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.”
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.
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. 
Derick BAKAH

Derick BAKAH

Bakah Derick is a Broadcast Presenter and Multimedia specialist with focus on sharing with the rest of the world the daily happenings in the Northwest Region of Cameroon. You can contact us on +237 675460750 or debakah2004@gmail.com.

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