Announcement of Private Investment in Cameroon First Official Visit by IFC Head September 11, 1985

Wednesday, September 11, 1985 Monique Amaudry (202) 676-9331 PRIVATE INVESTMENT IN CAMERGON FIRST OFFICIAL VISIT 3Y IFC HEAD Sir William Ryrie, Executive Vice President of the International Finance Corporation, is expected to visit Cameroon on September 12-September 1. to meet with Government Ministers and hig.h-ranking officials as well as promotors of the country's private sector. At these meetings, Sir William will discuss IFC's role in the development of private enterprise in Cameroon. "Cameroon's private sector, one of the most active in west Africa. has made a significant contribution to the country's economic growth." Sir William said. He added, "The recent 3650 nillion increase of IFC's capital, which is in the process of being ratified by is member countries, will double our resources and we are very eager o explore the wavs in which we can encourage and stimulate the growth of new enterpr:ses and assist existing enterprises, including those which are currently experiencing difficulties but which show the potential for development. The IFC, which is affiliated with the World Bank, is the largest rnui,ilateral agency specializing in the financing of private enterprises in dieveloping countries. It invests in the equity of companies it finances and makzes long-term loans without government guarantee; it also provides technical as:ssance in ae areas of technology transfer and manage!nent. During the 29 years of its existence, the IFC has approved investments of S7.2 bi11ion in 848 projects in 87 developing countries, for a total inves-ment cost of nearly 530 billicn. During ilts new Five Year Program, IFC plans to invest more than 37 billion in approximately 400 projects in the Private seetor, for a total cost of abeut 30 bilion. -2- IFC's investment portfolio in Africa showed investments at June 30, 1985 of approximately $348 million in loans and $55 million in equity, for a total of $403 million in 98 projects in 29 African countries. IFC's Five Year Program calls for almost doubling its investments in projects in Africa, from 65 projects during the preceding five year period to 110 projects, and from $290 million to $530 million. "Our most important activity," explained Sir William, "is not only the investment of our own funds, but the mobilization of resources from private investors, both local and foreign. Our role is that of a catalyst helping to create a climate favorable to private sector projects while at the same time reducing the risks involved. Although economic conditions in Cameroon, as in most African countries, are currently particularly difficult, opportunities for profitable investments in private enterprises do exist." Sir William concluded, "and IFC's role is to assist and encourage these investments."