Project Description
This summary covers an application by Natixis for up to EUR 152 million in guarantee coverage for a short-term loan facility, focused on supporting trade, to the Government of Cameroon (acting through the Ministry of Finance) for a tenor of up to one year, with the option to be extended two times at the approval of Natixis and MIGA.
The MIGA-covered facility would be used to provide trade financing for payments to suppliers, aimed at supporting key sectors of the economy such as agriculture, transport and water infrastructure.
Environmental Categorization
Trade-related transactions typically pose minimal E&S risks and impacts. The Project has been provisionally categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013). The applicable E&S requirements for this project will be the MIGA Exclusion List and applicable E&S laws in Cameroon. The Ministry of Finance will be required to implement a mechanism to screen underlying transactions against the MIGA Exclusion List and applicable E&S laws. The Ministry of Finance’ transaction implementation unit will also be required to comply with national labor laws.
Development Impact
The Project’s key expected development impact is facilitating Cameroon’s continued access to short-term trade finance to enable critical sectors of the economy, supporting the country’s resilience amid a constrained global financing environment. The MIGA-guaranteed loan will bring critical support for the Ministry of Finance to improve management of its debt resources and liquidity by offering a financial solution suited for the short-term needs of trade expenses.
