Senegal: Microfinance budget shrinks, MPs express their concerns

The microfinance sector in Senegal will have fewer resources in 2027. The budget for the ministry responsible for this area is projected to decrease by 2,38% compared to the previous year. This reduction comes at a time when the financing needs of small entrepreneurs and those working in the informal economy remain significant.

This budget cut failed to convince parliamentarians. During the review of the bill, members of parliament pointed out inconsistencies in the data presented by the ministry and expressed reservations about the reliability of the forecasts. The relevant committees ultimately rejected the budget by a majority vote.

The decline particularly affects the microfinance development program, whose funding has decreased by nearly 19%. Conversely, resources allocated to the social and solidarity economy have increased. This distribution reflects a shift in the department's budgetary priorities.

Despite these restrictions, the ministry maintains its ambitions regarding access to finance. It plans, in particular, to facilitate access to credit for several thousand beneficiaries and to strengthen support for microfinance institutions.

But between dwindling resources and forecasts contested by MPs, the department will have to convince on its ability to meet its commitments in 2027. For small entrepreneurs and economic players who depend on these structures, access to financing remains a major concern.

Yolande Bazié