Afriland First Bank to grant loans to PIDMA farmers

The Bank in the Cameroonian capital, Afriland First Bank, founded by Paul Kammogne Fokam, signed October 22, 2014, in Yaoundé, a partnership agreement with the investment and development of agricultural markets project (PIDMA). This project has been implemented by the Ministry of Agriculture and rural development and is funded by the World Bank, with a loan of 50 billion Cfa Francs to the State of Cameroon.

Under the terms of the convention, Afriland First Bank will be part of the banking pool (negotiations are ongoing with Ecobank and the Bicec) responsible for granting credits to 300 eligible agricultural cooperatives in this project, which will benefit 120,000 people, including 50% of young people and women.

Indeed, in the context of the PIDMA projects, they will be funded by the programme (form grant) of 50%, while the recipient cooperatives, which are subject to a personal contribution equal to 10% of the amount of the investment; search for the remaining 40% from local banks, along with Afriland First Bank.

"This project comes quite rightly, because our support in rural areas is done through microfinance institutions. When the PIDMA is set up, it will allow the MC2 (network of microfinance institutions sponsored by Afriland) to function properly, there are activities that will develop around these rural areas. So, it is an added value which is added around the project of the MC2"says Alphonse Nafack, the CEO of Afriland First Bank.

According to Thomas Ngue Bissa, the PIDMA project coordinator, "financing will be secured by payments. Buyers will pay directly to the Bank, which will pay the cooperatives, which will allow the avoidance of all risks of diversion. The Bank has a warranty that will be given by the end buyers.

The PIDMA is a project aimed at increasing the production of corn, sorghum and cassava in Cameroon, in order to supply the food and drink industries engaged in the process of reducing their imports of raw materials.

This agricultural project already interested in agro-industries such as Guinness Cameroon, subsidiary of the Brewer Diageo or Nestlé Cameroon; with which the PIDMA has already signed agreements for supply of raw materials.