Yaoundé - 08 July 2020 -

Cameroon signs CFAF106 bln loan agreement with the AfDB for construction of the 365-km Ring Road

Cameroon signs CFAF106 bln loan agreement with the AfDB for construction of the 365-km Ring Road
  • Comments   -   Wednesday, 24 June 2020 17:23

(Business in Cameroon) - On June 22, 2020, Cameroon's Head of State Paul Biya signed a decree empowering the Minister of Economy, Alamine Ousmane Mey, to sign on behalf of Cameroon a €160.6 million loan (about CFAF106 billion) with the African Development Bank (AfDB). According to the presidential decree, this loan is to partially fund the construction of the national road number 11, known as "Ring Road."

With this new financial support obtained from the AfDB, the financial assistance of this pan-African institution on the “Ring Road” project totals CFAF118 billion. Indeed, in 2019, the AfDB granted Cameroon CFAF12 billion for technical studies in the framework of the project.

After this loan, the Cameroonian government once again approached the institution for additional financing of CFAF155 billion to carry out the construction work. With the CFAF106 billion loan thus granted by the AfDB, CFAF49 billion still needs to be mobilized to complete the financing stage of this road project.

The 365 km long "Ring Road" is a road loop that will link the main cities in the north-western region of Cameroon to Nigeria. "In its consistency, the Ring Road forms a loop from Bamenda-Bambui-Ndo-Babessi-Kumbo-Nkambe-Misaje-Nyos-Wum-Bafut-Bamenda, and includes several connections to Nigerian borders," the Cameroonian Minister of Economy explained when signing the financing agreement for the technical studies of this project, in Yaoundé, on October 28, 2019.

According to the African Development Bank (AfDB), the road axis, which crosses five of the seven departments in the North-West region, is an essential link to boost trade between Cameroon and Nigeria via the Bamenda (Cameroon) - Enugu (Nigeria) road, also financed by the AfDB.

"This axis [Bamenda-Enugu] can only be a real development and integration acceleration tool in the region if it is linked to a network of roads whose base is the Ring Road," said Ousmane Doré, then AfDB Director General for the Central Africa Region.

Brice R. Mbodiam

The financial statements of Cameroon’s Telecommunications Regulatory Board (ART) reveal a deficit of CFAF 2.2 billion at the end of the financial year...
On July 1, 2020, Afriland First Bank Democratic Congo (CD), one of the eleven subsidiaries of the banking group founded by Cameroonian billionaire Paul K....
To combat unemployment, the Cameroonian government intends to create 100,000 jobs over the 2020-2025 period. To achieve this, the government plans to...
In Cameroon, transit time was reduced from 40 to 5 days by the end of Q1-2020 thanks to digitalization and telecommuting, according to the single window...

Mags frontpage

Business in Cameroon n88: June 2020

Covid 19 Its impacts so far

Emmanuel de Tailly (SABC) : «Preserving jobs at all costs»

Investir au Cameroun n98 Juin 2020

Covid 19 Et maintenant, l’étendue des dégâts

Emmanuel de Tailly (SABC) : «Maintenir l’emploi coûte que coûte »