New Law Modernizes Credit Reporting, Expands Financial Access

New Law Modernizes Credit Reporting, Expands Financial Access

On Thursday, May 28, 2026, the Parliament of Sierra Leone enacted the Credit Reference Act 2025 (as amended). 

This pivotal legislation establishes a robust legal framework designed to modernize the national credit reporting system and significantly enhance financial inclusion for both individuals and corporate entities.

Repealing and replacing the Credit Reference Act 2011, the new Act regulates the establishment and operation of credit reference bureaus, defines stringent conditions for credit reporting, and introduces comprehensive financial oversight mechanisms to ensure systemic integrity and expanded access to finance.

Presenting the Bill, the Minister of Finance, Sheku Ahmed Fantamadi Bangura, said the legislation is intended to modernize Sierra Leone’s financial system and improve economic efficiency.

He explained that the Act will establish a stronger legal structure for the licensing and operation of credit reference bureaus in the country.

“This legislation is fundamental to modernizing our financial infrastructure and strengthening access to credit in Sierra Leone,” the Minister said.

He further noted that the system will allow credit bureaus to assess and present individuals’ creditworthiness using numerical scoring, a move expected to improve lending decisions within the banking sector.

Contributing to the debate, Deputy Leader 2 of Government Business, Hon. Saa Emerson Lamina, said the Bill introduces stronger transparency and accountability measures within the credit system.

He told Parliament that the reform will help expand financial access, particularly for farmers, young people, and small-scale entrepreneurs who have traditionally faced challenges in securing loans.

“This framework will strengthen confidence in the financial system and expand opportunities for access to credit,” he said, linking the legislation to the government’s flagship agricultural agenda under the Feed Salone programme.

Hon. Lamina added that improved access to credit would support youth engagement in agriculture, including crop production, livestock farming, and inland valley swamp cultivation.

He also referenced enforcement provisions in the Bill, including penalties for violations, describing the law as a tool that would promote financial discipline and accountability.

Leader of the Opposition, Hon. Abdul Kargbo, said while the opposition supports efforts to improve access to credit, concerns remain over enforcement mechanisms and protection for low-income borrowers.

He said the Bill would improve transparency in lending practices and help financial institutions better assess risk.

“As an opposition, we are not averse to this Bill,” he stated, while urging stronger safeguards for vulnerable borrowers.

Rounding up the debate, the Acting Majority Leader of Government Business, Hon. Bashiru Silikie, described the Act as a key step toward strengthening economic growth and addressing long-standing challenges in the banking sector.

He said the law would improve the ability of financial institutions to make informed lending decisions and reduce default risks.

The Minister of Finance later assured Parliament that all concerns raised during debate would be addressed during the implementation process, urging lawmakers to support the passage of the Bill.

In a related development, Parliament also ratified a 15-year Build-Operate-Transfer Public Private Partnership (PPP) agreement for the Online Business Registration System (OBRS) between the Government of Sierra Leone, through the National Investment Board, and Multi GIS E-Services SL Ltd.

Lawmakers further debated and enacted, with amendments, the Deposit Protection Fund Act 2024, which replaces the 2023 Act and provides for the continued regulation and management of the Deposit Protection Fund.

The legislative actions form part of ongoing reforms aimed at strengthening Sierra Leone’s financial governance and improving economic stability.