How the UNIDO helped stimulate the SME condition in Senegal

Most SME operations in Senegal play a key role in whatever business environment they are involved. However, thriving within country’s economy is a challenge most of them experience – from seeking short- and long-term business opportunities to looking for good access to information, finance and resources, the SME environment in Senegal needs to be stimulated. What adds to the problem of SMEs is that some public and private-based support services do not regularly address their needs, further contributing to the already underdeveloped business structure they have.

The role of the United Nations Industrial Development Organization (UNIDO)

Having a well-developed networking strategy can help improve the overall SME position in Senegal. When operating from professional programmes or organised in multiple networks, SMEs can be successful on all business levels. Because of the potential impacts that networking strategy can have for stimulating SMEs, the UNIDO has helped address the specific needs of SMEs in Senegal through funding from the Austrian government and the European Union.

While developing the SMEs’ capacity through accessing technical assistance and training, UNIDO helped mobilise SMEs in terms of business networks and joint project launchings. This way, the networks can determine the scope of their business services and extent of the activity, which can benefit all the participating SME members. Some examples include, creating a joint system for purchasing raw products to reduce the additional costs of shipping and operations, establishing training opportunities to boost SME sectors knowledge and ideas, as well as expanding sales outlets to members to help increase distribution of products on all business levels.

UNIDO started off assisting 30 business networks from both public and private sector, which comprise of 245 SMEs, 11 professional organisations. From this, the networking effect of the support organisation, SMEs and business networks were then disseminated to training institutions, schools, public-run organisations and NGOs to expand their networking system.

On another SME-specific project phase, UNIDO stimulated their roles in different sectors by adding and delivering business operation networks to the core SME process. With around 3000 SME members – most of which are run or populated by women workers – the services spread to other economic sectors in 10 Senegal municipalities. The total funding for this project is worth US$1.6 million and expanded over sectors like manufacturing, food processing, leather and textiles, and wood working and metal.

To help facilitate finance access to these SMEs and the involved network organisations, UNIDO seek aid with local credit associations and banks to implement and develop a scheme that provides guarantee funds to participating networks and SMEs. Through the management of the Senegalese bank and Mutual Guarantee Cooperatives, the finance sources will provide loans and extend credits for projects operated at the SME level.

Final thoughts about UNIDO’s influence in Senegalese SME

SME technical assistance, finance options and networking services can be achieved when the local environment is conducive enough to help them operate at full level. UNIDO’s efforts to stimulate the SME in Senegal is a multi-faceted project that requires cooperation of different sectors for sustainability and development.

Arun Panchariya, recently been appointed as The Consul General of The Republic of Liberia to Dubai, UAE. He is an award-winning Investment Banker & Entrepreneur with over two decades of rich experience in the financial markets.

Gas-exploitation and Utilization

In the recent years, studies show that African countries is abundant not only in wetlands, forests and wild animals but also in other natural reserves like minerals, gas and oil, a vital necessity in the present time. In fact, a need for African oil and gas map revision is seen to occur in the coming decades as the country’s top oil and gas producers are increasing as more oil and gas fields are being discovered and are sure to start producing globally.

Petroleum (oil) and gasoline (petrol) accounts for a large percentage of the world’s energy consumption, these natural reserves are relevant to the maintenance of industrial civilization. It is also used for the production of different chemical products – of solvents, fertilizers, pesticides, and plastics – including pharmaceuticals in fact, the world consumes 30 billion barrels (4.8 km³) of Petroleum (oil) and gasoline (petrol) every year and the fact that the industry represents the world’s largest industry in terms of dollar value thus, it is a critical concern for many nations.

Africa’s dominance in the Petroleum (oil) and gasoline (petrol) industry elevate fear of disruption, land grabbing, corruption, human rights abuse, pollution and civil strife between the large players in the oil and gas industry.
Syria established deep seated aristocracies built out of oil wealth while the Arab spring that gain ground in Tunisia and Egypt spread through Libya and now penetrating North and South Sudan ending in a civil strife.

On the other hand, the Eastern and Western part of Africa shows poor governance and political instability causing protests among a large group of militants claiming that there has been exploitation administered not only by large oil corporations but the Federal Government of Nigeria as well.

Somalia and Eritrea also shows a serious internal conflict between the government, its people and the biggest names in the oil industry. Environmental concerns emanate as oil companies performs extraction in ecologically sensitive zones causing unbalance in the ecosystem that will cause a bigger problem in the coming years.

Speaking of environmental concerns, world heritage places where studies show that there are possibilities of great oil reserves are being extracted. The best examples are Albertine Graben a flora and fauna enriched place, next is Lake Turkana Basin-North another fauna enriched park, then there is the mangrove forest in the coastline of the Indian Ocean Coast Tanzania. Another one would be the Virunga National Park a UNESCO World Heritage Site located in Uganda where the world’s critically endangered mountain gorilla’s habitat.

Remember that petroleum (oil) and gasoline (petrol) are made of different organic compounds, if not used correctly toxins as well as carcinogenic compounds are mixed into the air and water and will spread all throughout every nation. Just think about all the chemicals like carbon dioxide, carbon monoxide, methanol, nitrous oxide, sulfur dioxide, and sulfur among many other toxins floating around us mixing with other chemicals produced by humans.

With this knowledge, a long-term geopolitical outlook must take place as soon as possible or we may reap what we saw. We can’t stop development but we can do something to help maintain if not preserve our natural resources.

Mr. Arun Panchariya – An International Financial Advisor, Investment Banker & The Consul General of Liberia to Dubai.