Cameroon’s Minister of Agriculture and Rural Development Gabriel Mbairobe, together with the General Manager of the Commercial Bank of Cameroon, Léandre Djummo, signed an agreement for the establishment of an Agricultural Sector Development Fund.
The African Development Bank’s (AfDB) Director General for Central Africa, Serge N’Guessan was also present during the signing of the deal that took place on 8 September 2022 in Yaoundé.
The AfDB and the government of Cameroon will set up the fund as part of the implementation of the Agricultural Value Chain Development Project. It will provide medium-term resources to microfinance institutions in Cameroon, so that they themselves can extend flexible medium-term loans (2 to 4 years) to enterprises in the agricultural value chain.
The Agricultural Value Chain Development Project will endow the Fund with €13.12 million, in addition to a partial credit guarantee of €4.58 million for risk sharing with commercial banks.
According to the recently signed agreement, the Commercial Bank of Cameroon will make the resources available to microfinance institutions, closer to the field and, therefore, to producer organizations, including small and medium-sized enterprises, as well as youth engaged in commercial agriculture.
“I express my gratitude to the African Development Bank Group, which, like the Cameroonian government, is convinced that agriculture is an important pillar of the structural transformation of our economy,” said Minister Mbairobe. “We are very sensitive to this multifaceted support.”
“The African Development Bank will ensure that this innovative fund has more resources, so that more farmers benefit from it and, above all, that rural development is a reality in Cameroon and in the Central African sub-region,” said Director General N’Guessan.
General Manager Djummo of the Commercial Bank of Cameroon thanked the Minister of Agriculture for the rigorous monitoring of the project and its outcome, all the public authorities involved and the African Development Bank for placing confidence in the institution.