The Ministry of Economy, Planning, and Regional Development recently announced that nearly CFA151 million has been raised in less than a year to fund 56 projects in agriculture, agribusiness, and livestock. Of these projects, 26 are led by women. These initiatives are supported through the “Associations Initiative,” which aims to promote rural entrepreneurship by providing financial and technical opportunities to small and medium-sized enterprises (SMEs) in Cameroon. This initiative is part of the Integrated Agricultural and Agro-food Products Valorization and Transformation Program (Transfagri), a cooperative effort between Cameroon and France under the third Debt Relief and Development Contract (C3D).

The “Associations Initiative” contributes to a broader socio-economic development strategy designed to create jobs, ensure the sustainability of production units, enhance food security, and promote gender equality. The program provides dual support to local entrepreneurs: technical assistance to finalize business plans and secure funding, and financial support through “honor loans.” These loans, which require no collateral and have zero interest, can reach up to CFA7 million, with a repayment period of up to five years and a one-year grace period, according to the ministry.

On September 11, 2024, a ceremony took place in Obala, where the Minister of Economy, Alamine Ousmane Mey, and French Ambassador Thierry Marchand handed over checks to the first beneficiaries. Currently, the only operational “Associations Initiative” locations in Cameroon are in Obala (Center) and Bafoussam (West). The minister emphasized that this initiative aims to overcome barriers to SME development in rural areas, particularly by easing access to financing.

Cameroonian SMEs face several challenges, such as difficult collateral requirements, high interest rates, and credit conditions unsuitable for their production cycles. The “honor loan” offers a solution by improving competitiveness and fostering inclusive development. To expand the program’s impact, Alamine Ousmane Mey announced the upcoming establishment of new “Associations Initiative” locations in Garoua (North) and Nkongsamba (Littoral) as part of the Food Security Support Project in Rural Areas of Cameroon (Secal). This project, funded with EUR16 million (approximately CFA10.5 billion) under the 3rd C2D, aims to support sustainable job creation, promote inclusive growth, and enhance food security from 2024 to 2026.

These associations represent a new approach by France to support Cameroon’s socio-economic development efforts. “It is a modern, concrete, and effective mechanism that provides resources directly to economic operators to transform their activities,” said Thierry Marchand, the French Ambassador to Cameroon. The mechanism also benefits from the support of Team Europe, which contributed to the establishment of the Bafoussam Initiative.

Source: Business in Cameroon