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SME’s: European Investment Bank Funding Available

The signing of the financing convention between EIB, CBC and PRO-PME took place in Douala in the presence of MINPMEESA.

One of the major cries of small and medium-sized enterprises in Cameroon is insufficient financing. “With enough finances, we will do better and be competitive not only in Cameroon but across the border as well,” is what most enterprise heads will say during events organized on their behalf. With the FCFA 12.3 billion convention signing between the European Investment Bank, the Commercial Bank-Cameroon and PRO-PME recently destined for the financing of SMEs, business will blossom and the economy will boom. According to the terms of the two conventions signed between EIB and the two banks in Cameroon, the CBC will receive FCFA 9.1 billion while PRO-PME will be given FCFA 3.2 billion to be due in seven years. The FCFA 12.3 billion credit line is meant to be loaned out to SMEs which will help expand and grow their businesses.

The financing is within the framework of EIB’s programme dubbed “West & Central Africa Private Enterprise Finance Facility (W&CA PEFF)” that amounts to 90 million euros, that is, over FCFA 59 billion with local banks and the private sector in most countries in Central and West Africa. During the signing ceremony, the Head of Regional Representation of EIB for Central Africa, Milianitis Nikolaos made known that the gesture by EIB will reduce the cost of borrowing by the Cameroon government. The largest multinational institution in terms of loans does not only support large corporates but also banks as well as SMEs, the regional representative said and added that their operations in Cameroon since inception amounts to over FCFA 500 billion in the domain of energy, water, and transport among others. “We believe it is a clear testimony of the continuation of the EIB and the European Union in general to support the development of our country. SMEs play a very important part in the economy of Cameroon as they make up about 95 per cent of the enterprises but contribute just 36 per cent of the Gross Domestic Product (GDP). Certainly, the financial support will ensure sustainable growth and create new opportunities for Cameroonians and enterprises in our country,” the Minister of Small and Medium-sized Enterprises, Social Economy and Handicraft, Achille Bassilekin III said. With great joy, Jean Victor Ngue, Board Chair of PRO-PME and the General Manager of CBC, Djummo Léandre made known that the convention will help finance more SMEs at moderate rates.

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