In Benin, the government has just launched an initiative to promote entrepreneurship called the “Investment and Guarantee Fund for Small and Medium Enterprises.

This Fund, with an investment of 5 billion FCFA, is a boost to the system for promoting and developing micro, small, and medium enterprises or industries (SMEs) in Benin

Its creation aims to facilitate access to credit for SMEs and provide banks and microfinance institutions with solutions for covering the risks they take on. The new credit guarantee mechanism for SMEs significantly helps to address, in this case, the lack of collateral, which is the main shortcoming hindering the development of SMEs

Therefore, credit guarantees, by allowing risk-sharing with lenders, provide access to financing for companies that do not have a sufficient credit history,” the government stated in a press release

Article source: lobservateur