businessincameroon.com

The creation of an agricultural bank announced by the Head of State of Cameroon is planned to materialize soon with the expected approval of the Banking Commission of Central Africa.
Nearly two decades after the liquidation of "Crédit Agricole of Cameroon" (CAC), Cameroonians will have again a bank whose mission is to contribute to the financing of agricultural projects. This is the Cameroon Agriculture Financial Rural Corporation (CAFRUC), whose creation file is very advanced. A few days ago, the Ministry of Finance, through the head of this ministry Essimi Menyé, clearly stated that "the text of creation is ready" as it remained to refer the matter to the discretion of Banking Commission of Central Africa (COBAC). Remarks which confirm those of his colleague from the department of Agriculture and Rural Development, Jean Nkuété according to whom "the establishment of an agricultural bank whose study is complete [...] has been forwarded to the Ministry of Finance for coordination and follow up of the process." The development of this case found a favorable assent within the operators of the agricultural world which consider it a suitable way in order to finance their activities.
 as COBAC indicates that the new banks are required to have a minimum capital of 10 billion FCFA and the State has to be the sole shareholder of the CAFRUC, we understand that the government has matured its plan for a long time.

The IMF imposed structural adjustment

The creation of the new agricultural bank will be the materialization of the announcement made by the president in January 2011, when Paul Biya participated in agro-pastoral Comice in Ebolowa, this meeting being considered the most important festival dedicated to rural areas.
In all likelihood, the authorities seem to have learned due to the absence of a financial institution specialized in financing agriculture, while Cameroon is an agricultural country with over 13 million people living in rural areas representing approximately about 70% of the total population. The creation of CAFRUC should fill the void left by Crédit Agricole of Cameroon, the Cameroon Development Bank (CDB), and the National Fund for Rural Development (FONADER) or the Guarantee Fund for Small Business (FOGAPE) who among other mission is to contribute to the financing of agro-pastoral activities.
These financial institutions have failed both because of mismanagement, but also because of the economic austerity policies imposed by the Bretton Woods institutions, the World Bank (WB) and the International Monetary Fund (IMF) which placed the Cameroonian economy under structural adjustment for almost twenty years, between the end of the 1980s and early 2000s. In the opinion of observers, the birth of the future agricultural bank would mean that authorities may have learned from the lessons of the past.
Officially, Cameroon imports annually food valued at over 500 billion FCFA. This heavy reliance on foreign products would result in non-oil trade balance to reach a record of 700 billion FCFA in 2010. To this is added the fact that Cameroonian traders are more inclined to sell their products outside the country where incomes are higher, which also affects domestic supply.

The State as sole shareholder

The creation of a bank intended primarily to finance agriculture could reduce imports, through a revival of domestic production. Three years ago, when the country had just experienced riots against high living costs called "the famine riots", the leaders had taken a number of measures aimed at a customs tax exemption and tax-free consumer products for which we haven't truly felt the impact of the decrease on these products. Moreover, by deciding to create an agricultural bank, the authorities would be surrounded by a minimum of precautions, including the mobilization of funds. Indeed, a text by COBAC states that all new banks are required to have a minimum capital of 10 billion FCFA. And when you know that the state should be the sole shareholder of the CAFRUC with 100% equity, we understand that the government has long matured its plan. Already, the premises were found, whereas the recruitment of staff is also quite advanced.
Cameroon, who knows episodic periods of famine in the northern part of the country due to the nature of Sahelian type, has for years enjoyed food self-sufficiency. The country still is and remains the feeder of the countries of the CEMAC (Economic and Monetary Community of Central Africa) and Nigeria intends, through the CAFRUC, to enhance the agricultural supply of the country and to continue at the same time being the main provider of food to its neighbors.
Achille Mbog Pibasso, Douala