African Development Bank Approves €40 Million Facility to Boost Cameroon’s Trade and Local Production

Abidjan, 21 October 2026 — The African Development Bank Group has approved a €40 million trade finance facility for AFG Bank Cameroon to expand access to financing for businesses, strengthen local production and support job creation, particularly among small and medium-sized enterprises (SMEs).

The facility, approved by the Bank Group’s Board of Directors on 21 October 2026, aims to help Cameroonian businesses meet their international trade financing needs, with particular attention to enterprises owned by women and young people.

The financing comprises a trade finance credit line of up to €30 million, with a 3.5-year tenure and a three-year grace period, and a €10 million transaction guarantee facility running for five years.

Through the partnership, AFG Bank Cameroon will be better positioned to support businesses involved in agribusiness, agro-industry, manufacturing and import-export activities.

The facility is also expected to improve access to financing for companies seeking to import machinery, equipment and essential production inputs, helping them expand operations and strengthen their competitiveness.

SMEs and Young Entrepreneurs to Benefit

The African Development Bank Group said the initiative would strengthen the capacity of AFG Bank Cameroon to meet the trade finance requirements of local businesses while supporting private-sector development.

Half of the €30 million trade finance credit line will be allocated to small and medium-sized enterprises. Of that allocation, 30 per cent will be directed towards businesses owned by women and young people.

The arrangement is intended to expand opportunities for entrepreneurs who may face challenges accessing financing for international trade and business expansion.

Léandre Bassolé, the African Development Bank Group’s Director General for Central Africa and Country Manager for Cameroon, said the initiative would help strengthen the private sector, increase local production and create employment opportunities.

He said the partnership reaffirmed the Bank Group’s commitment to supporting SMEs, particularly businesses led by women and young people, so they could benefit more from trade opportunities and contribute to Cameroon’s economic development.

Boosting Industrialisation and Exports

The financing is expected to support businesses importing the equipment, machinery and raw materials needed to expand domestic production.

By improving access to trade finance, the facility could help local manufacturers and agro-industrial enterprises increase output, improve efficiency and become more competitive in domestic and international markets.

It is also intended to support efforts to reduce dependence on certain imported finished goods by strengthening Cameroon’s capacity to produce more goods locally.

Improved financing for businesses engaged in import-export activities could further help companies expand their international operations and increase their export capacity.

Eric Valery Zoa, Managing Director of AFG Bank Cameroon, said the allocation of half of the trade finance credit line to SMEs reflected the bank’s commitment to supporting smaller businesses.

He added that 30 per cent of the SME allocation would be directed towards enterprises owned by women and young people, building on the bank’s existing portfolio of businesses led by these groups.

How the Transaction Guarantee Works

The €10 million transaction guarantee facility will enable the African Development Bank Group to provide guarantees of up to 100 per cent to confirming banks, facilitating the confirmation of letters of credit and other similar trade finance instruments issued by AFG Bank Cameroon.

The mechanism is designed to help commercial banks manage the risks associated with trade transactions and encourage them to support businesses involved in international commerce.

The African Development Bank introduced its Transaction Guarantee instrument in 2021 as part of its broader efforts to expand trade finance across Africa.

The instrument covers several trade finance products, including confirmed letters of credit, trade loans, irrevocable repayment undertakings, endorsed bills of exchange and promissory notes.

It is available to banks registered and operating in Africa that have successfully completed the Bank Group’s due diligence process.

Supporting Africa’s Private Sector

The agreement forms part of the African Development Bank Group’s wider efforts to strengthen African businesses by improving access to financing for trade, production and investment.

For Cameroon, the facility is expected to provide additional support to businesses seeking to expand their operations, improve production capacity and create employment.

The focus on SMEs, women-owned businesses and youth-led enterprises also places inclusive economic participation at the centre of the financing initiative.

By strengthening AFG Bank Cameroon’s ability to finance international transactions, the Bank Group aims to help businesses access essential inputs, develop local industries and participate more effectively in regional and international trade.

The initiative is expected to contribute to Cameroon’s industrial development while creating opportunities for entrepreneurs and businesses seeking to grow beyond their existing markets.

Osmara Digital Media will continue to follow developments in African trade finance, industrialisation and private-sector investment as financial institutions and development partners pursue initiatives aimed at expanding economic opportunities across the continent.