• The government announced plans for a new guarantee fund to ease SME access to credit.
• Only 22% of SMEs in the country currently access formal bank financing.
• The fund will complement the existing CFA10 billion FNGI created in May 2025.

The Central African Republic (CAR) plans to create a new national guarantee fund to support small and medium-sized enterprises (SMEs) and improve their access to financing. Minister of Economy Richard Filakota announced the initiative on September 15, 2025, during a roundtable on the National Development Plan (PND-RCA 2024–2028) held in Casablanca, Morocco.

The fund aims to address a persistent challenge: SMEs’ limited access to bank credit due to collateral requirements that many cannot meet. Authorities have not yet disclosed the timeline for its launch or its initial capital.

The new mechanism will reduce financing barriers by covering part of the credit risk borne by banks. Financial institutions will therefore be encouraged to increase lending to SMEs, particularly in productive sectors such as agriculture, crafts, services, and light industry.

Officials said the fund could also provide technical support to SMEs, including management training and capacity-building programs.

The project builds on measures already underway. On May 21, 2025, CAR authorities launched the National Guarantee and Investment Fund (FNGI), endowed with CFA10 billion ($16.2 million) with support from the World Bank, to improve SME competitiveness. The new fund would complement this mechanism by specifically targeting the credit access issue.

Official data show that only 22% of SMEs in CAR have access to formal bank financing. This limited coverage constrains their role in job creation and economic diversification. By establishing the new guarantee fund, the state aims to strengthen SMEs’ contribution to national growth and attract international financial partners to provide capital and management expertise.

This article was initially published in French by Chamberline Moko

Adapted in English by Ange Jason Quenum