Ecobank Transnational Incorporated (“ETI”), a leading regional private financial services group incorporated in Togo and present in 30 African countries owns more than 75% of Eco-Cam’s share capital, with the remaining shares held by local investors.

The proposed IFC investment is a XAF 2 billion A loan for IFC’s own account.

4.11 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.11
Equity

* These investment figures are indicative

The Bank is headquartered in Douala, Cameroon. It operates in major cities of the country, via a network of over 24 branches.

The proposed project will increase access of SMEs to financial services by (i) providing funding to Eco-Cam focusing on SME financing, (ii) building the Bank’s capacity and (iii) raising awareness on best SME Banking practices.

The proposed investment will complement the Africa Micro, Small, and Medium Enterprise ( AMSME) technical assistance program being implemented by IFC in Eco-Cam to help the Bank improve its SME-lending capability, by bringing medium-term funding, an essential element of the AMSME program which was yet to be provided.

The key risk involved in this project is inadequate capacity by the Bank to undertake S&E due diligence in line with IFC’s policy requirements. The client will be required to ensure compliance of the activities financed with the IFC Exclusion List, the host country laws and regulations and if needed the IFC Performance Standards, and demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions. The S&E performance of ETI, of which Eco-Cam is a subsidiary, was recently rated as 3, and the client requested to enhance its S&E due diligence process for SME lending. CES will as part of the appraisal assess the client’s capacity and commitment to implement the SEMS and carry out a due diligence on the Bank’s HR policies and practices to determine compliance with the PS2 requirements, and if needed to provide recommendations to address any gaps. The adoption of a revised SEMS by Eco-Cam satisfactory to IFC will be a condition of disbursement for this project.