Veritable Growth Driving Engine

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Veritable Growth Driving Engine

16 août 2022 06:14

The finance sector is one of the pillars of the national economy. From the statistics, it is evidence that the sector is vibrant over the past years and has continued to show resilience even in the face of covid-19. The banking sector for instance has witnessed a tremendous evolution with 17 full-fledged banks today operating in Cameroon. With Cameroon’s economic fabric dominated by SMEs, the micro finance segment on its part is waxing strong with new actors mushrooming here and there. Over 400 of such micro financial institutions are registered and government projects the number to increase to 750 by 2030. This is a clear indication that the sector is expanding as the national economy keeps growing. It is worthy to note that the vitality of the economy depends on how vibrant the financial sector is because the economy needs funding. At same time, the financial sector equally needs a vibrant economy for it to thrive. Both are therefore interwoven and dependent on each other. This argument can further be illustrated using example of recent mobilization of funds to finance certain major projects from the financial market. For the past few years, government has issued treasury bonds, Eurobonds and other strategies to mobilize financial resources to fund the economy. Banks, insurance companies as well as the stock markets have all been instrument in the different campaigns engaged by the government to raise funds from the capital market. In 2020 Cameroon carried out a series of three issues of public securities programmed on the BEAC securities market which enabled the government to raise a total of FCFA 1 867.4 billion FCFA at the end of February 2020, according to official figures. This amount facilitated the execution of infrastructural ...