Interview Naka Gnassingbé de Souza : “Promoting innovation is key to helping SMEs grow”

Can you introduce the ANPGF/PME-PMI?

The National Agency for the Promotion and Guarantee of SME/SMI Financing, or ANPGF for short, was born out of the authorities’ desire to provide Togo with an institution specifically dedicated to small and medium-sized enterprises. As such, the Agency’s objective is to assist and support companies active in the production of goods and services in order to promote and facilitate access to financing for their activities.

How does your agency support Togolese SMEs?

The National Agency for the Promotion and Guarantee of SME/SMI Financing in Togo supports SMEs in various ways to promote their growth and development. Firstly, through financing via the financial institution. The ANPGF, which is neither a bank nor a decentralized financial system that intervenes directly or indirectly through its financial partners to make funds available to SMEs and project promoters at below-market rates. This involves financing from the Agency’s own resources or from dedicated resources provided by its partners. The ANPGF also provides guarantees for bank loans to SMEs, facilitating their access to bank financing. The ANPGF guarantee enables national SMEs to obtain loans on more or less favorable terms. The Agency also offers training programs to improve the skills of SME managers and employees, thereby helping to increase their productivity and competitiveness. In particular, the ANPGF offers a flagship product called « Mercredis de l’Entrepreneur or MDE » (Entrepreneur’s Wednesdays), which are special training sessions for SMEs on various topics related to business life. Finally, the aim is to facilitate SMEs’ access to new markets by providing them with useful information on business opportunities and putting them in touch with potential national and international partners.

In short, the ANPGF supports SMEs by providing funding from its own resources, through its financial partners, bank loans, technical assistance, access to markets and training programs. The aim of this support is to strengthen the SME sector in Togo and promote the country’s economic growth, because we know that SMEs are a powerful lever for economic growth in our countries.

What is the impact of your SME programs in Togo? 

In fifteen years of activity, we have raised more than sixteen (16) billion CFA francs for the benefit of seven hundred (700) SMEs in all economic sectors, and this financing has created a number of jobs estimated at around six thousand (6,000) over this period.

Each year, around three thousand (3,000) project holders or established entrepreneurs benefit from the various technical services provided by the ANPGF, in particular through the MDEs mentioned above and tailor-made support with the assistance of the Agency’s departments or experts in various fields.

This activity has enabled more than forty thousand (40,000) economic operators to be trained; the value of these training courses can be measured by the enthusiasm they generate, with an ever-increasing number of participants, by the testimonials of the participants and, above all, by the improved quality of the applications for financing sent to us. In fact, they implement the best practices recommended by the experts we consult.

In addition, all projects supported by the Agency are systematically monitored and evaluated, enabling us not only to track the results of our actions on the ground, but also to identify any shortcomings in the management or implementation of the projects we support.

What are your recommendations for consolidating the growth of African SMEs?

A number of recommendations can be made to consolidate the growth of African SMEs. In addition to access to finance and strengthening the technical and managerial skills of business leaders and SME promoters, there are several possible solutions, starting with the promotion of innovation, which is key to helping SMEs grow. This can be achieved by promoting research and development, facilitating access to information and communication technologies (ICTs) and setting up business incubators. Strong, mutually beneficial links and relationships between our universities and research centers and SMEs need to be established or strengthened.

This can help to promote and foster cooperation and networking. SMEs can benefit from partnerships and collaborations with other large private sector players, government organizations and research institutions. It is therefore important to create synergies and networking opportunities for our SMEs.

Beyond the country of origin, we need to promote access to inter-regional and international markets. African SMEs must be supported to access foreign markets. This promotion of markets beyond national borders can be achieved through export programs, participation in international trade fairs and facilitation of cross-border trade. The launch of the AfCFTA represents a real opportunity in this regard. 

Finally, it is essential to encourage cooperation between the public sector in general and the private sector in the development and implementation of policies favorable to SMEs and, more generally, to national economies. Platforms for dialogue and consultation must be set up to enable the stakeholders concerned to participate actively in the decision-making process.