The European Investment Bank has agreed to support EUR 12 million of new long-term financing for entrepreneurs and businesses across Cameroun with leading local partner Commercial Bank. The strengthened partnership between the European Investment Bank, the world’s largest international public bank and Commercial Bank Cameroun, will increase access to long-term finance by businesses across the country and strengthen economic resilience to challenges of the COVID-19 pandemic. This builds on close cooperation in recent years to support private sector investment across the country. The new private sector financing will help companies impacted by COVID-19 and is part of the EIB’s rapid response across Africa to strengthen economic resilience to the pandemic. The new business financing will support investment by manufacturing, agriculture, services and trading companies across the country.
The new EIB – Commercial Bank cooperation to support business investment in Cameroun was formally announced in Brussels and Yaoundé earlier today ahead of the EU-Africa Summit at the EU-Africa Business Forum. “Companies across Cameroun have been impacted by the COVID-19 pandemic. Commercial Bank is supporting private sector investment across our country and enabling our corporate, business and agricultural clients to invest for the future and create economic opportunities. The new EUR 12 million European Investment Bank and EU backing for Commercial Bank will unlock new private sector financing to be provided by our branches across the country to private businesses. The close cooperation between Commercial Bank and EIB financial experts over recent months will unlock access to longer term loans essential for businesses to grow during challenging times and ensure that Cameroun benefits from the EIB’s rapid response to strengthen economic resilience to COVID across Africa.” said Léandre Djummo, Director General of Commercial Bank.
“Ensuring access to finance by entrepreneurs and businesses is crucial to overcome business uncertainties and economic challenges enhanced by COVID-19. As part of Team Europe, the European Investment Bank is pleased to provide EUR 12 million of new targeted financing to Commercial Bank to unlock new private sector financing essential to strengthen private sector investment, create jobs and accelerate the post-pandemic recovery of Cameroun. Today’s new agreement demonstrates how Team Europe and African partners are joining forces to beat COVID and ensure that private sector business can create jobs and grow.” said Thomas Ostros, Vice President of the European Investment Bank.
“The European Union is committed to supporting the private sector in Africa. The Team Europe cooperation with Commercial Bank will increase access to targeted business finance by companies across Cameroun. By helping private sector resilience to the new EUR 12 million financing scheme will create jobs, unlock business growth and contribute to alleviating poverty in the years ahead.” said Ambassador Philippe Van Damme, Head of the European Union Delegation to Cameroun.
The 7 year EUR 12 million EIB loan to Commercial will allow new financing to be provided to private businesses, notably SMEs, across Cameroun. The European Commission will also support the initiative to further reduce borrowing costs for loans provided under the scheme. The new financing will allow longer average loan tenors for business loans and enable companies to better reflect the economic life of new investment. Ensuring that Cameroun benefits from rapid EIB response to strengthen economic resilience to COVID. The new EIB – Commercial Bank cooperation represents the EIB’s first dedicated support for business investment in Cameroun.
The scheme is part of the EIB’s increased engagement across Africa to ensure that companies can continue to access finance when faced with unprecedented health, business and trade challenges linked to COVID-19, approved by European Union finance ministers in April 2020, within weeks of the impact of the pandemic being recognized. The European Investment Bank is the world’s largest international public bank, owned directly by the 27 European Union member states. Since the pandemic EIB has provided more than EUR 8 billion for private and public investment across Africa.
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