IFC is implementing the OHADA Strengthening Credit Infrastructure for MSME Growth Program, is a five-year advisory services markets and enabling environment benefiting member countries of the Organization for the Harmonization of Business Law in Africa (OHADA). It is aimed at promoting access to credit for MSMEs and women-owned enterprises in the context of the COVID-19 pandemic.
The project has introduced and scaled movable asset-based lending and implementing the business-turnaround provisions of the recently adopted OHADA Insolvency Law. The goal is to counteract COVID-19-induced bankruptcies and unemployment by optimizing the usage of the digital credit infrastructure and product innovation.
During project implementation, the team successfully signed a legal agreement with the Bank of Central African States (BEAC). In DRC, the team contracted a legal firm to assist in the review of a draft credit bureau law initiated by the Ministry of Finance and the Central Bank. The team has strategically reoriented its activities to focus on the revamp of the Central Bank's Public Credit Registry, pending the adoption of a Credit Bureau law.
To strengthen the business environment for leasing in four OHADA leasing markets namely, Burkina Faso, Côte d’Ivoire, Cameroon, and Gabon, IFC is implementing the Africa Leasing Program. This is a three-year creating markets advisory services program which is increasing access to finance for MSMEs market by enhancing the legal and regulatory framework. To improve skills and product expertise for future leasing market development, in FY23, the project introduced knowledge-based market tools in collaboration with business associations and leasing stakeholders.
The project disseminated the IFC Global Leasing Toolkit to national leasing associations in Burkina Faso and Côte d’Ivoire in a series of trainings in May and June 2023. Furthermore, two trainings for the judiciary were held in March and June 2023 to address the high number of disputes and unclarity leasing cases.
In Senegal and in Côte d’Ivoire, IFC is working to expand access to finance for micro, small and medium enterprises (MSMEs) by leveraging digital technologies to introduce innovative creditworthiness assessment tools. The project team developed alternative data-based lending models, such as Psychometrics Scoring, to provide access to finance to the informal sector.
To provide a legal framework to the cooperation with selected MFIs, the team in Senegal facilitated and reviewed a Memorandum of Understanding between CREDITINFO and pilot MFIs. The team organized a project kick-off workshop with CREDITINFO and selected MFIs to mark the official start of activities on the scoring model. In Côte d’Ivoire, the focus was on identifying partner financial institutions for the piloting of the psychometric scoring model to be developed by IFC. In this regard, the team delivered extensive business development activities with two on-site missions in Abidjan in and potential stakeholders on the ground.
Harvesting Tomatoes. Senegal. Photo: Scott Wallace/ World Bank