Africa > Central Africa > Cameroon > IFC Supports Afriland to Provide Trade Finance Guarantees to Corporates in Cameroon

Cameroon: IFC Supports Afriland to Provide Trade Finance Guarantees to Corporates in Cameroon

2015/08/01

IFC, a member of the World Bank Group, has signed an agreement with Afriland Initial Bank Cameroon ("Afriland"), to enable it to expand its trade finance operations and extend additional services to small and medium enterprises and corporate clients in Cameroon. The risk-mitigating scheme will provide guarantees to local importers and exporters that alleviate trade lines limitations and related constraints within the banking community.

A breakthrough initiative towards a privately-owned Cameroonian bank, the facility of up to $15 million will guarantee Afriland's trade-related payment obligations. Through IFC's world network of confirming banks, Afriland can establish partnerships with several major international and regional banks, thus broadening access to trade finance for its clients.

Afriland Initial Bank's Managing Director Alphonse Nafack said: "We are delighted to partner with IFC to improve our trade finance franchise and additional efficiently, support our SME and Corporate clients. We can confidently enhance our world reach, gain familiarity in new markets and build relationships with quality counterparty banks around the world."

Afriland Initial Bank Cameroon is a subsidiary of Afriland Initial Group, one of Africa's major homegrown banking groups with subsidiaries in 11 nations. The bank was established in 1986 in Cameroon and has since been expanding beyond the Central Africa region.

"IFC is committed to helping to enhance Cameroon's importation flow through the trade finance facility with Afriland Initial Bank. We aim to build on this relationship with Afriland to further support expanding businesses in Cameroon. As the lead bank for SMEs in Cameroon, Afriland is a suitable partner for IFC's World Trade Finance Program (GTFP).

In order to help Afriland align with best international practices, IFC will as well provide trade finance training to enhance the capacity of Afriland's staff and improve operations by consistently aligning policies and procedures with international best practices.

Since its launch in 2005, IFC's World Trade Finance Program (GTFP) has facilitated over $40 billion in trade through nearly 300 banks in 96 nations, inclunding 70 banks in Sub-Saharan Africa. With its world mandate, dedicated trade specialists and participating banks across the regions, the program links an extensive network of bank partners worldwide and allows them to conveniently finance their clients' imports and exports.

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