(Business in Cameroon) - Our sources at Cameroon’s Ministry of Small and Medium Enterprises say the deposits guarantee fund has gone operational after its creation in 2008 by President Paul Biya but will not give any details.

According to Law N° 2008/003 of 14 April 2008, the Deposit and Guarantee Fund “may contribute to the financing of the country’s economic development, through specialized structures, depending on the priorities defined by the government”.

The Deposit Guarantee Fund is set aside to pay back the money lost due to the failure of a financial institution.

During the  March  session of Cameroon’s lower house , Hon. Talla Talla Blondo of the Lomie constituency (East Region), expressed concern that while other African countries that have embraced this financial change are already enjoying the benefits, “ours is yet to become operational.” And responding, Prime Minister Yang Philemon said that a working group was already active to ensure that this initiative, which aims at promoting business, actually takes off. Cameroon’s Prime minister will appoint officials to pilot this pro-development initiative. Experts say the fund would reduce the resort to foreign indebtedness.