Cameroon’s smaller businesses are set to receive a targeted share of a €40 million ($44.8 million) trade finance package, as the African Development Bank Group moves to help local companies secure the machinery, raw materials and international payment support needed to grow.

The arrangement with AFG Bank Cameroon reserves half of a €30 million($33.7 million) credit line for small and medium-sized enterprises (SMEs), with 30% of that allocation earmarked for businesses owned by women or young people. The structure gives the financing a defined focus on smaller firms rather than distributing support across businesses without specific ownership targets.

Approved on October 21, 2026, the package also aims to help companies in manufacturing, agribusiness and agro-industry strengthen production and compete in export markets. Better access to trade finance could help businesses obtain essential imports while expanding the capacity to produce goods locally.

Credit and guarantees to ease cross-border trade

The package combines two instruments with different roles. A €30 million($33.7 million) trade finance credit line will run for 3.5 years and include a three-year grace period, while a €10 million($11.2 million) transaction guarantee facility will operate for five years.

The credit line will provide financing capacity for trade-related business needs. The guarantee facility, meanwhile, will help AFG Bank Cameroon secure support from other banks for international transactions, addressing risks that can complicate cross-border trade.

Under the agreement, the African Development Bank can guarantee up to 100% of eligible transactions for confirming banks. This support is intended to facilitate letters of credit and similar trade finance instruments issued by AFG Bank Cameroon, helping businesses transact with international suppliers and trading partners.

Production and imports in focus

For Cameroonian businesses, the significance lies in access to equipment and production inputs that might otherwise be difficult to finance. Manufacturers and agricultural processors, for example, need machinery, raw materials and other supplies to maintain output and expand operations.

The facility is also intended to strengthen local production, reduce reliance on certain imported finished goods and improve businesses’ export capacity. Its focus on agribusiness, agro-industry, manufacturing and import-export reflects the sectors identified for support.

However, the package’s intended benefits will depend on how effectively AFG Bank channels the financing to eligible businesses and how many companies can use the facility to expand their operations.

A targeted push for smaller firms

Eric Valery Zoa, managing director of AFG Bank Cameroon, said half of the credit line would be allocated to SMEs, with 30% of that SME allocation going to businesses owned by women or young people. The approach builds on the bank’s existing portfolio of enterprises in these categories.

Léandre Bassolé, the African Development Bank Group’s director general for Central Africa and country manager for Cameroon, said the partnership was intended to strengthen private-sector development, local production and employment.

The African Development Bank Group is a multilateral development finance institution that supports economic development and social progress across Africa. Its trade finance programmes use funding and risk-sharing mechanisms to help financial institutions support businesses engaged in regional and international commerce.