Yaoundé, Cameroon, June 29, 2023 — To increase access to finance for micro, small, and medium-sized enterprises (MSMEs) in Cameroon, with a focus on supporting women-owned businesses, IFC today announced a partnership with Crédit Communautaire d'Afrique Bank (CCA-Bank), a leading financial institution in the country.
An IFC loan equivalent of $16.6 million in Central African CFA Francs will allow CCA-Bank to scale up its lending to MSMEs in Cameroon, including those still recovering from the impacts of the COVID-19 pandemic. At least 25 percent of the financing is earmarked specifically for women-owned businesses. CCA-Bank is the only bank in the Economic and Monetary Community of Central Africa region that will soon be led by a female CEO and two female deputy CEOs, making it an example of women in leadership in the region.
IFC will also provide advisory services to help CCA-Bank sustain its ambitious growth plans.
Although MSMEs are a key engine of private sector growth in Cameroon, accounting for nearly 100 percent of formally registered enterprises and almost 60 percent of the country's formal employment, access to finance remains a challenge. Underserved groups such as women-owned businesses face even stricter credit constraints.
"CCA-Bank welcomes the partnership with IFC, especially as it falls within our strategic plan to robustly address two important segments of the market at the same time and in a significant way: MSMEs and Women Banking," said Marguerite Fonkwen Atanga, appointed managing director of CCA-Bank.
"Cognizant of the important role women play in the local economy, CCA-Bank, through its 'Women Banking Program' and in collaboration with IFC, will be positioning itself as the bank of choice for women currently unserved and under-served by the formal financial mainstream. The initiative therefore aims at empowering and financing Cameroonian female-led enterprises and entrepreneurs, as to drive development and economic growth. As for MSMEs that make up the backbone of the Cameroonian economy, the necessity to lead the way for their expansion cannot be too emphasized."
"Limited access to finance, especially for women-owned businesses, is a critical constraint to economic and social development in Cameroon," said Dahlia Khalifa, IFC's Regional Director for Central Africa, Liberia, Nigeria, and Sierra Leone. "IFC is proud to partner with CCA-Bank to help address critical challenges in Cameroon's MSME finance market thus supporting broader economic growth and job creation."
As part of the partnership, CCA-Bank will join IFC's Global Trade Finance Program (GTFP). By joining the program, CCA-Bank will gain access to a network of correspondent banks, enhancing its ability to meet the financing needs of MSMEs.
IFC's investment is supported by the International Development Association's Private Sector Window's Local Currency Facility. The project is also supported by the Women Entrepreneurs Finance Initiative ("We-Fi").
IFC has been ramping up its support to financial institutions in Cameroon that support economic recovery by increasing financial inclusion of MSMEs, including women-owned or led businesses. This new partnership underscores IFC's commitment to support responsible private sector-led growth and job creation in countries affected by fragility and conflict.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 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 global compounding crises. For more information, visit www.ifc.org.
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About CCA-Bank
Established in 1997 as a savings and loan cooperative, the then-named "CCA" obtained regulatory approval in 2006 to become a 2nd category microfinance institution ("MFI") with the legal right to take deposits from a wider public than just its members. Up until May 30, 2018, when CCA obtained regulatory approval to become a bank, it was the largest MFI in Cameroon. The newly licensed universal bank rebranded itself as CCA-Bank. In 2018, CCA-Bank was the 15th bank to enter the market. As of October 2022, CCA-Bank is the 8th largest commercial bank in Cameroon in terms of net loans with a 5.7% market share, and the 7th largest by deposits with a 5.8% market share, out of 18 banks. With total assets of US$862 million, the bank serves 533,400 clients through 51 ATMs and the 3rd largest branch network in the country.
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window (PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
About We-Fi
The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership among the 14 governments that have made financial contributions, six multilateral development banks that serve as implementing partners, and other public and private stakeholders. We-Fi was formally established in October 2017 as a Financial Intermediary Fund hosted by the World Bank. We-Fi invests in programs and projects that help unlock billions of dollars in financing to address the full range of barriers facing women entrepreneurs—increasing access to finance, markets, technology, and mentoring, while strengthening policy, legal and regulatory frameworks. As one of the We-Fi Implementing Partners, IFC supports private sector clients with investment and advisory services to expand financial services and market access for women-owned/led firms, as well as increasing the capacity of women entrepreneurs to run high-growth businesses. For more information, visit www.we-fi.org.
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