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
Similar Posts:
- MICROCAPITAL BRIEF: Baobab+, TradeLenda Partner on Solar Energy Solutions for SMEs in Nigeria
- MICROCAPITAL BRIEF: UN, EU Supporting SMEs Involved in Fisheries in Cambodia via Capfish-Capture Program
- MICROCAPITAL BRIEF: Funding Societies Inks $50m Line of Credit from HSBC to Bolster Small, Medium-sized Enterprises (SMEs) in Southeast Asia
- MICROCAPITAL BRIEF: ABI to Leverage $69m from EIB to Boost SME, Mid-cap Financing in West Africa – Focusing on Women, Youth
- MICROCAPITAL BRIEF: Sonata Borrows $6m from MicroVest for Group Microlending to Women in Rural India