IFC & Afriland First Bank Partner on $60M Initiative to Boost SME Financing in Cameroon

• IFC joins forces with Afriland First Bank to boost small and medium-sized enterprise (SME) financing in Cameroon 
• With a special focus on funding women-owned businesses 
• Aims To support the expansion of businesses and job creation  

To boost economic growth and improve financial inclusion in Cameroon, the International Finance Corporation (IFC) and Afriland First Bank Cameroon (First Bank) announced a partnership to provide $60 million in financing for small and medium enterprises (SMEs), with a focus on women-owned enterprises. 

This cooperative effort is aimed at tackling one of the key economic issues in Cameroon: limited access to finance for small and medium-sized businesses (SMEs). SMEs are responsible for over 90 % of socio-economic activities in Cameroon, are the largest employers, are the primary group for innovation, and are essential for the well-being and development of communities.  

Under the terms of the agreement between IFC and Afriland First Bank, the IFC will provide Afriland First Bank with up to $60 million in financing, $20 million of IFC's own capital raised from lenders external to Cameroon, as well as an additional $40 million of loan financing. The intent of the investment is to provide Afriland First Bank the ability to lend to more SMEs in Cameroon, as well as additionally allow Afriland First Bank to lend more deeply within the underserved SME market across Cameroon.  

WEOF also intends to provide performance-based incentives in support of women's economic development of roughly $42k (0.07 percent of total project cost) which will be utilized to facilitate access to finance for women-owned/led businesses and to foster female entrepreneurs in the Cameroonian competitive business sector. 

In addition to the financial support, IFC will support Afriland First Bank with advisory services focused on enhancing risk management procedures, expanding the Bank’s SME portfolio, and designing customized financial products that accommodate the changing dynamics of small businesses. This development assistance is part of First Bank’s larger vision to be positioned as the foremost SME financing institution in Central Africa while simultaneously fostering sustainable growth for emerging companies. 

This collaboration builds on IFC’s programming, which includes supporting Cameroon’s efforts to address urbanization and climate change issues while pursuing national development objectives and effects transitions towards a climate-resilient economy. “In partnership with IFC, we can significantly ramp up our current level of financing to small businesses, which will not only help those companies continue to thrive but also support the development of our country’s economy as a whole,” said Célestin GUELA SIMO, Chief Executive Officer of Afriland First Bank. 

“SMEs are the backbone of our job market and economy and by investing in these businesses; we are investing in the future of a stronger, more diversified economy.” 

Dahlia Khalifa, the Regional Director for Central Africa and Anglophone West Africa at IFC, reiterated IFC's commitment to long-term development: "By partnering First Bank, we will help close the financing gap for SMEs, and allow entrepreneurs to innovate and create jobs. Together we will drive sustainable development and unlock opportunities for businesses to thrive."  

In the future, IFC will work to deepen long-term partnerships across sectors to deliver development outcomes with the government, companies, smallholders, and civil society. This will include better access to financing, accelerate digital transformation, and promote inclusive green growth for the benefit of all Cameroonians. IFC and Afriland First Bank are establishing a model for strategic investments towards economic development through this initiative to stimulate sustainable growth in Cameroon and other countries in the region.