DAKAR – Cheick Travaly, an independent director and former bank manager, criticized the current model of financing in African economies, particularly in French-speaking regions, as a continuation of colonial-era practices. Speaking about the economic dynamics on the continent, Travaly pointed out that small and medium-sized enterprises (SMEs) and industries (SMIs), as well as the informal sector, remain largely underfunded by African banks.

According to Burkina Information Agency, these banks, which trace their origins to colonial times, were originally designed to finance cash crops and raw material exports, such as peanuts in Senegal and cocoa in Ivory Coast. This colonial legacy has persisted, limiting the ability of today’s banking system to adequately support local enterprises that drive economic growth.

Travaly explained that commercial banks often cite the lack of financial statements and guarantees as reasons for their reluctance to finance SMEs and SMIs. He argued that this failure reflects a deeper misalignment between the priorities of African economies and the strategies of banking institutions, which tend to favor large corporations, multinationals, and state-affiliated entities over small businesses.

The analyst highlighted the challenge of promoting financial inclusion in this context, stressing the need for African banks to reform their financing strategies to better serve the local economy.