Senegal

The National Union of Building and Public Works is a Senegalese association with more than 200 business members, the majority of which are small and medium enterprises (SME). Just as in most developing countries, SMEs in Senegal have to develop and diversify their markets to take advantage of the global economy’s economic liberalization and growth. It is necessary to ensure that these SMEs are aware of the same economic mechanisms used by businesses in industrialized nations.

In partnership with CESO and with the support of VA Jean-Guy Godbout, the National Union of Building and Public Works decided, in 2004, to implement a project, the main objective of which was to provide access to traditional funding for SMEs, which would be done gradually and over the longer term taking into account the local banks’ eligibility criteria. The project includes the following three phases: i) identification of all the needs of the Senegalese SME stakeholders; ii) preparation of the pilot phase; and iii) implementation of the pilot activity.

The first phase took place in November 2004 and the following items were identified: a) the preliminary needs for the advancement of the SMEs; b) the conditions that could encourage the financial institutions to adapt their operations to the SME sector; and c) the Senegalese financial sector’s missing components necessary for global and sustainable funding of SMEs (i.e. SME risk capital, credit bureau services and directory of supporting organizations within the SME sector).

In March 2005, the second phase of the project was completed and the following were approved: i) the 12 SME members of the National Union of Building and Public Works that will take part in the pilot activity; ii) the three local banks involved in the project; iii) a number of supporting organizations that can provide real support to SMEs; and iv) a number of service bureaus that could support the advancement of the SMEs.

The advancement needs of the various participants involved in the pilot activity have also been set. Another assignment was conducted to develop the feasibility study for the creation of a risk capital of 5 million Euro for SME development in Senegal. This project, to begin in September 2005, is supported by financial institutions, the Senegalese government and the Canadian Co-operation.

The pilot phase is scheduled to take place between October 2005 and March 2006, upon completion, we expect that the majority of the 12 SMEs would be eligible for traditional and sustainable funding. Most of the participants intend to ask CESO for help.

For further information, please contact:

Apollinaire Ihaza (Montreal Office)
Program Manager for Africa
(apollinaire@saco-ceso.com)
Tel. 514-875-7226, ext. 105