Hope Radiates: A Beacon for Local Businesses
On Wednesday, May 7, former Liberian President and Nobel Peace Prize recipient Ellen Johnson Sirleaf formally inaugurated the Modern Savings & Loans Microfinance Deposit-Taking Institution. This event represents an important step for Liberia as it aims to bolster local enterprises, improve access to finance, and drive economic expansion at the community level.
The ceremonial opening event, conducted at the freshly constructed main offices located in Congo Town, gathered prominent governmental figures, legislators, delegates from the central bank, diplomats, entrepreneurs, and regional advertisers—all backing an aspiration that took shape more than ten years prior.
The Modern Savings & Loans Microfinance Institution, founded in 2014 by attorney and entrepreneur Cllr. George B. Kailondo, aims to act as an engine for economic growth by providing readily available, budget-friendly, and comprehensive financial solutions to small and medium enterprises, traders, and typical citizens of Liberia.
The former President of Liberia, Sirleaf, who was the country's first democratically elected woman president from 2006 to 2018, praised the initiative as "a timely and significant contribution" to the national economic revival following the war.
"It is an honor for me to be present today to inaugurate this facility—a place where aspirations will take root and where countless Liberians will at last gain access to credit without succumbing to sky-high interest rates," she stated.
Sirleaf emphasized that for Liberia’s economy to undergo lasting positive change, it is crucial to have a robust and dynamic private sector bolstered by targeted policies and indigenous investments.
We continue to observe economic progress within our West African subregion as its residents invest in local economies," she noted. "It’s a commendable approach to contributing positively. I would like to congratulate Councillor Kailondo and his team for showcasing foresight and dedication to national growth.
She called upon Liberians from every sector to unite behind and back this institution, referring to it as "a source of hope for individuals looking to develop and broaden their enterprises."
George Kailondo, your success has been remarkable. You've decided to invest in those who look up to you," stated Madame Sirleaf. "Although politics shapes policies, it is enterprises such as yours that truly help construct a country.
Sirleaf highlighted trust as the foundation for the prosperity of any financial organization.
She stated, 'If individuals are planning to hand over their money to you, they have to trust you, along with your managers and systems.' Many within our organization remain unbanked due to fears about the safety of their funds.'
She urged the organization's leaders to make transparency a priority, focus on supporting women and small business owners, and inform clients about the advantages and obligations associated with traditional banking services.
Sirleaf encouraged Liberians to "test" the institution with small accounts and loans.
"Create an account, apply for a loan, and observe their service. Success for them means success for us all," she finished.
Councillor George B. Kailondo provided an account of the venture’s progression, explaining that it started modestly in 2014 as "Kailondo Microfinance," backed initially by only $100,000. He reminisced about their inaugural location, which was situated across from a neighborhood market along Old Road, catering primarily to small-scale traders based in areas such as Peace Island.
"We began modestly. Initially, we provided loans without requiring any collateral. The only thing we needed was proof of your business operation. We placed our trust in the market vendors and shopkeepers—and many of them repaid us," explained Kailondo.
Nevertheless, some clients did not meet their payment responsibilities, leading the organization to change direction. "We needed to adapt. So, we began accepting gold as security instead. This approach was successful; people would bring in gold, we'd provide them with loans, and generally they repaid us," he explained.
However, as the scope of activities expanded, Kailondo recognized the necessity for a wider framework and a stronger fiscal presence. “Individuals believed that the enterprise belonged solely to me since it bore my name. Thus, we opted to reshape it into a legitimate corporate body. This led to the establishment of Modern Savings & Loans.”
The renaming was accompanied by a strategic objective: to transform into a completely regulated deposit-taking microfinance institution functioning under the guidelines set by the Central Bank of Liberia.
Kailondo envisions transforming Modern Savings & Loans into a comprehensive bank over the long term. Nevertheless, achieving this goal necessitates reaching the Central Bank’s required minimum capital of $10 million.
"If you wish to be recognized as a bank, the Central Bank states that you require US$10 million. However, they did acknowledge our resolve. They mentioned that if you manage to secure $5 million, they will provide us with a provisional license," he stated.
"I assure you all — within just two years, we'll secure that $5 million and transform this institution into Modern Savings & Loans Bank," he declared, eliciting cheers from those present.
The organization has made an extensive commitment to revolutionize the conventional loan system by considerably reducing interest rates, which have traditionally deterred Liberians from obtaining loans.
"Most banks offer interest rates of about 18 percent, but when you include default penalties and insurance charges, this figure skyrockets above 35 percent. How does a business stand a chance under those conditions?" Kailondo questioned pointedly.
We're starting off at just an 8% rate. That’s right — only 8%! We have faith in our team members, and we'll collaborate closely with them. Our aim isn’t to take advantage of anyone; instead, it’s to develop alongside each other.
