New plan launched to improve SME access to credit in Burkina Faso
A group of experts and decision-makers within Burkina Faso's small to medium-sized enterprise (SME) sector were present during a seminar on April 20th to discuss a new plan of action promoting SME development in the country.A group of experts and decision-makers within Burkina Faso's small to medium-sized enterprise (SME) sector were present during a seminar on April 20th to discuss a new plan of action promoting SME development in the country.
This project, which aims at improving access to credit for SMEs, will be launched in June 2012 in each member country of the West African Economic and Monetary Union (WAEMU), Burkinapmepmi.com reports.
It is based around three actions. These are to create an incentive environment for SMEs, guaranty an efficient direct support for SMEs and provide SMEs with a finance offering tailored to their needs.
Spokesman for the president of the WAEMU commission Jean Yves Sinzogan explained this €10.2 million programme will help create a common plan for SMEs to strengthen their performances and consolidate the Union's economy.
The meeting's participants also mentioned the difficulties SMEs currently face accessing credit.
According to a report from the Burkinabe's finance minister called
L'accès au financement des PME/PMI: Enjeux et Perspectives, published in May 2011, the country's banking system is not lending enough. The credit/GDP ratio was 17 percent in Burkina compared to 158.4 percent in South Africa.
According to the report, banks in the country are reluctant to lend money to SMEs because of insufficient capital, lack of financial education, low profitability and lack of guarantees.