Entrepreneurs criticize government offer for loans
By Vera Fon
Some entrepreneurs have been having mixed feelings over the recent F CFA 200 billion deal signed by the Cameroon government with financial institutions to facilitate their access to loans.
According to some of them, the move is a misplaced priority taken by the government.
“I do not understand the fact that the government will have to guarantee close to F CFA 200 billion fund for entrepreneurs, when in effect, we know banks are looking for these entrepreneurs to finance their loans. There is no need for the government to come in. The banks are not lacking the money, there are better projects the government can go directly on. There is no need passing through the banks for any guarantee for such loans. Banks make their money through loans. The worst is that it is not even the government to follow the files from the loan applicants, they still have to pass through the banks. So, the gesture to me is wastage of time,” Mbah Nelson, an entrepreneur stated.
“The government just wants to blind us. This is a pure lie, the government can look on direct projects with the citizens. If the government gave the money to the banks to provide loans to entrepreneurs, it would have been better but when you go and guarantee, it is instead helping the bank and not the citizens,” he added.
“What are the interest rates of the loans? It is difficult to celebrate this gesture by the government without knowing what their interest rates are,” another entrepreneur said.
Going by another, “Will the government pay entrepreneurs on time after the completion of their projects (for those who are into public/government contracts)? There are some companies that the government owes them money for years after the completion of their projects. Imagine paying interest for a loan for that long. All your profit will go back as interest. It will benefit those with small businesses that will easily make a turnover and for it to benefit macro projects, the government has to play it’s rule by paying entrepreneurs on time.”
The government through the Minister of Finance, Louis Paul Motaze, had on August 16, 2023 in Yaounde, signed a 200 billion FCFA deal with banks and financial institutions. According to him, the deal is aimed at helping public and private enterprises acquire loans.