He went on to criticize the rigid stance of conventional banks in Liberia, which apply severe penalties to customers facing unexpected financial difficulties that lead to defaults.
I have witnessed individuals repay $400,000 on a $500,000 loan only to be told by the bank that they now owe $1 million due to defaults. This is absurd! We won’t follow this approach. Instead, we’ll simplify the loan terms, eliminate any penalty fees for defaults, and assist you in getting back on your feet.
Kailondo highlighted that Modern Savings & Loans will not just offer loans but also teach customers about financial literacy, record-keeping, and responsibility.
"Each month will conclude with us printing out your bank statement and going through each transaction together. Our aim is for everyone here to grasp their financial situation better. Say goodbye to concealed fees and unclear account details,” he stated.
He encouraged business proprietors to consistently employ skilled auditors and to treat their financial reporting with due seriousness. 'A lot of Liberians do not bother reading their loan agreements; they simply sign them. Consequently, these agreements can be turned around and used against them at a later time.'
The organization will be headed by Ms. Chantell Kailonda, a young Liberian woman who is presently finishing up her Master’s degree.
As she stepped forward, Kailondo praised Chantell, stating, 'She is astute, dedicated, and fully competent,' before presenting her to the crowd. He added with a laugh, 'I don’t own this company; I’m merely a board member. If you require financial assistance, do not seek it from me!'
Chantell, who gave a short speech to the crowd, promised to govern with honesty, expertise, and a focus on serving the community.
"Our aim is to reshape the way microfinancing operates in Liberia. We're not only providing loans—we’re constructing futures, fostering business growth, and strengthening communities," she stated.
The Central Bank of Liberia (CBL) commended the organization via its delegates for achieving the stringent criteria necessary for conducting deposit-taking microfinance activities. They also affirmed their ongoing commitment to monitoring and providing technical assistance.
Councilor Kailondo narrated the organization’s path, disclosing that it began with an initial capital of $100,000, initially targeting market vendors before transitioning from unsecured loans to gold-supported financing as a strategy to recoup losses and broaden its activities.
Under the updated brand identity, Modern Savings and Loans transitions into a Microfinance Deposit-Taking Institution (MDI) overseen by the Central Bank of Liberia. The institution now provides checking accounts along with tailored loan services.
" Our upcoming objective is to transform into a comprehensive bank. We have surpassed the $1.09 million mark and are progressing well towards achieving the $5 million capital requirement," Kailondo declared.
He declared an interest rate of 8%, which is notably below the national average of 14%, and he condemned predatory lending tactics that have harmed small business owners locally.
He mentioned that Liberians consistently struggle with repaying their debts due to exorbitant interest rates and strict repayment conditions.
"What Liberia requires is Liberians investing in their own people,” stated a legislator. “This organization will demonstrate how domestic funds can be harnessed to drive nationwide progress.”
Our principle is straightforward: let’s develop collectively," stated Kailondo. "While our aim is certainly commerce, what matters most is constructing a future—a future wherein Liberians have faith in their own national organizations.
As Liberia moves forward from decades of conflict and economic slowdown, the Modern Savings & Loans Microfinance Institution presents a ray of hope for numerous business owners, vendors, and small-scale merchants who were previously shut out of conventional banking services.
Backed by Liberia's inaugural female president, with endorsement from governmental regulatory bodies and led by a team dedicated to accessible financial services, this emerging entity has the potential to reshape the nation’s economic environment significantly.
The ultimate success will hinge on its ability to manage risks, uphold transparency, and build trust — however, for now, it represents a courageous and much-needed move towards greater financial inclusion in Liberia.
Additionally, Board Chairman Rufus Berry II spoke about the launch, calling it a historical landmark in achieving financial empowerment. He emphasized that the newly established microfinance savings and loan system is being built with strong ethical standards.
"This represents a significant milestone not only for George B. Kailondo but also for all of us dedicated to establishing a contemporary, customer-centric lending organization," Berry stated.
Recalling his personal experience of operating a microfinance company that suffered losses exceeding $1 million due to the Ebola outbreak, he stressed that Modern Savings and Loans has been built upon invaluable lessons learned through hardship.
"We have learned to drive transformative change—educating individuals and fostering resilience. A loan isn’t just free cash; when you repay it, you enable another person,” he noted.
As quoted by Warren Buffett, Berry emphasized that integrity should be the institution’s guiding compass.
Being intelligent and diligent is great, but lacking integrity makes you merely a diligent scoundrel. This is precisely why integrity forms the cornerstone of Citizen Loan.
He concluded by promising to run the organization with openness, accountability, and a firm commitment to public duty.
Provided by Syndigate Media Inc. ( Syndigate.info ).
