The Central African Republic (CAR) has announced plans to establish a new national guarantee fund to improve small and medium-sized enterprises’ (SMEs) access to financing. The initiative was revealed by Minister of Economy Richard Filakota during a roundtable on the National Development Plan (PND-RCA 2024–2028) in Casablanca, Morocco, on September 15, 2025. The fund is intended to address a key challenge faced by SMEs: difficulty securing bank loans due to strict collateral requirements. While the launch date and initial capital allocation have not yet been specified, the mechanism is expected to significantly ease financing constraints.
By covering part of the credit risk for financial institutions, the fund will encourage banks to extend more loans to SMEs, especially in sectors such as agriculture, crafts, services, and light industry. In addition to risk-sharing, the initiative may also provide technical assistance, including management training and capacity-building, to help strengthen SME operations.
The measure complements existing efforts, particularly the creation of the National Guarantee and Investment Fund (FNGI) in May 2025. Backed by the World Bank with CFA10 billion ($16.2 million), the FNGI seeks to enhance SME competitiveness. The new guarantee fund will specifically target credit access, working alongside the FNGI to create a more enabling environment for business growth.
Currently, only 22% of SMEs in CAR have access to formal bank financing, a situation that restricts their potential for job creation and contribution to economic diversification. Authorities hope that the new fund will not only empower local businesses but also attract international partners to provide additional resources and expertise. This, in turn, could reinforce SMEs’ role in driving sustainable economic growth across the country.
