SME financing initiatives launched in Senegal and Benin

In Senegal, the Fonds de Garantie des Investissements Prioritaires (FONGIP) and Banque Outarde have signed a framework agreement to strengthen business financing. The partnership provides guarantees of up to 500 million FCFA per beneficiary to help SMEs, PMIs, and established large companies overcome collateral shortages. These credit facilities can span durations of 12 to 60 months, aiming to support both cash flow and medium-term investment needs by sharing risk between the bank and the public guarantee mechanism.

In Benin, the European Bank for Reconstruction and Development (EBRD) has launched a private sector support program in Cotonou. Rather than focusing solely on liquidity, the initiative aims to address the lack of business structuring that prevents companies from becoming bankable. The program will provide consultancy services covering strategy, internal organization, governance, financial management, and digitalization. The EBRD defines SMEs as businesses with fewer than 250 employees and specific turnover or asset thresholds, seeking to improve productivity and governance to facilitate future access to finance.