(Business in Cameroon) – During the first half of 2025, banks operating in Cameroon issued an average of CFA223.6 billion in long-term loans each month, according to data from the Bank of Central African States (BEAC). The highest volume was recorded in May 2025 at CFA232.2 billion, while the lowest was in January at CFA216.9 billion.
The BEAC’s latest monetary policy report shows a 39.6% year-on-year increase in long-term loans—those with maturities exceeding 60 months—considered more suitable for investment financing than short-term loans, which mature within 24 months and mainly serve household consumption and business cash-flow needs.
However, short-term lending continues to dominate Cameroon’s banking market, accounting for more than 70% of total credit during the period. Monthly short-term loans averaged CFA3.48 trillion between January and June 2025, representing a 23.6% year-on-year rise. That figure is 16 times the average volume of long-term loans and nearly CFA1 trillion higher than medium-term credit.
Medium-term loans, with maturities between 25 and 60 months, averaged CFA2.51 trillion per month in the same period. Despite steady growth early in the year—+4.5% in January, +16.7% in February, and +16.2% in March—the category saw declines of 0.2% in April and 3.3% in May, remaining stable in June, indicating moderate lending activity in this segment.
The BEAC report does not explain why banks in Cameroon and across the CEMAC region favor short-term credit over medium- and long-term loans. However, bankers attribute this trend to the structure of deposits, most of which are demand deposits—funds that can be withdrawn at any time—limiting banks’ capacity to extend longer-term financing.
