Cameroon Taps Microfinance Firm FIGEC to Expand Farmers’ Access to Credit

Cameroon has brought microfinance institution FIGEC SA into its Decentralized Rural Credit Project (PCRD), expanding the network used by the government to finance farmers and rural businesses.

Agriculture Minister Gabriel Mbairobe and FIGEC SA Chief Executive Officer Aubert André Tchikantio signed the partnership agreement on July 31 in Yaoundé. The PCRD is implemented by the Ministry of Agriculture and Rural Development (MINADER).

Under the agreement, MINADER will provide FIGEC with a financing mechanism combining repayable funds for lending to agricultural producers with non-repayable support to strengthen the microfinance institution’s operational capacity.

The capacity-building component will cover human resources, technical systems, equipment and institutional development. It is also intended to improve FIGEC’s ability to assess and manage agricultural loans, strengthen risk management and develop financial products suited to farming operations.

FIGEC staff and managers will receive training, while the program will support improvements to working tools and financial education for beneficiaries.

The institution will be responsible for managing the resources provided under the mechanism and accompanying producers receiving financing. It is expected to serve small-scale farmers as well as micro, small and medium-sized enterprises operating in rural areas.

Tchikantio said access to credit remains difficult for many agricultural producers, particularly because they struggle to provide the collateral required by financial institutions. He said the new mechanism should make it easier for producers to obtain financing and develop their activities.

Rural credit program reaches nearly 50,000 producers

The partnership extends a rural financing program already operating in six of Cameroon’s 10 regions.

PCRD National Coordinator Nadiembe Emmanuel Ebune said the project currently covers Adamawa, North, Far North, Centre, South and Littoral and reaches nearly 50,000 producers through a network of six cooperatives.

As of December 31, 2023, the program had helped mobilize more than CFAF1.5 billion from rural financial institutions and facilitated more than CFAF1.2 billion in agricultural loans to producers, according to figures presented by the coordinator.

Created more than 30 years ago, the PCRD was designed to address the shortage of financial services adapted to agricultural production and other rural economic activities. Its interventions include supporting the establishment of local financial institutions, developing rural financial products, facilitating access to low-interest loans and strengthening the capacities of sector stakeholders.

The agreement with FIGEC also includes an inclusion target. At least 40% of beneficiaries are expected to be young people and women.

FIGEC has also been asked to facilitate access for people with disabilities and address obstacles that could prevent them from participating in the program.

Mercy Fosoh