Cameroon creates a guarantee fund for the country's industry
Cameroon is to create a guarantee fund that will aim to facilitate the financing of the country's industry.Cameroon is to create a guarantee fund that will aim to facilitate the financing of the country's industry.
Secretary general of the Ministry of Industry, Mines and Technological Development Edward Eba Abada said Cameroon's industries are struggling to gain access to credit due to the requirement of collateral, the lack of long term funding and innovative tools, reports
Le Quotidien de l'Économie.
Between 2000 and 2011, the contribution of the industrial sector to GDP went
from 19.26 per cent to 13.38 per cent, according to figures from the Union of Cameroon Industries published by Jeune Afrique.
In an attempt to reverse this trend, the government is to implement in 2014 a new industrialisation plan that includes the guarantee fund.
This news comes just days after the executive secretary of the Interprofessional Council of Cocoa and Coffee of Cameroon Omer Gatien Maledy announced that his institution has set up a guarantee fund with an initial budget of CFAF100 million (€152,000), with an additional CFAF100 million annually until it reaches CFAF1 billion.
The objective is to facilitate access to credit for producers of cocoa and coffee. Mr Maledy told the Ecofin news agency that the fund will guarantee 50 per cent of loans.