CI-NEWS

Africa Trade Insurance Agency: FCFA 7.4 billion to finance participation .

2020-03-16

No: 477

Africa Trade Insurance Agency: FCFA 7.4 billion to finance participation .

Investors’ doubts are now cleared on the safety of business in Cameroon, following a 7.4 billion FCFA loan convention signed with the European Investment Bank to fund Cameroon’s adherence to the Africa Trade Insurance Agency

The European Investment Bank funding will boost foreign investment in the country, Cameroon’s Minister of the Economy, Planning and Regional Development, Alamine Ousmane Mey said, Monday. In concrete terms, the funds enable Cameroon to become a member of the Africa Trade Insurance Agency, ATI. As member, the agency will cover Cameroon’s risk associated to politics and business loans.

Through the agreement, the nation will hence benefit from several advantages and opportunities offered by the multilateral insurance institution. The ATI exists to promote trade and investment in Africa, as well as stimulating a less costly funding alternative for the implementation of development projects.

The inability to adhere to this scheme somehow limited the scope of funding opportunities the country could access.

That explains why the Minister of Finance, Louis Paul Motaze, and his Trade counterpart, Luc Magloire Mbarga Atangana, joined the economy boss at the table to sign the convention. Alamine Ousmane Mey signed for Cameroon, while Nikolaos Milianitis, director of the European Investment Bank for the Central Africa Region, signed for the bank.

Speaking shortly after concluding the deal, Minister Alamine Ousmane Mey said: “We are simply witnessing an extension of cooperation ties between the European Investment Bank and Cameroon”.

He added that since independence, the bank’s cumulative support to Cameroon exceeds FCFA 500 billion. The outstanding portfolio stands at FCFA 124 billion and covers projects in several domains, including energy, railway, water and agriculture. “Now we are going to focus on the private sector. As we all know, one of the major impediments is about having access to funding. This is because of the risk taken by the financial institutions when they fund projects. With Cameroon’s participation at the ATI, with up to FCFA 7.4 billion, thanks to the support of the European Investment Bank, we are now capable of delivering new instruments that will mitigate risks. And this is going to help promoters to have even access to funding”, Minister Alamine Ousmane Mey observed.

For his part, the Director of the European Investment Bank for the Central Africa Region, Nikolaos Milianitis, sounded very positive on the far-reaching impact likely to be created by this move. “It is a very long team loan (20years) that can be used in any sector, it will enable Cameroon to benefit from ATI offers and it also opens the nation up for more funding” stated Nikolaos Milianitis.

The bank also looks to fund the second phase of the east entrance into Douala; the rehabilitation of parts of the Yaounde-Ngoundere Railway, the Rural Electrification project, as well as the nurturing to maturity, of some Small and Medium-sized Enterprises in Cameroon.

Culled from Cameroon Insider

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Africa Trade Insurance Agency: FCFA 7.4 billion to finance participation .