(Business in Cameroon) - The Cameroonian government, through its National Strategy for Inclusive Finance (SNFI), announced the disbursement of CFA10.5 billion to boost agricultural financing in the country over the next five years.
"Since farmers' needs are specific and particular, they require tailored financial services instead of conventional banking services," the SNFI explained. Part of the money will come from the Public Investment Budget (BIP) and the remainder will be raised from development partners, we learned. The government plans to rely on its existing partnerships with the Agency for the SME Promotion Agency (APME) to reach the target. The plan also includes training and support sessions for stakeholders on agriculture financing and the establishment of permanent consultation frameworks between financial institutions and producer organizations.
CFA6 billion worth of credit lines will also be opened with selected banking institutions and intended for actors in the agricultural and agri-food sector. This incentive approach will help build the capacities of financial institutions on financing approaches for agricultural value chains. The implementation timeline and modalities of this strategy have not yet been defined, but the main goal is to increase local production and processing to significantly reduce the country's dependence on imports.
In March of this year, Prime Minister Joseph Dion Ngute signed a decree to establish and operate a fund financed jointly by the State and the AfDB to facilitate the supply of credit for the development of agricultural value chains, livestock, and fish farming.
As a reminder, Cameroon previously attempted to create the National Agriculture Financial Rural Corporation (CAFRUC), which was supposed to be a financial institution dedicated to financing the agropastoral sector, but the project was eventually halted.
Translated from French by Firmine AIZAN
Written in French by Cédrick Jiongo