To help Cameroon handle the major challenge posed by waste management, SOCIÉTÉ GÉNÉRALE CAMEROUN, ECOBANK and BICEC have just granted a loan – backed up by a guarantee provided by PROPARCO – to HYSACAM that will help renew its fleet of over 200 trucks in order to improve waste collection services in cities throughout the country.
Dealing with the exponential growth in waste
In Cameroon as in many other Sub-Saharan African countries, massive population growth and urbanisation are driving an exponential increase in the production of household waste. This is now estimated at 5.5 million tonnes a year, or 16,000 tonnes a day.
However, the country has still managed to develop a waste management system that could provide a model for its West and Central African neighbours. “The Cameroon way” is based on strong political will and a concession arrangement with a private local company, HYSACAM.
HYSACAM (a French acronym meaning hygiene and health in Cameroon) was founded in 1969 and is the country’s number one private waste management contractor. It is based in Douala and Yaoundé and handles waste management services in 17 cities throughout the country. It collects over 1.5 million tonnes of waste a year or 4,000 tonnes a day. HYSACAM operates right across the waste management chain – from collection to processing – employs 4,000 people and has a fleet of several hundred trucks. 15 million Cameroonians currently benefit from its services.
Financing truck fleet renewal
To keep pace with Cameroon’s booming cities and improve the effectiveness of its waste collection services, HYASCAM is upgrading part of its fleet – approximately 200 trucks and engines at a cost of around 24.5 billion CFA francs.
A consortium of three local banks, headed up by SOCIETE GENERALE CAMEROUN and ECOBANK has come together to provide the necessary funds and they have just granted HYASCAM a 24.5 billion CFA francs (XAF) loan (approximately €37 million). BICEC is putting up 11.5 billion CFA francs (XAF) (i.e., €17.5 million) while the Joint Lead Arrangers, SOCIETE GENERALE CAMEROUN and ECOBANK, are putting up 7 billion CFA francs and 6 billion CFA francs, respectively (i.e., €10.6 million and €9 million).
PROPARCO is providing a guarantee for 11.025 billion CFA francs (XAF) (€16.81 million), covering 45% of the total borrowings. This makes it easier for the banks to lend to HYASCAM and enables the local banks to extend loan terms to seven years at a competitive rate for the local market.
Not just a loan, a commitment to CSR
PROPARCO is also helping HYSACAM to enhance its corporate social responsibility by funding an audit and helping to oversee an improvement plan.
This project will help to secure 4,000 jobs and create another 500 over the next five years with training programmes for all HYASCAM personnel. Upgrading the fleet of trucks with more recent, higher-performance vehicles will enhance the quality of waste collection, secure the service and help improve the working conditions of HYASCAM’s employees.
1 million additional beneficiaries
An estimated one million additional Cameroonians could benefit from HYASCAM’s services over the next five years. Access to essential waste collection services will make a concrete contribution to improving hygiene, public health and quality of life – one of the UN Sustainable Development Goals (SDG 11).