Blended Finance Match-Making Event

Supporting Informal Enterprise's transition towards sustainable growth and formalisation

Statement by Fredrick Ampiah (Mr.),
UNDP Resident Representative
Sierra Palms Resort, Lumley Beach Road, Freetown, on Thursday, 20th February 2025

Minister of Trade and Industry, Hon. Mr Ibrahim Alpha Sesay
Minister of Finance, Hon. Sheku A. Fantamadi Bangura
The Governor, Bank of Sierra Leone – Dr. Ibrahim Stevens
Excellencies and Development Partners, 
Representatives from Ministries, Departments and Agencies,
Representatives from Financial Institutions,
Representatives from Private Sector,
Distinguished guests,

It gives me immense pleasure and honour to join you today at this pivotal blended finance match-making event.

Today’s event marks a significant milestone in our shared mission to foster sustainable growth through support for the formalization of the informal sector in Sierra Leone. This event is a vital part of the four-year, EU-funded regional project implemented by the United Nations Development Programme (UNDP) and International Labour Organization (ILO), in collaboration with the Ministry of Trade and Industry. The project aims to support informal enterprises' transition towards sustainable growth and their formalization in Mozambique, Sierra Leone, and the Solomon Islands. Our efforts in this journey are focused on enhancing access to financial resources for informal businesses and facilitating their integration into the broader economy.

Ladies and Gentlemen,

The Informal sector is a backbone of the economy and vital for job creation contributing about 92% of the national labour force. In Sierra Leone, the informal economy is a cornerstone of economic activity and employment but faces considerable challenges, including limited access to capital, inadequate formal financial services, lack of technological support, and insufficient business development resources. This illustrates the urgent need for targeted interventions to improve financial access to those in the informal economy and promote financial inclusion and socio-economic empowerment.

With this recognition, UNDP has been accompanying Sierra Leone on its journey to more robust, sustainable and inclusive development through our support for informal economy actors, MSMEs and startups.

•    UNDP implemented the Growth Accelerator Programme which aims to support youth and women MSMEs to scale and grow their business. The Programme provided business development services, business mentorship and technical assistance, support for access to finance and market and networking opportunities. Over the past year, the programme has created 177 new permanent jobs, 3,928 new temporary jobs, 27,794 new customers, and 125 new markets both nationally and internationally.
•    UNDP has initiated the “Timbuktoo-UniPod Pan African initiative” aimed at turning young people’s ideas into entrepreneurship ventures and sparking startups. This initiative presents a unique opportunity to support up to 1,000 African tech start-ups across the continent with an estimated 1 billion US dollars to be invested in the next 10 years. The Timbuktoo-UniPod in the country is being established at Fourah Bay College, University of Sierra Leone to support cutting-edge innovation.

•    Through the United Nations Peacebuilding Fund project jointly implemented by UNDP and UNCDF, in collaboration with the Ministry of Youth Affairs, we are providing support for youth bike riders to gain financial skills and improve their access to finance through the development of loan products specifically tailored for them.

Ladies and Gentlemen, 
The baseline study conducted through this project underscored the transformative potential of blended finance in Sierra Leone. Blended finance can be utilized to effectively empower financial intermediaries to better serve the informal sector, ultimately fostering greater financial inclusion.

The study further outlined key challenges and insights, for example, there is no centralized database for such arrangements in Sierra Leone. There is an urgent need for blended finance to focus on the targeting of specific groups, such as women, and youth and increase its accessibility during crisis like Ebola and COVID-19. The development partners’ support can sometimes lead to repayment issues due to misconceptions about grants versus loans.

Ladies and Gentlemen,

The development of a comprehensive directory of financing options aligned with a variety of sources with recipients in the informal sector is of utmost importance. Extending financial services to Sierra Leone's informal economy and building links between intermediaries and the informal sector are crucial steps toward fostering sustainable economic growth and enhancing financial inclusion.

This blended finance match-making event provides an invaluable networking platform, encouraging all stakeholders to connect and explore potential collaborations. By strengthening both individual business opportunities and the vibrant ecosystem that benefits the entire informal economy, this gathering brings together financial intermediaries, policymakers, and development finance institutions, to forge partnerships. These strategic alliances will facilitate the transition of informal businesses toward enhanced financial inclusion, sustainable growth and formalization. I encourage financial intermediaries to engage actively with fund providers, and representatives from the informal sector.  

In conclusion, I convey my heartfelt gratitude to the Government of Sierra Leone, the European Union Delegation, the Organisation of African, Caribbean and Pacific States, and the International Labour Organization for their unwavering support and partnership. Your collective efforts are vital to realizing this initiative. UNDP reaffirms its commitment to collaborating with the EU and other partners to strategically leverage resources, complementing the Government of Sierra Leone’s vision for inclusive economic growth and sustainability.

We are dedicated to supporting the aspirations of the government and the people of Sierra Leone for sustainable peace and development. Let us actively engage, share insights, and explore collaborative efforts to enhance financial inclusion and facilitate the transition of informal enterprises. Together, we can make a lasting impact.

Thank you for your kind attention.