MiKashBoks

Mikashboks: Company Overview and Its Role in Sierra Leonean Finance

Mikashboks Ltd. is a pioneering Sierra Leonean financial technology firm, formally registered in the nation in 2017 under company registration number SL/FINTECH/017. Operating as a private limited company with its headquarters in Freetown, Mikashboks has carved a significant niche in the country's evolving financial sector. Its inception in 2016 was strategically aligned with Sierra Leone's National Strategy for Financial Inclusion, aiming to bridge critical gaps in financial access for many citizens.

The company's ownership structure reflects its local roots, with its three co-founders holding a majority stake. Salton Massally, the Co-Founder and Chief Technology Officer, holds a 45% share, while Simon Levell, the Chief Executive Officer, owns 35%. The remaining 20% is held by two angel investors, underscoring a blend of local vision and external support. The leadership team is robust, with Simon Levell overseeing strategy and funding, and Salton Massally driving the core technological development. Nafisa Kamara, as Head of Compliance, ensures adherence to regulatory standards, while John Konteh, the Sierra Leone Sales Director, leads expansion efforts across Freetown and rural areas.

At its core, Mikashboks operates on a business model centered on digitizing informal group savings and lending circles, a practice deeply embedded in Sierra Leonean culture known as "Osusu." This innovative approach enables smallholder farmers, market traders, and operators of informal enterprises—groups predominantly composed of low-income and unbanked Sierra Leoneans—to save, borrow, and establish crucial credit histories through mobile and USSD interfaces. The company generates revenue from a combination of origination fees, transaction charges applied to loan disbursements, and the interest rate spreads on the loans it provides. This model ensures sustainability while fulfilling its mission of financial inclusion, making modern financial tools accessible to those traditionally underserved by conventional banking institutions.

Detailed Loan Products, Interest Rates, and Repayment Terms

Mikashboks offers two primary loan products tailored to the needs of its diverse customer base in Sierra Leone: Group Loans and Individual Microloans. These products are designed with flexibility and accessibility in mind, leveraging digital platforms to streamline the borrowing process.

Loan Products

• Group Loans: These loans are designed for collective borrowing, allowing members of a group to borrow against their shared savings pot. The minimum amount for a group loan is Le500,000, while the maximum extends to Le10,000,000. In United States Dollar equivalents, this ranges approximately from USD 25 to USD 500. This structure fosters community solidarity and shared responsibility, mirroring the traditional Osusu model.
• Individual Microloans: Catering to personal and small business needs, these loans are disbursed directly to individual linked accounts. The loan amounts range from a minimum of Le100,000 to a maximum of Le2,000,000, which translates to approximately USD 5 to USD 100. These individual loans provide quick access to capital for immediate needs or small-scale entrepreneurial activities.

Interest Rates and Annual Percentage Rates (APR)

It is crucial for potential borrowers to understand the interest rates associated with Mikashboks' loan products. Digital microfinance often involves higher rates compared to traditional bank loans due to the increased risk, lower collateral requirements, and operational costs involved in serving underserved populations.

• Group Loans: These loans carry an interest rate of 1.5% to 3% per week. When calculated as an effective Annual Percentage Rate (APR), this translates to approximately 78% to 156%.
• Individual Microloans: For individual borrowers, the interest rates range from 5% to 10% per month, depending on the applicant's credit score tier. The corresponding APR for these loans is approximately 60% to 120%.

These rates, while common in the microfinance sector, highlight the importance of careful financial planning. Borrowers must evaluate their capacity to repay within the specified terms to avoid accumulating additional fees and charges.

Loan Terms and Repayment Structure

Mikashboks provides flexible repayment schedules to accommodate the varied income cycles of its customers.

• Group Loans: Repayment terms for group loans typically range from 4 to 24 weeks.
• Individual Microloans: Individual loans offer repayment periods spanning 1 to 6 months.

Repayments are managed efficiently through the Mikashboks mobile application, which sends timely notifications, and via USSD prompts for those using feature phones. Borrowers have the flexibility to make weekly or monthly installments, allowing for better alignment with their income flows.

Fees Structure and Collateral Requirements

Transparency in fees is a cornerstone of responsible lending. Mikashboks outlines its fee structure clearly:

• Origination Fee: A fee of 2% of the principal loan amount is deducted at the point of disbursement.
• Processing Fee: A flat processing fee of Le5,000 (approximately USD 0.25) is charged per application.
• Late Payment Fee: A charge of 1% of the overdue amount is applied per week for missed payments.

Regarding collateral, Mikashboks adopts an inclusive approach:

• Group Loans: No physical collateral is required, as the loans are secured by group guarantorship, where the collective responsibility of the group members acts as assurance.
• Individual Loans: Physical collateral is typically not required. Instead, eligibility is determined by an applicant's digital footprint and mobile money transaction history. In some cases, a third-party guarantor may be requested to strengthen the application.

