Yaoundé - 26 July 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.


On July 21, 2021, in Yaoundé, the Ministry of Finance organized a budget conference to review the execution of the 2021 budget. This conference aims to...
Cameroon is currently planning an investors roundtable to source financing for the construction of chemin de fer Edéa-Kribi-Campo (184.5 Km), and...
Minister of Public Works (MINTP) Emmanuel Nganou Djoumessi (photo) presided, on July 21, 2021, a videoconference aimed at reviving the project of building...
The Swiss perfume and taste company will soon launch research works for the exploitation and commercialization of two plants located in Pimbo, Sanaga...

Mags frontpage

Business in Cameroon n101: July-August 2021

The UK makes strategic moves in Cameroon

Alamine Ousmane Mey: “8% yearly growth over 10 years is a realistic target

Investir au Cameroun n111: Juillet - Août 2021

La Grande Bretagne avance ses pions au Cameroun

Alamine Ousmane Mey : « 8% de croissance annuelle sur 10 ans est un objectif tout à fait réaliste »