Benin’s Investment and Guarantee Fund for Small and Medium-sized Enterprises (FIGPME) has secured authorisation from the Central Bank of West African States (BCEAO), Finance and Economy Minister Aristide Médénou announced in Cotonou on Monday, 26 October 2026. The approval paves the way for a public guarantee mechanism designed to improve access to credit for smaller businesses.
The government established the fund on 17 July 2024 with an initial allocation of CFA5 billion. Conceived as a regulated financial institution, FIGPME is expected to provide guarantees to banks and microfinance lenders serving SMEs. Sharing loan risk could help businesses that have limited collateral or a short borrowing history secure finance.
Loan guarantees for businesses and lenders
An SME seeking to purchase equipment, build up inventory or expand production could use a FIGPME guarantee alongside the security normally required by a lender. Banks and microfinance institutions would gain partial protection against credit risk on eligible loans.
Médénou announced the licence at the Capital Reach Forum, held in Cotonou on 26 and 27 October. The event brought together public officials, banks, investors and business leaders to discuss ways to mobilise more capital for Benin’s economy.
A further step after the fund’s creation in 2024
FIGPME joins existing public programmes supporting businesses. According to a government update issued in May 2026, the first edition of the RISE programme supported 86 SMEs, which received more than CFA1.53 billion. The newly authorised fund is intended to strengthen the financing system by working with lending institutions.