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Covid-19: Cameroon receives XAF57.7 bln loan from the AfDB to support affected households and firms

Covid-19: Cameroon receives XAF57.7 bln loan from the AfDB to support affected households and firms
  • Comments   -   Monday, 27 July 2020 10:20

(Business in Cameroon) - Minister of Economy Alamine Ousmane Mey signed, on July 20, an €88 million (about XAF57.7 billion) loan agreement with the African Development Bank (AfDB). This loan is aimed at supporting the budget amid the coronavirus health crisis.

According to the Minister of Economy, it will help deal with the socio-economic impacts of this pandemic on households and companies following the national response strategy developed by the government for this health crisis, which greatly impacts the economy.  

This loan complements the XAF6.3 billion the AfDB granted, in June 2020, to help CEMAC countries effectively deal with the pandemic.

Let’s note that in Cameroon, during an official survey, 90% of companies claimed that they were negatively affected by the coronavirus crisis. Meanwhile, 74% of households indicated a drop in revenues.

Based on a study carried out between May and June 2020, the Inter-Patronal Grouping of Cameroon (GICAM) forecasts companies’ 2020 turnover to drop by XAF3,139 billion year-over-year. According to the grouping, this would reduce their capacity to contribute to tax revenues by XAF521 billion.

Sylvain Andzongo

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