Climate change: A 500 million FCFA fund to help young people sustain their businesses

Faced with the difficulty young entrepreneurs have in getting past their first years of existence, the Ministry of the Environment and Ecological Transition, with the support of the Global Environment Facility and UNIDO, is focusing on enhanced support.

This is how, through the project "Promoting Innovation in Clean Technologies for Climate Action in Senegal" (Cleantech Senegal Project), the third edition of the National Academy is launched.

In addition to training, coaching and mentoring, a leverage fund of approximately 500 million CFA francs is being established to facilitate access to financing for young project leaders and promote the sustainability of their businesses.

It is within this framework that participants take part in training sessions, practical workshops, mentoring sessions as well as exercises devoted in particular to the business model, the 20 elements of the GCIP, market identification, the financial model and pitch preparation.

For Baba Dramé, director of Environmental Regulation and Control, the anchor structure of the Cleantech project, this academy constitutes an important lever to promote eco-entrepreneurship in Senegal.

"The Cleantech project aims to promote technological innovation in the field of clean technologies, particularly for climate action in Senegal. The academy is part of the activities initiated to promote eco-entrepreneurship, that is to say green entrepreneurship," he said.

According to him, the challenges related to climate change, sustainable development and environmental degradation can also become economic and social opportunities.

"We believe that these challenges can be transformed into opportunities for the creation of jobs, income and added value for young people, women, but also for the national economy as a whole," he emphasizes.

But to transform innovative ideas into sustainable businesses, support appears essential. The manager specifically points out the difficulty related to the longevity of young companies, many of which disappear before reaching their first few years of existence.

"Young people have very good projects and innovative ideas, but unfortunately, they do not always have the guidance, coaching and training necessary to transform their ideas into viable businesses," explains Baba Dramé.

Structuring ideas and facilitating access to funding

This third edition brings together approximately twenty micro-projects selected within the framework of the Cleantech project. The objective is to enable project leaders to better structure their initiatives, develop solid business plans, and create economic models adapted to the Senegalese context.

"Ideas need to be structured. Business plans need to be developed to make them viable projects, adapted to the economic and social context," explains the Director of Environmental Regulation and Control.

However, support should not be limited to training. Previous editions have already identified high-potential projects that have received grants to facilitate their launch.

This year, the Cleantech project intends to take a new step with the implementation of a financing mechanism for young entrepreneurs. "We are setting up a leverage fund of approximately 500 million CFA francs. We are working with interested banks. This fund will allow young people who wish to do so, and who have well-structured, well-developed, and well-mentored projects, to benefit from start-up financing," announces Baba Dramé.

A monitoring system is also planned to support funded companies during their first years of operation and to increase their chances of sustainability.

The official also noted that a Senegalese project stemming from previous initiatives of the program was recognized in Vienna, at an event organized by the United Nations. He believes this recognition illustrates the potential of young Senegalese entrepreneurs in the field of clean technologies.

For Dr. Ismaëla Sène, a teacher-researcher and expert in supporting entrepreneurs, training is an essential step in the innovation process, particularly in the clean technology sector.

He emphasizes that the Cleantech project is based on several complementary steps to progressively support project leaders. "The academy is an opportunity to mobilize diverse and varied experts, mentors, trainers and coaches, generalists or specialists, to enable young people who have projects or project ideas to better structure them," he explains.

The objective is, in particular, to work on the revenue model, marketing strategy and value creation, while ensuring the contribution of projects to the fight against climate change.

According to the expert, economic viability must go hand in hand with environmental and social impact. "Young people need to be able to have viable projects that also allow them to earn money, contribute to the fight against unemployment, and improve their living conditions as well as those of their communities," he believes.

When asked about ways to increase the longevity of youth-led businesses, Dr. Sène believes the issue is complex and requires a comprehensive approach. "Training alone is not enough. Coaching alone is not enough. Mentoring alone is not enough," he states.

According to him, it is the combination of these different mechanisms that can enable young entrepreneurs to better structure their projects and meet the challenge of sustainability. "All these components, all these skills, including financial support, should be mobilized so that young people are able to better structure their projects and meet the challenge of sustainability," he concludes.

Khady Ndoye