Cameroon: SME and agricultural banks receive their initial capital
Cameroon's Ministry of Finance has confirmed that the government has released the capital of two new banks.Benefiting from CFAF 10 billion (€15.2 million) each, the Banque camerounaise des Pme (BC PME S.A delete) - which will be dedicated to small and medium-sized financing - and the Cameroon Rural Financial Corporation (Carfic) delete, are expected to meet the financing needs of the private sector in Cameroon, where 60 per cent of the population lives from agriculture.
The second general meeting of the BC-PME will be held on March 21st and a statement by the Ministry of Finance published by 'Investing in Cameroon' reveals that the composition of the board will be decided during this event.
BC-PME should improve the financing of SMEs, which are facing difficulties to access credit, since they are not able to provide the guarantees required by banks.
However, according to recent data from the Association of Professional Credit Institutions of Cameroon published by Les Afriques, the excessive bank liquidity is believed to be standing at around €915 million.
SMEs account for over 90 per cent of the country's economy and contribute 34 per cent of its GDP, according to the National Institute of Statistics.