The European Investment Bank (EIB) has invested a total of €890 million, or about CFA583 billion, in Cameroon over the past 60 years, according to Roger Stuart, head of EIB’s regional hub for Central and West Africa. Stuart made the announcement on May 6 during a workshop hosted in Yaoundé by the African Trade & Investment Development Insurance (ATIDI).

Out of this investment, €480 million (CFA314.4 billion) was allocated to public sector projects, while €410 million (CFA268.5 billion) went to private sector operators.

For private financing, the EIB typically works by opening credit lines with local banks, allowing them to fund businesses at lower interest rates. On May 6, 2022, the bank signed two such agreements with Commercial Bank Cameroon (CBC) and CCA Bank, worth €12 million (CFA7.8 billion) and €15 million (CFA9.8 billion) respectively.

A similar initiative took place in 2020, when Société Générale Cameroon, the local branch of the French banking group, received a CFA10 billion credit line to help small and medium-sized businesses (SMEs) access easier financing during the height of the global COVID-19 crisis.

On the public side, the most notable project was the railway renewal agreement signed on May 5, 2022, involving more than CFA80 billion to upgrade 330 kilometers of rail line between Belabo in the East region and Ngaoundéré in Adamaoua.

However, the largest public investment made by the EIB in Cameroon is the Nachtigal dam, a major energy infrastructure project with a planned capacity of 420 megawatts. As of 2022, it was considered the EIB’s biggest investment underway in Sub-Saharan Africa.

In 2021, the EIB also financed Cameroon’s entry into ATIDI by contributing €11.5 million (CFA7.5 billion). Since then, ATIDI has supported the mobilization of nearly CFA130 billion in investment for Cameroon, through products designed to mitigate political and commercial risk across Africa, according to the agency.

Source: Business in Cameroon