Credit line

Covid-19: the EIB opens a credit line of XAF 7.8 billion for Cameroonian SMEs

(Business in Cameroon) – The European Investment Bank (EIB) announces that it has approved the opening of a credit line of 12 million euros (7.8 billion XAF) with Commercial Bank Cameroon (CBC). The announcement was made during the EU-Africa Business Forum (EABF) organized ahead of the 6th EU-AU Summit which was launched on 17 February 2022 in Brussels, Belgium.

According to the EIB, the line of credit will help support the resilience of Cameroonian companies in the face of the Covid-19 pandemic. The agreement will be signed during the next visit of the Vice-President of the EIB to Cameroon, we learned.

“(…) The 12 million euros provided by the EIB and the European Union will allow the CBC to grant new loans to the private sector through its branches throughout the country. Thanks to the cooperation close relationship between the Commercial Bank and EIB financial experts over the past few months, Cameroonian companies will be able to access longer-term loans, which are essential for their growth in this period of crisis,” said Léandre Djummo, Managing Director of CBC.

This financing is essential to stimulate investment, create jobs and accelerate the country’s post-pandemic recovery. The new agreement reached today illustrates the alliance between Team Europe and its African partners to defeat Covid-19 and help businesses create jobs and thrivesaid Ambroise Fayolle, Vice-President of the EIB.

According to the EIB, this partnership with the CBC is part of the international bank’s rapid response to strengthen economic resilience in the face of the pandemic in Africa. It will mainly support business investment in the manufacturing, agricultural, tourism and commercial sectors.

This is the second initiative taken by the EIB in Cameroon to help businesses resist or recover from the impacts of the Covid-19 pandemic. Indeed, on November 17, 2020, while the coronavirus pandemic was still at its peak, the EIB and Société Générale Cameroun set up a credit line of XAF 10 billion to provide financial support to SMEs on flexible terms.

Brice R. Mbodiam