Africa-Press – Liberia. Former Liberian President and Nobel Peace Laureate Ellen Johnson Sirleaf on Wednesday, May 7, officially commissioned the Modern Savings & Loans Microfinance Deposit-Taking Institution, marking a significant milestone in Liberia’s quest to empower local businesses, enhance financial inclusion, and stimulate economic growth from the grassroots.
The ribbon-cutting ceremony, held at the institution’s newly built headquarters in Congo Town, brought together high-ranking government officials, lawmakers, Central Bank representatives, members of the diplomatic corps, the business community, and local marketers — all in support of a dream that began over a decade ago.
The Modern Savings & Loans Microfinance Institution, conceptualized in 2014 by lawyer and businessman, Cllr. George B. Kailondo, seeks to serve as a catalyst for economic empowerment by offering accessible, affordable, and inclusive financial services to small and medium-sized businesses, marketers, and ordinary Liberians.
Former President Sirleaf, who served as Liberia’s first democratically elected female president from 2006 to 2018, hailed the initiative as “a timely and impactful intervention” in the nation’s post-war economic recovery process.
“I am honored to be here today to commission this institution — a place where dreams will be born and where thousands of Liberians will finally have the opportunity to access credit without being strangled by exorbitant interest rates,” she said.
Sirleaf stressed that the path to Liberia’s sustainable economic transformation lies in a strong, vibrant private sector supported by strategic policies and homegrown investment.
“We continue to see how countries in our West African subregion are advancing economically because their citizens are investing in their own economies,” she remarked. “This is an excellent way of giving back. I want to applaud Cllr. Kailondo and the team for demonstrating vision and commitment to national development.”
She urged Liberians across all sectors to rally around and support the institution, describing it as “a beacon of hope for those seeking to grow and expand their businesses.”
“George Kailondo, you have been successful. And you have chosen to give back to the people whom you serve,” Madam Sirleaf said. “While politics helps set policy, it is businesses like this that build a nation.”
Sirleaf emphasized trust as the cornerstone of any financial institution’s success.
“If people are going to give you their money, they must trust you, your managers, and your systems,” she said. “Too many of our people still do not bank because they are afraid their money is not safe.”
She called on the institution’s leadership to prioritize transparency, serve women and small entrepreneurs, and educate clients about the benefits and responsibilities of formal banking.
Sirleaf encouraged Liberians to “test” the institution with small accounts and loans.
“Open an account, take a loan, and see how they serve. If they succeed, we all succeed,” she concluded.
Providing an overview of the journey, Cllr. George B. Kailondo recounted how the idea began humbly in 2014 under the name “Kailondo Microfinance” with an initial investment of just US$100,000. Their first office, he recalled, was located opposite a local market on Old Road, serving grassroots marketers in communities like Peace Island.
“We started small. At the time, we gave loans without even asking for collateral. All we needed was to see your business operating. We trusted the market women, the store owners — and many paid us back,” Kailondo narrated.
However, not all customers fulfilled their repayment obligations, prompting the institution to pivot. “We had to adjust. We started accepting gold as collateral. That worked. People brought in gold, we gave loans, and most paid back,” he noted.
But as the scale of operations grew, Kailondo realized the need for a broader structure and a more robust financial identity. “People thought the business was just mine because it carried my name. So we decided to transform it into a proper corporate entity. That’s how Modern Savings & Loans was born.”
The name change also came with a strategic goal: to evolve into a fully licensed deposit-taking microfinance institution operating under the regulations of the Central Bank of Liberia.
According to Kailondo, the long-term vision is to transform Modern Savings & Loans into a fully-fledged bank. However, this would require meeting the Central Bank’s minimum capital threshold of US$10 million.
“The Central Bank says if you want to be called a bank, you need US$10 million. But they also acknowledged our determination. They said if you can raise $5 million, they’ll give us a provisional license,” he said.
“Let me tell you this — in two years, we will raise that $5 million and upgrade this place to Modern Savings & Loans Bank,” he vowed, drawing applause from the audience.
One of the institution’s most ambitious promises is its plan to disrupt the traditional lending system by significantly lowering interest rates, which have historically discouraged Liberians from taking loans.
“Interest rates from most banks are around 18 percent, and by the time you add default penalties and insurance fees, it balloons to over 35 percent. How can a business survive that?” Kailondo asked rhetorically.
