June, 2015 WESTERN AREA TO BENEFIT FROM THE COMMUNITY BANK AND FSA SCHEME The Western Area of Sierra Leone has joined the rest of the country in having its own Community Bank (CB) and Financial Services Association (FSA). The Goderich and Tombo communities, both having fishing as their princi- pal economic activity have been identified and declared suitable for the establishment of FSA and CB under the Apex Bank (SL) Ltd. Apparently, there is more con- centration of these institutions The Western Area Rural District has an estimated population of 197,098 in the Eastern Province as op- posed to the Southern and established, even in the urban Pendembu & Koindu CBs in the Northern Provinces, with the setting and compete effectively, Kailahun District and Nimikoro, exception of the Koinadugu dis- with the branch network of com- Sandor & Nimiyama CBs in Kono trict. Based on the above situa- mercial banks operating in the District. As a means of increas- tion, the need to target the country. ing rural outreach and providing Western Area Rural District and Currently, with the exception of an opportunity to deliver finan- some parts of Kambia and Bom- the Western Area Rural & Urban cial services closest to the peo- bali Districts, in the North and Districts, there are seventeen ple, YCB established sub-offices Moyamba District in the South (17) Community Banks located at Yele and Masingbi townships, was worthy. in all the districts with at least Considering the economic po- in the Tonkolili district. The es- one CB located in each district tablishment of these Community tential observed in the area, as follows: Kabala Community coupled with the fact that there Banks in the country has not Bank (KCB) in Kabala, Koinadugu is no bank, particularly rural fi- only minimized the risk of han- district; Marampa - Masimera nancial institution’s presence in dling physical cash, it has also the area , the feasibility team Community Bank (MMCB) in created avenues for accessing deemed it fit to identify the Lunsar, Port Loko district; Yoni credits for both business and Goderich community, as a viable Community Bank (YCB) in Mile agricultural activities. proposition for the establish- 91, Tonkolili district; Kamakwie The Tombo community, which ment of a Community Bank. Ac- (KCB) in Kamakwie, Bombali Dis- has a large population (most of cording to the Feasibility Report, trict; Madina CB in Madina, whom can best be described as a community bank, established Kambia District; Mattru CB in itinerant traders, with particular in this community, will "stand Mattru Jong in Bonthe District; reference to fish- traders and the test of time‟ . Zimmi CB in Zimmi, Pujehun Dis- mongers) was considered by the If supervised and provided with trict; Simbaru and Tongo CBs in the right support to operate as a Consultants to be an ideal area Boujibu and Tongo field in the for the establishment of an FSA, viable rural financial intermedi- Kenema District; Segbwema, ary, a community bank can be as an initial move. Inside De Farm Newsletter is a Monthly Publication of the National Programme Coordination Unit (NPCU). You can listen to Inside De Farm Hour on Saturdays (9:00-10:00am) & Wednesdays (9:00-10:00pm) on Star Radio & AIRadio in Freetown, Gola Agric. Radio in Kenema, Radio Njala at Njala campus, Kiss FM in Bo, Radio Bintumani in Kabala, etc. You can watch Inside De Farm TV Show on SLBC TV on Fridays, Saturdays, Sundays and Mondays. For all these and more, visit: www.npcu.org 1 COMMUNITY BANKS AND FSAS NOW REACH ALL CORNERS OF THE COUNTRY Since the year 2007, the Ministry of Agriculture, Forestry & Food Security (MAFFS) has been very instrumental in addressing the void of access to finance in the rural areas of Sierra Leone through the establishment of CBs and FSAs. The Ministry, in collaboration with the rural finance component of Global Agriculture and Food Security Programme (GAFSP) and the RFCIP under the International Fund for Agricultural Development (IFAD) has made remarkable progress in alleviating poverty among the rural poor. The NPCU, through the Apex Bank (SL) Limited, undertakes the implementation and man- agement of CBs and FSAs in the country. The RFCIP has taken on board, the six Pilot CBs, which were established and implemented by the Bank of Sierra Leone. This has brought the number to 17 CBs and 51 FSAs Status of Rural Finance and the Microfinance Sub-sector The absence of formal financial Services in most areas gave rise to the emergence of Non-Bank Fi- nancial Institutions (NBFIs) such as Non- Governmental Organizations (NGOs) in the late nineties. Originating from a welfare background, most of these NGOs now have separate entities that have been registered as MFIs. They include Finance Salone (FS), Hope Micro (HM), Salone Microfinance Trust (SMT) etc. MFIs have not only reshaped the financial landscape but have sig- nificantly