Douala, Cameroon, July 6, 2022 — To help small and medium-sized enterprises (SMEs) in Cameroon more easily access financing and to support economic activity and job creation in the country, IFC today announced a partnership with Société Camerounaise d'Équipement (SCE), Cameroon's second largest leasing finance institution.
Under the partnership, IFC will loan SCE $3.2 million, helping it increase leasing finance and support to SMEs in various sectors, fostering financial inclusion and economic growth. IFC will also provide advisory services to strengthen SCE's risk management, corporate governance, and environmental and social risk governance.
Only a quarter of SMEs in Cameroon have access to a loan or line of credit, with many lacking the collateral and credit history required by banks. Leasing allows businesses to obtain the equipment or vehicles they need to grow on affordable terms, without having to purchase them outright. A recent IFC study expects the demand for leasing to grow substantially in Cameroon.
"Helping smaller businesses access financing is one of the best ways to help them grow and create jobs," said Victor Pedhôm, SCE's Chief Executive Officer. "IFC's support comes at a critical time to help strengthen SCE's leasing capabilities to SMEs so that they can thrive and play a more active role in the economy."
"Spurring access to finance for SMEs in Cameroon is critical to helping the country recover from the impacts of COVID-19 and navigate current global economic challenges," said Sylvain Kakou, IFC's Country Manager for Cameroon. "IFC is proud to partner with SCE to address the growing, longer-term financing needs of SMEs operating in key sectors for economic and social development of Cameroon."
The pandemic severely impacted the revenues and liquidity of SMEs in Cameroon, leading many to deplete their financial reserves. IFC's support to SCE will help Cameroonian SMEs access capital to make necessary investments to resume full economic activity and adjust their business models to meet ongoing challenges.
IFC's strategy in Cameroon is to support the financial sector through investments and advisory services and to help develop local capital markets. In response to the COVID-19 crisis, IFC has emphasized helping small firms become more resilient and supporting the rebuilding of local economies.
This initial investment is part of a wider engagement by IFC in four Organisation for the Harmonization of Business Law in Africa (OHADA) leasing markets (Burkina Faso, Côte d'Ivoire, Cameroon, and Gabon) through the three-year Africa Leasing Program, which aims to create or improve the business environment for leasing.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
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About SCE
SCE started its operations in 1963 as a financial institution focused on serving the retail segment in the acquisition of household equipment through loans and direct sales. The Company further expanded its offerings by providing cash solutions for civil servants' salary payments, as well as domestic and international money transfer solutions. In 2014, a group of Cameroonian entrepreneurs acquired SCE, renewed its branding and management and improved its operational and financial performance through its 12 branches covering the 10 regions in Cameroon. In 2016, SCE started providing leasing solutions to SMEs in addition to their historical services. As of December 2021, SCE's total assets were close to US$32 million with a customer reach of more than 8,200 clients. For more information, visit http://sce-cameroun.com/
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