March 29, 2021
By: James Kamara-Manneh
The Small and Medium Enterprises Development Agency (SMEDA) in collaboration with the Ministries of Finance and Trade and Industry have from the 25-26th March, 2021 disbursed 4,500,000,000 of MUNAFA Fund within the Western Urban Area.
ECO Bank Micro Finance SL) LTD, Harvest Micro Finance, Lift Above Poverty Organization (LAPO) and Quick & Reliable Q&R) were the Microfinance institutions through which the funds were disbursed to business beneficiaries.
In welcoming the Deputy Minister of Trade of Industry, Rev. Abraham James Sesay Jones, the Manager for LAPO, Mr. Eshiague Gabriel said they are delighted to play part in the scheme as part of their effort in complimenting President Bio’s government.
They said the fund will be disbursed to every category of people; no matter their forms of business. Mr. Gabriel noted that the purpose of the fund is for business people to secure a soft loan which they cannot get anywhere from other Microfinance institutions.
“It is not just saying it, but they are actually doing it and that is the reason for our gathering and we have discovered that so many people are interested. This is very good from the side of the government and the idea is not for a year but will continue depending on your cooperation, he said.”
Speaking on behalf of the government, Deputy Minister of Trade of Industry, Rev. Abraham James Sesay Jones expressed his appreciation to President Julius Maada Bio and described him as man of his words, “Tok n Do”.
He said President Bio made a bold promises during his campaign period; included in those promises was to provide Microfinance because majority of the traders are from the grassroots level. He said most times people who are into business tried to seek loans from the banks but they are faced with too many constraints or do not have access to funding but have the desire to do business.
The Minister said these funds are such that people can manage little sum and turn it into millions. Trade Minister said he is proud of President Bio for keeping and delivering his promises to the people; and said the MUNAFA fund is not a political thing rather a human capital investment thing.
Rev. Sesay Jones further dilated that only smaller business owners that have met the necessary steps will benefits from the scheme. In brief, he said the requirements are for business owners to have a fix-abode and should be known within the community, adding that they must have been making profits over the years.
Minister further explained that if one is qualified they can either register with Freetown City Council, CAC, Administrator General’s office, Roxy Building, or SMEDA as these are the legitimate cooperation selected by the government.
“Financial Service Providers (FSPs) is not responsible for registration of business owners, they act upon what they received from the bodies in charge and that no government officials are involved in this process, he said.”
In addition the Minister said the MUNAFA fund has no stipulated life span and that the scheme is designed in a way that it should go on till eternity, but can only be possible if the beneficiaries are cooperating by repaying the loan. He asked the beneficiaries to treat the scheme with gratitude as a sign of appreciation and to make proper use of the money received. The Minister disclosed that other development partners are observing the process and there is possibility firm them to join the government if all goes well.
After the symbolic handing over of the disbursed fund by the Minister, he admonishes all to work harder to make sure that their businesses grow from strength to strength, and that the loan should not be considered as free loan but one that should be repaid.
However, each of the beneficiaries received cash at hand of ten million and five million Leones respectively, at LAPO Micro finance office.
In another development, a disbursement was made again at the Harvest MICROFINANCE where the Manager, Mr. Prince Kandoh reiterated to the beneficiaries that the Bio government made a promise and they have lived up to those promises, especially to the business people, constituting the first set of beneficiaries.
The Minster of Trade and Industry on the other hand said, the microfinance scheme has been in existence since but there was no stability but this one is here to stay for real. He said everyone will benefit from the scheme as the process will not be on selective basis. He said the government hired the services of a consultant to guide the process and to draw up a design that will make the scheme a sustainable one, noting that the recovery rate will not be very high, and that money is from our taxes paid.
He said there is no collateral to acquire this fund, rather the process simple and it is not about politics. It is about you being a genuine business woman or man to acquire it.
At the Quick & Reliable Microfinance (Q&R), the Manager, Mr. Alpha Deen Mambu said they are the expert in doing such scheme and that’s the reason government selected very few of them to efficiently run the scheme. He admonished beneficiaries to utilize the fund well and to make that their monthly percentage payment.
He said it is the collective responsibility of all if the country should progress. Mr. Mambu described the fund as a reaping efficiency in that it can benefit someone entire family including the community if adequately used. He said the interest rate cannot be compared to anything because of it low rate. In calculation 9% annually this means 0.45% monthly which means nothing and that government just dashing them the money with little or no interest rate. In analyzing he said if beneficiaries received 5 million Leone he/ she is expected to pay 37,500.00 Leone monthly. He called on them not to be mean to the state as that will have negative effects on others who may have also qualified for the loan.
On the other hand, the Minister said there is a clear difference between politics and governance, and reminded the beneficiaries that this program is not for SLPP rather a program that is here to benefit the entire nation and that politic should not be included.
In all this, the Vice President for Sierra Leone Traders Union, Vandy Lansana who was also part of the exercise said the initiative of the government is appreciative and welcoming because the President has responded to their called for empowering the small and medium enterprises which he promised to do. He said access to finance is difficult for people operating in the informal sector. In rolling out this project, the Vice President of the Traders Union said they are ready to work with the government and will continued to urge business people to take advantage of this and to see their business improve. He further lauded the interest rate as very attractive to them..
“High interest rate has become the cry over the years and it is challenging to even acquire a loan from the banks, issues of collateral etc. This is a soft loan and we as an organization will make sure that beneficiaries must pay back; people are ready for business and they access it they must be ready to repay, he admonishes.”
Salamatu Kamara who trade in used cloth and a beneficiary of 10 million Leone said she will use the money for its right purpose, and thank President Bio who had lived up to his promise of elevating the status of the women.
Mariatu Kebbie a beneficiary of 5million Leone owner of a Pub bar, said she appreciates the loan as it will reduce the burden on them. She added that it will add on the business and make more profits to repay to government and care for her children.
Another beneficiary was Madam Rebecca Stanley, chairlady for Traders who was also received 5million Leone said as a dealer in accessories.
the project has become a reality and that her fellow market women will succeed in their business as the loan will aid them in their business endeavors.
LAPO received Le 1,250,000,000 for 195 beneficiaries, while HARVEST MICROFINANCE received Le 2,000,000,000 for 311 business beneficiaries, QUICK & RELIABLE MICROFINANCE (Q&R) received 750,000,000 for 116 beneficiaries and ECO BANK MICROFINANCE (SL) LTD received 500,000,000 for 78 beneficiaries. Therefore, it is expected that out of the disbursed money for Western Urban area 700 business owners are to be beneficiaries.