Amidst a 1.7 % recession in the CEMAC region in 2023, the Central African States Development Bank (BDEAC) is investing nearly 98 million USD to stimulate local development in key sectors.
Multiple development projects funded in CEMAC
The Central African States Development Bank (BDEAC) is dedicated to financing development in member countries of the Economic and Monetary Community of Central Africa (CEMAC). These nations include Cameroon, the Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad.
On May 13, 2024, the financial institution held an ordinary session in Douala, Cameroon. Several funding proposals for development programs were approved. BDEAC is releasing a total of 60 billion FCFA, equivalent to 98 million USD, for the implementation of several projects in key sectors. However, the statement issued after the board meeting did not specify the allocation of this amount by country.
Role of BDEAC
BDEAC is committed to promoting sustainable development and economic integration of CEMAC countries. The institution supports national and multinational investments as well as economic integration projects. The bank promotes the mobilization of financial resources for projects aimed at preserving ecosystems and combating climate change.
BDEAC also supports feasibility studies for initiatives, state projects, and economic operators. Its investments focus on :
- Modernizing infrastructure
- Restructuring production enterprises
- Supporting the private sector in various fields, including infrastructure, industries, agriculture, real estate, ICT, education, and health.
Priority sectors benefiting from the subsidy
Sustainable agriculture and agro-industry
Agriculture and the agri-food industry significantly contribute to the economies of CEMAC. For instance, the added value of this sector to Cameroon’s GDP was 16.7 % in 2023. This results mainly from the export of agroforestry products based on perennial crops such as cocoa and coffee, as well as agro-industrial products like cotton and palm oil.
According to the press release from BDEAC’s board of directors, this funding aims to improve the region’s food security. Increasing sector income, enhancing the ecosystem, and creating jobs are also major objectives, given that the majority of the population consists of small farmers living in rural areas. The program includes :
- Modernizing agricultural infrastructure
- Promoting sustainable agricultural practices
- Supporting SMEs active in the sector.
Supporting local air transport
BDEAC identifies air transport as a key area needing investment in its efforts to support regional development. The isolated nature of many regions in Central Africa makes air transport vital for connectivity, trade, and tourism. Specifically, the financial institution aims to support and develop local airlines. A notable example is the loan granted to the private airline Afrijet Business Services for expansion.
Increasing air routes directly improves mobility for people, boosts tourism, and stimulates regional trade. The allocated funds also serve to modernize airport infrastructure, improve safety, and enhance operational efficiency. These combined effects can help create jobs, accelerate economic growth, and promote balanced and sustainable regional development.
Improving access to financial services
BDEAC’s investment promises also focus on three major financial objectives :
- Strengthening financial inclusion
- Promoting access to banking services
- Supporting the development of the regional financial sector within CEMAC
These strategic initiatives are designed to boost economic activity and encourage entrepreneurship across the region. This initiative aligns with ongoing efforts to support the development of the regional financial sector within CEMAC. For example, the signing of a portfolio guarantee agreement in Douala between Cameroon’s Minister of Finance, Louis Paul Motaze, and BDEAC President, Dieudonné Evou Mekou, illustrates these steps. This measure specifically aims to address the guarantee challenges faced by many Cameroonian businesses, facilitating their access to the necessary financing to grow their activities.
Specific details remain vague, with no precise information on the exact amount of the guarantee offered and the specific conditions for accessing it. Nevertheless, the approach shows a clear strategic orientation towards supporting key sectors of the national economy, in line with long-term objectives established in the National Development Strategy 2020-2030 (SND30). By focusing on these sectors, the goal is to encourage investments that increase local production and strengthen export capacities.
