Senegal banks on luxury products for international trade

Senegal, which is repositioning its luxury locally manufactured products has set its sights on elevating small and medium-sized enterprise financing from the current 10 per cent of the banking portfolio in the country to 30 per cent by 2028. But what will it take to get there? CNBC Africa’s Terryanne Chebet sat down with Idrissa Diabira, the Executive Director for Senegal's Agency for the Development and Supervision of Small and Medium Enterprises (ADEPME), who attended the Intra-Africa Trade Fair in Cairo, and brought along 80 small business owners from Senegal.

Mon, 13 Nov 2023 14:55:23 GMT

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AI Generated Summary

The goal of elevating small and medium-sized enterprise funding from 10 per cent to 30 per cent by 2028 demonstrates Senegal's commitment to supporting local businesses and fostering economic growth.
Senegal's focus on luxury locally manufactured products presents a unique opportunity for SMEs to leverage their expertise and cater to the African market.
The importance of strategic partnerships and leveraging platforms like the AfCFTA to expand market reach and promote Senegal's luxury goods on a continental scale.

Senegal, known for its luxury locally manufactured products, is aiming to increase the financing for small and medium-sized enterprises (SMEs) from 10 per cent to 30 per cent of the banking portfolio by 2028. This ambitious goal was discussed by Idrissa Diabira, the Executive Director for Senegal's Agency for the Development and Supervision of Small and Medium Enterprises, at the Intra-Africa Trade Fair in Cairo. Diabira emphasized the importance of supporting SMEs to become champions in Africa by expanding their reach to different markets and showcasing their products. He brought along 80 small business owners from Senegal to the event to connect with other SMEs and explore opportunities for growth. Diabira highlighted the significance of leveraging the African Continental Free Trade Area (AfCFTA) to access new markets and promote Senegal's luxury products. He mentioned that Senegal excels in luxury goods such as leather and clothes, offering a unique style that resonates with Senegalese culture. Additionally, sectors like horticulture, agro-industry, and digital innovation present lucrative opportunities for Senegalese SMEs to penetrate the African market. Diabira identified countries like Ivory Coast, Ghana, Nigeria, and even Egypt as potential markets for Senegal's SMEs to explore. He urged governments to prioritize SMEs and develop comprehensive policies to support their growth, citing examples from countries like the United States and Malaysia. By focusing on SMEs as a central pillar of economic development, African nations can foster innovation, create jobs, and drive economic prosperity. Senegal's efforts to empower its SME sector demonstrate a commitment to unlocking the full potential of local businesses and showcasing the country's luxury offerings on a global stage.