Microfinance portfolio

ACEP Cameroun SA, Cameroon

Microfinance portfolio



CONTEXT

Cameroon has a population of 15 million. It is the linchpin of the Central African Economic and Monetary Community (Cemac), accounting for nearly 50 % of the Gross Domestic Product (GDP) and population in the 6-nation zone. Its political solidity gives it additional weight in a region where overall stability remains uncertain. Its GDP has grown by an average 4 % a year in real terms over the last 5 years. Inflation remains modest, at about 2 % a year.

Despite this good performance, 40 % of Cameroon's population is still living below the poverty threshold and GDP/per capita is less than 750 €. A great part of Cameroon's economy is handled by the informal sector which has no access to the traditional banking system.

CAMEROUN BREUVAGES

ACEP Cameroun SA is a microfinance institution based in Yaounde and Douala, specialized in financing small-scale urban business activities. It offers one-year individual loans averaging 1,800 euros to a clientele mainly consisting of tradesmen and small service businesses lacking access to the classic banking system. Its loan portfolio totaled about 4 million euros as of December 31, 2005.

ACEP started operations in January 2000 as a project sponsored by the Cameroon Industry ministry, with the aim that it should be established as a joint stock company. I&P was invited to join a core shareholding group alongside, BICEC - the local subsidiary of Natexis-Banques Populaires and the country's leading private sector bank - and several Cameroonian shareholders. The joint stock company was formally registered in September 2005 and has since taken over operational management of the project, a first in francophone Africa.

INVESTMENT

I&P is the second-largest shareholder with a 20 percent equity stake and has a seat on he board of ACEP Cameroon.