• The World Bank has approved a $250 million program to support access to finance for SMEs in Niger.
• Around 7,500 micro, small and medium-sized enterprises are expected to benefit.
• The initiative aims to help create or maintain about 58,000 jobs and restore liquidity in the financial sector.

In Niger, around 7,500 micro, small and medium-sized enterprises (MSMEs) are expected to benefit from a financial sector support project approved by the World Bank for $250 million.

The initiative aims to help create and maintain about 58,000 jobs, with particular attention given to women-led businesses and investments that are resilient to climate change.

According to a statement released by the institution on March 12, the project seeks to restore liquidity in the banking system, encourage the recovery of lending to viable businesses, and support job creation and income generation across the country.

In Niger, MSMEs account for nearly 98% of active businesses, according to a 2023 report published in the International Journal of Strategic Management and Economic Studies (IJSMES). However, these firms remain vulnerable to difficult macroeconomic conditions and financial pressures.

The financial sector has been affected by liquidity shortages in several banks and microfinance institutions, as well as limited access to credit for MSMEs.

The World Bank initiative aims to increase lending to MSMEs through a package of liquidity support measures and risk-sharing mechanisms. It also includes targeted support to strengthen the capacity of participating financial institutions and improve businesses’ access to financial and non-financial services.

The program also includes a contingent emergency response component designed to enable a rapid response in the event of a crisis, along with support for implementation, monitoring and evaluation to ensure the project’s effectiveness.

Lydie Mobio