Congo-Brazzaville: “Business Fridays”, the informal sector facing a lack of funding

2023-06-29 22:08:24

The event brings together representatives of Congolese employers as well as personalities with projects. The second edition of “Company Fridays” was held at the end of May. It was marked in particular by a debate on financing mechanisms for SMEs, because the latter – poorly organized – encounter difficulties in accessing banks.

From our correspondent in Brazzaville,

How to finance the informal sector, the main concern of Congolese SMEs, many of whom came to listen to Branham Kintombo when the sector represents 94% of the Congolese economy. The acting director general of the Impulse, guarantee and support fund for SMEs and crafts, Figa is trying to give answers to the blockages of bank financing.

« Many micro-enterprises cannot access financing because it is not formalized. You also have questions relating to bookkeeping. You also have seat issues. Several promoters and economic operators have their businesses in the bags. How do you expect a bank to support a company that cannot be identified “, he explains.

Results in microfinance

It is with the aim of solving all these problems that the authorities set up the Figa in 2021. Its goal: to ensure financial intermediation between SMEs and banking establishments and those of micro-credits. And results, there are essentially in micro-finance, according to Branham Kintombo. ” Between March and April (2023), Figa was able to provide support with the micro-finance partnership. For a stock of 340 million CFA francs [518 326 euros, NDLR] we were able to reach 439 beneficiaries, mostly micro-enterprises “, he details.

For her part, Jacqueline Lydia Mikolo, Minister for SMEs, who sponsors Business Fridays, welcomes the government’s advocacy. ” We have nevertheless managed to have products, with the Ecobank bank for example, which allow craftsmen to open their bank accounts without a single franc. All you need is your craftsman’s card “, she rejoices.

A majority of VSEs that escape bank loans

Le Figa has supported, among others, fishermen’s cooperatives and market gardeners. But also the micro-industry. Samuel Tsimba Mbila is the promoter of a company producing white and colored school chalk. “ Initially, with our own means, we were able to produce 200 boxes of chalk per day. But, with the funding we have just obtained thanks to Figa, we will quintuple our production capacity. “, he promises.

At Business Fridays, the ten commercial banks present in the Congo were described as cautious, requiring too many conditions to finance SMEs. An accusation debunked by Milord Alkama, director of operations of the Congolese bank (LCB). “ We are already financing them in all areas: technology, agriculture, agri-food, pharmacies… Hold on tight with very light constraints “, he defends himself.

But the vast majority of VSEs still too largely escape bank loans. For better regulation, the authorities want them to register, without real success so far.

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