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PRIVATE SECTOR FINANCING : CDEC and AGF activate a new lever to support SMEs

(LVDE) – On April 21, 2026, in Nairobi, the Cameroon Deposit and Consignment Fund (CDEC) and the African Guarantee Fund (AGF) signed a partnership agreement aimed at strengthening financing for small and medium-sized enterprises. Through a pilot envelope of CFAF 5 billion, the initiative specifically targets SMEs led by young people and women, with the objective of improving their access to credit.

Tressy CHOUENTE Publié :25 avril 2026 | Mis à jour :25 avril 2026 2 minutes lues

In a context where access to finance remains one of the main constraints to business development in Africa, the Cameroon Deposit and Consignment Fund and the African Guarantee Fund have taken a new step in their cooperation. The signing of the memorandum of understanding in the Kenyan capital marks the launch of a mechanism designed to sustainably support SMEs, widely recognized as key drivers of economic growth.

The mechanism is based on mobilizing concessional resources by the CDEC, which will then be channeled through partner financial institutions. These institutions will be responsible for redistributing the funds as loans to SMEs in their start-up or growth phases. The objective is to address structural imbalances in the credit market, particularly issues related to collateral requirements and information asymmetry, which continue to significantly hinder entrepreneurs.

For this initial phase, a pilot envelope of CFAF 5 billion has been mobilized. Banks and financial institutions eligible to benefit will be selected through a call for expressions of interest to be launched in the coming weeks. This process aims to ensure transparency and efficiency in resource allocation while maximizing impact on the entrepreneurial ecosystem. According to estimates from several African financial institutions, SMEs account for more than 90% of businesses on the continent but access less than 20% of formal financing, highlighting the scale of the challenge. (Sources: African Development Bank, 2025 reports)

Beyond the financial dimension, this initiative aligns with broader strategic orientations of Cameroon’s public policies. It responds to government directives aimed at strengthening economic inclusion and supporting productive sectors. Particular emphasis is placed on projects led by women and young entrepreneurs, considered essential drivers of economic diversification and job creation.

The signing of this agreement also reflects an evolution in the role of the Cameroon Deposit and Consignment Fund, which is increasingly positioning itself as a key player in financing the real economy. By leveraging the African Guarantee Fund’s expertise in risk coverage, the institution aims to improve the efficiency of the financing chain and strengthen banks’ confidence in lending to SMEs.

In an economic environment characterized by growing capital needs, this partnership represents a concrete response to the financing challenges of the private sector. It paves the way for a new dynamic in which combined guarantee and financing mechanisms could help accelerate the structural transformation of African economies and foster inclusive growth.