By: Aminata Sesay
The President of the Sierra Leone Association of Commercial Banks (SLACB), Alhaji Mohamed Samoura, has called for major reforms in the country’s financial sector, urging commercial banks to reduce their heavy dependence on government securities and increase lending to the private sector to drive national development.
Speaking at a recent economic policy forum, Samoura stressed that banks have become overly reliant on government treasury instruments. While these instruments are safe and low-risk, he noted that they significantly restrict the flow of credit to productive sectors of the economy.
“For too long, banks have concentrated on government securities because they are less risky. But if we are serious about developing the private sector, we must begin transitioning toward private-sector lending,” Samoura said.
He outlined several key challenges that discourage banks from extending credit to local businesses, foremost among them being the weak financial reporting culture within the private sector.
“Many local businesses do not present authentic or credible financial statements when seeking financing. This makes it extremely difficult for banks to assess their viability,” he explained.
Samoura added that poor governance structures, weak bookkeeping practices, and limited financial literacy continue to hinder access to credit, particularly for small and medium-sized enterprises (SMEs).
The SLACB President further observed that the banking sector’s reliance on legal mortgages and landed property as primary forms of collateral excludes many small businesses and first-time entrepreneurs who lack fixed assets.
“Not everyone owns land or property, yet they may be running viable businesses. We must explore more flexible collateral options beyond landed assets,” he urged.
While acknowledging the existence of the collateral registry at the Bank of Sierra Leone, Samoura noted that access remains limited and bureaucratic for commercial banks.
He also highlighted the absence of a fully functional and accessible credit reference bureau, which he said undermines private-sector lending. Without an efficient credit information system, some customers can secure multiple loans from different banks many of which end up as bad debts.
“There are cases where one customer holds facilities in five banks, and in four of those banks the loans have gone bad. Without a robust credit reference system, banks cannot adequately assess creditworthiness,” he cautioned.
Samoura called on the Central Bank to improve access to the credit reference bureau, allowing banks and private-sector players to verify borrowers’ exposure and repayment history in real time.
He further revealed that many commercial banks are understaffed in key specialized areas such as risk assessment, credit analysis, and SME financing. This shortage affects their ability to properly evaluate and manage long-term private-sector loans.
“If we truly want to unlock the potential of the private sector, banks must be supported with long-term funding so they can provide structural and project financing,” he added.
In conclusion, Samoura emphasized the need for coordinated reforms involving commercial banks, regulators, and private-sector stakeholders.
“We need stronger financial literacy, better-structured businesses, improved governance practices, and open access to credit information. Only then can we build a financial ecosystem that truly supports private-sector growth,” he said.
Samoura expressed optimism that with the right reforms, Sierra Leone’s banking sector will be better positioned to support entrepreneurship, job creation, and economic transformation. “We need stronger financial literacy, better-structured businesses, improved governance practices, and open access to credit information. Only then can we build a financial ecosystem that truly supports private-sector growth,” he said.
Samoura expressed optimism that with the right reforms, Sierra Leone’s banking sector will be better positioned to support entrepreneurship, job creation, and economic transformation.