Senegal - Private Sector Promotion Support Project (PAPSP)

The Private Sector Promotion Support Project (PAPSP) aims at consolidating institutional reforms and learning outcomes in order to improve business environment, promote and develop Small and Medium Enterprises (SMEs). This is an institutional support that will contribute particularly to the implementation of the Bank's Economic Reform Budget Support Program called “PARE”. This project was initiated in a context where Senegal is faced with many challenges for the development and the promotion of SMEs, namely: (i) the early mortality rate of enterprises (about 60% during the first year of creation); (ii) the predominance of the informal sector and the lack of professionalism; (iii) the difficulty of access to the public order; (iv) the weakness in financial information; and (v) the difficulty of access to bank financing adapted to SMEs. In order to meet these challenges, two operational components have been defined and factored into the project’s framework. Those are: (1) support for improving services to SMEs; (2) support to management structures and assistance to SMEs. The project’s total cost is estimated at UA 4.5 million, of which UA 1.83 million in foreign currency (40.6%) and UA 2.67 million in local currency (59.4%).