Senegal: Workshop highlights inadequate finance system for SMEs
The Office for the Development of Small and Medium Enterprises held a workshop last Monday in Dakar to find ways of increasing access to finance for small to medium-sized enterprises.Secretary General at the SME, Mining and Industry Ministry Samba Mané Diakhaté believes that the current system is inadequate.
"There are no dedicated banks for SMEs able to finance at better interest rates and that do not require some particular forms of guaranties", he was quoted by APS news agency as saying.
Mr Diakhaté added that the current system is not profitable to SMEs as they have to rely on classic banks - which mean they have to provide guaranties - or depend on mutual institutions that can only lend small amounts.
However, SMEs have an important place in the Senegalese economy, forming 90 per cent of companies and generating a third of jobs, figures published by Le Soleil newspaper state.
According to ADPME Director Marie-Thérèse Diédhiou, a very large majority of SME accounting is carried out in a non-formal way and this impacts negatively on their access to finance.
Therefore, one of the workshop's main objectives is to strengthen financial training, especially regarding credit application.