“We are going to start with just 8 percent. Yes — eight percent! We believe in our people, and we will work with them. This place is not here to exploit you but to grow with you.”
He further criticized the inflexibility of mainstream banks in Liberia that impose harsh penalties on clients who default due to unforeseen business challenges.
“I’ve seen people pay back $400,000 on a $500,000 loan, but because they defaulted, the bank said they owed $1 million. That’s ridiculous! We’re not going to do that. We will declassify the loan, stop the default charges, and help you get back on track.”
Kailondo emphasized that Modern Savings & Loans would not only provide credit but also educate its clients on financial literacy, bookkeeping, and accountability.
“At the end of every month, we’ll print your bank statement and sit with you to explain every single transaction. We want our people to understand their finances. No more hidden charges or confusing account records,” he said.
He urged business owners to always hire good auditors and to take their financial reporting seriously. “Many Liberians don’t even read their loan agreements. They just sign. Then later, those agreements are used against them.”
The institution will be led by Madam Chantell Kailondo, a young Liberian female professional currently completing her Master’s degree.
“Chantell is sharp, committed, and more than capable,” said Kailondo as he introduced her to the audience. “This business is not mine. I’m just a board member. Don’t come to me for loans!”
Chantell, who briefly addressed the audience, pledged to lead with integrity, professionalism, and a people-centered approach.
“Our goal is to redefine how microfinance works in Liberia. We are not just lending money — we are building lives, growing businesses, and empowering communities,” she said.
The Central Bank of Liberia (CBL), through its representatives, praised the institution for meeting the rigorous standards required for deposit-taking microfinance operations and pledged continued oversight and technical support.
Cllr. Kailondo recounted the institution’s journey, revealing that it started with $100,000 in capital, focused on market traders, and later shifted from unsecured lending to gold-backed loans to recover losses and expand operations.
With the new branding, Modern Savings and Loans becomes a Microfinance Deposit-Taking Institution (MDI), regulated by the Central Bank of Liberia, and now offers checking accounts and structured loan services.
“Our next goal is to become a full-fledged bank. We’ve met the $1.09 million threshold and are on track to meet the $5 million capital requirement,” Kailondo stated.
He announced an 8% interest rate, significantly lower than the national average of 14%, and criticized exploitative lending practices that have hurt local entrepreneurs.
“Liberians don’t fail to pay loans—they’re often crushed by outrageous interest rates and inflexible repayment policies,” he said.
“This is what Liberia needs — Liberians investing in Liberians,” said one lawmaker. “This institution will serve as a model for how local capital can be mobilized to spur national development.”
“Our motto is simple: Let us grow together,” said Kailondo. “We are here to do business, yes, but more importantly, we are here to build a future — a future where Liberians trust Liberian institutions.”
As Liberia continues its recovery from years of civil war and economic stagnation, the Modern Savings & Loans Microfinance Institution offers a glimmer of hope for thousands of entrepreneurs, marketers, and informal traders who have long been excluded from formal financial systems.
With backing from Liberia’s first female president, support from government regulators, and a leadership team committed to inclusive finance, this new institution could become a transformative force in the country’s economic landscape.
Whether it succeeds will ultimately depend on how it manages risk, maintains transparency, and fosters trust — but for now, it’s a bold and welcome step toward a more financially inclusive Liberia.
Also speaking, Board Chairman Rufus Berry II described the launch as a historic milestone in financial empowerment, stressing that the new microfinance savings and loans is building with integrity.
“This marks a special milestone not just for George B. Kailondo, but for all of us committed to building a modern, citizen-focused loan institution,” Berry said.
He recalled his own experience running a microfinance firm that lost over $1 million during the Ebola crisis, and emphasized that Modern Savings and Loans is grounded in hard-earned lessons.
“We’ve learned to be transformational—to educate people, to build resilience. A loan is not free money. When you pay it back, you empower someone else,” he added.
Citing Warren Buffett, Berry said integrity must remain the institution’s compass.
“You can be smart and hardworking, but without integrity, you’re just a hardworking rogue. That’s why integrity is the foundation of Citizen Loan.”
He closed with a pledge to operate the institution with transparency, accountability, and a strong sense of public responsibility.
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