The African Development Bank approved a €40 million facility on Wednesday, October 21, for AFG Bank Cameroon to expand financing for local companies’ imports and exports.
The package includes a credit line of up to €30 million over three and a half years, with a three-year grace period, and a €10 million transaction guarantee valid for five years. The announcement is a financing approval and does not mean loans have already been disbursed to companies.
AFG Bank plans to allocate half of the credit line to small and medium-sized enterprises. Of that allocation, 30% is to support businesses led by women or young people, according to its chief executive Eric Valery Zoa, as quoted by the AfDB.
The guarantee may cover up to 100% of the risk taken by banks confirming letters of credit issued by the Cameroonian lender. The mechanism is intended to secure payments to foreign suppliers when companies import equipment, inputs or raw materials.
The development bank named agribusiness, manufacturing and import-export activities among the targeted sectors. Its 2025 report estimated Africa’s trade finance gap at between $74 billion and $92 billion in 2024, with SMEs the most affected.