At Invest Salone’s recent showcase, the spotlight was on a coalition-led approach to private sector development in Sierra Leone driven by public sector, business sector and development partner collaboration.
The problem of finance that fails to meet the realities of businesses on the ground was an important theme, with the showcase highlighting the misalignment between traditional financial products and the actual needs of local businesses.
Archibald Shodeke, Invest Salone consultant said: “SMEs, including agribusinesses, have distinct financing needs, yet their access to growth capital is limited due to the short-term structure, stringent collateral requirements and unmatched cashflow of the bank’s credit facility.”
Invest Salone illustrated this challenge through two case studies at one of the showcase’s exhibitions titled “Finance That Fits”.
Invest Salone’s partnership with Vista Bank and the Small Foundation
The first case study showed how a partnership between Invest Salone, Vista Bank Sierra Leone and the Small Foundation is shifting the bank’s portfolio toward lending to SMEs especially agribusinesses by strengthening credit assessment tools, improving sector knowledge and backed by a risk-sharing guarantee.
The outcome went beyond increased lending. Vista Bank is gaining the capacity and confidence to finance sectors previously excluded from its portfolio. This initial intervention also attracted substantial follow-on capital from Development Finance Institutions, resulting in new credit lines for women, youth and agribusinesses.
Invest Salone’s support of the launch of the Redsalt Angel Investment Network
The second case study demonstrated how Invest Salone supported the launch of the Redsalt Angel Investment Network (RAIN) in Sierra Leone to address the funding gap in startups. By enabling patient, risk-tolerant equity investment from local and diaspora investors, RAIN is helping high-growth startups access the capital they need to scale.
Within the broader showcase, Finance That Fits offered a clear call to action for policymakers, financial institutions, investors and development partners by highlighting that systemic impact occurs when financial products are designed to suit real business needs. When capital fits, markets deepen, confidence grows and inclusive growth in Sierra Leone becomes achievable.
Finance That Fits in practice
At the event, Invest Salone brought the idea of Finance That Fits to life through real-world scenarios that asked a simple question: what kind of capital fits the business?
A digital startup with 5,000 active users needs US$50,000 to expand but has no physical collateral.
The right fit? Angel investment – patient, risk-tolerant equity that backs future potential rather than past performance.
This is why Invest Salone supported the launch of the Redsalt Angel Investment Network (RAIN), enabling startups to access equity designed for growth.
An agribusiness exporter has a confirmed international buyer but faces a 90-day cash gap before payment.
The right fit? Trade finance or a working capital loan – short-term finance that bridges timing gaps without giving up ownership.
Through Invest Salone’s partnership with Vista Bank, contracts are increasingly recognised as viable security for such facilities.
A profitable poultry business needs long-term capital to invest in cost-saving equipment.
The right fit? Long-term asset finance that matches the repayment period to the life of the asset, rather than expensive short-term loans or permanent equity dilution.
Together these scenarios highlight a core lesson: when finance is aligned to business realities, capital becomes a catalyst for growth rather than a constraint.