According to a press release issued by the African Development Bank (AfDB) in September 2022, the Ministry of Agriculture and Rural Development of Cameroon and the Commercial Bank of Cameroon have signed an agreement to create an Agricultural Sector Development Fund in the country. The government and the AfDB will create the fund.

"I convey my gratitude to the African Development Bank Group which, like the Cameroonian government, considers agriculture to be an important component of the structural change of our economy." “We are very sensitive to this broad support,” said Cameroonian Minister of Agriculture and Rural Development Gabriel Mbairobe.

The fund, managed by the Commercial Bank of Cameroon, will assist in the transformation of the country's agricultural sector by making funds available to local microfinance companies at a favorable interest rate. These funds will then provide small and medium-sized agricultural businesses with loans for two to four years.

"The Agricultural Value Chain Development Project will provide the Fund with 13.12 million euros and a partial credit guarantee of 4.58 million euros to share the risk with commercial banks." According to the recently signed agreement, “the Commercial Bank of Cameroon will make resources available to the microfinance institutions closest to the field. And, therefore, to producer organizations, including small and medium-sized enterprises and young people engaged in commercial agriculture," according to the African Development Bank.

Source: AbiQ