By Christian.conteh@awokonewspapersl.com
Freetown, Sierra Leone – Sierra Leone’s financial inclusion remains a significant challenge, with the latest survey by the Ministry of Finance (MoF), funded by the African Development Bank, shedding light on why many citizens do not own bank accounts. The study, which polled 1,220 individuals, reveals that 62% of respondents cite insufficient funds as the primary reason for not having a bank account.
Out of the total respondents, 1,147 completed the business module, and 99 answered questions related to the employee module of the survey. The results indicate deep-rooted barriers to financial inclusion in Sierra Leone, with the lack of funds being by far the most prominent obstacle.
The survey’s findings reveal a clear financial divide in Sierra Leone. While 62% of individuals report not owning a bank account due to insufficient funds, other factors contributing to the trend include an inability to read and write (10%), and a lack of perceived need for a bank account (9%). These reasons underscore the economic and educational challenges that hinder many from participating in the formal banking sector.
The data further reveals a striking 9% of respondents’ state that customers predominantly pay in cash, which also contributes to low bank account ownership. This figure highlights a reliance on informal, cash-based transactions, which is prevalent in many developing economies where access to banking services remains limited.
The survey also points to administrative barriers. Despite being minor, 2% of respondents mentioned “too much paperwork” as a deterrent, while another 2% referred to the hassle of opening a bank account. Only a small proportion (1%) of respondents noted a lack of trust in banks, and another 3% mentioned poor proximity to banking services.
Interestingly, 2% of respondents cited “other reasons” for not owning an account, reflecting potential unique or unaddressed factors specific to individuals or certain regions.
The survey highlights a significant gap in financial inclusion, with the overwhelming majority of Sierra Leoneans excluded from formal banking due to insufficient funds. While literacy and access issues also play a role, the findings emphasize the need for more inclusive financial services that address the root causes of exclusion, particularly poverty, literacy, and accessibility. As Sierra Leone seeks to improve its financial landscape, these insights point to the critical need for targeted interventions aimed at increasing access to banking for all citizens. CC/1/4/2025
, funded by the African Development Bank, shedding light on why many citizens do not own bank accounts. The study, which polled 1,220 individuals, reveals that 62% of respondents cite insufficient funds as the primary reason for not having a bank account.){kind=link}