IFC and Afriland First Bank Partner to Boost SME Financing in Cameroon, with a Focus on Women entrepreneurs
In a landmark move to bolster economic growth in Cameroon, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, has granted a 37.5 billion FCFA loan to Afriland First Bank. Announced on January 2, 2025, this funding aims to enhance access to long-term credit for local small and medium-sized enterprises (smes), which form the backbone of Cameroon’s economy, representing over 99% of its economic fabric.The loan is structured in two parts: the IFC will contribute up to 12.5 billion FCFA, while a consortium of partner lenders will provide the remaining 25 billion FCFA. The agreement includes a five-year repayment period with a one-year grace period. Additionally, the loan is backed by a 1.875 billion FCFA guarantee from the International Development Association (IDA), ensuring robust support for Cameroonian SMEs.
A Push for Female Entrepreneurship
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A standout feature of this initiative is its focus on promoting female entrepreneurship. At least 25% of the loan proceeds will be allocated to businesses led by women. This aligns with recent data showing that 38% of Cameroonian businesses are owned by women, who also play a significant role in the manufacturing sector (23%) and make up more than half of the population (51%).
Despite their contributions, women entrepreneurs in Cameroon face persistent challenges in accessing finance. According to World Bank studies and government data, these barriers hinder their ability to scale operations and contribute fully to the economy. Afriland First Bank’s partnership with the IFC and IDA seeks to address this gap, empowering women-led businesses and fostering inclusive economic growth.
Transforming Cameroon’s Entrepreneurial Landscape
By channeling resources into SMEs, especially those led by women, this collaboration between the IFC, IDA, and Afriland First Bank has the potential to reshape cameroon’s entrepreneurial ecosystem. the initiative not only strengthens Afriland First Bank’s position as a leading financial institution in Cameroon but also tackles a critical issue: improving access to credit for a sector that drives national economic development.
As Cameroon’s SMEs gain better access to long-term financing, the ripple effects could be transformative. From job creation to increased innovation, the benefits of this partnership are poised to extend far beyond the immediate financial support.
Key Highlights at a Glance
| Aspect | Details |
|————————–|—————————————————————————–|
| Loan Amount | 37.5 billion FCFA |
| IFC Contribution | 12.5 billion FCFA |
| Partner Lenders | 25 billion FCFA |
| Repayment Period | 5 years, with a 1-year grace period |
| Guarantee | 1.875 billion FCFA from IDA |
| Focus on Women-Led SMEs | 25% of proceeds allocated to female entrepreneurs |
This partnership underscores the importance of targeted financial interventions in driving lasting development. By addressing the unique challenges faced by SMEs and women entrepreneurs,the IFC and Afriland First Bank are paving the way for a more inclusive and resilient economy in Cameroon.
For more insights into Cameroon’s financial landscape and the role of SMEs, explore Business in Cameroon.
Empowering Women Entrepreneurs: IFC and Afriland First Bank’s partnership to Transform Cameroon’s SME Landscape
In a groundbreaking initiative to drive economic growth and inclusivity in Cameroon, the International Finance Corporation (IFC) and Afriland First Bank have joined forces to provide a 37.5 billion FCFA loan aimed at supporting small and medium-sized enterprises (SMEs). A key focus of this partnership is empowering women entrepreneurs, who make up 38% of business owners in Cameroon but face notable barriers to accessing finance. In this exclusive interview, Dr. Amina Ndiaye, a leading expert on African economic advancement and gender equity, shares her insights on the initiative’s potential impact and the challenges ahead.
Introduction to the Initiative
Senior Editor: Dr. Ndiaye, thank you for joining us today. Could you start by giving us an overview of this partnership between the IFC and Afriland First Bank? What makes it unique?
Dr.Amina Ndiaye: Thank you for having me. This partnership is indeed unique because it addresses two critical issues together: the lack of access to long-term financing for SMEs and the persistent gender gap in entrepreneurship.The IFC’s 37.5 billion FCFA loan, with a significant portion earmarked for women-led businesses, is a strategic move to unlock the potential of Cameroon’s SME sector, which accounts for over 99% of the country’s economic fabric. By focusing on women entrepreneurs, who own 38% of businesses in Cameroon, this initiative aligns with global efforts to promote gender equality and inclusive economic growth.
The Focus on Women Entrepreneurs
Senior Editor: The initiative allocates at least 25% of the loan proceeds to women-led businesses. Why is this focus on female entrepreneurship so vital for Cameroon’s economy?
Dr. Amina Ndiaye: Women entrepreneurs are a driving force in Cameroon’s economy, not only in terms of business ownership but also in sectors like manufacturing, where they represent 23% of the workforce.Despite their contributions, women face significant barriers to accessing finance, which limits their ability to scale their businesses and contribute fully to the economy. By targeting women-led SMEs, this initiative not only addresses a critical gap but also leverages the untapped potential of female entrepreneurs to drive job creation, innovation, and economic resilience.
Challenges Faced by Women Entrepreneurs
Senior Editor: What are some of the specific challenges that women entrepreneurs in Cameroon face, and how does this initiative aim to address them?
Dr. amina Ndiaye: Women entrepreneurs in Cameroon often struggle with limited access to collateral, lack of financial literacy, and cultural biases that hinder their ability to secure loans. According to World Bank studies, these barriers are compounded by the fact that many financial institutions perceive women-led businesses as high-risk. This initiative tackles these challenges head-on by providing tailored financial products, capacity-building programs, and a guarantee mechanism through the IDA. By reducing the risk for lenders and offering targeted support, the partnership creates a more enabling environment for women to thrive as entrepreneurs.
Potential Impact on Cameroon’s Entrepreneurial Ecosystem
Senior Editor: How do you see this initiative reshaping Cameroon’s entrepreneurial landscape in the long term?
Dr. Amina Ndiaye: This initiative has the potential to be transformative. by channeling resources into SMEs,particularly those led by women,it addresses a critical bottleneck in Cameroon’s economic development. Improved access to long-term financing will enable SMEs to scale their operations, invest in innovation, and create jobs. Over time, this could lead to a more diversified and resilient economy. Additionally, by empowering women entrepreneurs, the initiative fosters a culture of inclusivity and gender equity, which are essential for sustainable development.
Key Highlights of the Partnership
Senior Editor: For our readers who may not be familiar with the details, could you summarize the key aspects of this partnership?
Dr. Amina Ndiaye: Certainly. Here are the key highlights:
- Loan Amount: 37.5 billion FCFA, with 12.5 billion FCFA contributed by the IFC and 25 billion FCFA from partner lenders.
- Repayment Period: 5 years, with a 1-year grace period.
- Guarantee: 1.875 billion FCFA from the IDA to mitigate risk.
- Focus on Women-Led SMEs: At least 25% of the loan proceeds will be allocated to businesses led by women.
These elements underscore the initiative’s commitment to fostering inclusive economic growth and addressing the unique challenges faced by SMEs and women entrepreneurs.
Looking Ahead
Senior Editor: what are your hopes for the future of this initiative, and what steps do you think are needed to ensure it’s success?
Dr. amina Ndiaye: My hope is that this initiative will serve as a model for other countries in the region, demonstrating the power of targeted financial interventions to drive inclusive growth. To ensure its success,it’s crucial to monitor the implementation closely,provide ongoing support to beneficiaries,and foster collaboration between stakeholders,including government agencies,financial institutions,and civil society.By working together, we can create an ecosystem where women entrepreneurs and SMEs thrive, paving the way for a brighter economic future for Cameroon.
