Jeddah, Kingdom of Saudi Arabia, 11 October 2021 – The Islamic Development Bank (IsDB) Group is pleased to announce the approval of a US$ 26.12 million line of financing support for the Government of the Republic of Cameroon in the wake of the devastating COVID-19 pandemic effects. The financing will be utilized for the small and medium size enterprises (SMEs) which are the engine of economic activities in Cameroon.
The funds will aid in the urgent support required for a rapid economic recovery from the raging COVID-19 pandemic by creating fiscal space to support critical public expenditure, and a favorable environment to foster the growth of SMEs, thereby creating employment.
Cameroon is experiencing severe challenges as a result of the dual COVID-19 epidemic and trade shocks. Weak global demand, low commodity prices, and local containment measures all weigh on the country’s future, generating major economic and social consequences. The shocks have resulted in budgetary constraints and an urgent balance-of-payments requirement.
This new approval comes as part of IsDB’s comprehensive Strategic Preparedness and Response Program (SPRP) which aims at availing necessary emergency financial and technical support to Member Countries (MCs). The program aims to augment timely efficient and effective response to minimize the potential impacts of the pandemic and kick-start economic growth.
The government of the Republic of Cameroon will access the financing under the Restore track pillar comprising medium-term actions to overcome the effects of the pandemic on its economy, particularly on the SMEs.