 REACTIVATION OF THE INDUSTRIAL PROMOTION FUND |
For more than a decade now, the Congolese enterprises, in particular SMEs have faced a crucial problem: its financing.
Capital-risk firms or capital-investment companies should mediate to help new entrepreneurs to set up their projects (participation, and search for finance or partners). However, the apprehension about high credit costs, combined with the intervention of the very few banks that dare to participate, makes us confront the reality: the contribution of funds to favor the creation of SME has not really helped to increase significantly the number of SME. Consequently the reactivation of the Industrial Promotion Fund (Fond de Promotion de l'Industrie - F.P.I.), a remarkable initiative, is a must. However it has been criticized for its lack of projection on the Congolese economy, and for limiting its operations to the provinces of Kinshasa, Katanga and Bas-Congo, thereby closing the door to any other possible initiatives in other provinces.
The State, which wishes the development of SME at any cost, should extend the activities of F.P.I. to every corner of the Republic, and it should especially center on the types of activities that young entrepreneurs feel more encouraging. For instance, if they are able to share risks with banks, this will allow SME to improve their ratios.
| In an environment that does not offer any solid guarantees for SME to start up or even to progress, the State has multiplied the number of initiatives trying to find a solution on how to finance these basic entities. Traditional guarantees such as endorsements, bails, deposits or mortgages have proved to be insufficient.
Before banking activities go back to normal there are two types of guarantees that will insure a good perspective to engagements subscribed by bankers. A national Guarantee Trust nurtured by the participation of banks, donors, the Chamber of Commerce and Industry, with a light business-like management. Secondly, the creation of professional companies specialized in inter-professional mutual caution will encourage initiatives within their sector. This way any risks attached to client or tribal pressures will be avoided, allowing the project's own reliability and excellence to come forth.
| CONTRIBUTION OF CHAMBERS OF COMMERCE AND INDUSTRY |
While priorities to reactivate the Congolese SME are still being defined, a tutoring authority should support SME to set up short-term programs designed to encourage entrepreneurial spirit or to help owners of existing businesses to improve their management. The country's Chambers of Commerce and Industry have substantial experience in this field. However, Chambers of Commerce focus most of their attention on larger activities, such as taking care of the classification of small entrepreneurs.
Of all the chambers of commerce that still remain operational in Congo, the core of the operations is limited to establishing contacts partners looking for business opportunities. No initiative pretending to contribute to the reactivation of SME has come out from any chamber. But from now on there is hope that an effective reactivation of economic activities will take place. Needless to say that this time the Congolese economy can count on a solid structure. Small and Medium Enterprises are the only framework capable of reactivating the economy and creating employment. |
