ACTB Sierra Leone: Empowering Financial Inclusion Since 2008
A Call To Business Savings & Loans Limited, widely known as ACTB Sierra Leone, has established itself as one of the nation's foremost regulated microfinance institutions. Since its incorporation in 2008, ACTB has committed itself to delivering best-in-class financial services, aiming to benefit all Sierra Leoneans and actively promote financial inclusion. This mission holds particular significance for women and individuals residing in rural communities, segments historically underserved by traditional banking institutions.
Founded by the UK charity A Call To Business and the London-based impact investor Truestone, ACTB began its journey as a credit-only microfinance entity registered with the Bank of Sierra Leone in 2010. Its growth trajectory has been remarkable, expanding its operational scope to include a deposit-taking license in 2017 and a full banking license in 2014. As of 2023, ACTB operates through fourteen branches spread across eight districts, serving an impressive client base of over twenty-eight thousand individuals, with approximately seventy-two percent of these clients being women.
ACTB's business model is centered on providing small-ticket loans and accessible savings services. Its target market is broad yet strategically focused, encompassing urban and peri-urban microentrepreneurs, both through individual and group lending methodologies. The institution also supports Small and Medium-sized Enterprises (SMEs) with working capital and asset financing. Furthermore, ACTB has pioneered an agricultural finance pilot program specifically designed for low-income and rural farmers, demonstrating its commitment to economic development at the grassroots level. Other crucial offerings include school-fee financing for parents, addressing a critical need within local communities.
Detailed Loan Products, Rates, and Terms Offered by ACTB
ACTB Sierra Leone offers a diverse portfolio of loan products tailored to meet the varied financial needs of its client base. These products are designed to support different entrepreneurial ventures, personal needs, and economic activities across the country. Understanding each product's specifics, including loan amounts, interest rates, and repayment terms, is crucial for potential borrowers.
ACTB Loan Product Categories:
- Individual Microloan: Specifically designed for sole entrepreneurs to fuel their small businesses.
- Group Loan: Utilizes a joint liability methodology, where groups of individuals co-guarantee each other's loans, fostering community support and reducing individual risk.
- SME Loan: Provides vital working capital and expansion finance for growing Small and Medium-sized Enterprises.
- Business Asset Loan: Facilitates the acquisition of essential equipment and assets necessary for business operations and growth.
- School Fee Loan: Assists parents with tuition and other educational expenses, ensuring children can access schooling without undue financial burden.
- Housing Loan: Supports clients in home construction or improvements, contributing to better living standards.
- Rural & Agricultural Loan: Critical for farmers, offering support for inputs, machinery, and post-harvest activities, often with flexible repayment schedules aligned with agricultural cycles.
- Keke (Transport) Loan: Aims to finance the purchase of three-wheel vehicles, commonly known as "kekes," providing opportunities in the transport sector.
- Salary Loan: Offers emergency financial support for salaried clients, providing a quick solution for unforeseen expenses.
Loan Amounts: ACTB provides a range of loan amounts to suit various needs. The minimum loan amount is typically SLL 500,000, which is approximately twenty-five United States Dollars. For individual and SME loans, the maximum can reach SLL 50,000,000, or about two thousand five hundred United States Dollars. Larger asset loans can extend up to SLL 100,000,000, equivalent to approximately five thousand United States Dollars. It is important to note that these figures are indicative and official ranges may vary based on specific product lines and client segments.
Interest Rates and Annual Percentage Rate (APR): The standard APR at ACTB Sierra Leone generally ranges from twenty-four percent to thirty-six percent per annum, calculated on a declining balance basis. The exact rate applied to a loan depends on several factors, including the specific product, the loan size, the repayment term, and the individual client's risk profile. For instance, Group Loans typically feature APRs between twenty-eight and thirty-two percent. SME and Asset Loans often fall within a twenty-four to thirty percent APR range. These percentages serve as indicative ranges based on industry practices within Sierra Leone.
Loan Terms and Repayment: Repayment terms for micro and group loans typically span three to twelve months. For SME and asset loans, terms can extend up to twenty-four months. ACTB offers flexibility in repayment schedules, with options for weekly or monthly installments, and customized arrangements for agricultural loans to align with harvest seasons.
Fee Structure: Beyond the interest rate, borrowers should be aware of additional fees. An origination or processing fee, usually between one and three percent of the loan amount, is common. Late payment fees are typically set at two percent of the overdue installment per month. Additionally, an insurance or commitment fee of 0.5 to one percent may be applied to the disbursed amount. These fees can vary by product and loan size, and direct confirmation with ACTB is advised.
