Description

Between July 2021 and July 2022, BBA supported Cogebanque under the Nguriza Nshore Activity, funded by USAID, to optimise its SME lending services and strengthen its operational efficiency.

The assignment was structured around five areas.

1. In-depth assessment of the SME portfolio

•  Segmentation of clients by sector, including agriculture, trade, light industry and services, as well as by company size and geographical area.
• Analysis of the profitability and performance of each segment.
• Interviews with the relevant managers to identify the main constraints, including manual processes, approval times and guarantee monitoring.

2. Redesign of credit processes

• Comprehensive review of the credit policy, procedures manual and decision-making processes.
• Simplification of procedures to reduce processing times, including the digitalisation of forms and the automation of first-level controls.
• Updating of process flowcharts and development of credit risk scoring models.

3. Development of tailored products and services

• Design of financing solutions adapted to agricultural and non-agricultural value chains, particularly local trade, crafts, very small enterprises and services.
• Integration of digital finance solutions, including mobile banking services, electronic wallets and SMS alerts for repayment monitoring.
• Development of shared guarantee mechanisms and public-private co-financing arrangements to reduce perceived risk.

4. Strengthening of internal capacities

• Assessment of the SME department’s training needs in credit analysis, portfolio management and the use of digital tools.
• Design and delivery of practical workshops totalling 45 hours, including case studies, credit risk scoring simulations and training on new tools.
• Individual support for managers to facilitate the adoption of the new processes.

5. Performance monitoring and management

• Deployment of an automated performance dashboard covering indicators such as the approval rate, average processing time, share of digital products and outstanding guarantees.
• Organisation of quarterly performance review workshops with management and implementation of successive adjustments.
• Preparation of a final report including strategic recommendations and a roadmap for the following twelve months.

Results of the Assignment

• A 25% increase in the number of loan applications processed within 48 hours.
• Digitalisation of 30% of the SME portfolio.
• A 15% reduction in the non-performing loan ratio through improved credit risk scoring methods.
• Launch of three new products, an electronic-wallet-based microcredit product, a bridging loan for trade and a shared guarantee mechanism for agro-industrial activities.

BBA’s Role

• Analysis and segmentation of the SME portfolio.
• Review and updating of credit policies and procedures.
• Design of new lending products and digital services tailored to SMEs.
• Assessment of training needs and delivery of capacity-building workshops.
• Support for the deployment and monitoring of credit guarantee mechanisms.