Creation of a financing cooperative for small businesses in Cameroon
The Union of Retail Merchants in Wouri (Sycodew) announced the creation of a mutual fund in Cameroon, which will be operational this year.The Union of Retail Merchants in Wouri (Sycodew) announced the creation of a mutual fund in Cameroon, which will be operational this year.
"This initiative aims to create an alternative finance mechanism, more flexible and accessible to small merchants, in order to overcome the shortcomings of banks and micro-finance institutions," said the union president Alice Maguedjo, quoted by Cameroon Tribune.
SMEs are a key driver of the economy, accounting for about 90 percent of companies in the country, according to official figures published by Les Afriques.
However, small merchants and other SMEs in Cameroon often face difficulties to access credit from commercial banks, as they are often not able to provide the required guarantees.
To improve this situation, two new state-owned banks were created in 2011 – the Cameroon Rural Finance Corporation (An agricultural Bank) and the Bank for SMEs.