Nine financial cooperatives associated with the Cameroon Cooperative Credit Union League (CamCCUL), a network of 208 financial institutions that also provides financial services directly to the public, have met the requirements to access the Agricultural Credit Facilitation Fund of Projet d’Appui au Développement de la Microfinance Rurale (PADMIR), a Cameroon-based investor in microfinance institutions (MFIs). The fund was created to supply MFIs with medium-term resources (from 15 months up to 5 years) that enables them to lend money to agri-entrepreneurs for the purchase of “productive equipment or infrastructures”, because, as of January 2016, 80 percent of Cameroon MFIs are only able to lend on a short-term basis (from 1 month up to 15 months).
Jonas TientChou, the general manager of CamCCUL said, “To access the fund, the MFIs must not only demonstrate, through a number of indicators, healthy management practices, but also adopt appropriate measures for managing the particular risks associated with agricultural loans. It acts as an incentive and leads us to adopt better management practices. At its conclusion, this project will have contributed to structuring rural financing activities and, consequently, to improving food security for our members and for the population of Cameroon.”
As of December 2014, CamCCUL reported total assets of USD 306 million and a gross loan portfolio of USD 188 million outstanding to 81,000 borrowers. As of the same date, the organization reported USD 240 million in deposits held for 300,000 depositors.
By Kevin van den Brink, Research Associate
About Cameroon Cooperative Credit Union League (CamCCUL)
Formed in 1968, the Cameroon Cooperative Credit Union League (CamCCUL) is a network of 208 credit unions that also offers microfinance services. CamCCUL re-registered under the cooperative law in 1994 and has been registered by the Banking Commission of Central Africa (COBAC). As of December 2014, CamCCUL reported total assets of USD 306 million and a gross loan portfolio of USD 188 million outstanding to 81,000 borrowers. As of the same date, the organization reported USD 240 million in deposits held for 300,000 depositors.
About Projet d’Appui au Développement de la Microfinance Rurale (PADMIR)
Projet d’Appui au Développement de la Microfinance Rurale (PADMIR) was founded in January 2011 in Yaounde, Cameroon. PADMIR’s main objective is to help small-scale agri-entrepreneurs by providing them financial services. PADMIR is jointly financed by the government of Cameroon and the United Nations International Fund for Agricultural Development. PADMIR’s “Agricultural Credit Facilitation Fund” serves three microfinance services in Cameroon: the Cameroon Cooperative Credit Union League (CamCCUL), Le réseau des Mutuelles Communautaires de Croissance (MC²), Les réseaux des Caisses Villageoises d’Epargne et de Crédit Autogérées (CVECA).
Sources and Additional Resources
[1] Proxfin, News, “Cameroon: CamCCUL steps up its involvement in financing for agri-entrepreneurs with a facilitation fund for medium-term credit”
MicroCapital Universe Profile: Cameroon Cooperative Credit Union League (CamCCUL)
MicroCapital Universe Profile: Rural Microfinance Development Support Project (PADMIR)
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