notice to SMEs, 2nd call for applications is open

(AFRICAN DEVELOPMENT BANK) – It has been three years since the African Development Bank launched a program in Madagascar to support the growth of small and medium-sized enterprises in the country. Objective: to enable them to achieve economies of scale and create better job opportunities for women and youth in key sectors of the Malagasy economy to reduce inequalities and poverty by focusing on the development of the private sector.

mentioned ” SME Business Linkage Programme », this program, which already exists in Ghana and Senegal and is being prepared for the member countries of the G5 Sahel, contributes to achieving one of the major goals of the African Development Bank: to stimulate economic growth and social progress in Africa.

A new call for applications has been launched, open to all Malagasy SMEs wishing to participate in this program. By mid-October 2022, 150 small and medium-sized companies will be selected to participate.

The “SME Business Linkage” program was launched in September 2020 and has already benefited a first wave of small and medium-sized Malagasy companies.

Around 300 Malagasy SMEs operating in various economic sectors, 40% of which are led by women and youth, have participated in the program since its launch. A total of 607 companies from across the country applied for the first year of the program; 183 formal SMEs had been selected and 141 actually completed the program from start to finish.

The SMEs selected in this first phase come from 15 regions of Madagascar (58% from the Analamanga region, 8% from Vakinankaratra, 5% from Atsinanana and 4% from Boeny). Half are led by women, 42% of young entrepreneurs under the age of 35, 57% have a workforce of 5 to 10 employees, 53% have existed for less than 5 years and 32% have a seniority of 6 to 15 years … In addition, operating 45% in the agricultural sector and 16% in the service sector.

The “SME Business Linkage” program has three components relating to access to skills, the market and financing.

Regarding the “access to skills” component, the participating companies have benefited from a capacity building program in terms of entrepreneurship, diagnostics, development of a business plan and management skills training, coaching and mentoring, in addition to facilitating business contacts. The recipients also had the opportunity to carry out in-depth internships in established companies.

The “market access” component, which is about establishing a digital platform to bring together micro, small and medium-sized companies with large established companies, is underway. This platform, which will be named “Mada Business Linkage”, will, among other things, enable large companies involved in the provision of goods and services to publicize their needs for the attention of micro, small and medium enterprises, through a system of registration and registration. The platform will be operational in early 2023; Initially dedicated to businesses benefiting from the program, it will then be open to any duly registered formal business.

With regard to the “access to finance” component, a credit guarantee system has been established with two local partner banks to promote access to finance for small and medium-sized Malagasy companies to respond to requests from large companies. It can be cash financing or investment. The partnership agreements are being finalized.

That small and medium-sized companies Malagasy people wishing to participate in this second phase of the program, whose completion is planned for December 2023, are invited to register directly on the site. This posting is primarily aimed at small and medium-sized Malagasy companies with great potential in terms of commercial links with large companies. Trade groups and chambers of commerce and industry are encouraged to pass on information to their members.

About the African Development Bank Group

The African Development Bank Group is Africa’s leading development finance institution. It consists of three separate entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The bank is represented in 41 African countries with an external office in Japan and contributes to the economic development and social progress of its 54 regional member countries. For more information: www.afdb.org

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