Three out of 5 billions earmarked has been channeled to three banks as financial assistance to SMEs.

Support modalities for the granting of credit to small and medium-sized enterprises (SMEs) were presented to staff of such companies in Douala November 20. The activity came in the wake that government through the Ministry of Economy, Planning and Regional Development (MINEPAT), has channeled CFA 3 billion to three financial institutions to be used as credit assistance to be given out to SMEs within the goal of promoting job creation and national economic growth. Beside the amount already received, the banks – Société Générale des Banques du Cameroun (SGBC), Alios-Finance and Africa Leasing Company (ALC) – are due to receive the other 2 billion in 2013, although the mechanism is expected to be extended to all financial institutions operating in the leasing sector if the pilot phase is completed on a satisfactory note.

The amount of credit granted is comprised between CFA F25 million and CFA F250 million with an annual interest rate below 10 per cent for an average term of three years. Beneficiary SMEs will be assisted within supervision and training units set up by CAMLEASE.

This arrangement comes ahead of the planned functioning of the Bank for Small and Medium-sized Enterprises in 2013 set up to reduce problems associated with the funding and modernisations of production equipment; a major impediment to the development of local production.

The purpose is to reduce cost of access to production equipment in order to enhance the competitiveness of enterprises and contribute to the reduction of youth unemployment and underemployment, the new Secretary General at the Littoral Governor’s Office, Ngbwa Joseph, pointed out as he presided over the presentation ceremony. While presenting the mechanism, the Director of Economy at MINEPAT, Dieudonné Bondoma Yokono, described the credit as designed to fund the obtaining of production equipment, such as, office furniture, computer hardware, industrial machinery, commercial vehicles.

In order to be eligible, a candidate must be a promoter of SME/SMI operating in the formal sector, having a share capital with majority shares held by nationals, operating in any of the following sectors: agriculture, mining, timber, livestock, tourism, fisheries, cotton, textile and clothing, as well as having projects with proven return. Files are to be submitted to the banks.