10 March 2022, London, UK – Standard Chartered Bank announces EUR 133 million of Export Credit Agency (ECA) supported financing for the Republic of Cameroon’s Ministry of Public Works to reconstruct road infrastructure and improve the flow of trade to neighbouring African countries. Working closely with UKEF[1], the UK ECA, the funding will support the expansion of the National Road N°3 leading to the eastern entrance to Douala, a coastal city in southwest Cameroon.
Douala is the capital of the Littoral Region, the economic heart of the country and an important trade centre because of its favourable port facilities. The 8.9km stretch of main road serves Cameroon’s rural regions from the ship docking area and acts as a vital commerce link for landlock countries Chad and the Central African Republic. Other benefits of the newly refurbished road include safer, well-lit pedestrian crossings and crossroads, increased tourism, job creation for local people and consequent reduced levels of regional poverty.
Standard Chartered acted as sole Mandated Lead Arranger (MLA) and Structuring Bank. Canadian engineering and construction firm Magil Construction Corporation[2] was awarded the contract to develop the roadway. Standard Chartered structured the loan to support the Ministry of Public Works’ alignment to the United Nations’ Sustainable Development Goal 11[3] to make cities and human settlements inclusive, safe, resilient and sustainable. In its capacity as MLA, Standard Chartered ensured that the project upheld international environment standards and social guidelines.
Mustafa Sajjad Hussain, Executive Director, Structured Export Finance, Standard Chartered Bank, said: “We are very pleased to support the Republic of Cameroon by structuring a competitive financing package to deliver critical infrastructure in the country. The newly restored road will bring social and economic benefits to Douala’s inhabitants and communities in the surrounding areas, helping to build long-term sustainable growth in central Africa.”
Mike Freer Member of UK Parliament, Minister for Exports, said: “Africa is the most exciting continent on which to do business. That’s why this government worked so quickly to ensure trade agreements were rolled over and exports could continue unabated. This new deal backed by UK Export Finance is a huge boost to the UK’s growing trade with Cameroon. It will help keep the wheels of trade turning and provide opportunities for British companies to sell their world class expertise to the world.”
Ralph Tropea, Executive Advisor, Magil Construction Corporation said: “We applaud the vision of the Republic of Cameroon for launching this project and commend the financial support and multidisciplinary assistance provided by Standard Chartered and UKEF. We, at Magil Construction Corporation, are proud builders of this project that targets economic growth. Magil is aligned with the respect of environmental and social standards of the project. Acceptability by the surrounding communities and sustainable growth are in harmony on the NR3.”
[1] https://www.gov.uk/government/organisations/uk-export-finance
3 https://sdgs.un.org/goals/goal11