Afriland Signs Intent for CFAF32.8bn SME Financing Facility for Agriculture and Industry

Afriland First Bank has signed a letter of intent with the Islamic Corporation for the Development of the Private Sector (ICD) for a proposed €50 million financing facility for businesses in Cameroon. The document was signed in Yaoundé on September 14 during Islamic Development Bank Group Day.

The proposed facility, equivalent to about CFAF32.8 billion, is intended to expand financing for small and medium-sized enterprises and other eligible private-sector projects. Targeted sectors include agriculture, agro-industry, healthcare, manufacturing and transport.

Afriland also plans to use the facility to support its Islamic finance activities, providing Sharia-compliant financing alongside its conventional banking services. SMEs are among the main intended beneficiaries.

The September 14 signing follows an earlier expression of intent between Afriland and ICD for the same €50 million syndicated financing facility. The two institutions signed that document during the Islamic Development Bank Group’s annual meetings in Azerbaijan earlier this year.

The proposed financing would build on an existing relationship between the two institutions. Before the latest initiative, ICD had extended four financing lines to Afriland totaling €63 million.

Afriland was one of four Cameroonian banks involved in financing announcements during Islamic Development Bank Group Day. AFG Bank Cameroon signed a €20 million financing agreement with ICD, while CCA Bank and Commercial Bank Cameroon signed letters of intent for proposed facilities of €15 million and €10 million, respectively.

Together with Afriland’s proposed €50 million facility, the four transactions announced in Yaoundé amount to €95 million, or about CFAF62.3 billion. However, the instruments are at different stages, with the Afriland, CCA Bank and Commercial Bank Cameroon transactions still subject to the steps required to turn the letters of intent into finalized financing facilities.

For Afriland, the planned financing is expected to be channeled to private-sector businesses operating in productive sectors, including agricultural production and processing, manufacturing and transport.

Mercy Fosoh