Madagascar: Launch of a new guarantee fund for SMEs
A partnership agreement was signed last Friday (December 13th) between SOLIDIS Madagascar, the French Development Agency (AFD) and the microfinance institution Microcred.A partnership agreement was signed last Friday (December 13th) between SOLIDIS Madagascar, the French Development Agency (AFD) and the microfinance institution Microcred.
The objective is to establish a five billion ariary (€ 1.6 million) guarantee fund, which is expected to benefit 300 small and medium-sized enterprises (SMEs).
"The signing of this agreement is already anticipating economic recovery. Indeed, it provides an opportunity for financial institutions, including Microcred, to facilitate access to finance for SMEs. SOLIDIS actually offers a portfolio guarantee for its customers," said CEO of SOLIDIS Madagascar Hagasata Rakotoson during the signing ceremony.
"A new technology has been implemented with financial support from the AFD to reduce the response time to five minutes for claims of users of financial services," he added, quoted by L'Express de Madagascar.
Malagasy SMEs have been suffering since the start of the economic and political crisis in 2009, with market losses of 25 percent on average in an economy dominated by the informal sector and a few large companies.
According to the UNDP (United Nations Development Programme), a total of 200,000 formal jobs have disappeared since the beginning of the crisis in 2009.
This is why the national government and donors have undertaken actions to improve the business climate and support the development and creation of SMEs. In its strategic planning, the Ministry of Industrialisation, Trade and Private Sector Development has identified several areas of intervention, including a reform deepening the financial system and fostering the development of new financing mechanisms.