The amount allocated by the Islamic Development Bank to the leader in finance in Cameroon is part of post-Covid19 financing and will support small and medium-sized enterprises.
According to the communication department of the Cameroonian private bank, the role of Afriland First Bank as an executing agent will consist of supporting and assisting the Government in its post-Covid19 recovery policy; contributing its experience and expertise in mastering the business ecosystem and Islamic finance instruments; allocating Islamic financing to support eligible SMEs in order to oxygenate them and boost their competitiveness and guarantee full success in the use of the financing line approved and allocated by the Islamic Development Bank (IDB) as part of the Strategic Plan for Preparedness and Response to COVID-19.
In order to give substance to the Agency contract between the Government of the Republic of Cameroon and Afriland First Bank signed on September 16, 2024 in Yaoundé, Hamadou Mamoudou, Director of the Islamic Window at Afriland First Bank specified that it is up to the bank to receive the funds intended for the project; select eligible companies on the basis of prospective assessments; carry out financing through Islamic finance channels and in accordance with the predefined criteria jointly between the bank (Afriland First Bank), the IDB and the State of Cameroon; ensure monitoring and send reporting to the IDB and the State (PSPR project), then recover the financing granted to SMEs to ensure repayment of the line.
If Célestin Guela Simo, the Managing Director of Afriland First Bank stressed that the Covid19 pandemic has left deep scars in the Cameroonian economy. It has particularly weakened SMEs, which constitute the backbone of the Cameroonian economic fabric. While welcoming the project, “The financing of 22.2 million US dollars (i.e. 13.5 billion CFA francs) that we will make available to companies, thanks to the support of the Islamic Development Bank and the enlightened leadership of the Cameroonian Government, will allow many companies to renew and modernize their equipment, acquire raw materials, and equip themselves with the necessary means to relaunch their activities”, assured the Managing Director of the bank.
Recalling that the active portfolio of the IDB in Cameroon currently includes 17 projects under implementation, as well as a technical assistance operation, for a total envelope of 962.704 million USD, or approximately 582.436 billion FCFA. The Minister of Economy, Planning and Regional Development, Alamine Ousmane Mey, invited all the actors involved, in particular the project management unit and the managers of Afriland First Bank, to collaborate closely to achieve the objectives set. A success that could pave the way for new financing for Cameroonian SMEs. Moreover, “… We are making a firm and determined commitment to give them the means to contribute to the revival of our economy,” assures the CEO of Afriland.
