The Government of Sierra Leone launches the Digital Financial Services (DFS) Assessment of 609 smallholder farming households across five value chains selected based on their potential for greatest improvements in the lives of smallholder farmers: rice, cocoa, cashew and poultry and vegetable. As a first step toward reaching smallholders, this assessment provides valuable insights into their needs, preferences, aspirations, and behaviours.

Honourable Minister of Finance Jacob Jusu Saffa: The failure to understand the needs, behaviours and preferences of the smallholder farmer often breeds a disconnect between the solutions and services intended to improve their conditions and the uptake of these services. Digital financial services offers an attractive alternative to get things right.

This assessment is anchored in the Digital Financial Services Task Force for Smallholder Farmers, a sub group of the national DFS Working Group, led by the Ministry of Agriculture, Forestry and Food Security, with support from the Bank of Sierra Leone, EU-funded Boosting Agriculture and Food Security (BAFS) project and the United Nations Capital Development Fund (UNCDF).

Agriculture is a vital component of the Sierra Leonean economy. It contributes about 53% to the nation’s GDP and employs over 80% of the country's economically active population including more than 90% of those in rural areas. While financial inclusion has been making steady progress in Sierra Leone, there is a big opportunity to focus on smallholders who are unable to access loans to invest in their farms, trapped in vicious circle of low productivity, low yields and poor income. Farmers with access to finance can invest in fertilizers and seeds to increase their yields and incomes. New technologies have the potential to give farmers access to the financial tools necessary for growth.

These insights into the financial lives of smallholders provide valuable direction to influence policy, regulations and investments in private sector and financial technology solutions to improve access to finance, know-how and access to information for smallholder households.

Head of EU Delegation to Sierra Leone Ambassador Tom Vens: “The EU is happy that we were able to fund this catalytic piece of work. In particular we applaud the leadership of the Government of Sierra Leone to champion this important area of opportunity that can transform Sierra Leone’s agriculture sector.”

To read the report, please follow this link.