Description

Context and Background

In July 2020, the Ministry of SMEs, Handicrafts and the Informal Sector, MPMEASI, of the Republic of the Congo renewed its confidence in BBA to turn the SME Development, Guarantee and Support Fund, FIGA-PMEA, into an operational reality.

Building on an initial feasibility study conducted in 2009 and a roadmap prepared in 2012, the objective was to move from concept to implementation and provide the country with a comprehensive support mechanism for micro, small and medium-sized enterprises and the handicrafts sector.

Phase I, Launch and Scoping, July 2020 to December 2020

• Institutional and functional audit: mapping of existing structures, financial flows and documentation tools.

• Infrastructure assessment: review of information systems, reporting arrangements and internal processes.

• Initial roadmap: design of the launch framework, preparation of the transition matrix and definition of governance arrangements, including steering committees and key roles.

Phase II, Operationalisation, January 2021 to December 2023

1. Final Operational Framework

   • Formalisation of the strategic pillars: business start-up support through grants, guarantees through risk-sharing mechanisms, business support through training and monitoring, partnerships and communication.

2. Establishment of Governance Arrangements

   • Creation of a dedicated organisational structure, a procedures manual and a management information system, MIS.

   • Recruitment and training of the first team members, including fund officers, monitoring officers and sector experts.

3. Deployment of the Support Mechanisms

   • Start-up support mechanism: targeted grants to launch 50 pilot MSMEs.

   • Guarantee mechanism: shared guarantee fund covering up to 70% of the risk borne by partner financial institutions.

   • Post-creation support: thematic coaching in financial management, marketing, organisation and digitalisation, together with quarterly field visits.

Phase III, Consolidation and Sustainability, January 2024 to January 2025

• Day-to-day monitoring: operational management and updating of key performance indicators through an automated dashboard, including disbursement rates, recovery rates and beneficiary satisfaction.

• Strengthening of partnerships: signing of agreements with NGOs, microfinance institutions and international development agencies.

• Continuous training: five thematic workshop cycles covering entrepreneurship, digitalisation and market access, together with the creation of a network of sector experts for ad hoc support.

• Communication and visibility: launch of a web platform, quarterly newsletters and organisation of an annual FIGA Forum bringing together MSMEs, financial partners and donors.

Key Mid-Term Results

• More than 120 MSMEs financed and supported since 2021.

• Twelve-month survival rate of 85%, compared with a national average of 60%.

• Financial leverage effect: EUR 1 of public funding mobilised EUR 4 of private financing.

• Average turnover increase of 40% among beneficiary MSMEs.

Conclusion

By January 2025, FIGA-PMEA had developed into a regional model for supporting MSMEs and the handicrafts sector, combining grants, guarantees and technical support, with a strong focus on training and digitalisation.

Working alongside MPMEASI, BBA contributed to the sustainability of the mechanism through close performance monitoring and the strengthening of local stakeholders’ capacities.

BBA’s Role

• Mobilisation of strategic and operational expertise.

• Delivery of the scoping, structuring and implementation activities.

• Preparation of the main deliverables, including the situation assessment and roadmap, and the updated business plan and financial model.

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• Support for initial training in business creation, business planning and management.

• Support for start-up financing through targeted grants and post-creation assistance.