With the launch of the MUNAFA Fund by the Government of Sierra Leone, traders have been grouped into Cooperatives (a team of ten) to be able to have access to the loan. Gibrilla Turay, who doubles as President of the Traders Council and Traders Union expressed their thanks to the Government for the Fund because whatever support they bring to the traders he attributed it as a plus in their lives.
He said that as a Council they tour the entire country with the Small and Medium Enterprises Development Agency (SMEDA) to sensitize and engage traders about the Fund. “This Fund will bring benefit to our traders by transforming them as it is all about development which is geared towards eradicating poverty” Turay said.
During those engagements, Turay said he advised his traders to formalize their business by merging their businesses into groups as they were faced with situations before wherein individuals that go to Banks to access loans end up not getting it.
But that with a formalized group they can access loans through their cooperatives form the Financial Service Providers (FSPs) that have been identified to lend the MUNAFA Fund, that means with the cooperatives they can now go as a group to access these funds so in terms of repayment if one doesn’t make it the nine will. “We will continue to engage them to honour their obligation as this is a revolving fund and others will want to benefit.”
COVID-19 he added has affected their business seriously due to the restrictions both locally and internationally. “We the traders are the movers and shakers of the economy, most of our businesses collapsed, that is why we are grateful for the Fund as the COVID-19 hit us seriously. Some of our members could not even travel out of the country and this led them to start eating their capital to support their families, we are just managing, this Fund will propel them back” he hoped.
Talking about challenges, Turay explained that access to finance, interest rates on loans are serious issues they have been grappling with, and more importantly they met with Government to discuss the enactment of the Wholesale and Retail Act.
This Act if enacted he said will help the traders when they eventually access the Fund as it will not be wise when they come with their goods to sell retail and those who are importing also sell retail it adversely affects them.
“Everything is being retailed by these importers, from sugar to milk to tealeaf and onions among others. But as we move in this 2021 we are hopeful we will make a headway with this law. We also call on Government to construct an ultra-modern market for us.”
Chairlady of Eastbrook Street traders, Isata Deen Kamara also narrated the challenges they face as businesswomen, “we take microfinance loans with interest rates as high as 25 and 28 percent, it is so high that as you repay you get to interfere with your limited capital but with the MUNAFA Fund we are grateful that it is below 10%, I have already applied and by the grace of God I will get it and we are determined to pay it back” she said.
The allocation of the Fund for this first phase of Le26 billion is as follows Bo District will get Le2.5 billion, Bombali District Le2 billion, Bonthe District Le500 million, Kailahun District Le1.5 billion, Kambia District Le1 billion, Kenema District Le 2.5 billion, Kono Distirct Le2 billion, Koinadugu District Le900million, Falaba District Le750million, Moyamba District Le1 billion, Port Loko District Le2.5 billion, Pujehun District Le1 billion, Tonkolili District Le1.25 billion, Karene District Le 750million, Western Area Rural Le1.25billion and Western Area Urban Le4.5 billion.
The ten FSPs are GGEM, CEDA, Ecobank, Harvest, Imperi, WinTrust, LAPO, Q&R and MOPANDA.