EU-backed initiative unlocks 30 billion FCFA for Cameroon’s SMEs
Yaoundé and the European Union have activated a groundbreaking financial mechanism aimed at enhancing access to bank credit for Cameroon’s small and medium-sized enterprises. The initiative, unveiled under the Economic Development Support Project for Value Chain Promotion and Private Initiative (PAD-CV), introduces a facility that could unlock nearly 30 billion FCFA in loans from local banks, backed by a 6 billion FCFA guarantee.
The total program budget stands at 9.8 billion FCFA. Notably, the 6 billion FCFA guarantee will not be distributed directly to businesses. Instead, it will serve as collateral for banks issuing loans to project holders. The remaining funds will support technical assistance and capacity-building initiatives.
A three-step process to secure financing
Businesses must first apply through an open call launched on July 15. The application window will remain open for three months. Shortlisted projects will undergo a rigorous evaluation, followed by tailored technical support to refine business plans and ensure compliance with banking requirements. The ultimate goal is to present lenders with bank-ready proposals that meet strict financial standards.
Eligible sectors and targeted beneficiaries
The initiative welcomes applications from a wide range of enterprises, including:
- Micro and small businesses (TPE)
- SMEs and startups
- Cooperatives and common initiative groups (GIC)
- Producer organizations
- Digital-focused clusters and incubators
A special emphasis will be placed on projects led by women and young entrepreneurs, aligning with broader economic inclusion goals.
