Enabling micro, small and medium-sized enterprises to invest

Context

Small and medium-sized enterprise (SMEs), including micro enterprises, account for 98 per cent of companies in Senegal. However, they receive just nine per cent of the loans issued to businesses. According to studies, the lack of access to finance is the key factor that prevents SMEs from investing and expanding – and thus creating new jobs.

For banks and other financial institutions, processing requests from SMEs is often complicated and expensive, especially as many small businesses in Senegal have neither reliable financial data nor a customer history.

The businesses themselves are often lost in the maze of offers. Which financial product is right for me? What documents do I need? Questions like these often prevent companies, especially women-led ones, from contacting banks.

Objective

SMEs have better access to finance.

Approach

The project helps to bring SMEs and financial institutions together faster and with greater ease, so that more businesses receive finance and financial institutions can expand their SME business in the long term.

The core of the project is an online platform on which SMEs can create a profile and register their finance requirements. The businesses are then supported by partner organisations in improving and completing their finance request. The financial institutions receive this request and thus gain customers who have been pre-assessed by a state agency. The project particularly supports women-led businesses.

In addition, the project supports reforms of Senegalese institutions to make financing even more accessible for SMEs.

Last update: January 2025