(Business in Cameroon) - Bocom Petroleum SA obtained a total financing of CFA33.03 billion (€50 million) to boost its distribution capacity in Cameroon. The company signed yesterday an agreement with the International Finance Corporation (IFC) in that regard.
The deal covers an IFC loan of up to €25 million (CFA16.5 billion), a concessional loan of €15 million (CFA9.9 billion) granted under the mixed financing mechanism of the International Development Association (IDA) private sector promotion window, and a parallel loan of up to €10 million (CFA6.6 billion) to be mobilized from a leading development finance institution.
The money will allow the beneficiary company to increase the capacity of its main liquefied petroleum gas (LPG, domestic gas) storage and filling center; set up new regional distribution centers, and purchase trucks to transport gas cylinders. The aim is to increase access to this petroleum product throughout Cameroon, thereby reducing the use of more polluting fuels such as kerosene, charcoal, firewood, and sawdust.
"We are proud to partner with BOCOM to foster access to cleaner and safer fuel, while supporting Cameroon's energy transition," said Sylvain Kakou, IFC's Country Manager for Cameroon. IFC will also provide advisory services to help Bocom better reach underserved markets and develop a sustainable and inclusive gender strategy within its organization.
Bocom entered the distribution of household gas and other petroleum products in 2018. The marketer operates its network of 80 gas stations across the country, as well as a gas cylinder storage and filling plant and a lubricant blending facility.