by the MicroCapital Team - Africa -

MICROCAPITAL STORY: European Union (EU) partners with Cameroon Chamber of Commerce (CCIMA) to Conduct Study on How to Implement Better Funding Mechanisms For Very Small and Small Enterprises (VSSEs)

The Cameroon Chamber of Commerce for Industry, Mines and Artisans (CCIMA) has begun working with the African Caribbean Pacific Business Climate Facility (BizClim), an initiative funded by the European Union (EU), on a study that will attempt to identify new mechanisms for funding very small and small enterprises (VSSEs) in the West African country. FOGAMU, a Cameroonian mutual guarantee fund that caters to this category of enterprises, and the National Association of Cameroonian Microfinance Institutions (ANEMCAM), an organization with the objective to further develop the microfinance industry in Cameroon, will also be involved in the execution of the study.

The study is to be conducted in two phases. During the first phase, CCIMA and BizClim, in partnership with the National Society of Investment (SNI), a local company that specializes in financial services, will review existing funding mechanisms available to VSSEs in Cameroon. Two such mechanisms are mutual guarantee associations, arrangements in which one member’s failure to pay back a loan results in the debt falling on the other members, and microfinance institutions that specifically cater to small enterprises. Researchers anticipate that this part of the study will allow them to better understand the conditions and factors that lead to financial success (and failure) of VSSEs in Cameroon.

In the second phase of the study, researchers will draw conclusions from the data and make detailed recommendations as to which mechanisms to implement to best serve these undercapitalized businesses.

The study is expected to be completed by the end of September, and the results are to be presented to the key stakeholders at a conference in Douala, Cameroon in November of this year.

By Elizabeth Nelson, Research Assistant

Additional Resources:

Inter Press Service: “Trade-Cameroon: New Study to Bridge Finance Gap of Small Business” by Michael Deibert

BizNews Information Bulletin: “Financing Very Small Enterprises” (pp 1-2)

Business.Com: “Societe Nationale D’investissement – O.SDI- Profile”: http://www.business.com/directory/food_and_beverage/ingredients/fats_and_oils/societe_nationale_dinvestissement/profile/

MIX Market: “SOS Women- General Institutional Information and Legal Data” (See “Network(s)”- Association nationale des établissements de micro-finance du Cameroun): http://www.mixmarket.org/en/demand/demand.show.profile.asp?ett=1323

African Caribbean Pacific Business Climate Facility (BizClim): http://acpbusinessclimate.org/about_us_page_1.html

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