The verdict in three sentences
A custom ERP for an SME costs between 15,000,000 and 60,000,000 FCFA to build in 2026, while an off-the-shelf package runs 3,000,000 – 12,000,000 FCFA/year in licenses and maintenance. The package wins on timeline and upfront cost; custom wins on business fit (100% of your processes, zero workarounds) and removes the per-user cost. The tipping point typically sits around 20-30 users, or when your specific processes make the package unusable without costly development.
Cost / timeline / fit comparison
| Criterion | Custom ERP | Off-the-shelf |
|---|---|---|
| Upfront cost | 15 – 60 M FCFA | 2 – 8 M FCFA (setup) |
| Licenses / year | 0 (maint. ~15%) | 3 – 12 M FCFA |
| Per-user cost | none | 90,000 – 300,000 FCFA/yr |
| Business fit | 100% | 60 – 80% |
| Implementation time | 4 – 9 months | 6 – 12 weeks |
| Code ownership | full | none |
| Reversibility | full | vendor-dependent |
| Evolutions | on demand | vendor roadmap |
5-year TCO and break-even
Simulation for a 30-user SME, 2026 orders of magnitude.
| Scenario | Upfront | Recurring/yr | 5-yr TCO |
|---|---|---|---|
| Package 30 users | 5,000,000 | 9,000,000 | 50,000,000 FCFA |
| Custom ERP | 32,000,000 | 4,800,000 | 56,000,000 FCFA |
| Package 60 users | 6,000,000 | 15,000,000 | 81,000,000 FCFA |
At 30 users both options land within ~5% over 5 years; at 60 users custom becomes clearly cheaper because there is no per-seat cost. Custom's break-even therefore sits around 35-45 users in most SMEs.
Mini case study
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Ms. Diallo, CFO of a 35-employee distribution SME in Dakar, hesitated between a package at 10,000,000 FCFA/year (35 licenses + maintenance) and a custom ERP. The package forced a workaround for her multi-site warehouse management, costing ~200 h/year of manual handling. Kolonell quoted a custom ERP at 34,000,000 FCFA + 5,000,000 FCFA/year maintenance. Over 5 years: package 55,000,000 FCFA vs custom 59,000,000 FCFA, but with 100% fit and 200 h/year recovered (≈ 1,600,000 FCFA). Beyond 5 years and 40 employees, custom becomes the clear winner.
FAQ
From how many users is custom worthwhile? Generally around 35-45 users, because the package charges per seat (90,000 – 300,000 FCFA/yr) while custom has no such cost.
What is the timeline for a custom ERP? Budget 4 to 9 months depending on scope; a package is implemented in 6 to 12 weeks, which remains its major advantage.
Does the package really cover all my processes? On average 60 to 80%; the remaining 20-40% force workarounds or specific development often billed dearly by the vendor.
Who owns the data and code? With custom, the SME fully owns both; with a package, it all depends on the vendor contract and planned reversibility.
Can we start small then expand? Yes, a custom ERP can be delivered in batches (procurement/stock first, then sales, then finance), spreading the investment over 12-18 months.
Let's scope your project. Tell us your number of users, critical non-standard processes and indicative budget to decide custom vs package. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
