Financing your Ivorian SME: banks, guarantee fund and security
To obtain a business loan in Côte d’Ivoire, the company must be registered with the RCCM, keep SYSCOHADA accounts and offer guarantees; the SME Credit Guarantee Fund and youth programmes reduce the collateral required.
SME finance, the weak link in the Ivorian economy
Despite sustained growth and a dense banking sector, small Ivorian businesses struggle to access credit. Banks cite the lack of reliable financial statements, informality and weak guarantees, while managers consider the collateral requirements excessive.
Formalising your business at CEPICI before borrowing
The CEPICI one-stop shop in Plateau handles company creation, RCCM registration and the tax registration declaration. A bank requires these documents, along with the taxpayer account number, before reviewing any credit application.
SYSCOHADA financial statements and filing with the DGI
Balance sheets prepared under the OHADA accounting framework and filed with the tax authorities form the basis of the analysis. A chartered accountant registered with the Ivorian professional body strengthens the credibility of the figures presented to the credit committee.
Business plan and cash flow forecasts
For an investment, the bank expects a financing plan, quotes and a cash flow table covering the loan term. Projects linked to cocoa or cashew processing must take the seasonal nature of supplies into account.
Working capital, investment and crop season loans
Abidjan banks offer overdrafts, invoice discounting, advances on public contracts and medium-term loans to buy equipment. Exporters also benefit from crop season loans backed by their sales contracts for cocoa, coffee or cashew nuts.
The SME Credit Guarantee Fund
Set up by the Ivorian State, the FGPME guarantees part of the loans granted by partner banks to small and medium-sized enterprises. This guarantee reduces the risk taken by the bank, without exempting the company from presenting a solid file.
OHADA security: pledges, stock pledges and mortgages
The OHADA Uniform Act on security allows a business, receivables or equipment to be pledged, with registration at the RCCM. A mortgage on land with an ACD remains the guarantee most sought after by Ivorian banks.
Equipment leasing rather than a standard loan
For a truck, a generator or a processing machine, leasing avoids tying up additional guarantees, because the asset remains the property of the lessor. The terms are described on the page about leasing in Côte d’Ivoire.
Young entrepreneurs: the Agence Emploi Jeunes
The Agence Emploi Jeunes, under the ministry in charge of youth, grants loans to project holders aged 18 to 40. Amounts are modest, and repayments are used to finance other young people in the regions.
Very small businesses: going through microfinance
A shop, a tailoring workshop or a maquis with no formal accounts finds it easier to get a loan from a microfinance institution. The guide to Ivorian microcredit presents Advans, Baobab, Cofina and the savings and credit mutuals.
Comparing with SME finance in Burkina Faso
Burkinabè SMEs use the same OHADA security and the same usury ceiling, but within a smaller banking network. The detailed guide to business loans in Burkina Faso describes their guarantee schemes and lenders.
Large companies: the regional financial market
The largest companies can raise funds on the BRVM, the regional stock exchange based in Abidjan, by issuing bonds or shares. This route requires governance and audited accounts that are beyond the reach of most SMEs.
Putting together a business loan file in Côte d’Ivoire
- Register the company with the RCCM and obtain the tax registration declaration at the CEPICI one-stop shop.
- Keep SYSCOHADA accounts and file annual financial statements with the tax authorities.
- Prepare a business plan costed in FCFA, with quotes, cash flow forecasts and proposed guarantees.
- Ask your bank about a possible guarantee from the SME Credit Guarantee Fund.
- Negotiate the terms, sign the credit agreement and register the security with the RCCM.
- Send the financial statements to the bank every year to keep the credit line open.
Costs of Ivorian business finance
| Item | Benchmark | Factors |
|---|---|---|
| Bank effective rate ceiling | 14% (indicative) | Risk, term, guarantees |
| FGPME guarantee commission | Variable | Amount guaranteed and agreement |
| Security registration fees | Variable | Type of security and registry |
| Chartered accountant’s fees | Variable | Size of the company |
| Tax on interest | 10% (indicative) | Applied to instalments |
Documents required for a business loan in Côte d’Ivoire
- Articles of association, RCCM extract and tax registration declaration
- Taxpayer account number and tax compliance certificate
- SYSCOHADA financial statements for the last two or three years
- Business plan, quotes and cash flow forecasts
- Company bank statements
- Property titles or ACD for assets offered as collateral
- National ID cards and CVs of the managers
Why Ivorian banks turn SMEs down
- Presenting accounts prepared only for the tax authorities, which understate real turnover and reduce borrowing capacity.
- Mixing personal and business cash, which makes bank statements unreadable for the analyst.
- Asking for a medium-term loan to cover a seasonal cash need linked to a crop season.
- Paying an intermediary who promises financing guaranteed by a public fund, when the funds deal directly with banks.
Lenders to contact
- Coris Bank International Côte d'Ivoire: Ivorian subsidiary of the Coris banking group, a commercial bank offering accounts, banking services and financing to individuals and businesses.
- Advans Côte d'Ivoire: Microfinance institution of the Advans network, with branches in Abidjan and the regions, financing small businesses and households underserved by traditional banks.
- CBI Baraka Côte d'Ivoire: Islamic finance window of Coris Bank International in Côte d'Ivoire, launched in 2018 and supported by a dedicated Shariah compliance function.
What Ivorian managers ask about SME credit
Does the FGPME lend directly to companies?
No, the SME Credit Guarantee Fund guarantees part of the loans granted by partner banks. The company therefore applies to a bank, which then requests the guarantee if the file meets the fund’s criteria.
Can a sole proprietorship borrow?
Yes, provided it is registered with the RCCM and presents reliable accounts. Banks then look at both the business and the entrepreneur’s personal assets, since the owner remains liable on their own property.
How long does it take to get an investment loan?
Allow several weeks between submitting the complete file, the analysis, the credit committee and registration of the guarantees. A public fund guarantee or a mortgage adds further steps to the process.
Can public contracts serve as collateral?
Some banks grant advances on public contracts, with the contract pledged in their favour. The company must present the signed contract and the service order, and the administration’s payment is then domiciled with the lending bank.