Collateral Requirements: Collateral requirements differ based on the loan type. For Group Loans, the joint liability of the group serves in lieu of traditional collateral. For Individual and SME Loans, ACTB may require movable assets such as machinery, inventory, or vehicles. For larger loans, land or building titles might be necessary. Guarantors are often required for any unsecured portions of a loan.
Application Process, Digital Presence, and Customer Experience
Navigating the application process for financial services can sometimes be daunting. ACTB Sierra Leone strives to make this process as clear and accessible as possible, leveraging both its physical infrastructure and evolving digital platforms. Understanding how to apply, what is required, and what to expect from customer service is vital for potential borrowers.
Applying for a Loan with ACTB:
The primary channel for customer applications remains through ACTB’s extensive network of physical branches. With fourteen branches strategically located across eight districts, including Freetown and various rural provinces, clients can visit a branch to initiate their application. While ACTB maintains an informational website (
Know Your Customer (KYC) and Onboarding: To apply, prospective clients must meet specific Know Your Customer and onboarding requirements. These typically include providing a National Identification card, proof of residence, and for SMEs, business registration documents. References and, in the case of group loans, group guarantors are also essential. The application process generally involves a branch visit for document submission, followed by a credit assessment. Successful applications are usually approved within three to five business days.
Credit Scoring and Underwriting: ACTB employs a comprehensive methodology for credit scoring and underwriting. This includes quantitative scoring, which evaluates factors like income, cash flows, and for group loans, peer assessment within the group. Qualitative assessments also play a significant role, focusing on character references, the viability of the business plan, and for agricultural loans, projected yields. The use of group dynamics in group loans is particularly effective in mitigating moral hazard and ensuring repayment compliance.
Disbursement Methods: Once a loan is approved, funds can be disbursed through several convenient methods. Clients can receive cash directly at a branch or opt for mobile money transfers via popular platforms like Africell Money and Orange Money. Bank transfers to client accounts are also available, and ACTB has initiated a pilot program for mobile wallet disbursements, indicating a move towards more digital payment solutions.
Technology and Digital Presence:
While physical branches are central to ACTB’s operations, the institution is actively enhancing its digital footprint. A mobile application is currently under development, with iOS and Android channels in the pilot phase. This forthcoming app is expected to revolutionize the customer experience, offering greater convenience and accessibility. Beyond its informational website, ACTB also maintains a presence on social media platforms, such as Facebook, where client testimonials are often featured, though it is not used for direct loan applications.
Customer Experience and Feedback:
Customer reviews, though unverified from social media channels, generally highlight both positive and areas for improvement. Many clients express positive feedback, attributing business growth and improved livelihoods to ACTB's financing. This underscores the institution's impact on individual and community development. However, some negative feedback pertains to occasional delays in disbursement and the perception of high interest rates, a common concern in the microfinance sector. Customer service is primarily managed by branch-based relationship officers, with feedback on responsiveness being mixed, indicating an ongoing focus on enhancing service delivery.
ACTB also proudly showcases success stories, such as rural rice and maize farmers who collectively received SLL 651 million in loans, achieving a ninety-five percent repayment rate in a 2022 pilot program. Another testimonial highlights a female entrepreneur who successfully expanded her business from street vending to operating a registered shop and fishery business, crediting ACTB's support.
Regulatory Compliance and Market Leadership in Sierra Leone
Operating within Sierra Leone's financial landscape requires strict adherence to regulatory standards. ACTB Sierra Leone's robust compliance framework and significant market position underscore its credibility and impact within the microfinance sector. Understanding its regulatory standing and how it differentiates itself from competitors is key to assessing its stability and reliability.
Regulatory Status and Licensing:
ACTB Sierra Leone is diligently regulated by the Bank of Sierra Leone (BSL), the nation's central banking authority. Its journey through the regulatory framework began with a credit-only Microfinance Institution (MFI) license in 2010. Demonstrating its growth and commitment to broader financial services, ACTB subsequently obtained a full banking license in 2014, followed by a deposit-taking license in 2017. This progression through various licenses reflects a deepening integration into Sierra Leone's formal financial sector.
The institution is fully compliant with the Bank of Sierra Leone's microfinance guidelines and adheres rigorously to Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) regulations. Furthermore, ACTB is an active member of the Sierra Leone Association of Microfinance Institutions (SLAMFI), contributing to the sector's overall development and best practices. Crucially, there have been no publicly reported penalties or sanctions against ACTB to date, indicating a strong record of regulatory compliance.
Market Position and Competitive Landscape:
ACTB Sierra Leone holds a prominent position in the country's microfinance market, commanding a significant market share of 20.6 percent by loan portfolio as of December 2023. This places it among the leading financial service providers targeting micro, small, and medium-sized enterprises, as well as individual borrowers.
