Collateral Registry and Secured Transactions in Cameroon

Project Development Objective (PDO)

This project aims to help the authorities of Cameroon to design a Centralized Electronic Collateral Registry for movable securities, including the supporting legal framework for Secured Transactions in order to increase access to credit to the private sector in Cameroon.


Access to finance in Cameroon has significant constraints characterized by several factors including the fact that Cameroon does not have a centralized Collateral Registry for movable securities. On the Secured Transactions side, movable assets are not used as a collateral due to the incomplete legal framework for Secured Transactions. The lack of Centralized Collateral Registry and Secured Transactions legal framework in Cameroon makes it impossible for banks and other lenders to properly check whether movable assets are eligible to be used as a collateral, which in turn excludes the SMEs from access to finance. As a result, the banks typically prefer to provide loans secured by immovable property (lands or buildings which most MSMEs do not possess), thus effectively excluding potential MSMEs borrowers who are willing to pledge movables as collateral against loans. This practice excludes a large portion of private sector borrowers from the ability to obtain loans. 

Activities / Output

The expected activities include the following:

1.    Review the existing Secured Transactions Legal and Regulatory Framework

2.    Develop a web-based centralized collateral registry for security interests in movable property 

3.    Build the local capacity to reap the benefits of the new Secured Transactions system.

Expected Outcomes

The main expected outcomes of the project are as follows:

1.  Introduction of a modernized legal framework for secured lending that enables movable lending

2.  Establishment of a web-based centralized collateral registry, helping lenders to verify and
     register movable assets reliably and efficiently 

3.  Increased readiness from stakeholders in movable lending