Our investment
Description of the investment.
Description of the investment.
We invested in Ecobank Sierra Leone to increase the availability of longer-term credit to support business growth and broader capital market development in Sierra Leone.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
|
|
|
How?
| Primary | Secondary |
|---|---|
|
Direct: Provision of longer-tenor growth capital in the range of $2-5m for c. 10-12 businesses. |
Catalysing markets: Our risk sharing facility is expected to demonstrate the viability of longer-term tenors for lending to underserved businesses in Sierra Leone. Signposts for success include high usage of the facility and expansion of the bank’s loan book to new, riskier segments and sectors. Replication of this strategy by other banks would be a longer-term, external ecosystem marker of success. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Owners, suppliers, employees, and customers |
Sierra Leone |
Loans will support firms across a range of sectors including renewable energy, agriculture and agro-processing, infrastructure (including construction and tourism), and manufacturing. |
How much?
| Scale | Depth/Duration |
|---|---|
|
The facility is expected to enable on-lending to c. 10-12 firms. |
Given the scarcity of longer-tenor debt financing available for businesses in Sierra Leone, depth of impact is likely to be significant. Duration of direct impact expected to be long-term where access to credit unlocks additional growth for targeted businesses. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Financial: Capital is not offered in sufficient quantity and on the same terms: our facility will address Ecobank’s on-lending constraints linked to both quantum and tenor, and help to scale its loan book. Value: Our technical assistance facility will enable the bank to improve its ability to support on-lending to priority sectors. |
Risk
Execution RiskRisk linked to overall usage of the facility. Mitigation: The parameters of the facility and the targeted technical assistance programme builds on lessons learned from previous BII risk-sharing facilities and seeks to directly build capacity at the bank level to reduce execution risk. Drop-Off RiskThe risk that once our facility terminates, Ecobank will stop lending to targeted sectors. Mitigation: The targeted technical assistance programme seeks to build Ecobank’s internal capacity in lending to priority sectors. This includes building out a comprehensive SME strategy in order to enhance the bank’s ability to continue this type of lending beyond BII’s facility. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The investment is classified as Medium-High E&S risk. We agreed on an ESAP with Ecobank which includes the development a procedure to assess eligible clients under this Risk Sharing Facility; the use of third party to support for E&S due diligence for select projects and undertaking E&S training to build capacity of the E&S coordinator. Ecobank will also update its HR policies and procedures on bullying and harassment to align with our safeguarding requirements.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- March 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- March 2025
- Project number
:
An identifier number shared by investments in the same project.
- D6803
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- West Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Sierra Leone
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Banks
- Investment type :
- Guarantee
- Start date :
- October 2024
- Amount :
- $25m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Sierra Leone
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