Application Process, Operations, and Technological Integration

Mikashboks leverages technology to simplify its application process and streamline operations, making financial services accessible even in remote areas of Sierra Leone. The company's operational model focuses on efficiency, robust credit assessment, and diverse disbursement methods.

Customer Onboarding and Application

The application process for Mikashboks loans is designed to be user-friendly and inclusive, accommodating both smartphone users and those with basic feature phones:

• Application Channels: Prospective borrowers can apply through the Mikashboks Android application, which holds a 4.0-star rating on Google Play with over 10,000 downloads. For users without smartphones or limited internet access, applications can be submitted via the USSD code *352#. An iOS application is also planned for future release.
• KYC & AML Compliance: To comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, applicants are required to upload government-issued identification. Biometric capture is facilitated through partner agents, and mobile number verification is a standard part of the process, ensuring secure and legitimate transactions.

Credit Scoring and Underwriting

Mikashboks employs a sophisticated, proprietary credit scoring model to assess the creditworthiness of applicants. This model goes beyond traditional credit checks, which are often unavailable for the unbanked, by incorporating various data points:

• Data Points: The scoring model considers social group performance metrics (for group loans), individual repayment history with Mikashboks, transaction velocity through mobile money, and other third-party data sources such as mobile money usage and merchant payments. This holistic approach allows Mikashboks to extend credit to individuals who might otherwise be excluded from formal financial systems.

Disbursement and Collection Methods

Once a loan is approved, Mikashboks ensures swift and convenient disbursement, along with efficient collection mechanisms:

• Disbursement Methods: Funds can be disbursed directly to mobile money accounts via Africell MoMo and Orange Money, which are widely used across Sierra Leone. Borrowers also have the option to receive funds through bank transfers to Ecobank Sierra Leone accounts, thanks to a strategic partnership. For those preferring cash, disbursements can be made at designated Mikashboks agent locations in Freetown and other district hubs.
• Collections & Recovery: Repayment reminders are automated through SMS and in-app notifications. For group loans, collection efforts are often group-led, leveraging the collective responsibility inherent in the Osusu model. In cases of default, an in-house recovery team engages defaulters after two missed payments, working to facilitate repayment and minimize non-performing loans.

Mobile App, Digital Presence, and Geographic Reach

The Mikashboks digital platform is central to its operations and user engagement:

• Android App Features: The Android application, highly rated by users, offers robust features including group management tools, automated notifications for payments, and digital wallet integration, providing a comprehensive user experience.
• USSD Capability: A critical feature for financial inclusion in Sierra Leone, the USSD code *352# offers an offline-first solution for users with feature phones, ensuring that connectivity limitations do not impede access to financial services.
• Geographic Coverage: Mikashboks has a broad reach, operating actively in all four provinces of Sierra Leone. It maintains concentrated agent networks in key urban and semi-urban centers such as the Western Area (Freetown), Bo, Kenema, and Makeni, ensuring widespread access to its services.
• Customer Base: As of April 2025, Mikashboks serves over 15,000 registered users and facilitates more than 2,500 active savings groups. Its customer base predominantly comprises women’s groups and smallholder cooperatives, reinforcing its commitment to empowering vulnerable communities.

Regulatory Compliance, Market Position, and Customer Experience

Mikashboks operates within a defined regulatory framework, positioning itself strategically in Sierra Leone's growing digital finance market while prioritizing customer satisfaction and protection.

Regulatory Status and Licensing

Compliance and consumer protection are paramount for financial institutions, especially in emerging markets. Mikashboks has demonstrated a strong commitment to regulatory adherence:

• Licensing and Oversight: Mikashboks is officially licensed by the Bank of Sierra Leone (BSL). It initially operated under the 2018 Regulatory Sandbox framework, a testament to its innovative approach and BSL's forward-thinking regulation. In December 2023, Mikashboks successfully converted to a full Digital Financial Services (DFS) license, solidifying its operational legitimacy.
• Regulatory Alignment: The company aligns its operations with key national financial regulations, including the pending National Payment Systems Act, existing mobile money guidelines, and agent banking regulations. The Bank of Sierra Leone regularly audits Mikashboks, ensuring continuous compliance and operational integrity.
• Consumer Protection: Mikashboks strictly adheres to the Bank of Sierra Leone's Consumer Protection Policy. This includes transparent disclosures of terms and conditions, fair treatment of all customers, robust data confidentiality practices, and an efficient grievance resolution mechanism, with complaints typically addressed within five business days. Importantly, there have been no public penalties or enforcement actions against Mikashboks to date, indicating a clean regulatory record.

