The economic crisis caused by the covid-19 pandemic is severely affecting Cameroonian small and medium enterprises, affecting their ability to innovate, create jobs, and provide essential goods and services.
Proparco has signed a partnership with Société Générale Cameroon that will enable the deployment of loans guaranteed by the AFD Group to MSMEs affected by the crisis. The 5 million euro guarantee granted by Proparco to Société Générale Cameroon will enable the latter to rapidly scale up its support action for MSMEs.
After examining requests for financing, companies with less than 200 employees affected by the crisis may be granted 12 to 48 month loans by Société Générale Madagasikara. These loans, which may represent up to 3 months of 2019 turnover, will be 80% guaranteed by AFD Group.
This guarantee scheme, made possible thanks to the resources specifically allocated by the French governement to support MSMEs in Africa, is a key tool in the Resilience component of the French Choose Africa initiative. Unveiled on 30 November in response to the crisis, this Resilience component brings France's commitment to entrepreneurs on the continent to 3.5 billion euros over the 2018-2022 period. Choose Africa mobilizes a wide range of tools: lines of credit, guarantees, equity investments, technical support, etc.
Supporting African small and medium enterprises, a major priority for AFD Group
More than 2 billion euros have already been deployed by the AFD Group as part of the French Choose Africa initiative. In West Africa, more than 520 million euros have already been granted to funds and local financial institutions in the form of equity investments, guarantees and lines of credit for the benefit of thousands of MSMEs in the country. Several entrepreneurs with a strong social impact have also been directly supported by AFD Group within the framework of the Social & Inclusive Business Camp.
"The deployment of this exceptional guarantee scheme, a new tool implemented as part of the Resilience component of the Choose Africa initiative, will enable us to amplify our action towards Cameroonian small and medium enterprises, particularly those that are severely affected by the current crisis. We are pleased to be able to count on a partner such as Société Générale to meet the needs of these companies and preserve their capacity to create jobs," said Audrey Maignan, Proparco's Regional Director for Central Africa.