(Business in Cameroon) – Average effective interest rates charged by banks in the Central African Economic and Monetary Community (CEMAC) rose sharply over the past year, climbing from 10.21% to 11.80%, according to the Bank of Central African States’ (BEAC) latest monetary policy report released in October 2025.
The increase reflects higher commissions, processing fees, and other lending costs amid ongoing monetary tightening across the region. Yet lending conditions vary widely from one member country to another. Chad and Cameroon remain the bloc’s most competitive banking markets, posting average effective rates of 7.22% and 7.92%, well below the CEMAC average of 11.8%. These lower rates suggest broader access to credit and lower perceived lending risk, supported by more active public policies encouraging financial inclusion.
At the other end of the spectrum, Gabon and Equatorial Guinea record the highest borrowing costs in the subregion, at 24.81% and 15.59% respectively, two to three times higher than those in Chad and Cameroon. The elevated rates stem from weak competition, high credit risk, and underdeveloped financial markets in economies that remain heavily dependent on oil revenues.
The divergence underscores the fragmented nature of CEMAC’s banking landscape. Cameroon alone accounts for more than 45% of all bank lending in the region, while countries such as Equatorial Guinea and the Central African Republic continue to face limited financial intermediation and narrow banking networks. The BEAC noted that Chad posted the lowest rate at 7.22%, followed by Cameroon at 7.92%, while the Central African Republic stood at 9.84% and Congo at 11.75%, close to the regional mean. Equatorial Guinea recorded a higher rate of 15.59%, and Gabon the highest at 24.81%, reflecting prohibitive credit costs.
Overall, the CEMAC average rose by about 1.6 percentage points year-on-year, confirming a sustained tightening of credit conditions across the subregion.
BRM
