Cameroon: Proparco offers a guarantee of more than 3 billion CFA francs to support loans to local SMEs affected by Covid-19
(Business in Cameroon) – Proparco (a subsidiary of the French Development Agency focused on private sector development) recently announced the signing of a partnership agreement with Société Générale Cameroon to guarantee loans (5 million euros a little more than 3 billion FCFA) granted by this bank to Cameroonian SMEs and SMIs impacted by the Covid-19 pandemic.
“The deployment of this exceptional guarantee, which is a new tool set up as part of the resilience component of Choose Africa, will enrich our actions with Cameroonian SMEs, especially those which are hard hit by the current crisis. We are happy to be able to count on a partner such as Société Générale to meet the needs of these companies and preserve their capacity for job creation.“, declared Audrey Maignan, regional director of Proparco for Central Africa.
“Companies (employing less than 200 people) affected by the crisis will benefit from 12 to 48 months of loans after examination of the requests for financing. Up to 80% of these loans, which could represent up to 3 months of the beneficiaries’ 2019 turnover, will be guaranteed by the French Development Agency.“, explains an official statement.
Note that since November 2020, Societe Generale Cameroon has (thanks to partnerships with the European Investment Bank (EIB) and the State of Cameroon) dedicated a line of credit of CFAF 35 billion to support SMEs and SMIs affected by the coronavirus pandemic. With the new guarantee, the distribution of these credits can be boosted and enhanced.