Madagascar - SME Business Linkages Program


Project Summary

Approval Date 15 May 2020
Signature Date 15 May 2020
Planned Completion Date 31 Dec 2023
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Environmental Category 3
Commitment U.A 1,000,000
Status Implementation

Project General Description

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.

Project Objectives

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.

Beneficiaries

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.

Participating Organization

Funding
Fragile States Facility
Implementing
BUREAU PAYS DE MADAGASCAR (COMG)

Information

IATI identifier 46002-P-MG-HAZ-001
Last Update 24 Sep 2022

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Contact Details

Name BAH El Hadj Mamadou
Email e.bah@afdb.org

Geographic Location

Country Madagascar
Coordinates Location Name
-20 47 Madagascar
-18.75 46.75 Antananarivo Province