In Madagascar, the access of the SMEs involved in the health sector is being facilitated

Last updated on décembre 6, 2017

A partnership agreement has been officially executed today to facilitate the access of the SMEs and microenterprises in the field of Water, sanitation and hygiene (Wash) and the health, to funds. The agreement was signed between Usaid and Microcred Banque Madagascar.

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The SMEs and microenterprises’ access to funding

A partnership has been launched this afternoon in Antaninarenina between the United States Agency for the International Development or Usaid (1) Madagascar and the Microcred Banque Madagascar or MBM (2). A partnership which aims to facilitate the access of the SMEs (Small and medium-sized enterprises) and microenterprises that work in the field of the water, the sanitation and the hygiene (Wash) and the health to the funds. Indeed, the lack of access to investment credit creates a major constraint to company development in Madagascar, and among these companies are service providers in the health domain.

“Many companies wish to develop their activities but can not, because of a lack of financing”, said Michel lams, General director of the MBM, today.

And to add that shortage of care and infrastructures adds to this blockage. Nevertheless, the sector of the public health assures only one third of services of basic health for the population which less of the half to drinking water. Allow to SMEs and microenterprises to have access to funding will reinforce the development and the quality of their sanitary services and in this way, to improve the health care for the population.

“We have recently noticed an increase from the private sector, in the urban regions, but also in rural and suburban areas. This partnership allows to integrate the providers in the Malagasy system health and the funding, especially in terms of Wash”, said for his part the Dr Joséa Ratsirarson, Secretary general within the ministry of the public Health.

Financial management training

The partnership, initially established for one year, is realized through the project Supporting Health Outcomes through the Private Sector or Shops Plus of Usaid.

“It’s about a technical assistance and getting in touch. It’s about educating the bank to understand the professional and also to train the companies to understand the bank”, said Daniele Nyirandutiye, Director of the Health Bureau at Usaid.

Through this project, the USAID will work closely with the MBM to increase financial possibilities in the health sector and the Wash. In parallel, financial management training will be given to micro, small and medium companies engaged in the health sector and Wash to teach them the terms of loans and credits. Questions such as “How to get the loans?” or ”How to generate additional income to repay the loans?” will be discussed.Through his project, the Usaid will work closely with the MBM to increase financial possibilities in the health sector and the Wash. In parallel, financial management training will be given to micro, small and medium companies engaged in the health sector and Wash to teach them the terms pf loans and credis. The questions such as “How to borrow?” or ”How to generate additional income to repay the loans?” will be discussed.

                                                                                                                                                     Written by:

Tiasy

Translated by:

Chaz

(1) Created in 2001, MBM is a bank of digital funding which the mission is to offer financial services of quality, adapted and accessible to permit people to have a better access to banking services. MBM offers financial services adapted to population needs unbanked, especially the micro and small entrepreneurs, anf thus promote financial inclusion. MBM belongs to the Microcred Group, one of the rare financial institutions to have successfully deployed a profitable and adaptable of financing for the micro, small and medium companiMBM operates all around in Madagascar, with 39 branches, 4 mobiles branches and 300 agents. Its 155 000 customers use MBM services, particularly savings, credit, money transfer, payment methods and insurance.

(2) The United States support the development of the Malagasy people since 33 years. In 2016, the United States Agency for International Development  (USAID) has provided about 91 million dollars in assistance to Malagasy people through investment programs in health, food security, environment, water and sanitation.