By Joseph Momoh, Reporter D.S
As the UN designates 2025 as the International Year of Cooperatives, financial cooperatives, or credit unions (CUs), are positioned to play a vital role in enhancing financial inclusion in Sierra Leone. Despite a population of 8.6 million, a significant portion remains financially excluded, particularly in hard-to-reach areas. According to the 2021 Global Findex Data, only 29% of adults in Sierra Leone have an account with a formal financial institution or mobile money provider. This lack of access to financial services contributes to the country’s high poverty rate, which stands at 59.2% based on the UNDP 2023 Multidimensional Poverty Index.
CUs, as community-driven and member-owned entities, offer accessible financial services tailored to the needs of their members. With a philosophy centered on “people helping people,” these organizations have the potential to empower those who have historically been excluded from the financial sector. In Sierra Leone, there are currently 25 CUs affiliated with the National Cooperative Credit Union Association (NaCCUA), serving approximately 18,600 members, with 57% being women. They collectively hold cumulative savings of Le 29.7 million and provide loans for various purposes such as education and investment.
The Tawopaneh Traders Cooperative CU in Freetown exemplifies the positive impact of credit unions. Manager Wainde Conteh highlights that the cooperative aims to address the financial needs of small business operators. Members can easily join by registering, opening a savings account, and saving for six months before being eligible for loans. However, recognizing that many potential members face barriers to entry, some CUs have introduced programs like Graduation Microfinance to support those without sufficient financial resources, facilitating their transition to full membership.
Credit unions not only offer affordable loans but also provide financial education to empower members in managing their finances effectively. The cooperative model ensures that members benefit from their collective success, with any surplus returned as dividends. As the apex body for CUs, NaCCUA advocates for the movement and collaborates with international partners to strengthen its impact. With the UN’s theme for 2025, “Cooperatives Build a Better World,” the call to join a credit union has never been more pertinent for individuals seeking financial empowerment and community development.
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