(Business in Cameroon) - On January 9, President Paul Biya signed a decree authorizing the Minister of Economy to sign a €11.37 million (close to XAF7.4 billion) financing contract with the European Investment Bank (EIB).
According to the presidential decree, these resources will be used to pay for Cameroon's participation in the capital of the African Trade Insurance Agency (ATI), the only multilateral organization covering political and commercial credit risk in Africa. This agency was founded in 2001 by African states with the financial and technical support of the World Bank Group.
Its share capital is variable and based on an initial authorized nominal capital of US$1 billion, divided into 10,000 shares with a par value of US$100,000 each. Members may subscribe for shares in the capital in accordance with their class of participation. There are four classes in which members may acquire shares.
In category A, requested by Cameroon, the shares are open to African states. This category must at all times represent at least 51% of the share capital of ATI. A minimum acquisition of 75 shares is required from an African State for membership. The level of investment by African member states in the ATI will determine the volume of businesses that the Agency will be able to support in the country concerned.
For category B, shares are open to non-African States or their representatives. A minimum subscription of 100 shares is required to join this category.
For category C, shares are open to private companies and a minimum of 100 shares is required to be in that category.
Finally, in category D, shares are open to regional economic organizations, international financial development institutions and export credit agencies. A minimum subscription of one share is required for membership under this category.