- UK Export Finance provides £113m in financial support to the Cameroonian government, boosting two-way trade and supporting jobs
- The deal unlocks millions of pounds of business for UK suppliers to install and upgrade new roads that will link the capital to vital commercial ports
- Data shows UK trade with Cameroon has increased by 40% in the past year as the UK celebrates the first anniversary of its trade deal with Cameroon
A financial package of £113m has been agreed with Cameroon to help UK businesses complete essential road works that will unlock the country’s economic potential.
UK trade with Cameroon is on the rise, with the value of trade between the two countries reaching £231m at the end of 2021, up 40% on the previous year.
Today marks the first anniversary of the signing by the United Kingdom of its Economic partnership agreement with Cameroonensuring that British and Cameroonian businesses could continue to trade freely without tariffs or additional barriers.
The new agreement underwritten by UK Export Finance (UKEF) will support the expansion of Douala’s eastern gateway route, which connects the Cameroonian capital to vital trading ports. Once completed, the widened road will significantly improve freight transport in Cameroon and strengthen economic ties with landlocked neighbors Chad and the Central African Republic.
Mike Freer, MP, Minister of Exports, said:
Africa is one of the most exciting continents to do business. That is why this government has worked so quickly to ensure that trade agreements are renewed and that exports can continue unabated.
This new deal backed by UK Export Finance is a huge boost to the UK’s growing trade with Cameroon. It will help keep the wheels of trade turning and provide opportunities for UK businesses to showcase their world-class expertise.
UKEF will provide a combination of buyer credit and direct loan worth £113m (€135m) and the deal was arranged by Standard Chartered Bank.
UKEF can help foreign countries with financial support to bring their projects to fruition, if they commit to sourcing goods and services from the UK. This helps open new doors for world-class UK suppliers to trade overseas.
International company Magil Construction will undertake work on the Douala Road project with crucial help from the UK supply chain, supporting jobs and boosting trade in the UK.
Magil has strong credentials in Cameroon, working on some of the biggest projects in the country. They recently completed the construction of the Douala football stadium used in the recent Africa Cup of Nations.
Ralph Tropea, Executive Advisor at Magil Construction, said:
We are grateful for the assistance provided by UKEF with its team of professionals, at all levels, to make this agreement for the Douala Eastern Entrance Road project a reality. Magil Construction is a proud partner in this project which demonstrates the economic and commercial cooperation between the United Kingdom, Cameroon and the stakeholders, from design to construction.
Mustafa Sajjad Hussain, Executive Director, Structured Export Finance, Standard Chartered Bank, said:
We are very happy to support the Republic of Cameroon by structuring a competitive financial package to provide essential infrastructure in the country. The newly restored road will bring social and economic benefits to the people of Douala and communities in surrounding areas, helping to build long-term sustainable growth in Central Africa.
UKEF has up to £2bn available to support UK exports to Cameroon and can continue to support projects in Cameroon with its financial support.