GuarantCo provides Société Générale Cameroun and Société Commerciale de Banque Cameroun with USD 38.4 million XAF equivalent guarantee to finance TollCam and support infrastructure development in Cameroon

  • Date written
  • June, 2022

  • First combined guarantee solution (liquidity extension and partial credit) for GuarantCo
  • First financing agreement solely focussed on toll plaza infrastructure in Africa
  • First road-related Public Private Partnership (PPP) in Cameroon

Press - GuarantCo provides Société Générale Cameroun and Société Commerciale de Banque Cameroun with USD 38.4 million XAF

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a USD 38.4 million (XAF equivalent) guarantee solution to Société Générale Cameroun (SG) and Société Commerciale de Banque Cameroun (SCB), a subsidiary of Attijariwafa Bank Group to finance TollCam, a project company established by Egis and Fayat. The financing comprises a 14-year combined liquidity extension and partial credit guarantee to support debt for the modernisation, operation and maintenance of 14 toll plazas across Cameroon.

The project is being developed by the sponsors under a 20-year PPP agreement with the Government of Cameroon (GoC). The combined guarantees will help SG and SCB provide XAF 32.5 billion (circa USD 52.5 million) of long-term debt arranged by Société Générale Côte d’Ivoire to support the toll development project.

This is the first financing agreement solely focussed on toll plaza infrastructure in Africa and is expected to be replicated across other toll sites on the continent. The project will lead to significantly higher toll revenue collection via more secure and efficient toll gates, collections, and payment systems but without increasing the toll price or changing traffic flows. The extra revenues will benefit the GoC’s Road Fund which will invest in further development of the road network in Cameroon. It is also the first road related PPP in Cameroon and may lead to further involvement of the private sector in the development of the road network in the country.

There are regulatory constraints in Cameroon that limit lending to a maximum tenor of seven years, which is insufficient for the long-term debt requirements of infrastructure projects. GuarantCo’s liquidity extension guarantee provides the required support for lenders to double the tenor of their facilities from seven to 14 years, thus enabling the viability of the TollCam project. GuarantCo is also offering a 75 percent partial credit guarantee during the last seven years of the project as an additional risk mitigant for the lenders.

The project contributes to Sustainable Development Goal (SDG) 17.1 – Strengthen domestic resource mobilisation to improve domestic capacity for tax and other revenue collection and SDG 9.1 – Develop quality, reliable, sustainable and resilient infrastructure, including regional infrastructure, to support economic development and human well-being.

Layth Al-Falaki, CEO GuarantCo, said:

“We are delighted to have closed our third transaction in Cameroon and to support the Government to further their road development ambitions in the country.  TollCam is a first of a kind infrastructure project with much potential to be replicated in other African countries. This is our second liquidity extension guarantee in Africa, after Kékéli Efficient Power in Togo, and we are hoping to implement similar solutions in other countries to help unlock much needed long-term infrastructure financing.”

Philippe Serain, President TollCam said:

“TollCam is very proud to be fully involved into the automatic tolling of the main Cameroon roads with 14-year local currency funding which will be a great landmark for the whole African continent.”


About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 190 infrastructure projects to financial close which provided an estimated 220 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC