EVALUATION OF THE CAMEROON COOPERATIVE CREDIT UNION LEAGUE'S PILOT PROJECT IN SMALL FARMER PRODUCTION CREDIT

This special evaluation, attached to a PES (PD-AAI-382-E1), covers the period 1/75-12/79 and is based on site visits, interviews with CAMCCUL personnel, and a review of project files. A major emphasis has been placed on training. To date, secretary-managers of 28 CU's have received short-term training at regional training centers in such areas as bookkeeping and CU management. Local farmers have been trained in coffee pruning techniques and a small number of farmers have received formal training. The training was carried out by an SFPC specialist (now departed), who also provided technical assistance to CU's and farmers in loan evaluation and supervision. His work, however, was hampered by poor transportation, and the Government of Cameroon has provided little field support. A key difficulty in the future will be CAMCCUL's inability to fulfill member requests for technical assistance. To date, 50 individual farmers have benefitted from 84 loans totalling $39,978, mostly for improved livestock and coffee production. Loan delinquencies have been very low (0.5%). Borrower leverage rates were lower than the permitted loan-savings ratio due to increased loan demand and consequent drain on funds. Loans, moreover, have not been adequate to meet individual demands and have involved processing delays. While increased lending has greatly increased CU gross income, high operating costs have prevented an equal rise in net income. SFPC borrowers' savings have also increased and their average annual savings rate is 4-8 times that of other CU members. CAMCCUL provided an input supply service to 29 CU's, but did little to provide marketing assistance. It is recommended, inter alia, that CAMCCUL: expand CU secretarial training; selectively increase the volume of SFPC lending; set firm lending targets for member CU's; train at least two more agricultural extension agents; ensure that the SFPC position is filled by a qualified person; and improve transportation.