To boost SMEs post-COVID-19 recovery: Gov’t picks Afriland First Bank to implement 13 billion FCFA funding.

A deal in this light was signed Monday, September 16, in Yaounde. The Minister of the Economy, Planning and Regional Development, MINEPAT, Alamine Ousmane Mey, signed the agreement on behalf of the government. 

The Director General, DG, of Afriland First Bank, Célestin Guela Simo, put pen on paper for the leading financial institution. The Minister Delegate to the Minister of Finance, Yaouba Abdoulaye, also lived the event. 

The money is from the Islamic Development Bank, IsDB.

According to Minister Ousmane Mey, Afriland First Bank has proven its worth nationwide in putting its savoir-faire at the service of the population to contribute to national development. 

The minister said the financial institution stands out as the lead bank with over 88 branches nationwide. 

He rated Afriland First Bank as the closest financial institution to the population in Cameroon. 

Even in rural areas, he said the bank has an upper hand in meeting the financial needs of the population.

He situated the context of the financing from the Islamic Development Bank, IsDB, to the negative effects of the COVID-19 pandemic. 

Ousmane Mey said the pandemic resulted in human, financial and business losses. With the funding from the IsDB, he said SMEs, which constitute at least 80 percent of businesses in Cameroon, will be revived.

With such funding, he expressed hope that SMEs will regain their vibrancy, competitiveness and contribute to wealth creation, employment and strengthening of the national economy. 

Minister Ousmane Mey also said the project will accelerate government’s National Development Strategy, SND30, restructuring of the economy, the Import-Substitution policy of the Head of State and boost performance.

Gov’t proud to work with Afriland First Bank

Minister Alamine Ousmane Mey used the signing of the agency contract to indicate that government is proud to work with Afriland First Bank. He reiterated the undisputed record of the financial institution in building the economy and promoting financial inclusiveness.

The member of government declared that Afriland First Bank is the best in “Cameroon by results and network. Thank you for all you have done at the service of the nation”.

Within the context of President Biya’s post-COVID-19 economic recovery plan, the minister said the private sector is priority. He remarked that the funding from the Islamic Development Bank will help SMEs recover to pre-COVID-19 levels and even break new grounds.

He assured the management of the leading bank of government’s total support through various ministries and institutions involved in the project.

The minister said the success of the project will open a new window of financing in the interest of the economy in other areas. 

As a founding member of the IsDB, Ousman Mey said Cameroon has benefitted financing around the threshold of 500 billion in several sectors to advance its development. 

Afriland First Bank promises smooth implementation

For his part, the Director General of Afriland First Bank, Célestin Guela Simo, promised to ensure an efficient implementation of the financing window. 

He indicated that the deal with government will further boost the bank’s innovative capacity in line with best practices. He said the bank is ready to put its expertise to support government implement the project.

Afriland First Bank master of financing schemes implementation

The Deputy Director General of Afriland First Bank, Yousoufa Bouba, appreciated government and the Islamic Development Bank for finding in the commercial bank a genuine development partner.

Bouba said in the last 10 years, Afriland First Bank has proven its worth in facilitating the implementation of such financing. 

The Deputy Director General disclosed that the envelope facilitated in the last decade stands at around 100 billion FCFA. 

He emphasised that further studies and assessments would be made to ascertain beneficiary SMEs.

Understanding Islamic financing 

Islamic Finance Portfolio Manager at Afriland First Bank, Hamadou Mamoudou, told reporters that unlike conventional banking, Islamic Financing offers something new. 

He remarked that the scheme is “a little bit different from what people are used to in conventional banking. Islamic Financing Banking is mostly commercial transactions between two parties”.

With respect to the funding from IsDB, he declared that: “…we have the government of Cameroon and we have Afriland First Bank that is receiving the line of financing so as to assist and finance SMEs. We will be buying assets and we will be leasing them to customers”. 

The goal of Afirland First Bank, he said, is to ensure the project runs smoothly.

This article was first published in The Guardian Post issue N0:3233 of Wednesday September 18, 2024