Despite several macro and microeconomic challenges (e.g., inflation, currency devaluation, commodity markets), global health crises (Ebola, COVID-19), and other competing priorities faced by the country, a good foundation has been laid in Sierra Leone thanks to the accomplishments of the first National Strategy for Financial Inclusion (2017-2020).

On the 14th of April 2022, under the guidance of Prof. Kelfala Kallon, the Governor of the Bank of Sierra Leone, the Second National Strategy for financial inclusion (2022-2026) was launched. The event was hosted in the presence of Ministers, Senior Government Officials, Representatives of the Diplomatic Corps, and Heads of Development partner agencies and International Organizations. It was also attended by Heads of Local and International NGOs and Heads of Financial Institutions, Private sector, and Civil Society Organizations.

The NSFI-2, a focused roadmap for Sierra Leone to achieve greater levels of financial inclusion.

The NSFI-2 is to build on the successes chalked in the implementation of NSFI-1 and address the challenges identified in the first strategy. The development of the new strategy is based on recommendations from the evaluation of NSFI-1, which was carried out by an independent consulting firm between March and June 2021 with the support of UNCDF. The strategy development process also considered feedback gathered during stakeholder consultations with industry players within the financial inclusion space. The NSFI-2 aims to take a more focused approach to increase access to, enhance the quality, and increase usage of financial products and services, by prioritizing strategic interventions, targeting women, youth, rural populations, and MSMEs.

The new strategy has three priority intervention areas (PIAs):

- access to client-centric financial services and products,

- Digital Financial Services (DFS) and Financial Literacy,

- Financial Education, and Consumer Protection.

Unlike NSFI-1, which had six strategic interventions, NSFI-2 is hinged on these three PIAs to make the objectives and activities more focused and sequenced across the underserved groups targeted (women, youth, MSME, and rural).

Improved and simplified governance structure

The governance structure of the NSFI-2 has been streamlined to facilitate decision-making and speed up implementation. As chair of a Peer Consultative Forum for Financial Inclusion, the President or their designate provides a higher level of attention that financial inclusion deserves. The NSFI-2 will be implemented under the strategic guidance of a Financial Inclusion Executive Committee, chaired by the Governor of the Bank of Sierra Leone, with the Ministry of Finance represented as a statutory member. Three supporting technical working groups aligned with the three PIAs will include technically competent and relevant stakeholders. They should have the willingness and proven ability to offer sound technical recommendations which can move swiftly to the Executive Committee for more efficient decision-making and approval. The Bank of Sierra Leone (BSL) will assume ownership of and accountability for commitments under each PIA. It will share ownership and accountability in a co-chair arrangement with stakeholders in each working group.

The importance of data and call for collaboration

There is also a deliberate effort to emphasize the importance of data and information in NFIS2. Data will be important in understanding whether NSFI-2 is achieving its objectives and in assessing the strategy’s outcomes and impact. This has been reinforced by developing new indicators, a measurement framework, a theory of change, and new reporting mechanisms. This is key to the Bank of Sierra Leone’s ability to monitor and report financial inclusion progress and challenges.

The development of the NSFI-2 demonstrates the commitment of the central bank, government, and stakeholders to financial inclusion. In his keynote address, Governor Kallon stressed the need for all stakeholders to work together to implement the five-year strategy to ensure its goals and objectives are achieved.

Other speakers, including the representative of the United Nations Resident Coordinator, the World Bank country manager, and the deputy minister of finance, all highlighted various improvements in the financial sector landscape in Sierra Leone over the past years. They called for a collaborative effort of industry players to further expand on the work already done.

The NSFI-2 strategy document can be accessed below :

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