In Cameroon, nine financial cooperatives affiliated with the Cameroon Cooperative Credit Union League (CamCCUL) have qualified to participate in the agricultural credit facilitation fund, which was set up by the Rural Microfinance Development Support Project (PADMIR) with technical support from DID.
In a context where over 80% of deposits and other financial resources of Cameroon's microfinance institutions (MFI) are only available on a short-term basis, this facilitation fund is intended to provide the MFIs with resources over the medium term to enable them to finance the purchase of productive equipment or infrastructures while respecting prudential ratios for matching credit with resources. In so doing, it has a twofold objective:
help agri-entrepreneurs obtain the credit needed for the purchase of equipment and thereby improve their productivity and revenues;
help the MFIs to better manage the risks associated with rural credit and encourage them to increase their lending to agri-entrepreneurs.
To attain these objectives, numerous training activities on the management of agricultural credit have been offered to managers and loan officers at the participating MFIs. These training sessions deal with the policies and procedures for management of the Fund, preparation of credit files, calculation of borrower repayment capacity and analysis of agro-pastoral value chains and the risks associated with them.
Various financial analysis and auditing tools have also been developed and disseminated under PADMIR, and a communication strategy was deployed with agri-entrepreneurs to inform them about the offer of medium-term credit now available at the participating MFIs.