|Approval Date||15 May 2020|
|Signature Date||15 May 2020|
|Planned Completion Date||31 Dec 2023|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||24030|
The Madagascar SME Business Linkages Program (BLP) is a transformative and integrated program that links SMEs to new business contracts, provides finance and skills. The Madagascar SME BLP, through multidimensional support, addresses the three main constraints faced by MSMEs in Africa, and particularly in fragile and low-income environments. The program provides capacity building to strengthen MSMEs productivity. A wide range of business-related training and coaching sessions will be provided. It will include entrepreneurship, core business functions and management training (e.g. business strategy, management information systems, marketing and human resources). Its interventions will (i) strengthen the capacities of MSME managers, (ii) facilitate their access to finance as well as (iii) enhance local and foreign market opportunities for MSMEs. In addition, a study, scoping the business environment for SMEs will be conducted in order to undertake policy reforms in the future. The implementation period of the Madagascar SME BLP is 3 years with expected start in the second quarter of 2020.
The Madagascar SME BLP aims to support MSMEs productivity to grow, develop economies of scale and creates better employment opportunities for women and youth in the textile and agribusiness sectors. The program objective is to support inclusive SME development through business linkages. This objective will be achieved through skills capacity building in management, and access to finance and markets. The ultimate result is to support job creation targeting youth and women, and economic growth.
The main target beneficiaries of the program are Malagasy MSMEs that have been operational for at least two (2) years. The priority sectors are agribusiness, textile, manufacturing, and services. A few large firms, 2 mining companies, 2 hotels, 2 supermarket chains, and 3 textile manufacturers, have already expressed interests in participating in the project. However, during the preparatory mission, some SMEs indicated that they sell directly to clients inside and outside Madagascar. Therefore, the training components should include those firms. The project will also ensure a high representation of women-led enterprises, at least 40% of participants. While the project will mostly target formal businesses, informal businesses with high growth potential and willingness to formalize will not be excluded. Such firms will be supported in their formalization process. Additional direct beneficiaries include the local company that will partner on the platform, the local training company, BDS providers (through improved content and BDS delivery mechanisms), partnering financial institutions (increased lending to MSMEs) and local purchasers that will benefit from reduced cost of inputs and reliable suppliers. The Government will also indirectly benefit through increased taxes, reduced imports (hence savings on foreign currency), increase job creation and ultimately increased dynamism of the private sector.
Fragile States Facility
BUREAU PAYS DE MADAGASCAR (COMG)
|Last Update||24 Sep 2022|
|Name||BAH El Hadj Mamadou|
|-18.75 46.75||Antananarivo Province|