The African Development Bank (AfDB) and Invest in Africa Senegal (IIA) have signed a grant agreement under the Fund for Africa (FAPA) to help the private sector and finance small and medium-sized enterprises (SMEs).
The agreement, supported by a one-million-dollar grant from the government of Japan, is expected to aid the capacity building of SMEs/SMIs in the west African country.
It is understood that the direct beneficiaries of the project are SMEs in the field of oil and gas and other key players in the country’s private sector.
‘This project is very well aligned with the main priorities of the government of Senegal and the bank because it will help build the capacities of small and medium-sized enterprises in the country, especially those held by women and young people’, AfDB Country Manager in Senegal, Mohamed Cherif, said.
‘Ultimately, it will allow these small businesses to create decent jobs, win public and private markets, and thus increase local content.
‘It is also an opportunity to congratulate ourselves on the solid cooperation between Japan, the bank and Senegal’.
According to the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, SMEs are a key driver of growth in the Senegalese economy as they account for 90 percent of businesses and 42 percent of total employment in the francophone country.
Data from the United Nations Industrial Development Organisation (UNIDO) shows that SMEs in Senegal have limited access to resources, information and finance.
Available figures from Baobab Consulting also reveal that public sector support for SMEs is crucial for inclusive economic growth and development in the country.
‘The overall objective of this project is to strengthen economic and social development by promoting increased access for SMEs to new markets, financing and partnerships with large companies’, the Chief Executive Officer of IIA, Ibrahima Fall, said.
‘Through this project, we will reach a large number of local businesses, by connecting them with large multinational companies’.
Photo source: AfDB
