Access Bank has signed a $500 million agreement with the International Finance Corporation (IFC) to expand local currency financing for businesses across Africa, including small and medium-sized enterprises (SMEs) in Cameroon, the bank said after a signing ceremony held in Kigali during the 13th Africa CEO Forum.
According to the bank, the agreement seeks to deepen local currency capital markets and improve access to financing for businesses trading and operating across the continent under the African Continental Free Trade Area (AfCFTA). In a statement published on Facebook, Access Bank Cameroon said: “In Kigali, we signed a $500 million agreement with IFC, the World Bank Group’s private sector arm, to deepen local currency capital markets and open up financing for businesses across the continent. This means lending in local currencies, less FX risk for African businesses, and stronger, more sustainable private sector growth. We are committed to building the financial infrastructure Africa’s growth deserves.”
The transaction comes as access to financing remains one of the main constraints facing SMEs in Cameroon and across Central Africa. Data from the Ministry of Small and Medium Enterprises, Social Economy and Handicrafts show that Cameroon had more than 443,000 SMEs in 2024, accounting for around 99% of all registered businesses in the country. More than 50,000 new SMEs were created during the year, according to the ministry.
Despite their role in the economy, SMEs continue to receive a limited share of bank credit. Data published by the Bank of Central African States (BEAC) and relayed by Business in Cameroon show that SMEs received CFA358.2 billion in loans during the third quarter of 2024, representing 21.3% of total credit granted to businesses. Large companies received CFA1,139.6 billion, or 67.8% of total corporate lending during the same period. The same BEAC data show that average lending rates for SMEs stood at 8.98% in September 2024, compared with 6.88% for large companies.
The Access Bank-IFC agreement also places emphasis on lending in local currencies, an issue that has become increasingly important for African businesses exposed to foreign exchange risk. Many SMEs in Cameroon import equipment, raw materials and consumer goods while generating revenues in CFA francs, exposing them to currency fluctuations and higher repayment costs when borrowing is denominated in foreign currencies.
Recent BEAC data show that credit to the economy across the CEMAC region rose by 19.6% in 2024, with Cameroon accounting for nearly 40% of the banking network in the sub-region. However, growth in the financial sector has not fully translated into broader access to productive financing. According to the National Institute of Statistics (INS), Cameroon’s financial sector represented between 2% and 3% of GDP from 2019 to 2024 despite continued growth in banking activity.
Mercy Fosoh
