At 10th DAAC session: Stakeholders evaluate progress of competitiveness support facility to SMEs.

The meeting, according to the DACC General Coordinator, Isaac Tamba, provided an avenue to discuss on approval of the implementation of the 2024 action plan and ensure the follow up of projects’ logical framework, pick out the lessons learned during the implementation of the DACC, and make projections for future programmes 

Since implementation, DACC has served as an instrument of Cameroon government and the European Union Cooperation, which responds to the latter's commitment to supporting the implementation of the Economic Partnership Agreement, EPA in Cameroon. 

Its general aim is to improve the competitiveness of the Cameroonian economy, particularly that of Small and Medium Enterprises, SMEs and Very Small Enterprises, VSE. 

Satisfactory results 

As the pilot phase elapses by the end of 2024, the Head of EU Cooperation in Cameroon, Jerome Pons, noted that the results has been so far satisfactory. However, he said for the next phase, they are looking towards harnessing support for economic development through the promotion of value chains and private initiatives. 

"Basically, DACC has been in place for the last four years. We have promoted private sector development, we have supported SMEs. The idea is to create jobs, wealth for the people and we have been doing that for the last four years. This meeting is to gather all the partners of both government and private sector to look at what we have been doing for the last four years, to draw lessons from that, see what has been working, see what did not work and what we can improve and carry-on," Jerome Pons said. 

“We want to try and launch new initiatives for next year. We want to try to support a number of value chains in the country, those that we believe have a great potential for the country to develop. We are in the process of identifying more, but for now we have identified a few, such as forestry, cocoa, digital technology, which are important support value chains," he said. 

Information shared by DACC's Coordinator of monitoring and evaluation committee, Pedie Strafort, has it that they have been able to support more than 270 SMEs in ten different specialties. But he said the support has been technical and not financial. 

Companies operating in the agro-industry, textile and clothing industry, printing, cosmetics, hospitality and tourism sectors benefited from various technical support  ranging from diagnostics, energy audits and energy efficiency processes, preparation of business plans and financing files, negotiations for funding, various training, support in the ANOR certification processes, improvement in productivity, amongst others 

"These are proves that non-financial support is prerequisite for the benefits of SMEs. We noticed over the four years that financial support can now come in with the help of technical expertise of both national and international reputes. This was necessary to obtain transfer of know-how, which can positively impact the lifespan of SMEs," Padie said. 

He added that the business climate in Cameroon has witnessed a commendable turn around since the implementation of the support scheme in January 202O.

The coordinator said there is more structuration in local enterprises. Formal structuration, Padie insisted, "is important for them to get access to finance”.

“DACC has able to mobilise funds from external partners of about 25 million Euros which will enable us accompany the key sector come 2025 and beyond," he added.

DAAC commended 

Meanwhile, Eric Eloundou, administrator at GeCAM, speaking on behalf of the private sector, commended the facility for reinforcing public/private dialogue. 

Elounou said DACC is the first programme which really saw private sector greatly involved. 

“Competitiveness starts with non-financial technical support, in terms of packaging, structural organisation, compliance to norms, training of personnel and constitution of documents to obtain funds,” Elounou said.

It should be noted that DACC was financed by the European Union to the tune of 10 million Euros (6.5 billion FCFA). Of this amount, 2.941 billion FCFA was devoted to technical assistance of the system implemented by the SOFRECO-PWC consortium, for missions of support for the private sector in non-financial services.

Meanwhile approximately 2.493 billion FCFA was allocated to the European Investment Bank for the mobilisation of financing of nearly 17.710 billion FCFA, kept in two local partner banks with a view to granting credits at preferential rates, particularly to Cameroonian SMEs. 

In addition, 327,978,500 FCFA was made available to the Integrated Programme for the Valourisation and Transformation of Agricultural and Agri-Food Products, TRANSFAGRI, to support micro-projects carried out by young people and women across Cameroon.

Also, 327,978,500 FCFA was allocated for the extension of online business registration through the United Nations Conference on Trade and Development, UNCTAD, while 459,169,900 FCFA was set aside for evaluations, audits, communication and unforeseen events. DACC shall end the technical assistance component on May 31, 2024. 

This story was first published in The Guardian Post issue No3127 of Friday May 31, 2024