Cameroon Agricultural Firms Get CFA14 Billion Financing Support Under CAFI-IDH Program

Cameroon’s agricultural SMEs, large cooperatives and other agribusinesses will gain access to nearly CFA14 billion in support designed to improve their ability to secure financing. The Central African Forest Initiative (CAFI) will fund a new IDH program that aims to prepare agricultural businesses for investment and attract private capital to deforestation-free value chains.

IDH, an organization that specializes in agricultural value-chain development, announced the launch of its “Investment & Payment for Environmental Services Hub” in Cameroon on September 15, 2026. CAFI will provide $24.57 million for the initiative, equivalent to nearly CFA14 billion.

IDH also aims to mobilize another $29 million, or about CFA16.5 billion, from private, climate and environmental-services financing sources by 2030. The program targets companies that struggle to access conventional financing, particularly SMEs, large cooperatives and agricultural businesses. It does not provide a guarantee that would reimburse banks if borrowers default.

Instead, IDH will intervene before companies approach financiers. It will provide technical assistance, help businesses prepare for investment, offer repayable catalytic capital and connect them with banks, microfinance institutions, investors and buyers.

The program aims to address some of the risks that leave agricultural businesses caught between microfinance and conventional bank credit. IDH will work on their business models, financial readiness and investment projects before introducing them to potential financiers. Banks and investors will retain responsibility for their own risk assessments and financing decisions.

Nearly CFA14 Billion Subject to Phased Disbursement

CAFI approved the project on January 21, 2026, for exactly $24.573 million. IDH will administer $24.149 million, while CAFI will directly manage $425,000 for ex-post payments to beneficiaries of environmental services.

The funding will come in three tranches. The first totals $4.481 million, or about CFA2.5 billion, and is tied to the signing of the project document.

The second tranche amounts to $12.190 million, or approximately CFA6.9 billion. It is scheduled for the first quarter of the second year of implementation, subject to several conditions.

Before that disbursement, IDH must make the technical assistance and seed-capital mechanisms operational, secure independent validation of a methodology for verifying results and adapt CAFI’s system for monitoring payments for environmental services.

The project must also demonstrate initial private-sector interest. At least one cocoa company must sign a contract to provide financial support for the environmental-services payment program, while another must sign a letter of intent. At least four investors must join the Hub’s business and investment network, and 10 potential companies must undergo assessments for access to the seed-capital mechanism.

Up to CFA4.5 Billion Tied to Results

The third tranche could reach $7.904 million, or about CFA4.5 billion. CAFI plans the disbursement for the second quarter of the fourth year, with the amount dependent on results achieved during the first three years.

Before the payment, financial commitments documented through contracts or letters of intent with private companies must reach at least $6.701 million, equivalent to approximately CFA3.8 billion. That threshold corresponds to the amount requested from CAFI for the environmental-services payment component.

The remainder will depend directly on verified performance. CAFI will calculate the third tranche partly from the number of validated result units, such as hectares under deforestation-free agriculture, agroforestry, reforestation, regeneration or forest conservation, and the amount assigned to each unit. If an independent assessment rates performance as “low,” IDH will receive none of the third tranche.

IDH Still Targets CFA16.5 Billion From Other Financiers

In addition to the public funding, IDH aims to mobilize $29 million, or about CFA16.5 billion, in private commercial, climate and environmental-services financing by 2030. That figure represents a fundraising target rather than funding already secured.

The program also targets 9,950 hectares under verified deforestation-free and climate-resilient agricultural practices by 2030. Afforestation, reforestation, assisted natural regeneration or forest protection measures will cover another 7,000 hectares.

The environmental-services payment component will start in the Grand Mbam area. Farmers and communities could receive payments based on verified environmental results, including agroforestry, reforestation and forest protection. CAFI and IDH expect lessons from the initial program to inform a potential extension of the mechanism to other parts of Cameroon and the Congo Basin.

Baudouin Enama