February 16, 2021
By: Mohamed M. Sesay
President Julius Maada Bio has on the 12th of February, informed the people of Makeni that due to his government anticipation amidst the covid-19 pandemic, the country’s Economy has remained buoyant wherein, essential commodities have been in the market at relatively low prizes, mining industries have continued working without laying-off of staff, and the private sectors including banks have also remained operational throughout the covd-19 pandemic.
Making his statement during the official commissioning of the first Union Trust Bank (UTB) Branch in Makeni, President Bio said his government has remained focus on his key programmatic goals named in the New Direction Manifesto and the national Medium Term Development Plan. He added that as a background for his government targeted policy on financial inclusion, he said his government recognizes access to finance and also the growing of the private sector for the extension of financial services to the rural population which constitutes 60% of the country’s population that has invariably remained limited due to the over concentration of financial institutions in the urban areas.
President Bio further noted that only 1% of individuals are covered by the Bank of Sierra Leone’s credit registries which according to him, means that banks are unable to properly check individuals credit histories wherein increasing the risk of lending money. He further observed that outreach of the Micro Finance and community banking sectors are also limited due to poor government and communication technology within the banking systems.
President Bio continued that his government has strengthened the regulatory and supervisory framework around banking, and work for addressing risk within the banking systems and other financial institutions. He added that his government has also supported the expansion of mobile telephone coverage and fiber penetration, adding that the benefit of mobile telephone coverage and fiber penetration to the banking sectors of leveling resource investment in communication, infrastructure and technology is very huge and visible.
“It is also my government assessment that one of the most viable means of poverty alleviation is to expand access to finance while providing training in business skills in line with our Human Capital Developments, relevant and purposeful education. We believe that just providing monies to people who will not know how to use the money for doing business is as good as wasting that money. It is good for developing the private sector, and it is good for nurturing the right positions for economic growth and poverty reduction in Sierra Leone’’ he said.
President Bio furthered that Union Trust Bank has contributed significantly to providing access to finance which has led to the creation of business opportunities for small and medium enterprises across the nation. He added that Union Trust Bank has also helped to providing short terms capital to economic agents, adding that Union Trust Bank is the country’s foreign owned bank and also the first bank with Western Union money transfer agencies across all districts in the country. He concluded by encouraging the Union Trust Bank to adopt more strategies to easy themselves and even more competitive hedge over international and commercial banks, asserting that his government would create the enabling environment in order to support the growth of indigenous private sector banking in Sierra Leone.
The Minister of Finance Jacob Jusu Saffa reaffirmed that the Union Trust Bank is the only indigenous bank in the country and therefore government is pleased to have opened the first Union Trust Bank Branch in Makeni. He added that since the establishment of the Union Trust Bank in 1995, the UTB has continued to make significant contribution in the banking sector. He furthered that UTB stands out of it exceptional commitment in promoting small and medium term enterprises targeting the less privileged across the county, alluding that the commitment of the UTB is align with government commitment manifested in the Munafa Fund and also in the manifesto commitment of the New Direction Government in providing start-up capital to small and indigenous business.
Minister Saffa further intimated that, the UTB has trained countless number of Sierra Leoneans who are now serving as high-flyer in in the banking sector providing credit facilities to many indigenous businesses in the country. He reaffirmed that it is also part of government’s commitment especially the ministry of finance in particular, to promote financial investment in term of establishing banking branches like the UTB has done for Makeni. He assured participant that his ministry is committed to promoting financial stability and therefore, has asked the Central Bank to start the implementation of financial inclusion projects.
The Bank Governor of Sierra Leone Kelfala Morana Kallon also said that, no sooner he became Bank Governor, than he instructed all the Managing Directors of Banks that he wants to see the banking sector is promoting financial inclusion, adding that the commissioning of the UTB Makeni Branch have shown that UTB is working in connection to what the he told them as the Bank Governor. He therefore commended the management of UTB for adhering to his clarion call. He concluded that in a view of promoting financial inclusion, the Bank of Sierra Leone has been working hard to develop the deposit insurance for savers so that should the ever banks go bankrupt in the country, he said the savers would be fully reimbursed.
On his part, the Chief Executive Officer of UTB James Sanpha Koroma said he felt immeasurably gratified for having the President and Ministers of Government as his host for the commissioning of UTB Makeni Branch. He intimated that when he first introduced Western Union Money service in the country, he said Makeni was the first contact place for the establishment of the Western Union money service, and also introduced Small Medium Enterprises (SMEs) in Makeni. He added that, the commissioning of the UTB was only to consolidate the many gains he has made in promoting financial inclusion in the banking sector. He continued that his next plan is to ensure that Kabala has a UTB branch acknowledging that, people normally travel with huge cash from Kabala going to Freetown for Deposit. He furthered that the people of Sierra Leone are lucky to have many banks nowadays and therefore advised that, monies generated from an inclusive banking activities should be used in the country for the development of the people.