The competitive landscape in Sierra Leone's microfinance sector includes notable players such as Sierra Leone Women’s Microfinance Bank, Microcred, BRAC, and Opportunity International. Each of these institutions contributes to financial inclusion, yet ACTB differentiates itself through several key aspects:
- Strong Rural Outreach and Women-Focused Lending: A core aspect of ACTB's strategy is its deep penetration into rural areas and its dedicated focus on empowering women entrepreneurs, who constitute a significant majority of its client base.
- Innovative Agri-Lending Pilot: Its agricultural lending program stands out, offering not just finance but also agronomist support and market linkage assistance to smallholder farmers, fostering sustainable agricultural development.
- Diverse Product Suite: Beyond traditional microloans, ACTB offers a broad range of products, including leasing options and specialized school-fee financing, catering to a wider spectrum of needs.
Growth and Expansion: ACTB’s commitment to growth is evidenced by strategic partnerships with international development finance institutions. Notable collaborations include a USD 3 million local currency loan from the International Finance Corporation (IFC) to bolster MSME lending, and support from Alterfin (a EUR 1 million facility in 2021–2022) specifically aimed at enhancing rural outreach. These partnerships not only provide capital but also affirm ACTB’s robust operational framework and development impact.
Financial Performance: As of 2022, ACTB managed a substantial loan portfolio of approximately EUR 6.26 million (around SLL 82 billion). The institution maintains an industry-leading risk profile, with its Portfolio at Risk (PAR) over thirty days at a healthy 4.4 percent. While specific revenue and profitability figures are not publicly disclosed, its consistent funding history from investors like Truestone, Alterfin, FMO, and IFC underscores its financial stability and investor confidence.
Practical Advice for Potential Borrowers in Sierra Leone
For individuals and businesses in Sierra Leone considering a loan from ACTB Sierra Leone, it is essential to approach the decision with careful consideration. As a financial expert, I offer the following practical advice to ensure a well-informed and beneficial borrowing experience:
1. Understand Your Needs and ACTB's Offerings: Before applying, clearly define why you need the loan and how much you require. Review ACTB's diverse loan products, such as individual microloans, group loans, SME loans, or agricultural loans, to identify the one that best aligns with your specific purpose. ACTB’s focus on women, rural communities, and specific sectors like agriculture might make it an ideal choice for certain entrepreneurs.
2. Scrutinize Interest Rates and Fees: While ACTB’s APR generally ranges from twenty-four to thirty-six percent on a declining balance, it is crucial to obtain the exact rate applicable to your specific loan product, term, and risk profile. Also, account for all associated fees, including the origination/processing fee (one to three percent), late payment fees (two percent of overdue installment per month), and any insurance or commitment fees (0.5 to one percent). Always request a clear breakdown of all costs before committing.
3. Prepare Required Documentation: The application process requires thorough documentation, including your National ID, proof of residence, and for businesses, registration documents. Having these ready will expedite the application. For group loans, ensure all group members are fully aware of their joint liability and collective responsibilities.
4. Assess Your Repayment Capacity: Be realistic about your ability to repay the loan. ACTB offers flexible repayment schedules, including weekly or monthly installments, and tailored plans for agricultural cycles. Choose a term and schedule that comfortably fits your income or business cash flow projections to avoid late payment fees and potential legal action for non-performing loans.
5. Leverage ACTB's Unique Differentiators: If you are a woman entrepreneur, a rural farmer, or seeking specialized financing like school fees or asset acquisition, ACTB’s targeted offerings and support systems (e.g., agronomist support for agri-loans) can be a significant advantage over competitors. Their extensive branch network in eight districts also provides convenient access for many.
6. Compare with Competitors: While ACTB holds a strong market position, it is wise to compare its offerings with other prominent microfinance institutions in Sierra Leone, such as Sierra Leone Women’s Microfinance Bank, Microcred, BRAC, and Opportunity International. Look at their rates, terms, and specific product niches to ensure you are getting the most suitable and competitive offer for your needs.
7. Utilize In-Branch Expertise: Given that ACTB’s digital presence for applications is still developing, make full use of their branch-based relationship officers. They can provide personalized guidance, clarify terms, and help navigate the application process. Direct engagement can also address any concerns regarding potential disbursement delays or service responsiveness.
8. Verify Information Directly: While this profile provides comprehensive details based on available research, it is always best practice to verify all current product rates, fees, and digital platform details directly with ACTB Savings & Loans at the time of your application. Policies and offerings can evolve, and direct confirmation ensures you have the most up-to-date and accurate information.
By following these steps, potential borrowers can make an informed decision and leverage ACTB Sierra Leone's services effectively to achieve their financial and entrepreneurial goals.
