Washington — The World Bank has approved a $100 million grant from the International Development Association (IDA) to promote growth and access to finance for micro, small, and medium enterprises.

The Chad Micro, Small and Medium Enterprises (MSME) Development and Access to Finance Project will contribute to improving the business climate by, among other things, facilitating business creation, operation of commercial courts, and better access to timely and relevant information on business regulations. It will strengthen the entrepreneurship support ecosystem by implementing a new Enterprise Development Center (CDE) that will roll out several support programs for entrepreneurs and SMEs, with a particular focus on projects led by young people and women. The project will promote financial inclusion and access to finance for MSMEs, by operationalizing a guarantee fund and creating a financial education program for MSMEs. In doing so, the project will improve the ability of firms to access finance and reduce the risk associated with loans from financial institutions.

"This project is centered on the World Bank's approach to private sector development aimed at strengthening the private sector's capacity to invest, create jobs, catalyze the green transition, and spur economic transformation," said Farouk Mollah Banna, World Bank Country Manager for Chad. "It will provide Chad with better access to basic financial services to enable micro, small and medium enterprises (MSMEs), a key sector in the economy, to invest and grow."

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This six-year project will mainly benefit MSMEs across the country. It will help reduce the average time to resolve disputes in a commercial court, provide close to 8,000 MSMEs with access to credit, while 2,000 MSMEs will benefit from the support services offered by the Enterprise Development Center. Finally, 200,000 people will benefit from the financial education program.