Cameroon: Signature of €76 million agreement to finance SMEs

Nov 06, 2013

The Inter-Management Group of Cameroon (Gicam) and the African Guarantee Fund for SMEs and SMIs (AGF) have announced details of their joint initiative to fund and support small and medium-sized enterprises (SMEs).

The two parties signed a CFAF50 billion (€76.2 million agreement on October 29th) to finance and support
small and medium-sized enterprises (SMEs), reports Gicam in a statement published in Jeune Afrique.

This agreement aims to implement a pilot project to provide financing at very favourable conditions to help SMEs invest in their expansion and modernisation.

To qualify for loans of
up to FCFA200 million at an interest
of ten percent, SMEs must be members of the Gicam and commit to repay within a period comprised between 18 months and five years.

Furthermore, the Guarantee Fund is committed to reducing the risk of bank failure by guaranteeing loans up to 50 percent.

The agreement also provides for the establishment of a training program for companies receiving
of the funding.