According to an African Development Bank (AfDB) September 2022 press release, Cameroon’s Ministry of Agriculture and Rural Development and the Commercial Bank of Cameroon have signed an agreement for the creation of an Agricultural Sector Development Fund in the country. The fund will be set up by the government and the AfDB.
“I express my gratitude to the African Development Bank Group, which, like the Cameroonian government, is convinced that agriculture is an important pillar of the structural transformation of our economy. We are very sensitive to this multifaceted support,” said Gabriel Mbairobe, Cameroon’s Minister of Agriculture and Rural Development.
The fund is to be managed by the Commercial Bank of Cameroon and will contribute to the transformation of the country’s agricultural sector by making funds available to local microfinance companies at a preferential rate. These funds will then be used to provide 2 to 4 year loans for small and medium sized agribusinesses.
“The Agricultural Value Chain Development Project will endow the Fund with €13.12 million, in addition to a partial credit guarantee of €4.58 million euros for risk sharing with commercial banks. According to the recently signed agreement, the Commercial Bank of Cameroon will make the resources available to microfinance institutions, closer to the field and, therefore, to producer organisations, including small and medium-sized enterprises and also youth engaged in commercial agriculture,” said The African Development Bank.
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