Senegal has taken a major step toward improving business financing after key committees of the National Assembly unanimously adopted draft law No. 09/2026 on factoring during an intercommittee session held on May 7, 2026.
The meeting, chaired by Chérif Ahmed Dicko, was attended by Finance Minister Cheikh Diba and government spokesperson Marie Rose Khady Fatou Faye.
The proposed legislation seeks to establish a clear legal framework for factoring — a financial operation in which businesses transfer trade receivables to specialized institutions in exchange for immediate cash advances.
Although the practice already existed in Senegal, it had previously been governed only under the country’s general banking law without specific provisions.
The new bill aligns Senegal’s framework with Decision No. 23/CM/UMOA adopted by the Council of Ministers of the West African Monetary Union (UMOA) in 2020, which introduced a uniform factoring law across member states.
According to Minister Diba, small and medium-sized enterprises account for 99.8% of Senegal’s business sector but contribute only 30.4% of total revenue, while 70% of SMEs cite lack of access to financing as their main obstacle.
The legislation is expected to widen financing opportunities by allowing microfinance institutions to offer factoring services, a move lawmakers say could help expand financial access across the country.
Parliamentarians also raised concerns over debt recovery practices and requested clearer definitions of certain legal terms, while the minister pledged additional technical training for lawmakers on the reform.
The bill will now proceed to a full vote in the National Assembly.
