IFC Approved $60 Million Loan for Cable Expansion
The funding supports increased local manufacturing capacity and working capital in Cameroon and Tanzania.
Updated on Oct. 6, 2026 in Corporate Finance
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On May 29, 2026, the International Finance Corporation signed a deal to provide up to $60 million to Hebei Huatong Wires and Cables Group. This financing aims to boost production capacity in Tanzania and support working capital for the company's factory operations in Douala, Cameroon.
Why it matters
The project represents a strategic move to localize cable production and reduce reliance on imported raw materials like aluminum ingots from Australia and Japan. For regional operators, this signals a shift toward vertical integration in the manufacturing sector to better manage supply chain costs.
The International Finance Corporation loan totals $60 million, or CFA33.8 billion, which backs a workforce of 85 in Cameroon and 300 in Tanzania. While the factory in Douala currently employs 85, the project expansion carries the potential to add 200 direct jobs.
The players
International Finance Corporation
The private-sector arm of the World Bank Group that provides investment, advisory, and asset management services to encourage private enterprise in developing countries.
Hebei Huatong Wires and Cables Group
A Chinese-based manufacturer specializing in the production and distribution of various wire and cable products for global industrial infrastructure.
The details
The capital is earmarked for increasing production capacity in Tanzania and stabilizing working capital at the Douala facility, established in 2016. As part of the agreement, the company must extend its existing environmental and social management system across both African sites. This expansion relies on a global supply chain where aluminum ingots are sourced from Australia and Japan before being processed locally to reduce import dependence.
Timeline
September 15, 2016: Everwell Cameroon factory operations were established.
March 19, 2026: The International Finance Corporation formally approved the financing.
May 29, 2026: The financing agreement was signed by the International Finance Corporation and Huatong.
October 5, 2026: The loan status was recorded as pending disbursement.
Market Landscape
This project follows the pattern set by the International Finance Corporation's Sustainability Framework, requiring firms to upgrade environmental and social governance as a condition of capital. It reflects a broader trend of industrial firms localizing production in emerging markets to mitigate import volatility.
Operators in the manufacturing space should monitor how this facility expansion affects regional raw material availability and pricing. Management should evaluate whether their own supply chains for imported components face similar risks that could be mitigated by localized processing partnerships.
The takeaway
This deal underscores the growing importance of operational scale and ESG compliance in securing international development capital. Keep an eye on the employment growth at the Douala facility to gauge the actual production output increases vs. initial projections.
Further reading
For more on capital structure and international investment trends, see Corporate Finance.
Source note: This article includes information reported by Business in Cameroon.
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