Core area “Sustainable economic development, training and employment” Loans for small companies, better training for young people
Among MSMEs, there is a lack of knowledge about suitable financial products, and the companies do not have the documents required for a loan application. For banks, on the other hand, it is often costly and time-consuming to process MSME requests because many of the small companies do not have any reliable financial data or references from customers.
A Technical Cooperation project contributes to facilitating simpler and faster matching between MSMEs and financial institutions. The project centres around an online platform on which companies can create a profile and set out their financial requirements. Partner organisations assist them in improving and completing their loan applications. The banks, for their part, have direct contact via the platform with potential customers, and access to loan applications that have been pre-assessed by public authorities.
Within the framework of Financial Cooperation KfW is supporting a microfinance institution and is thus also facilitating access to financial services. Moreover, targeted support is being provided to start-ups, to particularly innovative business ideas, and to companies that are women-led, mainly employ women or offer products that target a female audience.
Vocational training
Every year another 300,000 or so young people enter the labour market in Senegal. Nevertheless, many companies have difficulties finding qualified workers. The vocational training system is currently not sufficiently aligned with the needs of the labour market.
On behalf of the German Development Ministry (BMZ), GIZ is facilitating systematic cooperation between the public and private sectors in the area of vocational training. In selected regions, the project supports the development of cooperative training at schools and companies in twelve vocational areas with a promising future. A special focus is put on promoting young women.
In addition, vocational schools in Senegal are being refurbished and better equipped with German support. KfW is contributing to a vocational training fund which enables, in particular, disadvantaged population groups to get training to improve their opportunities in the labour market.
In addition, there is a programme which supports young adults and returning migrants in developing promising business models and build livelihoods for themselves.
Special initiative fosters job creation
Cooperation in this core area is being complemented by activities under the Special Initiative “Decent Work for a Just Transition”. Under the heading “Invest for Jobs”, the initiative supports companies in making investments that lead to job creation and training opportunities and thus open up opportunities for a better future, in particular for young people.
The initiative fosters attractive sites for business activity and growth sectors, the development of practice-oriented training and degree courses and the development of business relations between medium-sized companies in Senegal and in Europe and especially Germany.
As at: 28/05/2024