Yaoundé - 27 February 2021 -

Cameroon: African Guarantee Fund signs XAF5 bln credit line guarantee to boost Afriland First Bank’s credit to local SMEs

Cameroon: African Guarantee Fund signs XAF5 bln credit line guarantee to boost Afriland First Bank’s credit to local SMEs
  • Comments   -   Wednesday, 17 February 2021 14:44

(Business in Cameroon) - On February 16th, in Nairobi, Kenya, the African Guarantee Fund-AGF (a fund aimed at unlocking the potential of  African SMEs), signed an agreement to grant a XAF5 billion credit line to allow Cameroonian banker Afriland First Bank to support SMEs, women's entrepreneurship and the green economy in Cameroon.

According to Alphonse Nafack (Managing Director of Afriland First Bank) and Jules Ngankam (CEO of AGF) thanks to the credit line, Afriland First Bank will provide more loans to SMEs and SMIs, as well as promote the development of green entrepreneurship and women's leadership in the Cameroonian business community.

"Banks across the continent urgently need risk hedging instruments to support their SME lending activities. This agreement confirms our commitment to Cameroonian SMEs alongside Afriland First Bank, a leading institution in the Cameroonian banking sector," said Jules Ngankam.

"This partnership is in line with Afriland First Bank’s mission and demonstrates the strong commitment that has guided our daily action since our inception, namely to support the entrepreneur, promote SMEs, and support companies in their development programs," indicates Alphonse Nafack.

The agreement is signed in a context where SMEs  (known to be major actors in the Cameroonian economic space) are facing enormous problems in accessing bank financing necessary for their expansion. According to the National Institute for Statistics (INS), Cameroonian SMEs, which generate 35% of GDP and provide 70% of the country's jobs, regularly encounter financing problems. Those problems are caused by the accumulation of high unpaid debts and credit access difficulties mainly.  

Afriland First Bank claims to have granted over XAF150 billion credit to VSE/SME/SMIs in 2020, with over XAF675 billion of outstanding credit. The credit institution says that thanks to the new agreement, it will be able to boost its commitment to the emergence of local economic champions. However, it does not provide a specific figure as to the volume of credit to be granted to SMEs in the framework of that agreement.


Eighty (80) billion CFA Francs. That is the total amount for the "Douala Grand Mall & Business Park," a gigantic business, trade, and leisure center,...
Cameroonian customs authorities announce that they will soon introduce a feature to their IT platform Cosmos  to help identify cars being used without...
The Cameroonian start-up Diool, which specializes in mobile payment methods aggregation, recently raised $3.5 million (XAF1.8 billion) to develop...
On February 16, during an audience at the Cameroonian Ministry of Finance, Stéphane Dopagne, ambassador of the kingdom of Belgium, asked for facilities...

Mags frontpage

Business in Cameroon n96:January 2021

Cameroon moves to the industrial phase

Mathurin Kamdem, a determined patriot

Investir au Cameroun n106 Janvier 2021

Le Cameroun passe à la phase industrielle

Mathurin Kamdem, un patriote déterminé

  1. Most read 7 days
  2. shared 1 month
  3. read 1 month