- the 8e edition of the WAEMU Banking and SME Fair under debate
- It was from February 7 to 10, 2023, in Lomé
- The AUF puts its campuses to work
The financing of micro, small and medium-sized enterprises (MSMEs) in Africa is an acute issue. The reason, the volatility of the informal dominated MSME sector. As a result, banks and financial institutions are reluctant to fund MSME development projects. However, according to economic experts, well-structured and supported MSMEs create jobs and growth. It is precisely to find appropriate solutions to this problem that the 8e edition of the UEMOA Banking and SME Fair focused on the following theme: “Financing and investment of UEMOA SMEs, in the face of crises and changes in African economies”. It was from February 7 to 10, 2023 in hybrid mode, in all WAEMU member countries. The official ceremony took place in Lomé, Togo. In Ouagadougou, the university campus, through the multimedia center of the Francophone University Agency (AUF), hosted the work.
A win/win partnership between banks and SMEs
This event is carried by the Burkinabè Hermann Nagalo. According to him, the development of the African economy depends on the creation of SMEs. His vision, his tenacity and his determination to promote SMEs were recognized and welcomed by all the speakers, in particular, the Togolese Minister of Trade, Industry and Local Consumption, ST Kodjo Adedze. The representative of the Togolese Prime Minister, who opened the Fair, mentioned the considerable contribution of SMEs to the Togolese economy. In view of this contribution, he said, the Togolese State has carried out several reforms to create better favorable conditions for the development of SMEs.
On the subject, the minister invited banks and SMEs to a win-win partnership, so that both parties get the most benefit. ST Kodjo Adedze recommended SMEs to improve their internal governance to create an enabling environment for economic growth.
BADEA ready to support SMEs
The godfather of this 8e meeting, the Director General of the Arab Bank for Economic Development in Africa (BADEA), Dr Sidi Ould, noted 3 challenges facing SMEs: accessibility to financing, limited capacity and limited access to market opportunities. Added to these challenges are Covid-19 and the Ukrainian crisis. He noted that the development of SMEs was a priority for BADEA, with particular emphasis on young people and women. This priority requires support from African States, through the granting of loans, lines of credit to commercial or regional banks, subsidies aimed at building the capacity of SMEs. A concrete support from BADEA is the UEMOA Banking and SME Fair. Sidi Ould Tah calls for a global coalition of African SMEs to face the major challenges of access to funding raised. The chairman of the committee of experts, former governor of the BCEAO, Justin Damo Barro, urged States to support SMEs, the engine of economic growth and job creation. As a reminder, 106 innovative projects were selected out of nearly 400 submissions for this edition.
RD
Box: SMEs represent between 80 and 95% of companies in the WAEMU space
“Globally, SMEs account for around 90% of business enterprises and more than 50% in job creation. SMEs represent between 80 and 95% of enterprises in the WAEMU space. They are recognized as major players in job creation and poverty reduction. An estimate by the International Finance Corporation (IFC) reveals that 40% of micro and SMEs in the informal sector in developing countries have an unmet financing need of 5.2 trillion dollars each year. The reason, small size, not diversified and vulnerability to shocks. In Africa, SMEs have a financing need of more than 300 billion dollars per year, according to SFI”.
Source : Discours DG BADEA
