MICROCAPITAL BRIEF: United Nations Development Program (UNDP); United Nations Capital Development Fund (UNCDF) Support Bank of Sierra Leone in Launching Mobile Financial Services Guidelines

The Bank of Sierra Leone, the central bank of the country, has partnered with United Nations Development Program (UNDP), a member of the UN that invests knowledge and other resources into developing countries, and United Nations Capital Development Fund (UNCDF), a UN agency that works to increase access to microfinance and other forms of capital in developing countries, to launch the first mobile financial services guidelines in Sierra Leone [1]. The objectives of these guidelines are to bring clarity on mobile money services to customers and providers, promote fair competition, ensure customer protection, ensure proper interaction between mobile money services and financial institutions, oversee the licensing of mobile money services and enforce anti-money laundering and counter financing of terrorism (AML/CFT) laws [2].

Mr. Momodu Kargbo, the governor of the Bank of Sierra Leone, states that “this is the first step towards encouraging people to adopt electronic channels of payments and move away from the traditional use of cash”[1]. These guidelines will be implemented to promote an “enabling environment,”[1] in which mobile operators can work with financial institutions to boost financial inclusion for poor people, including women and youth [1] by offering them a cheaper alternative to conventional financial services [2].

By Hye In Arielle Oh, Research Associate

About Bank of Sierra Leone

The Bank of Sierra Leone is the central bank of the country and was established under the Bank of Sierra Leone Act on March 27, 1963. The objectives of the bank are to oversee and control Sierra Leone’s currency, price stability, international and gold reserves, financial regulation and institutions, as well as foreign exchange policies and operations. As of 2014, the Bank of Sierra Leone reported total reserves of SLL 1.2 trillion (USD 9.5 billion).

About United Nations Development Program (UNDP)

The mission of the United Nations Development Program (UNDP) is to provide developing countries with knowledge, experience and resources in line with the United Nations’ Sustainable Development Goals (SDGs), a set of 17 goals to be reached by 2030 in fighting poverty, inequality, injustice and climate change. UNDP operates in partnership with national governments in approximately 170 countries and territories as of 2015. UNDP estimates total contribution of resources of USD 9.9 billion for the biennium 2016-2017.

About United Nations Capital Development Fund (UNCDF)

The UN Capital Development Fund (UNCDF) endeavors to create opportunities for poor people in developing countries and their small businesses by increasing access to microfinance and other forms of investment capital. UNCDF focuses on Africa and the poorest countries of Asia, with particular commitment to countries emerging from crisis. As of 2014, UNCDF reported a total contribution of resources of USD 88.3 million for that year. As of 2015, UNCDF has operations in 31 out of the world’s 48 least developed countries.

Sources and Additional Resources:

[1] United Nations Capital Development Fund, “Sierra Leone launches first mobile financial services guidelines,” http://uncdf.org/en/sierra-leone-launches-first-mobile-financial-services-guidelines

[2] Bank of Sierra Leone, “Guidelines for Mobile Money Services,” http://www.bsl.gov.sl/pdf/GUIDELINES_MOBILE_MONEY2015.pdf

[3] Bank of Sierra Leone, “Background,” http://www.bsl.gov.sl/background.html

[4] Bank of Sierra Leone, “Financial Information Sheet,” http://www.bsl.gov.sl/pdf/FIS_19Sept2014.pdf

[5] United Nations Development Program, “UNDP integrated budget estimates for 2014-2017,” http://www.undp.org/content/dam/undp/library/corporate/Executive%20Board/2013/Second-regular-session/English/dp2013-41e.pdf

[6] United Nations Development Program, “Sustainable Development Goals (SDGs),” http://www.undp.org/content/undp/en/home/mdgoverview/post-2015-development-agenda.html

[7] United Nations Capital Development Fund, “2014 Annual Report,” http://www.uncdf.org/sites/default/files/Documents/uncdf_ar_14-pp_0.pdf

MicroCapital Universe, “Bank of Sierra Leone,” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Sierra+Leone

MicroCapital Universe, “United Nations Development Program (UNDP),”  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Development+Program+%28UNDP%29

MicroCapital Universe, “United Nations Capital Development Fund (UNCDF),”  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Capital+Development+Fund+%28UNCDF%29

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