The
Government of Cameroon as a major stakeholder of the Livestock and Fisheries
Development Project LIFIDEP has signed protocol agreements with Microfinance
Institutions as part of engagements towards the effective implementation of the
third technical component of LIFIDEP being the Microfinance Component. During
the agreement signing ceremony October 6, 2017 in Bamenda, Mbipeh Pius Sidiki
LIFIDEP Project Coordinator explained that this third component “is coming to
complement and support the work that the other two components namely: the
livestock and fisheries development components have done so far on the field
since the project implementation took-off.”
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| Family picture at the end of signing |
According to the Project Coordinator, the goal of the
Microfinance component is to “provide diversity and affordable financial
services to the active poor, in a timely and competitive manner, that would
enable them to undertake and develop long-term, sustainable entrepreneurial
activities; create employment opportunities opportunity and increase the
productivity of the active poor in the Region, thereby increasing their
individual household income and uplifting their standard of living.”
After presenting the rigorous procedure used in selecting
the MFIs, Mbipeh Pius disclosed that Nsanimunwi Cooperative Credit Union and
United Savings and Agriculture Credit Limited (USA-Credit Ltd.) will be the
MFIs to implement this component of the project with the tripartite agreement
approved by the Islamic Development Bank now signed between them, LIFIDEP and
the Government of Cameroon.
“The MFIs and other stakeholders will be subjected to
capacity building and training on Islamic Microfinance and thereafter, funds
will be disbursed into their accounts for on-lending to farmers.” The Project
Coordinator stated adding that “it is previewed that by the end of the project,
at least 2000 loans are granted to livestock and fish farmers in the Region.
However, the entry point will be through registered cooperatives.”
The Director General of the North-West Development Authority
MIDENO John B. Ndeh in presenting the control mechanism to ensure effective use
of funds explained “This scheme will be implemented based on the principles of
sharia by applying Islamic Microfinance products. There will be a mark-up or
cost covering margin of 12% per annum. A greater part of the loans will be
granted in kind and not in cash. This is to reduce the rate of default and
delinquency and to build confidence and cohesion among members of various
cooperatives and community at large.” The General Director will further urge
the selected Microfinance institutions as well as project authorities to
exercise professionalism in carrying out the assignment bestowed on them.
Speaking earlier Ngwa Polycarp Ngwa on behalf of the
selected MFIs promised to respect the guidelines in the protocol agreement and
to follow the upcoming training with keen attention to better serve the
farmers.
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| NW Governor hands signed agreement to LIFIDEP Project Coordinator |
Prior to signing and handing over of the agreements, North
West Governor Board Chairman of MIDENO and representative of the Government in
the signing ceremony, noted that LIFIDEP as a project is intended to stamp out
poverty from the region with the Microfinance component which is expected to be
for “production and not consumption.” Before warning the MFIs that stringent
majors will be taken in case of poor recovery, the Governor insisted that good
governance must be applied during the implementation adding that the scheme
will not be providing startup capital but to boast productivity hence the need
for the MFIs to exercise diligence in the management of the funds.
To the farmer, the region’s chief administrator prescribed
maturity and responsibility and the respect of payment schedules to enable
others benefit.
The ten years agreement subject to renewal is directed
towards farmers who belong to cooperatives.
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