By Foday Moriba Conteh
The Governor of the Bank of Sierra Leone, Professor Kelfala Kallon, has on Thursday 3rd November 2022 officially launched the Public Sensitization Campaign of the Sierra Leone Collateral Registry at the Radisson Blu Hotel on Aberdeen in Freetown.
The Sierra Leone Collateral Registry is supported by the Sierra Leone Diversification Project under the Ministry of Finance and funded by the World Bank.
In his welcome address, the Deputy Governor, Financial Stability at the Bank of Sierra Leone, Sheik Alhaji Yayah Sesay, on behalf of the Governor, Management, and Staff of the Bank of Sierra Leone commended the Project Coordinator of the Sierra Leone Diversification Project for their support to the Bank of Sierra Leone in ensuring that the upgrade of the Sierra Leone Collateral Registry was done in line with international best practices on secure transactions.
He described the public sensitization rollouts launch as a continuation of the process in explaining to key stakeholders the challenges made in the upgraded Sierra Leone Collateral Registry System that was launched a year ago as part of an ongoing financial sector reforms.
Sheik Alhaji Yayah Sesay said that the campaign will take the form of Radio and TV discussions, production of jingles, handbills, posters, as well as town hall meetings, with targeted groups aimed at familiarizing members with the concepts and principles of security transactions.
He pointed out that given the recent developments with respect to the upgraded Sierra Leone Collateral Registry system there is a dire need to conduct public education and awareness raising for the various stakeholders including financial service providers, the business sector, the legal sector, and the general public on the changes made in the Act and system and the benefits of the collateral registry system in the country.
Giving an update on the Secure Transaction and Collateral Registry Project, the Assistant Director of Banking Supervision at the Bank of Sierra Leone, Philip Bangura, said that the Bank of Sierra Leone with support from the Legal Consultant, hired under the Sierra Leone Economic Diversification Project (SLEDP), drafted and submitted the Borrowers and Lenders Regulations to the Ministry of Finance after consultations with key stakeholders. The Regulations explain the detailed implementation of key provisions in the Borrower and Lenders Act, 2019.
He noted that the Bank of Sierra Leone continues to provide training for staff of newly licensed financial institutions as well as staff of existing financial institutions on how to navigate and use the Collateral Registry System and that a total of 964 security interest notices have been registered on the Collateral Registry Platform as at 31s October 2022. 469 (48.65%) of the registration was done in 2022 following the upgrade.
Philip Bangura maintained that a total of One thousand Five hundred and Fifty-three (1,553) collaterals have so far been registered on the Registry as at 31st October, 2022, adding that the top four collaterals registered were Inventory (238), Money (215), Motor vehicle (211), Plant and Machinery (121) and despite making entrance only in 2022, the number of buildings, registered and unregistered lands as at 31st October, 2022 were 32, 51 and 64 respectively.
Launching the public sensitization campaign of the Sierra Leone Collateral Registry, the Governor of the Bank of Sierra Leone, Professor Kelfala Kallon, said it is very important with regards educating the public on the upgraded Sierra Leone Collateral Registry system in the country.
He said that the Collateral Registry System significantly allows people who have been excluded out of the financial system to give them access, stating that traditionally if people go to the bank in order for them to expand or start a business they are requesting for immovable assets which includes lands, houses etc.
The Bank Governor, however, said that with the launch of the upgraded Sierra Leone Collateral Registry System it will bring in other assets which majority of people can use in order to access loans to start or expand their businesses of which he said will give access to women and youth that do not have traditional assets that have been used by financial institutions in order to give out credits.
He stated that the launch of the public sensitization campaign of the Sierra Leone Collateral Registry will give opportunity to Sierra Leoneans to be informed on the upgraded Sierra Leone Collateral Registry system in the country.
Professor Kelfala Kallon concluded by officially launching the Public Sensitization Campaign of the Sierra Leone Collateral Registry.
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