Using the example of ARIZ, a guarantee scheme financed by the French Development Agency / PROPARCO, this study determine the reasons for payment defaults on bank loans taken on by SMEs, and distinguish perception from reality on the ground.

This study is the first to undertake an in-depth analysis into the reasons behind SME loan defaults through concrete case studies, and to draw concrete analyses from them. It also reveals the drivers of success.

The mission mobilised the following tools:

• Literature review
• Qualitative interviews with local AFD agencies and banks
• Interviews with entrepreneurs in the ecosystem of entrepreneurship and financing of SMEs in 4 priority countries of the study namely Cameroon, Ivory Coast, Madagascar and Senegal
• Visit to Senegal and CameroonInvestigation of the causes of defaults and the explanatory variables of these causes
• Qualitative analysis of the causes of defaults.

Report in French. Executive summary in English.

Matthias Ploeg
Managing Partner

Gaëtan Coatanroch
Partner, Group Lead on Green Economy

Karine Lanoix
Principal Consultant

Aurélien Fichet de Clairfontaine
Principal Consultant

Alain N’Ghauran
This person no longer works at Technopolis Group

Vanina Choe
This person no longer works at Technopolis Group

Francie Sadeski
Managing Partner