The project may be supported by a pooled first loss guarantee ("PFLG") of up to US$3 million, provided by the IFC acting as implementing entity of the IDA-PSW BFF, subject to obtaining the necessary internal approvals. Without the concessionality provided by the IDA-PSW BFF, the projects under the FIG MSME Platform would not be bankable due to the challenging risk environment. The level of?concessionality?(i.e., “subsidy”) provided is estimated to be approximately 6.6% for SMEs on the program level. The estimated level of concessionality is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost, and profit; or a negotiated price) and (ii) the “concessional price” being charged under the Program. As is the case with all of IFC’s blended concessional finance co-investments, the Project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

The most significant expected project-level outcome for this Project is the increase in access to finance for SMEs and WSMEs operating in Cameroon.

Financial Additionality - Financing Structure: Long-term financing to financial institutions for targeted on-lending to SMEs is scarce in Cameroon due to the perceived risk associated with SMEs as well as the short-term nature of deposits and other funding sources available to banks. IFC's additionality, therefore, includes the provision of long-term financing which is not readily available in the market. The provision of a US$60 million (US$20 million IFC O/A) senior loan in Euro equivalent will provide Afriland with stable long-term funding to support the expansion of its loan portfolio via lending to SMEs. Non-Financial Additionality - Standards Setting (E&S): IFC’s E&S requirements under this Project would also help Afriland strengthen its E&S risk management procedures. - Knowledge, Innovation and Capacity Building: As Afriland is looking to grow its SME portfolio, the Bank will strongly benefit from IFC’s expertise and standard-setting to position itself as a market leader in the SME segment. By partnering with IFC, Afriland will leverage the breadth and depth of IFC's industry knowledge to enhance its capacity and risk appetite to finance SMEs.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs	loans		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Number of Outstanding Loans, WomenOwned Smes	loans		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Value of Outstanding Loans, SMEs	USDMill		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment
Value of Outstanding Loans, WomenOwned Smes	USDMill		Pre-dates IFC investment	Pre-dates IFC investment	Pre-dates IFC investment

"Environmental & Social Categorization Rationale / Key Risks & Potential Impacts
The project consists of a senior loan to Afriland First Bank (AFB). The Project aims to increase AFB’s lending to micro, small and medium enterprises (“MSMEs”), including at least a 25% carve-out for women-owned enterprises” (“WMSMEs”). The Bank indicated exposure to sectors such as agro-pastoral activities, construction, energy, financial activities and insurance transport, telecommunications. The E&S risks and impacts associated with the supported MSME activities are considered limited and readily addressed through established mitigation measures. These risks are typically associated with occupational health and safety, waste and hazardous waste management, and air emissions, among others. The labor practices at AFB are generally aligned with IFC Performance Standard 2: Labor and Working Conditions. However, the bank will have to develop employee grievance mechanism. The overall portfolio risk is considered medium. For this investment, the Bank will be required to screen eligible MSME loans against the IFC Exclusion List and Cameroon environmental and social laws and regulations. The Project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.
The Project will not support coal-related activities, IFC Exclusion List or higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or d) significant occupational health and safety risks.

Environmental & Social Management System (ESMS)
Afriland First Bank has a procedure for the management of environmental and social (E&S) risks in the loan procedure. The procedure is based on an IFC exclusion list, compliance with national and international regulations, the Equator Principles and IFC performance standards. It clearly defines the roles and responsibilities from the funding request to monitoring and evaluation. It includes an exclusion list, a categorization tool, E&S due diligence - an assessment sheet and a list of applicable national regulations. The bank has an E&S Officer, and the E&S staff involved in the ESMS implementation received training. As part of this project, AFB will be required to: 1) Improve the visit report for the environmental and social risk assessment by including a deadline in the recommendation; 2) Develop an external grievance mechanism; 3) set up an employee grievance mechanism. "

"Afriland First Bank has a procedure for the management of environmental and social (E&S) risks in the loan procedure. The procedure is based on an IFC exclusion list, compliance with national and international regulations, the Equator Principles and IFC performance standards. It applies to category A and B projects. It specifies the roles and responsibilities from the funding request to monitoring and evaluation. It includes an exclusion list, a categorization tool, an assessment sheet and a list of applicable national regulations. The procedure includes sites visits. The bank has developed guidelines for E&S categorization of client’s activities. It includes a list of the different E&S authorizations required for different sectors of activity: agriculture, fishing, livestock farming, construction, transport, energy, forestry, agro-industry, chemical industry, mining and telecommunications. E&S policies were officially approved, signed by senior management and board. The policies focused on selected business activities of the FI, was communicated to relevant units, and indicate the management responsibility for its execution.
Procedures, tools, and internal capacity to identify and manage the financial institution's exposure to the environmental and social risks of its clients is in place; approved by senior management; fully integrated into the loan review process of the financial institution. It specifies the scope or types of investments/activities covered by the ESMS and indicate the applicability of the requirements for the various types of products. ESMS includes procedures for monitoring and review of the portfolio to assess ongoing E&S performance. ESDD procedure has clear criteria for application. Site visits are conducted as needed and according to IFC Performance Standards and local regulations.
E&S risk management functions are clearly assigned to one core department with staff reporting senior management. E&S staff are involved in the credit granting decision-making process and E&S input are consistently taken into consideration. E&S roles and responsibilities are clearly defined and documented, there is broad awareness of the E&S function within the organization. Board functions include E&S oversight, and they are involved in the E&S policy/strategy-making.
Competent E&S staff adequately trained on ESRM, with knowledge on regulatory framework and sufficient capacity. E&S staff with clear responsibilities and authority.
The ESDD reports submitted show differentiated ESDD practices based on the E&S risk well documented. ESDD approach demonstrates good technical understanding of E&S risks. Most significant E&S risks are identified, and key risk mitigation measures are defined for the same. Mitigation actions are documented in the visit report without defined timeframes.
The bank has developed a procedure for monitoring and evaluating the E&S performance of category A and B projects in the First Bank portfolio. This monitoring makes it possible to:
- Compare the actual impacts of the project with those planned in the E&S impact study report;
- Monitor effective compliance with Cameroonian legislation on environmental protection;
Support clients in complying with international and national good practices in sustainable development. All Category A and B customers must be subject to E&S monitoring in accordance with this procedure. Monitoring involves a site visit, an action plan and a report to be submitted to the client. The customer visit checklist is based on the 8 IFC performance standards. The action plan form is composed of 5 elements: reference standards, actions, responsibilities, deadline and completion indicator.


"

S.no	Title	Anticipated Completion Date
1	Update ESMS	07/10/2025
2	E&S Procedure	01/10/2025
3	Enhance human resources policy and procedures	07/10/2025