About
Invest Salone and Sierra Leone’s financial sector have launched the first Voluntary Sustainable Finance Principles (VSFPs) for financial institutions in Sierra Leone. The VSFPs were developed by the Sierra Leone Association of Commercial Banks (SLACB) and the Sierra Leone Association of Microfinance Institutions (SLAMFI), with technical support from Invest Salone, a UK-funded private sector development programme. The VSFPs framework comprises nine voluntary principles designed to help financial institutions integrate environmental, social and governance (ESG) considerations into lending, investment, risk management and business decision-making. It represents Sierra Leone’s first coordinated, sector-wide framework for integrating ESG considerations into financial sector decision-making and provides a common reference point for banks and microfinance institutions as they respond to emerging sustainability risks and opportunities.
The VSFPs and accompanying sector guidance notes are available to download below. Their adoption marks an important milestone in Sierra Leone’s efforts to build a more resilient, inclusive and investment-ready financial sector, demonstrating the impact that can be achieved through collaboration between Sierra Leonean institutions, the private sector and UK-supported technical assistance.
Why this matters for Sierra Leone
The VSFPs respond to a growing recognition within Sierra Leone’s financial sector that ESG considerations are becoming increasingly important to risk management, investment decisions and long-term business performance.
Sierra Leone faces an urgent need to mobilise finance that supports sustainable and inclusive growth. Climate change, environmental degradation and persistent social challenges present risks not only to communities and ecosystems, but also to the long-term resilience of our financial sector. At the same time, these challenges create opportunities for innovation, responsible investment and partnerships that can drive economic transformation. As the custodians of financial intermediation in Sierra Leone, the banking and microfinance sectors have a critical role to play in directing capital towards ethical, socially responsible and environmentally sustainable activities.
The VSFPs also align Sierra Leone with a growing number of African countries, including Nigeria, Ghana, Kenya and Rwanda, that have introduced sustainable finance frameworks to support financial sector resilience and sustainable economic growth. This is particularly important given the financing challenges facing businesses across emerging markets. According to the International Finance Corporation, micro, small and medium-sized enterprises account for more than 90% of businesses worldwide, yet businesses in emerging and developing economies face an estimated US$5.7 trillion financing gap.
Who are the VSFPs for?
The VSFPs are designed to be applied across all financial institutions in Sierra Leone, including commercial banks, community banks and microfinance institutions, to help them identify new market opportunities, access concessional and climate-related finance, strengthen risk management, and support national economic priorities.
The VSFPs provide a shared industry commitment to align lending and investment practices with sustainability objectives. They set out clear expectations for financial institutions to:
- Integrate ESG considerations into decision-making
- Respect human rights, promote gender equity and financial inclusion
- Actively contribute to the country’s national development goals, climate commitments and the UN Sustainable Development Goals.
We see the VSFPs as:
- A guide to help financial institutions assess their practices, identify gaps and strengthen alignment with global and local standards of sustainability
- A platform for industry-wide collaboration, transparency and continuous learning, enabling our members to benchmark progress and demonstrate leadership.
Developing the VSFPs
The VSFPs framework was shaped through a sector-wide consultation process led by the Sustainable Finance Principles Working Group, established jointly by SLACB and SLAMFI in February 2025. The Working Group brought together commercial banks, microfinance institutions and the Bank of Sierra Leone to develop a framework tailored to Sierra Leone’s financial sector. The process included technical consultations with all 13 commercial banks and four microfinance institutions, helping to identify ESG capacity gaps, sector-specific risks and implementation priorities.
Invest Salone, a UK International Development-funded programme, supported the process through technical assistance, stakeholder consultations and capacity-building activities. This included support to the Bank of Sierra Leone on sustainable finance and climate-related financial risks, training on ESG issues, knowledge-sharing with regional peers and support for the development of both the Principles and accompanying implementation guidance.
Putting the VSFPs into practice
Following their adoption, participating institutions will begin implementing the VSFPs within their organisations, supported by sector guidance notes, capacity-building activities and ongoing coordination through the Sustainable Finance Principles Working Group. The next phase will focus on strengthening institutional capacity, embedding ESG considerations into decision-making processes, and supporting the development of sustainable finance products and services. Over time, the VSFPs are expected to contribute to stronger governance, improved risk management and greater access to sustainable sources of finance.
You can download the full set of principles and sector-specific guidance on their implementation below.
The VSFPs at a glance
1. Sustainable economic growth
“We will promote projects and other activities that contribute to a greener, cleaner and more equitable economy in Sierra Leone.”
2. Ethical conduct and exclusions
“We will not finance activities that are unethical, unlawful or contribute to significant social or environmental harm.”
3. Human rights
“We will respect human rights, gender equality and social equity through our business strategy, operations and client engagements.”
4. Financial inclusion
“We will prioritise access to financial services for all segments of the population, particularly those traditionally underserved or excluded.”
5. Operational sustainability
“We will avoid, minimise or offset the negative impacts of our business operations on the environment and local communities in which we operate and, where possible, promote positive impacts.”
6. Environmental and social risk management
“We will incorporate environmental and social factors into our business decision-making to prevent, reduce or mitigate adverse impacts.”
7. Environmental and social governance
“We will establish strong and transparent environmental and social governance within our own institutions and evaluate our clients based on this same principle.”
8. Capacity building
“We will develop the capacity necessary to identify, assess and manage the environmental and social risks and opportunities associated with our business activities and operations.”
9. Transparency and accountability
“We will promote transparency and accountability and regularly review and report on our progress in meeting all the Principles at the individual institution and sector level.”
Discover more about sustainable finance in Sierra Leone
- Unlocking climate finance in Sierra Leone: Opportunities and strategies
- Sierra Leone’s first ESG conference highlights its positive impact on business growth
- First working group meeting for voluntary Sustainable Finance Principles in Sierra Leone
- Mobilising green finance: Insights and predictions from Sierra Leone’s financial sector
- The commercial banking sector discusses voluntary sustainable lending principles for Sierra Leone