(Business in Cameroon) – On December 27, the board of the International Finance Corporation (IFC), a branch of the World Bank focused on financing the private sector in emerging countries, will discuss a major loan to Afriland First Bank, one of Cameroon’s leading banks, led by billionaire Paul Kammogne Fokam. According to local authorities, the loan, which could reach $60 million (about CFA 37.5 billion), aims to support the development of small and medium-sized enterprises (SMEs) in Cameroon, which make up more than 99% of the country’s economy.
The project involves a senior, unsecured loan with a maximum duration of five years, and a grace period of up to 12 months. The IFC plans to finance $20 million of the loan, while the remaining $40 million will be raised through other partner lenders. This funding will help Afriland First Bank strengthen its ability to provide long-term credit to Cameroonian SMEs. At least 25% of the funds will be allocated to businesses led by female entrepreneurs, a sector still underdeveloped in Cameroon’s economy. This initiative is part of the IFC’s efforts to promote women’s empowerment and provide more economic opportunities for women.
Despite some progress, female entrepreneurs in Cameroon still face significant challenges accessing financing. World Bank studies and government data show that women lead 23% of manufacturing SMEs, despite making up 51% of the population, and run 38% of businesses in the country. In addition to the loan, the project may benefit from a collective first-loss guarantee of up to $3 million, provided by the International Development Association (IDA), the World Bank institution dedicated to low-income countries, through its private sector financing window. This guarantee is designed to reduce financial risks and strengthen the project, as part of the IFC’s platform to support micro, small, and medium enterprises.
