NNT sought to build, own and operate a 32,000 metric tonne per annum cocoa processing facility located in the Bonaberi industrial area of Douala, Cameroon, which would purchase raw beans from local smallholder farmers and produce processed cocoa products.
NNT sought to raise local currency financing from commercial banks but found only limited appetite as regional banks are not accustomed to taking project risk. GuarantCo’s partial credit guarantee allowed Attijari Wafa Banque to overcome its risk constraints to provide the full debt package required.
Currently only 15% of all cocoa produced in Cameroon is processed domestically. GuarantCo’s support of the project will help boost strategic industrial infrastructure and bring value added processing activities onshore, creating jobs, additional income, and helping the Government of Cameroon to move toward its target of doubling domestic processing capacity.
NNT will also help to facilitate local farmers to invest in their own agricultural activities and improve agricultural practises. GuarantCo’s involvement in the transaction also provided knowledge transfer opportunities for Attijari Wafa Banque, helping to develop its project finance knowledge and appetite for future infrastructure projects in the region.