MUNAFA – SOCIAL MICROFINANCE
Freetown, Sierra Leone
DESCRIPTION
SOCIAL MICROFINANCE TO INCREASE RESILIENCE OF MARGINALIZED PEOPLE
This project aims to provide microfinance loans and training to beneficiaries in the slums of Freetown, the capital of Sierra Leone. These beneficiaries mainly derive their living from small informal activities in trade or service, such as the sale of shoes and clothing, drinks, oil, provisions, catering and other income generating activities.
After a first field market study by Entrepreneurs du Monde in April 2018, the programme was registered as a local company, named Munafa, in February 2019 and obtained its credit-only microfinance licence in October 2019. Munafa is engaged in improving in a sustainable manner the resilience and living conditions of marginalized families, by providing financial and socio-economic services tailored to their needs for the development of income generating activities. Munafa uses the individual responsibility group methodology promoted by Entrepreneurs du Monde, which has a strong social component, brings down all the barriers to access loans (no financial or physical guarantees, no joint liability collateral system) and promotes the strengthening of beneficiaries’ skills to develop their income-generating activities. In addition to microloans, Munafa provides socio-economic training and social support.
IMPACT / MAIN INDICATORS
• Number of branches: 2 in 2022
• Number of active borrowers: 9 532 in 2022
• Number of saving accounts : 7 345
• Granted loan portfolio: 21 664 loans for a total amount of 2.65 Meuros in 2022
• Socio-economic training: financial education, social and health awareness
• Training sessions: 9 035 in 2022
• Training of local teams in social microfinance methodology developed by Entrepreneurs du Monde.
• Operational viability as of end of 2022: 51%
LOCAL
PARTNER
Munafa – Sierra Leone
Selection
Duration
Project selected in September 2020
Multi-year project: 6 years
Financed
by
The Comgest Foundation
COMMENT FROM THE AMBASSADOR
Monique Erbeia
Testimony of Mariatu KAMARA
“My family didn’t have enough money for me to go to school, so I started working when I was 11 years old. At first, I was a street vendor selling condiments… Thanks to MUNAFA, I opened my own food shop. I got loans from 1,200 to 8,000 SLE (€56 to €375). I opened my shop and bought tables and shelves to better display my products. Thanks to the training, I am developing my business, improving my relationship with my customers and saving money. I even bought a piece of land. I am so happy with this support that I have become the president of my group of women entrepreneurs supported by MUNAFA!”
One of the many testimonies illustrating that, with an appropriate and comprehensive support provided by a social microfinance institution like MUNAFA, these micro-entrepreneurs can make a success of their small businesses, becoming self-sufficient and improving the living conditions of their families.