By: Thaimu Bai Sesay
The Small and Medium Enterprises Development Agency (SMEDA) has on Wednesday 4th January 2023, disclosed that the agency reclaimed 91% of its loan recovery drive under the Munafa Fund Project nationwide in the pilot phase.
The Munafa Fund Project under SMEDA is a Government Microfinance Scheme launched by His Excellency President Julius Maada Bio on the 12 February 2021 as support to promote and develop Small and Medium Enterprises (SME) in the country.
According to Shaka Samuel Sankoh, Chief Executive Officer (CEO) of the Small and Medium Enterprises Agency, the Munafa Fund Project was thought of by President Bio as a reliable means to overcome the perennial problem of short term loans that come with high interest rate. He further explained that the project was an answer to the cries Sierra Leoneans made to President Bio during his campaign period to develop a project that would speak to the needs of SME finance.
Addressing members of the press, SMEDA CEO statistically intimated that the project original target was to meet 50,000 beneficiaries in all the 16 districts in the country covering four years of operation. He however confirmed that the pilot phase of the project was fortunate to meet 4,100 beneficiaries in all districts. He continued noting that out of the 4,100 beneficiaries, provision has been made for a total of 6,209 beneficiaries which accounts for 73% of female representatives.
Shaka Sannoh affirmed that they have been able to recover a total amount of 23,607,000,000 New Leones representing 91% loan recovery rate from all SLBs.
He expressed that the recovery rate explicitly speaks volume of the crucial need and significance of the project. He continued that due to incomplete recovery rate, they have however recovered 63% to the Bank of Sierra Leone.
Instructed by the government, CEO affirmed that the Munafa Fund Project under SMEDA is set for the second phase of loan disbursement. He disclosed that the FSPs who have not fully recovered their loans would not be included in the second phase of the project.
He maintained that they would not be removed from the scheme but would be encouraged to do the needful.
Stating the various total amounts allocated per each district, Shaka Sannoh intimated that the amount of loan per individual beneficiary was from 5 to 10 million old Leones depending on the request made. He revealed that the loan caries only a single digit interest rate which is 9% and the loan term was for 12 months. He disclosed that adjustments have been made for the second phase and the loan term would be 24 months which is 2 years while the monthly subscriptions maintain.
