Senegal: Workshop helps SMBs to access credit
A workshop is to take place in Senegal to aid small businesses struggling to access credit.A government agency for small and medium business (SMB) growth (Adepme) has organised a workshop this Thursday (March 17th) in Dakar with several bankers and entrepreneurs to help solve the problems SMBs are facing when it comes to accessing credit.
Overall, 80 per cent of their applications are rejected by finance institutions, according to a new study by the African Development Bank.
Dame Gaye, secretary for female entrepreneurship, believes that SMBs' lack of readability is one of the main obstacle to credit: "Financial institutions are forced to raise their fees to protect themselves from the default risk" he explained, quoted by Le Soleil newspaper.
According to him, a way to solve this problem would be to promote financial education, so that applicants are better prepared and develop their negotiation abilities.
On March 1st 2011, the AfDB and several development partners announced they will grant €120,4 million to the "programme croissance PME’’, a scheme promoting SMB growth and access to credit in Senegal.
Following this announcement, SMB director Ibrahima Diouf asked for more flexibility in banks credit access conditions, adding that in Senegal, 65 per cent of SMBs are going bankrupt before the first year following their creation, mainly because of difficulties to access credit, APS news agency reports.