(Business in Cameroon) – Microfinance non-performing loans in the CEMAC region reached 178 billion CFA francs, up 14 billion CFA francs, or 8.9%, year-on-year in 2024. This deterioration in the loan portfolio of microfinance institutions, or MFIs, across the subregion stems primarily from financial structures in Cameroon, according to the 2024 annual report from the Bank of Central African States, or BEAC, the issuing institution for CEMAC countries.
The central bank for CEMAC countries reported that Cameroon contributed 81% to the decline in MFI loan portfolio quality across the subregion. Congo contributed 9% and Gabon 7%. As the region’s economic engine, Cameroon has the largest MFI network in the subregion.
According to BEAC, Cameroon alone had 384 of the 521 licensed microfinance institutions in the CEMAC zone as of December 31, 2024, representing 73.7% of the total network. Chad followed with 59, Congo with 46, Gabon with 18, the Central African Republic with 12, and Equatorial Guinea with 2.
A non-performing loan is a bank loan or a loan from a microfinance institution that a borrower has not repaid by the scheduled due date. The Central African Banking Commission, or COBAC, defines non-performing loans as frozen loans, unpaid loans, and doubtful loans.
COBAC, the banking and microfinance sector regulator, clarifies the types of non-performing loans. Frozen loans are over three months past due but are still expected to be recovered, just not right away. Unpaid loans are simply amounts not paid by their due date. Doubtful loans are any credits, even those with collateral, that face a likely risk of not being fully or partially recovered.
Brice R. Mbodiam
