"In Africa, there are 44 million formal small and medium enterprises that account for 33% of the continent's gross domestic product and 45% of jobs. Public deficit represents the first obstacle to the development of small African SMEs, "said Thameur Hemden.
Co-Chairperson of the Foundation for Participation in Financing Africa and the Mediterranean (FPAM) spoke at the distribution forum in Africa called "Financial Innovation for Development".
"In West Africa, according to the Strategic Markets Initiative (SMI Forum), there will be a deficit of $ 10 billion to finance formal SMEs, and Senegal has a billion dollars. Therefore, the World Bank and other partners must establish all the conditions to cut this gap between 5 and 10 years, "said Laurent Gonnet, Senior Financial Sector Expert at the World Bank (VB).
In order to overcome this problem of fundraising, public credit distribution is a credible alternative, but it remains insufficient. "In 2017, the total amount of funding in Africa was $ 153 million." The system is still not completely safe, "said Valerie Dabadi, head of resource mobilization and external finance department at the African Development Bank (AfDB).
In the opinion of Mr. Gonnet, the solution lies in three leverage. "The first is competition in the financial sector, because if it does not exist, the interested parties will not go to small and medium-sized enterprises.The second leverage is a credit infrastructure that destroys the symmetry of information between the banker and his client.The third is a need for public intervention with the central bank, finance or other public forces, "he said.
Continuing, the chief specialist of the financial sector in the World Bank (SB) insisted on the collateral system, that is, the guarantee that banks are looking for from customers. Laurent Gonnet noted that "a banker often asks for a building, a house, a country as a guarantee without funding. This does not help young companies, and funding will eventually go to those who already have wealth.
It is therefore important for him to develop an "extended collateral regime in which other types of collateral will be offered to the bankers". In that sense, Thameur Hemden is wondering if "today, innovation or market integration can not be a guarantee."
Structurally, Laurent Gonnet believes that "they salvage banks by understanding that funding for SMEs can return money." In addition, he expressed his desire to see "financial ministries set up guarantee funds that provide banks with an additional level of comfort that allows them to finance a little more SMEs."
In conclusion, Valerie Dabadi acknowledged that "funding is only part of the needs of SMEs to succeed," because, she notes, training and support in administrative procedures "are also important.
: ID / li / APA