AfDB Approves €25 Million to Power Cameroon’s SME Growth
The African Development Bank Group has approved a €25 million trade finance facility to enable Crédit Communautaire d’Afrique-Bank (CCA-Bank) in Cameroon to expand its support to small and medium-sized enterprises (SMEs) and other local businesses.
The funding, endorsed by the Bank’s Board of Directors during a session held on 1 December in Abidjan, will be deployed as a Transaction Guarantee. This instrument offers risk coverage to eligible African banks, helping them undertake trade finance transactions with greater confidence.
According to Lamin Drammeh, Head of the Bank Group’s Trade Finance Division, the facility will facilitate Cameroon’s industrialisation by easing imports of essential equipment for the industrial, agro-industrial and telecommunications sectors.
“The guarantee will enable the Bank to provide up to 100 percent cover to confirming banks, supporting the confirmation of letters of credit and similar instruments issued by CCA-Bank for SMEs,” he said.
Léandre Bassolé, Director General for the Central Africa region, noted that the initiative aligns with the African Development Bank’s commitment to strengthen private sector engagement in Cameroon.
He emphasised that the facility will enhance CCA-Bank’s capacity to support SMEs, including enterprises owned by women and young people, thereby fostering productivity, economic growth and job creation.
CCA-Bank’s Managing Director, Marguerite Fonkwen Atanga, welcomed the financing, describing it as a significant milestone for the institution. “This strategic partnership will greatly expand our ability to support SMEs, women entrepreneurs and start-ups in Cameroon and across Africa,” she said.
Launched in 2021, the Bank’s Transaction Guarantee covers a wide range of trade finance instruments, including confirmed letters of credit, commercial loans, irrevocable repayment undertakings, endorsed drafts and promissory notes. It is available to African banks that meet the Bank’s due diligence requirements.
