Key providers you need as a lender in Sierra Leone: Credit reporting agencies and more

If you think you have trust issues, try being a lender in Sierra Leone. It’s a constant battle to separate fact from fiction, and every loan feels like a gamble.

In the second quarter of 2024, Sierra Leone’s NPL rate fell to 7.5%, a significant drop from 12.1% in 2023. Great news, right? But let’s not celebrate just yet. While the numbers show progress in the banking sector and credit quality, it doesn’t mean lending is suddenly smooth sailing. Borrowers still come with limited credit histories, informal income streams, and, occasionally, a disappearing act when repayments are due.

But it doesn’t have to be this hard. Credit bureaus? They’ll tell you if that guy asking for a loan has already defaulted on five others. Payment providers? They’ll ensure your money gets to the borrower and back—on time and without drama. ID verification providers? No more lending to people who vanish into thin air.

Why lose sleep when you can run a tight ship with these tools? The difference between sinking and swimming as a lender in Sierra Leone is knowing which partners to bring on board.

Let’s break it all down.

Credit Reference Bureau Sierra Leone

Sierra Leone has only one credit bureau, and while it’s a step in the right direction, it’s far from perfect.

The bureau was established through a partnership involving the Sierra Leone government, the United Nations Development Programme (UNDP), the United Nations Capital Development Fund (UNCDF), and Kiva, a nonprofit organization focused on financial inclusion.

Currently, it covers just 2,000 individuals—less than 1% of the population. That means most borrowers have no formal credit history to speak of, leaving lenders with little to go on when assessing risk. But here’s the good news: change is coming.

To address this gap, a nationwide digital identification system is being developed using distributed ledger technology (DLT). This system aims to track financial transactions from both formal and informal sectors, enabling unbanked individuals to build verifiable credit histories. This means someone selling goods at the market or using mobile money can build a credit history.

The goal is to eventually cover 80% of the population, approximately seven million citizens, significantly enhancing access to financial services like loans for personal and business needs.

GTBank Sierra Leone

GTBank Sierra Leone is part of Guaranty Trust Holding Company (GTCO), a leading financial institution with operations across West Africa. Established in Sierra Leone in 2002, the bank has built a reputation for offering innovative banking solutions and excellent customer service.

From day one, GTBank Sierra Leone has been about leveraging technology to solve problems. They’ve brought digital banking services to businesses and individuals, providing everything from current accounts to SME loans. Their platform makes it easy to manage money and access credit, giving lenders a reliable partner in the lending process.

Through services like GTPay, GTBank provides a secure online payment gateway for businesses to manage transactions.

With GTCollections, lenders can manage loan repayments seamlessly, reducing the risks of cash handling and delays.

They provide services such as invoice discounting, supply chain financing, and credit facilities, essential for lenders supporting trade-driven borrowers.

One standout service is their online and mobile banking platforms, which allow users to transfer funds, pay bills, and monitor accounts in real time. They also support international transactions, making them a go-to choice for cross-border trading.

But here’s what really matters to lenders: GTBank is known for their robust corporate banking and SME support. They make business transactions easier and faster, from cash management to loan disbursements. Their reliability in processing payments on time can save you headaches if you’re lending to businesses.

Lenders who work with GTBank can tap into a dependable system that reduces the risk of failed transactions or delayed payments.

UBA Sierra Leone

UBA Sierra Leone, part of the United Bank for Africa PLC, has been a key player in the country’s financial sector since its establishment in 2008. Initially headquartered at 15 Charlotte Street, Freetown, the bank started with a focus on delivering a full spectrum of commercial banking services. Over the years, UBA Sierra Leone has expanded its presence, including opening its sixth branch in Makeni, a city noted for its economic potential​.

What does UBA bring to the table? The bank offers a wide range of services, from retail and corporate banking to trade finance, foreign exchange operations, and institutional banking. They’ve also made significant strides in e-banking, with 24/7 online services and the largest deployment of Visa-enabled ATMs in Sierra Leone. UBA Sierra Leone caters to over 28,000 clients, including government agencies, SMEs, and multinational corporations​.

In recent years, UBA has demonstrated robust financial growth. For example, in 2022, the bank recorded a 64% year-on-year increase in gross earnings, hitting SLE 427 million, with profit before tax jumping by 71%. Their customer deposits grew by 60%, and their total assets reached nearly SLE 3 billion. These figures highlight UBA’s commitment to innovation and its ability to navigate Sierra Leone’s challenging economic landscape​.

UBA isn’t just about banking; it’s about driving financial inclusion and supporting the country’s development. Their expansion into regions like Makeni reflects their strategy to reach underserved communities while strengthening Sierra Leone’s financial infrastructure​.

Orange Sierra Leone

Orange Sierra Leone has positioned itself as a major player in Sierra Leone’s telecommunications and digital ecosystem, continuously innovating to expand its services and reach. With a commitment to improving connectivity and digital access, the company has made significant advancements in recent years.

One of its noteworthy milestones in 2024 is the launch of 5G technology, a transformative step for the nation. This move is expected to revolutionize sectors like e-commerce, entertainment, and business communications by providing faster data speeds and reliable connectivity. The introduction of 5G is a bold step in driving economic growth and attracting foreign investments to Sierra Leone​.

Plus, Orange Sierra Leone recently rebranded with a new tagline, “Orange is Here,” symbolizing its dedication to innovation and reliability. This initiative highlights its focus on customer satisfaction and the promise to deliver cutting-edge solutions that cater to the needs of Sierra Leoneans​.

The company has also been addressing network challenges in rural and urban areas, striving to maintain high standards of service while expanding its infrastructure. These efforts are part of its broader mission to empower users with better digital tools and bridge the digital divide across the country​.

For lenders and financial institutions, Orange’s advancements in connectivity and digital services provide a foundation for smoother operations, better customer outreach, and enhanced financial inclusion in Sierra Leone.

FirstBank Sierra Leone

FirstBank Sierra Leone, a subsidiary of the First Bank of Nigeria (FBN) Group, has established itself as a key player in Sierra Leone’s financial sector.

Formerly known as the International Commercial Bank (ICB), it was acquired and rebranded in line with FBN’s pan-African growth strategy. The rebranding to FirstBank Sierra Leone aligns the institution with its parent company’s 129-year legacy, strengthening its brand presence and service quality​

The bank offers a wide array of corporate and retail banking solutions. Leveraging FBN’s expertise and international network, FirstBank Sierra Leone focuses on secure and innovative banking services designed to meet local needs while fostering collaboration with public and private entities.

The rebranding in 2023 to FirstBank Sierra Leone emphasizes FBN’s commitment to Sierra Leone’s financial market. The bank aims to deliver enhanced service experiences by integrating customer feedback into its offerings. With its “gold standard” of service delivery, the bank promises convenience and stress-free financial solutions.

You don’t have lend in Sierra Leone blindfolded

Lending in Sierra Leone is not for the faint-hearted. It’s a game of chess where every move counts, and your opponents—unreliable credit histories, informal economies, and vanishing borrowers—are always one step ahead.

But here’s the truth: you don’t have to play this game blindfolded. Credit reporting agencies, banks like GTBank and UBA, and reliable payment systems are your eyes on the board. They don’t just help you make better moves; they ensure you’re not playing against an invisible opponent.

Lending isn’t about luck. It’s about preparation. It’s about having the right partners, tools, and strategies to navigate Sierra Leone’s unique challenges. Because at the end of the day, those who succeed in lending aren’t the boldest or the luckiest—they’re the ones who play smarter.

So, are you ready to stack the deck in your favor? With the right providers, you can.