(Business in Cameroon) - New Zealand Banking Group, CDS Private Equity Limited, will inject funds for the recovery of cocoa and coffee in Cameroon. The funding that the group is preparing to release consists of a direct loan of 80 million euros (about 52.47 billion francs CFA) and a credit line of 30 million euros (about 19.7 billion Francs CFA), a total of 72.17 billion Francs CFA.

Daniel Mark Simon, CEO of CDS Private Equity Limited and the Minister of Economy, Planning and Regional Planning (MINEPAT), Emmanuel Nganou Djoumessi signed two finance agreements last Friday in Yaoundé to this effect. The signing of the documents took place in the presence of Minister of Agriculture and Rural Development, Essimi Menye and CEO of the National Cocoa and Coffee Board (NCCB), Michael NDOPING.

The NCCB will use these funds to finance projects included in the stimulus package of the cocoa and coffee sector validated in 2002. “We will ensure that funds are used wisely for these two sectors to regain their place of yesteryears- providers of foreign exchange and employment in rural areas”, said Michael Ndoping. The money will be directed towards research, production, marketing and processing. “This is a string that must be developed in a coherent way if we want tangible results,” the CEO of the NCCB reiterated.

These funds to partially finance stimulus projects in the cocoa and coffee come at a time when government's equity is insufficient to implement the recovery plan and achieve the desired objectives. This is to increase production, improve the quality of both crops for export and position the Cameroon brand on the international market.

Cocoa and coffee account for about 3% of gross domestic product (GDP) and 15% of Cameroon's primary sector GDP. From 2005/2006 to 2010/2011, updated exports and FOB figures (Free on board) show a significant increase in production from 180,413 tons to 227,082 tons of cocoa and coffee combined, an increase of nearly 47,000 tons.