Douala, Cameroon, June 30, 2022 — To boost access to cleaner and more reliable cooking fuel in Cameroon, especially for the country's underserved rural households, IFC today announced a partnership with BOCOM Petroleum SA (BOCOM), a leading Cameroonian importer and distributor of petroleum products.
Under the partnership, IFC will help BOCOM expand access to liquified petroleum gas (LPG) in Cameroon, helping displace the use of dirtier fuels including kerosene, charcoal, firewood, and sawdust that drive deforestation and affect household air quality.
IFC will provide BOCOM with a €50 million financing package consisting of a loan of up to €25 million from IFC's own account, a €15 million concessional loan from the International Development Association Private Sector Window Blended Finance Facility (IDA-PSW BFF), and a parallel loan of up to €10 million which is expected to be mobilized from a leading development finance institution.
The financing will allow BOCOM to grow its activities across Cameroon, including by expanding its main LPG storage and filling center, developing new distribution regional hubs, and purchasing trucks to transport LPG cylinders. IFC's support will help create 160 new direct formal jobs.
Currently, the vast majority of rural homes in Cameroon lack access to LPG, which is growing in popularity across Africa because of its reliability and effectiveness. It is the cleanest available option for households, with drastically reduced smoke and emissions.
"We are honored to access IFCs' funding that will greatly boost our expansion towards sustainable development over generations" said Mr. Bougne, Executive Chairman of BOCOM Petroleum.
"We are proud to partner with BOCOM to foster access to cleaner and safer fuel, while supporting Cameroon's energy transition," said Sylvain Kakou, IFC's Country Manager for Cameroon. "Our partnership will also help promote economic inclusion in regions of the country where private sector investment has been lagging for years, helping create jobs and boost the local economy."
IFC will also provide advisory services to help BOCOM better reach underserved markets and build a sustainable and inclusive gender strategy within its organization.
IFC's strategy in Cameroon focuses on supporting renewable energy, agribusiness, manufacturing, and access to finance for SMEs.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About BOCOM Petroleum
BOCOM Petroleum is a leading downstream distributor of petroleum products in Cameroon (i.e. LPG, lubricants, gasoline, diesel and kerosene). It operates its own network of 80 fuel stations throughout the country, as well as an LPG storage and cylinder filling plant, and a lubricant blending facility. BOCOM owns the only private LPG coastal storage facility in Cameroon, which is essential for cooking gas distribution in the country, and necessary to promote clean cooking practices across the country. BOCOM is also the only manufacturer of lubricants – through a blending process- in Cameroon (and Central Africa). For more information, visit www.bnb-investment.com/petroleum/