|Approval Date||22 Mar 2021|
|Signature Date||27 Jan 2022|
|Planned Completion Date||31 Dec 2026|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||11231|
The proposed operation is a Fund for African Private Sector Assistance (FAPA) grant of USD 1,000,000 to Invest in the Senegal SME Business Linkage Program (SME BLP). This is a technical assistance operation that is closely linked to the Project to Support Skills Development and Youth Entrepreneurship in Promising Sectors (PDCEJ). It aims to strengthen the position of SMEs and SMIs in the oil and gas value chains so that they can provide quality goods and services. Local content requirements are specifically provided for in Senegal's Petroleum Code (February 2019), which gives preference to local SMEs for construction, equipment supply and service contracts, provided they offer enough conditions in terms of quality, price, quantity and deadlines. To date, Senegalese SMEs and young entrepreneurs who could serve large companies currently lack technical and managerial skills, adequate infrastructure, financing and innovative technologies and techniques, particularly for the oil and gas industry. This technical assistance project will not only target SMEs specialized in the oil and gas sector. Rather, the objective is to build a strong network of companies capable of providing quality goods and services to the major oil companies, a niche market that is currently promising, but also to other potential buyers following a multi-sectoral approach. The program has three main components: (i) Identification of SMEs and enterprise diagnostics; (ii) Development of management skills and production capabilities of SMEs; (iii) Development of Business Linkages and Project management.
The overall goal of this project is to strengthen economic and social development through increased access for SMEs to skills, financing, and new markets through partnerships with large companies. The specific objectives of the project are as follows : (i) Capacity building of at least 120 SMEs to enable them to meet the criteria to supply large enterprises in order to access new markets and meet requirements of participating banks in order to access finance; (ii) Creation of 50 business linkages between SMEs and large companies to facilitate the transfer of technology, knowledge and skills, to improve the management and financial practices of local SMEs and to ensure impact on the local population; (iii) Increased demand and purchases of locally produced goods and services; (iv) Development of local enterprises resulting in additional household income and job creation.
At least 120 companies operating in sectors that offer clear opportunities for partnerships with large companies. Other beneficiaries will include: (i) providers of business support services through improved content and delivery mechanisms, in addition to increased demand for quality services; (ii) banks, due to increased lending to SMEs; (iii) the State of Senegal, due to increased investment and tax revenues; (iv) the entire population, due to increased employment opportunities and poverty reduction; and (v) the private sector, due to increased employment opportunities and poverty reduction.
Fund for African Private Sector Assistance
MINISTERE DE LA FAMILLE ET L'ACTION SOCIALE
|Last Update||06 Feb 2023|