improved the access of economically poor people in the informal sector to financial ser- Why Goderich (Community Bank)? vices mainly loans. Western Area Rural District forms the peninsula of Most rural areas in Sierra Leone are characterized the capital city of Freetown, with its district head- by poor rural infrastructure mainly roads which quarters in Waterloo. The community living and are sometimes impassable in the rainy season, low operating within the district are predominantly population density, high level of illiteracy, rela- fishing community, ranging from those engaged in tively undiversified economies that are unattrac- actual fishing to others, who are engaged in fish tive to financial service providers even NGOs, thus mongering activities both in Freetown and in many their relative absence in many rural communities. parts of the country. Petty trading is also very visi- As a result, finance is largely provided by informal ble in Waterloo, Tombo, Goderich, Newton and sources such as rich individuals mainly traders Grafton. During the assessment, several communi- who charge high interest rates and to a lesser ex- ties within the district were visited. These included tent relatives and friends. Goderich, Adonkia, Lakka, Waterloo,Tombo, New- However the microfinance sub-sector faces a num- town, Tokeh and York. ber of challenges such as low outreach in rural are- The Goderich community is predominantly a fish- as, lack of appropriate products to meet the busi- ing community. It is an organized community, but ness financial needs of clients (especially agricul- one that lacks banking facilities. However, there is a tural products to cater for farmers) and inadequate very large group, comprising of boat owners and funds for portfolio growth. Hence the need for fish dealers, who have come together to form a spread of CBs and FSAs. credit union. This group is in an informal form and As already highlighted, the Apex Bank (SL) Ltd, is faced with some managerial challenges. The near- with funding from the Global Agriculture and est banking facilities (mainly commercial banks) are Food Security Programme and International Fund situated in Lumley, about ten kilometers from for Agricultural Development has taken on the Goderich and their clients are mainly operators of challenge to establish one (1) CB and eleven (11) commercial enterprises. FSA in five districts - in the Western Area Rural Goderich, which is located close to Freetown, is District, Kambia, Bombali, Moyamba and headed by a locally elected representative- Head- Tonkolili . With these, the country will now boast man. It shares boundaries with the Western Urban of a total of sixty (60) FSAs and Eighteen (18) CBs Area District to the West. Its human population is covering the length and breadth of the country. estimated to be over 200,000 people. There are ten Where would these new institutions be established (10) primary schools and six (6) secondary schools and what were the criteria in selecting them? In an serving the community, with the presence of two attempt to answer these question, we bring you health centers. these short assessment on all locations. Contd. on page 5 2 THE LOVE OF MY PEOPLE BROUGHT ME HERE Ing. Samuel Banya Project Engineer Kenema It is no more any secret that in Sierra Leone, youth makes the bulk of the country's population. However, they are the group of people mostly marginalized and underemployed. But this is not how it is in the Ministry of Agriculture, Forestry and Food Security; International Fund for Agricultural Development National Programme Coordination Unit. One key feature of the NPCU in its imple- mentation of IFAD funded projects in Sierra Leone, has been its consideration and composition of the greater percentage of its workforce to the youth. In all its standards, youth remain Centre in the works and projects, giving them opportunity to showcase their talents and potentials. One of these kinds of youth that are for- people need me now. Because of this, I tunate to work with the NPCU is Samuel have held on to my job, despite all the Sama Banya. In his prime youth, he is an challenges which cut across bad terrains, Engineer by profession and staff of the frustrations working with certain con- Project based in Kenema. In one of my tractors and service providers, and the tours at that part of the country I caught likes," he expressed. up with him to sound up his opinion on "With all these, I am very pleased in let- the job as a Project Engineer in that Dis- ting you know how impressed I am with trict. the people for whom we work - the rural "My role here is to oversee and supervise poor. These people are so grateful of our all infrastructural works and feeder roads interventions that we hardly visit a com- rehabilitation under the RCPRP/RFCIP munity without being mobbed in apprecia- in Kenema District.