AfDB Approves €25m Guarantee to Boost SME Trade Finance Through Cameroon’s CCA-Bank

The facility will be deployed as a Transaction Guarantee, one of the Bank’s flagship trade finance instruments that provides risk coverage to eligible African banks.

The Board of Directors of the African Development Bank Group (AfDB) has approved a €25 million financing package to support Crédit Communautaire d’Afrique-Bank (CCA-Bank) in expanding its trade finance activities for small and medium-sized enterprises (SMEs) and other businesses in Cameroon. The approval was granted during a Board session on 1 December in Abidjan, marking a significant boost for Cameroon’s private sector and its access to regional and international markets.

The facility will be deployed as a Transaction Guarantee, one of the Bank’s flagship trade finance instruments that provides risk coverage to eligible African banks. It is designed to strengthen local financial institutions’ ability to issue and confirm trade finance instruments—critical tools for enabling cross-border trade, supporting local industries, and stimulating economic growth.

Supporting Key Sectors Through Stronger Trade Finance

According to Lamin Drammeh, Head of AfDB’s Trade Finance Division, the facility will play a strategic role in Cameroon’s economic development:

“The facility will support Cameroon’s economy by facilitating imports of equipment for the industrial, agro-industrial, and telecommunications sectors. It will also enable the African Development Bank to provide up to a 100 percent guarantee to confirming banks, to facilitate the confirmation of letters of credit and other similar trade finance instruments issued by CCA-Bank for the benefit of SMEs in Cameroon.”

This guarantee will help eliminate barriers caused by perceived country risk, allowing SMEs—often constrained by limited collateral or credit history—to engage in the international trade system with greater ease.

Strengthening Private Sector Resilience and Job Creation

AfDB leadership stressed that the operation aligns with the institution’s broader strategy for private sector development in Central Africa. Léandre Bassolé, AfDB Director General for the Central Africa region, highlighted the transformative potential:

“This operation will strengthen CCA-Bank’s capacity to support SMEs, including those owned by women and young people, to boost the local productive sector, facilitate economic growth, and create and maintain thousands of jobs.”

In a country where SMEs make up more than 90 percent of businesses yet struggle with limited access to affordable finance, this facility will help address long-standing financial constraints and stimulate inclusive economic activity.

A Milestone Partnership for CCA-Bank

CCA-Bank Managing Director Marguerite Fonkwen Atanga celebrated the partnership as a milestone in the institution’s growth:

“We express our gratitude to the African Development Bank Group for this important trade finance facility. This strategic partnership marks a major milestone for our institution and will significantly strengthen our capacity to support small and medium-sized enterprises, women entrepreneurs and start-ups in Cameroon and Africa.”

The facility is expected to help CCA-Bank expand its platform of trade finance products—including letters of credit, guarantees, and supply chain financing—while enhancing financial inclusion for underserved groups.

Boosting Local Industries and Deepening Regional Value Chains

By facilitating the import of essential machinery and equipment, the guarantee facility will help:

• Support industrialization and agro-processing

• Enhance telecommunications infrastructure

• Strengthen regional and global supply chain linkages

• Improve production capacity for local enterprises

• Enable SMEs to meet export standards and expand market reach

This initiative also aligns with AfDB’s High 5 priorities, particularly Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa.

A Step Toward Sustainable Economic Transformation

The AfDB–CCA-Bank partnership is poised to stimulate economic diversification, foster entrepreneurship and contribute to long-term economic resilience in Cameroon. By supporting SMEs—especially women-led enterprises and youth-run start-ups—the initiative contributes directly to inclusive growth and job creation.

With this approval, AfDB reaffirms its commitment to strengthening Africa’s trade ecosystem, supporting local financial institutions, and expanding opportunities for businesses across the continent.