Startups and SMEs In Cameroon To Benefit From Proparco’s $5.5m Loan Guarantee Scheme.

Startups and small businesses in Cameroon have a new funding opportunity to tap from. Proparco, a subsidiary of French Agency for Development dedicated to the private sector, has announced the signing of a partnership with the Cameroon subsidiary of the French banking group, Société Générale, to guarantee loans granted by this bank to Cameroonian startups, SMEs and SMIs affected by the Covid-19 pandemic.

Audrey Maignan, Proparco’s regional director for Central Africa
Audrey Maignan, Proparco’s regional director for Central Africa

“The deployment of this exceptional guarantee, a new tool implemented as part of the resilience component of Choose Africa, will allow us to expand our action with small and medium-sized Cameroonian companies, in particular those which are severely affected by the current crisis. We are happy to be able to count on a partner such as Société Générale to meet the needs of these companies and preserve their ability to create jobs “said Audrey Maignan, Proparco’s regional director for Central Africa.

Here Is What You Need To Know

  • The guarantee made available to Societe Generale Cameroon, will allow local startups, SMEs and SMIs to benefit from financing, enabling them to recover from the global health crisis. The amount of the guarantee is 5 million euros ($5.5m), or a little over 3 billion FCFA. 

Read also: Startups To Take Over Payment Digitization For Algeria’s Postal Service

Proparco Société Générale Cameroon

How Startups In Cameroon May Go About Accessing The Loan Guarantee

Startups which can access the loans are those with fewer than 200 people affected by the crisis. The duration of the loan, before repayment is between 12 to 48 months. These loans, which may represent up to 3 months of turnover for 2019 will be guaranteed up to 80% by the AFD group. 

Since November 2020, the Cameroonian subsidiary of Societe Generale, thanks to partnerships signed respectively with the European Investment Bank (EIB) and the State of Cameroon, has a line of credit of CFAF 35 billion ($64m) to support SMEs and PMI affected by the coronavirus. The guarantee that Proparco has just granted should both secure and boost the distribution of this funding.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Startups And SMEs In Cameroon May Register Free For European Union’s Trade Support Training Billed For January 16, 2020

Southern cameroon

Next January 16, in Ebolowa, South Cameroon, the European Union delegation to Cameroon will train Cameroonian SMEs to the use of its platform “Trade Helpdesk.”

Participation in this training session is free but pre-registration is advised because there is a limited number of seats,” the delegation indicates.

Here Is All You Need To Know

  • According to the EU, the aim of the training is to improve access to exports-trade data and to other services. 

It will also inform of the opportunities presented by the economic partnership agreement between Cameroon and the European Union. 

The training is crucial because in the Central African region, Cameroon is not only the European Union’s main trading partner but also the first country in the region to implement an economic partnership agreement (an agreement that ensures that Cameroonian goods can reach the European Union’s market without customs duties) with the EU.

However, the only incentive of accessing the European Union market without paying customs duty is to guarantee a better implementation of this agreement by Cameroon ‘s SMEs

According to the terms of the agreement, the European Union must support Cameroon in the implementation of the economic partnership agreement by offering, among other things, dedicated upgrading programs to Cameroonian companies. 

World’s Customs Unions

A Look At ‘Trade Helpdesk’

The “Trade Helpdesk”, launched in 2017, is part of that agreement, the EU reveals.

The European Union (EU) is the world’s largest single market and the EU Trade Helpdesk is a one-stop-shop to access it. The EU is committed to helping exporters in its trade partner countries with the information they need to:

  • Make the most of the trade agreements we have put in place;
  • Bring their products onto the EU market.

The EU is a Customs Union — its 28 member countries form a single territory for customs purposes. This means that:

  • no customs duties are paid on goods moving between EU Member States
  • all apply a common customs tariff for goods imported from outside the EU
  • goods that have been legally imported can circulate throughout the EU with no further customs checks

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award winning writer.
He could be contacted at udohrapulu@gmail.com