The African Development Bank Group has approved a substantial €25 million trade finance facility to empower Crédit Communautaire d'Afrique-Bank (CCA-Bank) in Cameroon. This initiative aims to expand CCA-Bank's support to small and medium-sized enterprises (SMEs) and other businesses, fostering economic growth and job creation in the country.
The financing, approved during a Board session in Abidjan on December 1, will be utilized as a Transaction Guarantee, a specialized product offered by the Bank Group. This instrument provides risk coverage to eligible African banks for their trade finance transactions, ensuring stability and confidence in the market.
Lamin Drammeh, Head of the Bank Group's Trade Finance Division, explained that the facility will facilitate the import of essential equipment for critical sectors like industry, agro-industry, and telecommunications. It will also enable the African Development Bank to provide up to 100% guarantees to confirming banks, streamlining the confirmation process for letters of credit and similar trade finance instruments issued by CCA-Bank for the benefit of SMEs in Cameroon.
Léandre Bassolé, Director General of the Bank's Central Africa region, highlighted the alignment of this operation with the institution's strategic goals. He stated that it will enhance CCA-Bank's ability to support the activities of SMEs, particularly those owned by women and young people, thereby boosting local productivity, fostering economic growth, and creating and sustaining numerous jobs.
Marguerite Fonkwen Atanga, Managing Director of CCA-Bank, expressed gratitude for the African Development Bank Group's initial direct financing support. She emphasized that this strategic partnership marks a significant milestone for their institution, significantly enhancing their capacity to support SMEs, women entrepreneurs, and startups in Cameroon and across Africa.
