Cameroon’s Deposit and Consignments Fund (CDEC) has launched a pilot program to improve access to financing for small and medium-sized enterprises in the growth phase. The initiative focuses on businesses led by young entrepreneurs and women, two groups that often face stricter lending conditions.
The pilot fund amounts to CFA5 billion and is intended to test a financing mechanism that could be expanded if results prove successful.
To implement the program, CDEC has issued a call for expressions of interest to select a limited number of partner financial institutions. These institutions will be responsible for distributing funds to eligible SMEs under terms defined with the CDEC.
Conditions for participating institutions
In exchange for access to funding under favorable conditions, selected institutions must meet several requirements. They are expected to ensure that loans reach targeted SMEs, meet performance benchmarks, provide detailed reporting, and contribute to the program’s evaluation.
The structure aims to address a common gap in SME financing, where announced funding programs do not always translate into actual loans. The pilot phase will test whether partner institutions can effectively channel resources to businesses.
The initiative follows a memorandum of understanding signed on April 21, 2026, in Nairobi between CDEC and the African Guarantee Fund. The agreement seeks to establish a more structured SME financing mechanism in Cameroon.
The approach combines funding with a guarantee system. This type of model can help reduce risk for partner banks, which often hesitate to lend to SMEs due to limited collateral, weaker financial profiles, and perceived high risk.
A broader challenge for the economy
For CDEC, the stakes extend beyond the pilot phase. SMEs play a central role in Cameroon’s economy but continue to face structural barriers, including limited access to credit, high collateral requirements, short loan maturities, and high perceived risk.
The program’s success will depend on several factors, including the selection of SMEs, the actual attractiveness of lending conditions, the commitment of partner institutions, and the effectiveness of the guarantee mechanism in reducing barriers to credit.
Key details remain to be clarified, including eligibility criteria, financing caps, targeted sectors, interest rates, and the rollout timeline.
Amina Malloum
