Cameroon is poised for a significant upgrade to its infrastructure and business capacity, following the approval of a US$29 million trade finance facility by the African Development Bank (AfDB) for Crédit Communautaire d’Afrique-Bank (CCA-Bank). A vital portion of this funding is specifically allocated to accelerate the modernization of the country’s crucial telecommunications infrastructure.
The facility was formally approved during an AfDB board meeting held in Abidjan, Côte d’Ivoire, on December 1st. This is a landmark arrangement, as it represents the AfDB’s first direct financing deal with CCA-Bank.
Focus on Telecoms and Economic Growth
The financial facility operates as a transaction guarantee, providing essential risk coverage to qualifying African banks and thereby supporting large-scale trade finance operations. A core objective of the funding is the acquisition of telecom equipment to address persistent infrastructure deficits. Cameroon’s telecom sector has historically suffered from some of the slowest internet speeds on the continent, a challenge exacerbated by limited investment and inconsistent power supply in a highly capital-intensive industry. This injection of capital is expected to enable the necessary technological renewal to overcome these limitations.
Beyond the telecom sector, the facility has a broader economic scope. It will also be used to finance the importation of essential equipment for the industrial and agro-industrial sectors. This reflects the AfDB’s ambition to catalyze comprehensive economic growth across Cameroon. By providing this support, the facility will enable CCA-Bank to significantly expand its trade finance services, increasing access to critical resources for SMEs and other local businesses and thereby fostering economic activity.
Guarantee and Impact on SMEs
Lamin Drammeh, head of the AfDB’s Trade Finance Division, emphasized the wide-ranging economic benefits of the scheme. He noted that the facility will bolster Cameroon’s economy by easing the import of necessary equipment for multiple key sectors. Critically, the scheme allows the AfDB to offer up to a 100% guarantee to confirming banks, which substantially eases the issuance of Letters of Credit and other trade finance instruments by CCA-Bank for underserved SMEs.
Marguerite Fonkwen Atanga, managing director of CCA-Bank, expressed high enthusiasm for the new partnership. She stated that the deal marks a major milestone for the bank, as it “considerably enhances our ability to support SMEs, women entrepreneurs, and start-ups in Cameroon and across Africa.”
This substantial capital injection positions Cameroon’s private sector for a decisive step-change, promising more modern infrastructure, expanded business opportunities, and a more competitive stance within the regional telecoms and industrial landscapes.
