1. ECONOMIC OVERVIEW AND FINANCIAL SECTOR DEVELOPMENT
Hon. Jacob Jusu Saffa, Minister of Finance
Dr Ibrahim Stevens, Deputy Governor, Bank of Sierra Leone
Hon. Priscilla Schwarz, Attorney-General and Minister of Justice
Christopher John Forster, President, Sierra Leone Chamber of Commerce, Industry and Agriculture (SLCCIA)
June 2019
UK – SL Trade and Investment Conference

2. GDP Population GDP growth GDP per capita
Currency
GDP
Population
Leone
USD 3.8 billion
7.6 million
GDP growth
Exchange rate
GDP per capita
USD1 = SLL8,800
5.5% (proj. 2019)
USD 500

3. Economic Growth Targets
Current SL Economy
Lower Middle Income
Potential Output
Upper Middle Income
US$29bn
Economic Growth Targets
US$19bn
US$8bn
US$3.8bn

4. GDP During 2018, real GDP growth increased 3.5 percent.
In 2019, real GDP is projected to grow by 5.1 percent, following the commencement of iron ore production.
Over the medium term, the GDP is expected to average close to 5.0 percent, which is above the Sub-Saharan African average growth rate.

5. Inflation
After peaking at 19.3 percent (September 2018), inflation moderated to 17.5 percent in March 2019, which is below the end year target of 18 percent.
Inflation is projected to fall to 14 percent by end December 2019, and return to single digits in the medium-term.

6. Exchange rate
The exchange rate has been relatively stable since October 2018.
Expected increases in exports and domestic food production supported by prudent monetary and fiscal policies will contribute to the stability of the exchange rate in the medium term.

7. International reserves
The international reserves of the BSL stood at USD471.8mn at end March 2019, sufficient to cover three months of imports.

8. Monetary policy stance
Monetary policy transmission has improved significantly, with the overnight rate in the interbank market anchored within the policy corridor.
The BSL will continue to maintain monetary policy stance that delivers the medium term inflation objective of single digit.

9. Financial sector landscape
14 Commercial Banks
10 subsidiaries of foreign banks
4 Local Banks (Govt. major shareholder in 2)
2 Discount Houses
30 Microfinance Inst.
26 Credit-Only
4 Deposit Taking
63 Exchange Bureaux
17 Community Banks
11 Insurance Companies
1 Finance Leasing Company
2 Mobile Money Network Operators
59 Financial Services Associations (FSAs)
1 Apex Bank
Nascent Stock Exchange
Couple of Cooperatives Societies

10. Selected financial soundness indicators
2012
2013
2014
2015
2016
2017
2018
Capital adequacy Ratio (CAR)
27.7
30.1
30.2
34.0
30.7
34.2
38.4
NPLs Ratio to total Loans
14.7
22.4
33.4
31.7
22.7
14.6
13.0
Return On Assets (ROA)
3.4
2.1
2.7
3.2
2.9
5.3
6.0
Return On Equity (ROE)
16.1
9.9
14.9
18.3
22.3
25.6
28.6
Return of net loans to total deposits
33.9
32.4
27.8
24.4
19.2
26.1
Liquidity Ratio
40.7
72.5
78.9
83.3
85.5
66.9
69.2
FC deposit to total deposits
40.8
38.5
26.5
32.0
38.9
37.1
36.4
The banking system is stable, well capitalized, profitable and liquid.
Total assets and deposits of the banking system at the end of 2018 stood at Le8.5 trillion and Le6.1 trillion respectively.

11. Financial sector reforms
Amendment of the Bank of Sierra Leone Act and Banking Act 2011.
Amendment of the Borrowers and Lenders Act.
Introduction of a Deposit Protection Fund, supported by the US Treasury Department.
Implementation of a robust Anti Money Laundering / Combating Finance of Terrorism (AML/CFT) standards.
Introduction of the National Payments Switch.
Digitizing the Credit Reference Bureau including introduction of a Unique Identifier in the banking system
Implementation of a national Strategy for financial inclusion:
Regulatory sandbox has been operationalize. Currently, there are 4 projects in the sandbox, selected in the first edition of the Fintech challenge
The second edition of the Fintech challenge was launched in March 2019
Financial inclusion rate 20%
Mobile penetration 70%