SMEs and Agricultural Cooperatives: CAFI Allocates 14 Billion FCFA to IDH to Facilitate Access to Financing
The Investment & Payment for Environmental Services Hub (IDH), recognized for its expertise in optimizing agricultural value chains, has officially launched its 'Investment & Payment for Environmental Services Hub' in Cameroon. Launched in mid-September 2026, this large-scale initiative aims primarily to prepare primary sector enterprises for investment and to channel private capital toward deforestation-free production models.
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To realize this ambition, the project benefits from a substantial envelope of $24.57 million, or nearly 14 billion CFA francs, granted by the Central African Forest Initiative (CAFI). This initial allocation is supplemented by an objective to mobilize an additional $29 million, approaching 16.5 billion CFA francs, from private investors and climate funds by 2030.
Unlike traditional bank guarantee instruments, the mechanism operates upstream to overcome structural barriers that marginalize SMEs and large cooperatives between microcredit and conventional bank financing. IDH's intervention focuses on technical assistance, restructuring economic models, providing repayable seed capital, and facilitating qualified linkages with financial institutions and end buyers. The financial architecture of this program, approved by CAFI at the beginning of the year, is structured around a sequential disbursement in three tranches. The first tranche, valued at approximately 2.5 billion CFA francs, supports project setup, while subsequent disbursements are strictly contingent upon the achievement of precise operational milestones, including the engagement of private actors in the cocoa sector and the rigorous assessment of enterprise portfolios.
The environmental services payments (PSE) component will constitute one of the pillars of the experimentation, particularly in the Grand Mbam basin. Producers and local communities will be remunerated based on independently verified performance, covering practices such as agroforestry, reforestation, and forest regeneration. The program aims to apply deforestation-free agricultural standards across nearly 10,000 hectares, while extending afforestation operations to thousands of additional hectares. Lessons drawn from this pilot initiative are intended to serve as a reference for future expansion across the entire Congo Basin, illustrating the convergence between environmental preservation imperatives and the dynamization of the rural economy.
Asaba
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