By Christian.conteh@awokonewspaper.sl
Freetown, Sierra Leone – A transformative shift toward digital payments in Sierra Leone’s agricultural sector could significantly reduce the nation’s unbanked population by as much as 24%, according to a recent report by the World Bank’s Global Findex Database (2021) as referenced in recent survey by the ministry of finance that focusses on Financial inclusion in Sierra Leone’s informal sector.
The findings underscore a stark reality: a large portion of Sierra Leone’s adult population remains excluded from formal financial services, largely due to a continued reliance on cash transactions for agricultural trade. This trend is not unique to Sierra Leone but is also prevalent across other African nations, including Guinea, Nigeria, South Sudan, and Togo, which also report high levels of cash-based agricultural payments.
Across Sub-Saharan Africa, financial exclusion is a pressing concern, particularly in rural economies where agriculture is a major economic contributor but financial services are underdeveloped. In Sierra Leone, the shift from cash to digital agricultural payments represents a substantial opportunity to increase financial inclusion. The World Bank’s analysis suggests that embracing digital payment solutions in agriculture could lead to a 24 percentage point increase in banking penetration in Sierra Leone, marking a significant opportunity for both the financial sector and policymakers.
The report highlights that countries such as Sierra Leone, Guinea, and South Sudan have some of the highest unbanked rates, with a large proportion of their populations receiving agricultural payments exclusively in cash. Nigeria and Togo, although showing slightly higher levels of banking penetration, still rely heavily on cash transactions within their agricultural sectors.
By transitioning to digital payment platforms, Sierra Leone could unlock considerable economic benefits. A reduction in reliance on cash-based transactions would not only streamline agricultural trade but also introduce millions of previously excluded individuals into the formal financial system.
With mobile money and digital banking becoming increasingly mainstream across Africa, financial institutions are being encouraged to invest in accessible, mobile-first payment solutions for rural economies. Mobile wallets, bank transfers, and fintech innovations tailored for farmers could significantly reduce the number of unbanked individuals, especially in areas where traditional banking infrastructure is lacking.
Experts argue that the adoption of digital payments could also lower transaction costs, enhance security, and provide greater access to financial products like credit facilities for smallholder farmers. This is crucial for farmers who typically face barriers to traditional banking due to the lack of collateral or formal credit histories.
To fully capitalize on the potential of digital payments in agriculture, policymakers must focus on improving financial infrastructure, expanding mobile banking networks, and boosting digital literacy in rural communities. The success stories of mobile money platforms in countries like Kenya and Ghana have shown the transformative power of digital finance in improving economic participation and reducing poverty. CC/1/4/2025
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