The Central Bank of West African States (BCEAO) has maintained high key interest rates for several quarters in order to contain price increases within the WAEMU region. This policy, designed to stabilize inflation and preserve household purchasing power, has, however, concrete repercussions on access to financing for small and medium-sized enterprises (SMEs). Banks, faced with a restrictive monetary environment and persistently high refinancing costs, are passing these costs on to the lenders they grant, making business loans significantly more expensive.

For SMEs, often with limited guarantees and restricted financial capacity, the effect is felt immediately. The investments needed to modernize equipment, develop new production lines, or strengthen cash flow become more difficult to make. In many cases, projects may be delayed or abandoned, directly impacting local employment and the economic dynamics of the sectors concerned.

The impact goes beyond the mere cost of borrowing. The persistence of tight financial conditions affects the confidence of entrepreneurs and investors, who become more cautious and reduce their risk exposure. This situation translates into increased pressure on real economic activity, particularly in sectors where margins are narrow and external financing is crucial for growth.

Some companies attempt to compensate through alternative sources, such as equity, partnerships, or informal financial instruments, but these options remain limited and often inaccessible to the most vulnerable businesses. The rising cost of credit thus fuels a vicious cycle where productive investment clashes with financial realities, slowing economic expansion in a context already marked by structural challenges.

Alongside the fight against inflation, this monetary policy reveals the complexity of reconciling macroeconomic stability with support for private activity. The trajectory of key interest rates illustrates that each central decision has tangible repercussions on the entrepreneurial fabric and job creation in the region.