Central Africa Dev’t Bank injects 60 billion FCFA to boost investment.

This was one of the major resolutions taken at the end of the bank’s board meeting that held in Douala, May 13. Board members highlighted sectors to be given priority to include, agriculture, agro-industry, air transport, and financial services. 

For agriculture and agro-industry, BDEAC seeks to modernise the sector, promote sustainable farming practices, and support Small and Medium Sized Enterprise, SMEs. 

The goal is to bolster regional food security, economic growth, and job creation, a press release issued at the end of the board meeting specified.

It added further that, the allocated funds for air transport are expected to modernise airport infrastructure, improve air operations' safety and efficiency, and support the growth of local airlines. 

This will enhance regional connectivity, boost tourism development, and facilitate the mobility of people and goods, thus promoting regional trade and integration.

Even more, and as it concerns financial services, the bank said these investments aim to strengthen financial inclusion, promote access to banking services, and support the development of the entire regional financial sector, thereby stimulating economic activity and encouraging entrepreneurship in the sub region.

Board members recalled that on December 20, 2023, a portfolio guarantee agreement was signed in Douala between the Minister of Finance, Louis Paul Motaze, and BDEAC President, Dieudonne Evou Mekou. This measure seeks to address guarantee issues faced by many companies in the country. 

While specifics regarding the guarantee amount and access terms were not explicitly outlined, eligible loans include those destined for investments in priority sectors defined by the 2020-2030 National Development Strategy, SND30, including agro-industry and financial services. Priority is also given to loans aimed at increasing local production and strengthening export capacities.

BDEAC is a multilateral development bank that is charged with financing the development of the member states of the Economic and Monetary Community of Central African States, CEMAC. 

It is different from the Bank of the Central African States, BEAC, which functions basically as a central bank.

BDEAC was created through an agreement signed on December 3, 1975, in Bangui, Central African Republic by the Heads of State of Cameroon, Central African Republic, Republic of the Congo and Gabon. It started its operations on January 3, 1977.

Since 2006, BDEAC has been actively involved in financing the development of the Pointe-Noire port, and in March 2012, it allocated 130 billion FCFA for various projects, including two cement plants in Congo and Cameroon and a hospital in Equatorial Guinea. 

BDEAC significantly bolstered its financial base in July 2014 by increasing its share capital by 250 billion FCFA to a total of 1,200 billion FCFA and in 2016, received an additional 400 billion FCFA from the Bank of Central African States, BEAC.

In April 2017, BDEAC set forth a strategic plan for 2017-2021, focusing on agricultural projects to cut down on expensive agri-food imports in the CEMAC zone, and in July of the same year, the Kingdom of Morocco invested 4 million dollars for a 3% stake in BDEAC, gaining a seat on the Board of Directors.