WAEMU: IDB to allocate $30m to support SMEs
This support could increase to $100 million on the long term.The Islamic Corporation for the Development of the Private Sector (ICD), a subsidiary of the Islamic Development Bank (IDB), will allocate $30 million (€27.6 billion) to support a programme aimed at improving SMEs' access to finance within the WAEMU region (Dispositif de soutien au financement des PME/PMI).
It signed on January 18th a Memorandum of Understanding with the Central Bank of West African States (BCEAO).
The ICD said it could increase its support to $100 million, depending on investors' interest in the programme, Ecofin agency reports.
The Dispositif de soutien au financement des PME/PMI was adopted last September by the WAEMU.
It also approved in December a Community Charter for SMEs, which aims to provide SMEs with a legal and regulatory framework and to promote SMEs that make up 80 per cent of the economic fabric of the Union.
The Charter consists of 45 items such as setting up an institutional framework for SME promotion and various measures relating to access to public procurement, taxation, innovation and research.
It provides for the establishment of specialised agencies and specific mechanisms to facilitate access to credit for SMEs.