The global news agency Inter Press Service (IPS) recently reported that small and medium sized businesses (SMBs) in Senegal are struggling to access funding. Mr Vincent Akué, team leader of economic consultants in Dakar, explained, “There are discrepancies between the economic structure and the SMB framework. Due to difficult market conditions and sluggish business, financial institutions invest only five percent of their funds in SMBs.” The article notes that SMBs’ lack of funding may stem from borrowers’ financial illiteracy and the lack of banking staff that can understand SMB growth profiles.

By Stefanie Rubin, Research Associate

Additional Resources:

Inter Press Service: “Only The Rich Get Loans,” http://ipsnews.net/news.asp?idnews=50716