MEDS spokesperson outlines obstacles for SMB growth

Mar 30, 2011

Mbagnick Diop, spokesperson for the companies of Senegal (MEDS) said that the low involvement of the banking system in the financing of gross domestic product "constitutes one of the main obstacles to the development and growth of the Senegalese businesses".

He made this remark during the MEDS General Assembly, held last week end in Dakar, adding that the high interest rates and guaranties requested by banks and finance institutions are an "insurmountable barrier" for small and medium-sized businesses (SMBs), APS news agency reports.

Mr Diop also mentioned the complexity of the Senegalese tax system and the lack of credit lines adapted to the specific needs of SMBs.

However, he believes that the implementation of the law in 2008-29, which, under special circumstances would work in favour of national companies, will help businesses to develop.

The minister in charge of SMBs Abdoulaye Baldé has also mentioned the effects of the energy crisis on businesses performance.

That is why he called on every large company in the country to build its own power plant, Reussir Business Newspaper reports.