The European Investment Bank (EIB) announced
it has approved a €12 million (XAF7.8 billion) credit line to be opened at
the Commercial Bank Cameroon (CBC). The announcement was made during the EU-Africa
Business Forum (EABF) organized before the 6th EU-AU summit that was
launched on February 17, 2022, in Brussels, Belgium.
According to the EIB, the credit line will
help support Cameroonian firms’ resilience amid the Covid-19 pandemic. The
agreement will be signed the next time the EIB’s vice-president visits
Cameroon, we learn.
"The €12 million 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 strong
cooperation between the Commercial Bank and EIB financial experts over the past
months, Cameroonian businesses will be able to access longer-term loans, which
are essential for their growth in this crisis period," said Léandre Djummo,
CBC's Director-General.
"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 African partners to defeat Covid-19 and help businesses create jobs
and prosper," said Ambroise Fayolle, EIB Vice President.
According to the EIB, this partnership with
the CBC is part of the international bank's rapid response to build economic
resilience amid the pandemic in Africa. It will mainly support business
investments 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, when the coronavirus pandemic
was still at its peak, the EIB and Société Générale Cameroon set a XAF10
billion credit line to provide financial support to SMEs with flexible
conditions.
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