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                 Since 2015, PIDMA has been working to develop sustainable functional business rela- tionships between producer organizations (cooperatives), buyers (agro-industries, whole- salers, etc.) and financial institutions (banks, food processing establishments, microfinance and leasing), in order to back the develop- ment of producer organizations into real com- panies practising contract farming.
Building a sustainable market agriculture
Cooperatives are eligible for PIDMA subject to their registration in accordance with the OHADA Law on Cooperative Company Law, which came into force in January 2016. According to the scheme with shared costs and risks, a business plan is said to be funded when it mobilizes “at least 10% of the cooperative's contribution, at most 20% of the partner's PFI credit and 70% of the PIDMA grant”. PFIs’s credit then relates to the differential to cover after the cooperative’s contri- bution. PFIs that have signed agreements with PIDMA are five inluding: BICEC, SG Cam, Afriland First Bank, Cameroon Bank for SMEs and RENAPROV Finance Ltd.
With 132 cooperatives in its portfolio in May 2018, seventeen sub-projects were financed by three partner banks (BICEC, SGC and AFB) for a total amount of 1,563,686,200 CFA francs. 22 files are being analyzed by 3 PFIs, 18 of which at BICEC, 3 at SGCAM and 1 with Emf RENAPROV. The expected loan volume for the 22 business plans is 929,932,181 CFA F. 19 business plans are finalized and credit applica- tion files are being set up.
Thanks to this mechanism, cooperators have improved their crop management techniques, their yields and finally, their turnover by respon- ding to the growing demand of local raw mate- rials expressed by agribusinesses.
PDCVA, A support instrument for the Value Chain.
The African Development Bank (ADB) has gran- ted a non-concessional loan, on the ADB win- dow, to the Republic of Cameroon, amounting to 75,488,829.8 billion CFA francs for the finan- cing of the agricultural value chain development project (PD-CVA). The loan agreement was signed on 21 October 2016.
The Project is an instrument for implementing a Cameroonian Government’s vision, which aims at strengthening its role as agricultural power in the Central Africa Sub-region. The vision is ope- rationalized through the GESP, whose pillars are: growth, employment, governance and strategic management of the State.
All in all, the project aims at contributing to impro- ving the living conditions of the people of Cameroon through the creation of shared wealth, jobs, especially for young people, and food and nutritional security; This should made through the competitiveness of oil palm, plantain and pineap- ple value chains.
The project is organized around four (4) major components:
It aims: (I) at rehabilitating 1000 km of rural roads to open up production basins; (II) at instal- ling 30 AEP systems in 30 project locations; (III) at constructing or renovating 30 stores and ware- houses, of which 50% for women, 15 markets and 30 km of electricity network; (iii) at construc- ting a modern laboratory for the analysis and control of agricultural commodities and products.
It contributes to: (i) the establishment of processing units; (ii) institutional strengthening of producer organizations, (iii) the facilitation of the interface with service providers; the support to research for the production of quality seeds and seedlings, the establishment of a value chain development fund for the financing of value chains (CV). There are also cross-cutting activities summarized in the Environmental and Gender components. > > >

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