Small and medium sized enterprises (SMEs) in DRC are generally unable to access finance from banks for a variety of reasons. Based on ÉLAN RDC’s diagnostic work, the main constraints include:

  • The lack of financial products tailored to the needs of SMEs;

  • The Financial institutions’ perception of risk for certain activities (e.g. agriculture, river transport) carried out by SMEs;

  • The rigidity of credit disbursement processes and practices at financial institutions;

  • The difficulty for SMEs to submit credit application files with certified financial statements to financial institutions;

  • The inability of SMEs to provide high-quality collateral as required by financial institutions;

  • The lack of trust between SMEs and financial institutions; and

  • The SME owners’ limited skills in certain management areas.

To address these constraints in a systemic and sustainable way, ÉLAN RDC intervenes on both the supply and demand sides of the market, focusing its work on three pillars:

A. Development and implementation of innovative products with financial institutions, including:

  • Collateral Management Agreement CMA (agricultural sector) ;

  • Leasing ;

  • Traditional and inclusive insurance.

B. Facilitation of linkages between key market players and promotion of synergies conducive to the financial inclusion of SMEs; and

C. Support to SMEs in the form of Business Development Services (BDS) and training to adopt better management tools and practices.

SEE ALSO

GRAINS AND HORTICULTURE

SPECIALTY CROPS

BRANCHLESS BANKING

RENEWABLE ENERGY

TRANSPORT

WOMEN'S ECONOMIC EMPOWERMENT (WEE)