The World Bank has approved a $100 million grant through the International Development Association (IDA) to support micro, small, and medium enterprises (MSMEs) in Chad. The initiative, known as the Chad Micro, Small and Medium Enterprises (MSME) Development and Access to Finance Project, aims to enhance business growth and improve access to financial resources for these enterprises.
The project is designed to improve the business environment by making it easier to start businesses, supporting the operation of commercial courts, and providing better access to information about business regulations. A new Enterprise Development Center will be established as part of the effort. This center will offer various support programs targeting entrepreneurs and SMEs, with a particular emphasis on initiatives led by young people and women.
Additionally, the project seeks to promote financial inclusion by operationalizing a guarantee fund and introducing a financial education program tailored for MSMEs. These measures are intended to help firms secure financing more easily while reducing lending risks for financial institutions.
Farouk Mollah Banna, World Bank Country Manager for Chad, stated: "This project is centered on the World Bank's approach to private sector development aimed at strengthening the private sector's capacity to invest, create jobs, catalyze the green transition, and spur economic transformation. It will provide Chad with better access to basic financial services to enable micro, small and medium enterprises (MSMEs), a key sector in the economy, to invest and grow."
The six-year project is expected to benefit MSMEs throughout Chad. It aims to shorten dispute resolution times in commercial courts and provide nearly 8,000 MSMEs with credit access. Furthermore, 2,000 MSMEs are set to receive support from the Enterprise Development Center’s services. The financial education program is projected to reach 200,000 individuals.