(Ecofin Agency) - This initiative aims to bridge the funding gap holding these businesses back, giving them the resources to grow and fully contribute to the country’s economic expansion.

Senegal is launching a major financial initiative to support small and medium-sized businesses (SMEs and SMIs) struggling with limited access to funding. A coalition of economic players, led by the Agency for the Development and Supervision of SMEs (ADEPME), has committed to unlocking CFA1 trillion ($1.6 billion) to help these businesses grow. The announcement was made on February 4during a preparatory meeting for the 4th SME Forum, scheduled for February 18-20.

"Access to financing is one of the biggest obstacles holding back SMEs and SMIs. That’s why we created the Massive and Secure Financing Program, which aims to increase the loans available to these businesses," said Ibrahima Thiam, Senegal’s Secretary of State for SME Development.

The funds will be mobilized under a secured financing pact designed specifically for SMEs. Banks will play a key role in the initiative, with around 20 local banks already on board. Among them, Ecobank Senegal has pledged CFA100 million to the program. "We are fully committed to supporting SMEs and making financing more accessible to them," said Aissatou Thiam Diakhaté, Managing Director of Ecobank Senegal.

The program, which initially had a CFA600 billion target in 2024, now aims to reach CFA3 trillion by 2028. It is seen as a strategic tool to strengthen Senegal’s economy by making it easier for SMEs to access credit, boosting their competitiveness, encouraging innovation, and creating jobs.

"This CFA1 trillion package represents one-third of our goal and is a major step forward for the sector. Now, we need to ensure the funds are effectively disbursed to maximize impact on the ground," Thiam added.

SMEs are the backbone of Senegal’s economy, yet securing financing remains a serious challenge. Many banks are reluctant to lend to them due to risks linked to the informal nature of some businesses, a lack of proper structuring, and insufficient guarantees.

With this new funding initiative, a key question remains: How will banks overcome these challenges and fully play their role in financing Senegal’s small businesses?