The UK Government has announced a landmark investment of £60 million (FCFA 47,501,280,000) to help farmers in Cameroon improve vast swathes of land for agriculture.
The finance deal was announced during the third edition of the UK Government’s West and Central Africa Trade and Investment Forum (WCAF III), which took place in London on December 4. Delegations from nine Francophone West and Central Africa countries including Cameroon were in attendance.
The funding comes through a loan issued by UK Export Finance (UKEF), the government’s export credit agency, and arranged by Standard Chartered. It will deliver a project to improve 15,000 hectares of grassland, laying new roads for herders, establishing new agricultural facilities and improving soil quality in the Central African country.
“This £60 million deal supported by UKEF shows how the UK is driving sustainable economic growth through strategic partnerships with African nations,” said Gareth Thomas, UK Minister for Exports. “The story of this project and many others featured at this forum demonstrates the UK’s serious commitment to forging stronger trade and investment ties with Africa, improving people’s lives in the process.”
The agropastoral sector is the bedrock of Cameroon’s economy and supports the livelihood of millions of people and communities in the Northern regions of the country, according to Alamine Ousmane Mey, Cameroon Minister for Economy, Planning and Regional Development (MINEPAT).
“This project will boost the productivity and enhance the professionalism of farmers and herders, as well as improve the standards of living of communities, thereby providing a sustainable path for inclusive development and integrated agropastoral value chains,” Mey said.”
Agricultural production to increase
British exporter, Incatuk Limited is charged with the execution of the project. Its Director, Iñigo Elosegui Figueroa, said the project targets the intensification of hydro-agricultural exploitations and fodder farms in the Adamawa region with a view to boosting pastoral activity, while optimising outputs and creating quality employment.
“It will develop sustainable production models to increase agricultural production and marketing of high nutritional value hay, as well as developing several complementary public services and infrastructures such as schools, medical centres and social development centres,” Figueroa said.
According to Eleanor Weir, Executive Director, Development and Agency Finance at Standard Chartered, the financial institution has a long history of supporting African investment with UKEF, “and this financing for Cameroon is another example of how we are accelerating global progress towards climate, biodiversity and development goals by unlocking capital in markets where it’s needed most.”
During the WCAF III, Ministers and leaders representing around 200 million people in rapidly growing economies discussed new trade and investment opportunities with the UK government and with British businesses. Bilateral meetings and panel discussions covered opportunities in infrastructure and energy as well as green growth and digital transformation, according to a press release by the UK Government.
The release stated that UK export credit support has become increasingly important for Africa’s major investments. It said since first appointing overseas representatives in West Africa, UKEF’s credit exposure in the continent as a whole has grown exponentially from £3 million (2017-18) to £1.3 billion (2023-24).
“This means greater liquidity for African projects and huge opportunities for UK exporters to win new contracts,” the statement stated.
