NOTICE FOR EXPRESSION OF INTEREST

by Careers

in Tender
Bidding
Sierra Leone, Freetown
February 12, 2024

Job Overview

  • Date Posted
    February 12, 2024
  • Location
    Sierra Leone, Freetown
  • Expiration date
    February 16, 2024
  • Gender
    Both
  • Qualification
    Bachelor Degree
  • Organization
    SMEDA
  • Required Languages
    English

Job Description

 

NOTICE FOR EXPRESSION OF INTEREST

The Small and Medium Enterprises Development Agency (SMEDA) is a government of Sierra Leone Agency responsible for coordinating small and medium enterprises (SMEs) activities in Sierra Leone and was established by an Act of Parliament in 2016 (SMEDA  Act No. 1 1 of 2015).

The Agency is mandated to formulate and coordinate policies that will facilitate the integration and harmonization of various public and private sector initiatives for the promotion, development and regulation of micro, small and medium enterprises (MSMEs) become key industries of tomorrow. SMEDA is responsible for the coordination and development programs for small and medium enterprises (SMEs) across all related Ministries, Agencies and Associations. The Agency acts as the central point of reference for research and information dissemination on SMEs and entrepreneurs, as well as provides business advisory services for SMEs and entrepreneurs th roughout the country.

The Government, of Sierra Leone (GoSL) has allocated funding for a National Microfinance Program (MUNAFA Fund) for Wholesale lending to financial service providers (FSPs) for on-lending to micro, small and medium enterprises (MSMEs) aim at promoting financial inclusion and mitigate the access to finance challenge faced by

the implementing agency and hereby invites interested FSPs to submit applications for funding.

Interested FSPs can request for the application forms IV’ sending an email to sssannoh@smeda.gov.sl, snwda.gov.sl, karimkoroma@smeda.gov.sl or visiting the SMEDA head office at 34T Freetown Road,

Lumley, Freetown.

The deadline for submission of applications is 5 pm on Friday, 16, 2024 Applications must be accompanied by the following documents:

The articles of association or by-laws of the institution;

Valid license to conduct lending activities;

Audited financial statements for the past three years (if available) and the most recent management accounts; Business plan, showing required funding levels and financial projections for the next three years.

To be eligible for the SMEDA National Microfinance Fund loan facility, FSPs must meet the criteria stipulated in the table below:

Loan Facility Eligibility Criteria

Number of years providing microfinance services At least two years’ experience lending to MSMEs in Sierra Leone
Vision/Planning The institution serves the poor and seeks to increase its outreach. Its vision is translated into a clear strategy in its business plan. Financial services rendered in cash and not in-kind.
Legal Status Licensed and regulated by Bank of Sierra Leone or another regulatory body to provide credit facilities to the public.
Governance Board exists separately from management, meeting regularly and reviewing financial performance of the institution
Management The senior management is well versed in microfinance best practices, even if the mid-level management may present some weaknesses. Microfinance activities functionally separate from other activities.
Transparency Must have up to date financial statements, and external audit
Outreach Minimum active borrowers of 250
Average outstanding loan balance for MSMEs portfolio Not more than US$ 20,000 equivalent in SLL
Products and Services Loan products have repayment incentives, collateral substitutes, and repayment terms that suit cash flow patterns of MSMEs businesses
Profitability Minimum Operational Self Sufficiency ( OSS) of 60%, with positive trend
Portfolio at Risk (PAR30) PAR30 tracked regularly per best principles, Maximum 10%.
Write off ratio <3%

 

 
Capital adequacy ratio Minimum 15%, including the MUNAFA Fund loan

 

 
Debt/Equity ratio Maximum 7X, including the MUNAFA Fund loan

 

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