Togo: National Council for Employers suggests setting up CFA50B fund to support local SMEs and SMIs
Thursday, 16 December 2021 18:52 
(Togo First) - The Togolese Employers’ Council (CNP-Togo) recommends the creation of a CFA50 billion financing fund to revive SMEs and SMIs. According to the recommendation which was made in a study on how Covid-induced health measures impacted businesses in the country, the fund would mainly target businesses that were greatly affected by the pandemic.
In detail, beneficiaries will get 3-6 year loans at an interest rate of 3.5%.
CNP-Togo claims that “the State can set up a CFA20 billion fund to support the recovery of the national economy.” The tripartite fund (State-CNP-Banks) should help sustain the employment and production levels of SMEs through financial assistance.
The support should come in a context where “it has become more difficult for businesses to access financing,” CNP-Togo adds, a context “where the uncertainty arising from the crisis increased the risk of cash shortage and sparked a general fear of risk.”
In addition to the fund, the CNP recommended five more measures. They include launching an exceptional loan scheme for small businesses, securing a State-guaranteed cash flow loan; postponing tax and social security deadlines, setting up an unemployment insurance scheme for entrepreneurs, and setting up a support mechanism for exporting companies.
Let’s recall that, in line with ambitions to restart the Togolese economy post-Covid, the government regularly meets with various key actors of the economy, the private sector notably.
Esaïe Edoh
