Cameroon promotes leasing to support SME development
Cameroon's government has launched a comprehensive program to promote leasing in order to support the development of small and medium-sized enterprises (SMEs) in the country.Cameroon's government has launched a comprehensive program to promote leasing in order to support the development of small and medium-sized enterprises (SMEs) in the country.
Credits ranging from 50,000 (€ 39,000) to $500,000 will be granted on light and flexible terms, said Cameroon's Minister of Economy on Thursday, quoted by Xinhua news agency.
Emmanuel Nganou Djoumessi explained that "the potential beneficiaries must be able to prove that they are going through a process of transformation or that they have a strong potential for job creation amongst young people."
The selection process, the setting up of credit lines and payment collection will be organised by financial institutions.
This campaign follows a vote by the parliament on a law regulating the sector in Cameroon.
Cameroon's Finance Minister Essimi Menyé told APA that with leasing, which allows firms to acquire an asset and pay a series of tax deductible payments with an option of ownership at the end of the contract, SMEs that have difficulties accessing credit can find a way to finance their activities.
Cameroon currently has a leasing market worth 50 billion FCFA (€76.2 million). It could potentially reach 200 billion FCFA, according to leasing association Camlease.