Market Position and Competitive Landscape

Mikashboks has established a significant presence in Sierra Leone's digital financial services sector, particularly in the niche of group savings and lending:

• Market Share: The company holds approximately 20% of the digital group savings market, a substantial share given the nascent stage of digital finance in the country.
• Key Competitors: Its principal competitors include Afrimoney, which also operates Osusu agents, Paga, and the mobile offerings from local commercial banks.
• Differentiation: Mikashboks distinguishes itself through several key features: its social-first design, which emphasizes community and group dynamics; its offline USSD capability, critical for reaching users in areas with limited internet access; and its role in formally bridging informal savings groups to the broader credit ecosystem.

Growth Strategies and Partnerships

Mikashboks is actively pursuing growth and expansion through strategic alliances and funding initiatives:

• Ecobank Partnership: In October 2024, Mikashboks launched a significant partnership with Ecobank Sierra Leone. This collaboration aims to underwrite larger savings products and provide insured deposits, enhancing trust and expanding the range of services available to users.
• Grants and Funding: The company secured a €150,000 grant from the United Nations Development Programme (UNDP) and the European Union (EU) in 2025. This funding is specifically earmarked for digitizing rural farmer groups, further extending financial inclusion to agricultural communities.
• Regional Expansion: Looking beyond Sierra Leone, Mikashboks has ambitious plans to expand its operations into Liberia and Burkina Faso by 2026, aiming to replicate its successful model in other West African markets.

Customer Experience and Service Quality

Customer feedback and service quality are vital indicators of a company's performance:

• User Reviews: The Mikashboks app is frequently praised by users for its intuitive group features and reliable notifications, which are essential for managing collective finances.
• Common Complaints: Some common complaints include occasional USSD latency, which can impact users in areas with poor network coverage, and reports of slow customer care response times. While the company offers a dedicated in-app chat and a 24/7 helpline, the average response time stands at approximately 12 hours.
• Success Stories: A notable success story involves a smallholder rice-farming group in Kambia, which saw a 40% increase in collective savings over six months using Mikashboks. This enabled the group to purchase essential driers, significantly improving post-harvest income and demonstrating the tangible impact of Mikashboks' services on local livelihoods.

Practical Advice for Potential Borrowers and Final Considerations

For Sierra Leoneans considering Mikashboks for their financial needs, understanding the details and making informed decisions is crucial. As a financial expert, I offer the following practical advice tailored to the Mikashboks platform and the local context.

1. Understand the True Cost of Borrowing: While Mikashboks offers accessible loans, it is vital to grasp the effective Annual Percentage Rates (APRs). Weekly interest rates of 1.5% to 3% for group loans, or monthly rates of 5% to 10% for individual microloans, compound quickly. Always calculate the total repayment amount before committing. For example, a Le1,000,000 group loan at 2% weekly interest over 12 weeks means you repay Le20,000 in interest each week, totaling Le240,000 in interest alone, plus fees. Factor in the 2% origination fee and Le5,000 processing fee.

2. Assess Your Repayment Capacity Realistically: Only borrow what you are confident you can repay within the specified terms. Defaulting on a loan, even a small one, can impact your future access to credit, not only with Mikashboks but potentially with other financial service providers. Use the app's notifications and USSD prompts as reminders, but always keep your own repayment schedule.

3. Group Loans Mean Group Responsibility: If you are part of an "Osusu" group applying for a loan, remember that group guarantorship means collective responsibility. If one member struggles to repay, the entire group is often expected to cover the shortfall. Choose your group members wisely and ensure strong communication and trust within the collective to avoid disputes and financial strain.

4. Build Your Digital Footprint: For individual loans, your mobile money transaction history and digital activity are key to building your credit score. Consistent and responsible use of mobile money and timely repayments on smaller Mikashboks loans can improve your eligibility for larger amounts and potentially better rates over time. This is your digital collateral.

5. Familiarize Yourself with the App and USSD Service: Take time to explore the Mikashboks Android app's features, especially group management and notification settings. If you use USSD (*352#), understand its menus and functions thoroughly. While generally reliable, be aware of potential occasional latency, particularly in areas with weaker network coverage. Having a clear understanding of the platform will enhance your borrowing experience.

6. Verify Regulatory Status: Mikashboks is licensed by the Bank of Sierra Leone, which provides a layer of consumer protection. This means they are subject to oversight regarding transparency, fair treatment, and grievance resolution. If you encounter an issue, utilize their in-app chat or 24/7 helpline. While response times average 12 hours, having a formal channel for complaints is an important safeguard.

7. Compare with Alternatives: Before committing, it is always wise to compare Mikashboks' offerings with other options available in Sierra Leone, such as Afrimoney agents or local bank mobile offerings. While Mikashboks differentiates itself with its social-first design and USSD capabilities, different providers might suit different needs or offer varying terms for specific situations.

Mikashboks plays a vital role in advancing financial inclusion in Sierra Leone by digitizing traditional practices and reaching underserved populations. By understanding their products, terms, and operational specifics, Sierra Leonean borrowers can leverage these digital financial tools responsibly to improve their livelihoods and contribute to their financial well-being.