“We are very happy with the funding terms. In addition, the facility gave us a 90-day grace period, which allows us to invest and grow our business,” says Safinatu Bockarie, Proprietress of Ever Green Women’s Agricultural Business. “Access to a formal financial institution through the UNCDF Agri-Financing Facility is expanding the market for women-led agribusinesses to thrive,” she adds.

This growth shows what happens when financing is structured to account for risk, seasonality, and cash flow constraints in agri-MSMEs. It gives businesses time to generate returns, adapt to seasonal cash flows, and reduce the uncertainty that often limits both borrowers and lenders.

Safinatu Bockarie, proprietress of Ever Green Women Agricultural Business, standing in her warehouse in Kenema District. Photo: UNCDF.

Scaling cassava production and creating jobs

With access to finance, Sinava was able to expand its operations and invest in growth. The business more than doubled its cassava processing, increasing from 20 to 52 bags per month (50 kg each). Investments in milling machines, solar panels, and improved tools also enabled product diversification, strengthening its position in local markets.

This shift reflects a broader change. Where limited cash flow once constrained operations, financing created the space to invest, plan, and grow. “For the first time, we can invest in better inputs, processing equipment, and value addition without fear,” says Aminata Abdulai, Proprietress of Sinava Women’s Agricultural Business. “This support is helping our business grow while easing the financial pressure we used to face.”

As the business expanded, so did its impact. Increased production required more labor. Sinava grew its workforce from nine to 15 staff, while Ever Green expanded from 20 to 26 employees.

These early results point to the wider effect of access to finance. When enterprises can invest in equipment, inputs, and processing capacity, they can raise production, strengthen local value chains, and create employment. For women-led businesses that are often excluded from formal finance, targeted financing can help turn growth potential into measurable economic activity.

Aminata Abdulai, Proprietress of Sinava Women’s Agricultural Business, at her production site in Bo District. Photo: UNCDF.

The experiences of Sinava and Ever Green show what becomes possible when finance aligns with the realities of agri-MSMEs. Businesses that were previously constrained are now investing, expanding, and creating jobs.

Through the Agricultural Financing Facility, UNCDF helps reduce the financial risks that often prevent banks from lending to agri-business. By combining grants with loans, the facility makes financing more accessible for businesses while giving financial institutions greater confidence to invest in higher-risk segments. Adapted terms, including grace periods, give enterprises the time they need to invest, generate returns, and manage seasonal cash flows, enabling both businesses and financial institutions to engage with greater confidence.

As a result, businesses are scaling production and creating jobs within months, while financial institutions are strengthening their experience and capacity to finance agri-MSMEs, a segment that has traditionally remained underserved.

For entrepreneurs like Aminata Abdulai and Safinatu Bockarie, access to finance is removing a key constraint. For financial institutions, the facility is demonstrating that women-led agri-MSMEs can be viable clients when risk is better understood, shared, and managed. This is the market-building role of UNCDF: using catalytic concessional capital to help create the conditions for finance to flow where it is needed most.