The credit is also expected to help small-farmers growing cassava, sorghum, and maize by linking them to more lucrative agricultural and food markets.
“By transforming Cameroon’s traditional farming into a more productive commercial activity, today’s project will help unlock the potential of its agriculture industry to become an engine for economic growth, job creation and income generation,” said World Bank country director for Cameroon, Gregor Binkert.
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The credit from the International Development Association (IDA) forms part of the Agriculture Investment and Market Development Project, which will establish partnerships between farm producers and agri-businesses in Cameroon.
This would increase production of the target crops and improve the quality and productivity of approximately 300 producer organizations, benefiting 30,000 farming households.
Maniével Sène, the World Bank task team leader for this project, said, “Cameroonian agro-industrial companies and small agriculture enterprises are expressing great interest in sourcing local raw materials and processed products.”
According to the World Bank, the project will establish partnerships between agricultural farmers, producers, industries and the private sector that will promote competitiveness by improving the productivity and production of these basic crops and the quality of their products.
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“The partnerships between producers organisations, buyer agro-businesses and financial institutions established under the project will upgrade the cassava, maize, and sorghum farming activities to meet the buyer agro-businesses’ demands,” Sène added.
The project is part of a joint intuitive between the IDA and the International Finance Corporation (IFC). The IFC is expected to help expand the potential for agricultural lending for farm producers by providing guarantee funds and sharing the lending risk with partnering financial institutions.