Access to credit 'remains difficult' for Madagascar businesses

Jun 06, 2011

Many companies in Madagascar struggle to access credit, even though banks have enough funds to lend and launch large campaigns to promote credit, L'Express de Madagascar newspaper reports.

Declined credit applications are mainly due to problems with businesses' legal and financial documents, Nelly Randriatsialonina of BFV-SG bank was quoted as saying.

But according to an anonymous
Malagasy businessmen - said to be one of the country's leading figures - banks are only lending to those who already have a status or money.

He called for the creation of an investment bank in order to allow "young people and those who do not have an initial capital investment to become economics players".

Some
efforts have been made by banks to
adress these issues: BNI Madagascar, for example, organised a 'small and medium-sized enterprise (SME) day' on December 9th 2010.

The bank invited business leaders, several financial institutions and an association that helps business creation,
in the
view
of answering SME managers' complaints about their difficulties to access credit, Courrier de Madagascar newspaper reports.