Yaoundé, Cameroon, June 22, 2023 — To increase access to finance for low-income households and micro, small, and medium-sized enterprises (MSMEs) in Cameroon, IFC today announced a partnership with La Régionale Bank that will support economic activity and job creation in the country.
Under the partnership, IFC will provide a loan of up to 3 billion Central African CFA franc (about $5 million) to help La Régionale Bank scale up its lending to the retail and MSME segments, with a particular emphasis on women customers and women-owned MSMEs. At least 25 percent of the financing is earmarked specifically for women individuals and women-owned businesses.
IFC will also provide advisory services to strengthen La Régionale Bank's risk management framework and help improve its financial products and services for MSMEs.
Financial exclusion remains a challenge in Cameroon, where microenterprises face a financing gap larger than that of most other countries in West and Central Africa.
"La Régionale Bank's vision is to build a millennium financial system that is accessible to all and contributes to Africa's development, with a clear positioning in agricultural banking and digital banking. The partnership with IFC will make a significant contribution to the realization of this vision through the implementation of the credit granted," said Charles Rollin Ombang Ekath, Managing Director of La Régionale Bank.
"Spurring access to finance for low-income individuals and MSMEs in Cameroon is critical to support global development efforts," said Sylvain Kakou, IFC's Country Manager for Cameroon. "IFC is proud to partner with La Régionale Bank to address the growing, longer-term financing needs of individuals as well as MSMEs operating in key sectors for economic and social development of Cameroon."
IFC's investment is drawn from its Base of the Pyramid Program, which was launched in 2021 to help financial services providers deliver funding to small businesses in the aftermath of the COVID-19 pandemic. IFC's financing is supported by the International Development Association's Private Sector Window Blended Finance Facility and Local Currency Facility.
IFC's strategy in Cameroon focuses on supporting the financial sector through investments and advisory services and on helping to develop local capital markets. In response to the COVID-19 crisis, IFC has emphasized helping small firms become more resilient and supporting the rebuilding of local economies.
This new partnership underscores IFC's commitment to support responsible private sector-led growth and job creation in countries affected by fragility and conflict.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 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 global compounding crises. For more information, visit www.ifc.org.
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About LA REGIONALE BANK
LA REGIONALE BANK was created in 1993 under the name « EPARGNE FESS CAMEROUN » to encourage parents living in rural or urban areas to save for the financing of secondary and higher education, a product which was very successful in its day. In 1998, it became La REGIONALE D'EPARGNE ET DE CRÉDIT, opening 41 branches in and outside the country. Since September 2022, LA REGIONALE D'EPARGNE ET DE CREDIT became Cameroon's 18th Universal Bank, under the name of LA REGIONALE BANK SA, following a transformation process that began in 2021, and an initial public offering on the Central African Stock Exchange (BVMAC).
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
