A recent Invest Salone survey provides important insights from Sierra Leone’s financial sector on the drivers of sustainable finance in the country, as well as predictions on the type of private sector-led projects most likely to mobilise green finance.
Invest Salone, a UK funded private sector programme, conducted the survey as part of its work with the Ministry of Finance and Bank of Sierra Leone, who are taking the lead in defining Sierra Leone’s sustainable finance roadmap.
Sustainable finance refers to financial activities and investment decisions that promote long-term economic growth while ensuring positive impacts on society and the environment such as green finance, climate finance and improving access for the financially excluded.
The survey was designed by finance specialists Mike Coates and Tony Deary, who also supported the development of Rwanda’s Sustainable Finance Roadmap. Speaking on behalf of Invest Salone, Coates said: “With the financial sector recognised as a key enabler for the achievement of Sierra Leone’s medium-term national development plan (MTNDP), the survey is intended to help identify the financial sector’s alignment with the MTNDP, commercial opportunities presented by sustainable finance, and priority policy areas to facilitate a greener financial sector.”
Survey questions cover the future of sustainable finance in Sierra Leone and the industries and types of green projects most attractive to lenders or investors. Respondents included 23 decision-makers from commercial banks, other financial institutions and financial regulatory bodies.
According to the survey results, most respondents felt that accessing lower cost finance, alignment with local and international trends and demographics, and protecting and improving the environment are the leading drivers for developing sustainable finance in Sierra Leone. Industrial or manufacturing small- and medium-sized enterprises and agribusinesses were surveyed as the most likely to need finance for green projects or green business models.
On the question of the green projects most likely to attract lending or investment, respondents highlighted industrial and manufacturing ventures such as eco-friendly mining and mineral processing, commercial waste management, industrial pollution reduction and industrial energy efficiency; green energy initiatives such as hydropower, solar and waste to energy; and consumer ventures such as eco-friendly cooking solutions and household solar. Sustainable agriculture and community solar for farms were also considered attractive to lenders and investors.
Policy priorities for developing a green financial sector in Sierra Leone included capacity building in green finance for lenders and investors, a sustainable finance roadmap and regulatory guidance on environmental and climate risk management.
Explore the survey results on our Resource Bank.
