Algeria: Ansej in partnership with two banks to facilitate start-ups' access to credit
An agreement will be signed next month.The National Agency for support to youth employment (Ansej) is to sign an agreement with two state banks to ease access to credit for start-ups, said on Monday (March 1st) its director Mourad Zemali.
He said this will boost the creation of new businesses through more flexible terms to obtain a loan, as collaterals required by commercial banks are often a barrier for start-ups.
While SMEs represent more than 95 per cent of companies in Algeria, at least half of that number struggle to gain access to banking services, denying them the opportunity to help the economy grow.
banks' strict requirements, only 8,250 start-ups have received bank financing since the creation of the Ansej in 1996 out of a total of 333,000 funded projects, Mourad Zemali said.
He told the press that the agreement will be signed on April 5th with these financial institutions, without revealing their name.
"We have a 70 per cent recovery of credits and provide a serious monitoring of projects," he explained.
According to the International Finance Corporation (IFC), although small businesses make an important contribution to Algeria’s GDP, as in many emerging economies, they lack corresponding support from banks.
"SMEs are still struggling to access quality banking products in Algeria, even though they are numerous and create many jobs,” said Joumana Cobein, IFC's head for the Maghreb region.