Algeria: ANDPME and AGEA sign agreement to bring financial training to SMEs
Small to medium-sized enterprises (SMEs) still claim access to credit is a major issue for them, states a document from the employment union FEC.Small to medium-sized enterprises (SMEs) still claim access to credit is a major issue for them, states a document from the employment union FEC.
These companies face difficulties accessing loans as they often cannot provide the guarantees required by lenders, but also because many credit application forms are rejected for not conforming to banks' criteria.
Banks believe that Algerian SMEs must be more transparent and adopt a modern management approach that includes marketing, sensible management and a total mastering of finance tools in order to build a partnership where risks and opportunities are shared, according to a study from Oran's University entitled Le développement des sources de financement des PME en Algérie : émergence de la finance islamique.
This is why the National Agency for SME Development (ANDPME) and the General Association for Algerian Entrepreneurs (AGEA) signed an agreement on May 24th designed to bring technical and financial training for affiliated SME managers.
The agreement includes the creation of a specific programme to keep companies up to date and help them reorganise and improve their competitiveness. It targets "financing and the strengthening of SME and professional associations' management capacities", ANDPME's director Rachid Moussaoui told APS news agency.
"BTPH companies need a technical and financial support so that they can take charge of mega projects usually handed to foreign companies", added AGEA's president Mouloud Kheloufi.