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(Business in Cameroon) – CEMAC microfinance institutions issued CFA1,039.3 billion in loans in 2024
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Cameroon accounted for CFA659.4 billion, or 57.6% of regional credit
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Deposits in Cameroon fell 1.2% but still represent 65.7% of the total
In 2024, microfinance institutions operating in the Central African Economic and Monetary Community (CEMAC)—Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic—extended CFA1,039.3 billion in loans to economic agents, according to the annual report of the Central African Banking Commission (COBAC). Of this total, microfinance institutions in Cameroon disbursed CFA659.4 billion, up by about CFA41 billion year on year, giving the country a 57.6% share of the region’s microfinance credit market.
Data compiled by COBAC show that the volume of loans granted by Cameroonian microfinance institutions during the period was three times higher than that of institutions in Congo and six times higher than lending by those in Gabon. This dominant position is, however, accompanied by a sharper deterioration in portfolio quality. Cameroon contributed the most to the decline in credit portfolio quality within the sub-region, accounting for 81% of the deterioration. Congo and Gabon contributed 9% and 7%, respectively, according to the Bank of Central African States (BEAC) in its 2024 activity report.
This strong credit growth, coupled with higher risk, comes even as customer deposits declined slightly. Outstanding deposits at Cameroonian microfinance institutions fell from CFA925.4 billion in 2023 to CFA914.4 billion in 2024, a drop of CFA11.1 billion, or 1.2%. Despite this decline, these institutions still accounted for 65.7% of total microfinance deposits in CEMAC as of December 31, 2024, confirming the central role of the Cameroonian market in the sector.
A key sector for financing the economy
Cameroon has the densest microfinance network in the sub-region. Of the 521 licensed microfinance institutions recorded in 2024, 384 were based in the country, representing 73.7% of the total network. The sector’s expansion reflects the weight of the Cameroonian economy, described as the engine of CEMAC, accounting for about 40% of the sub-region’s industrial base, according to official data. This diversified industrial structure broadens the customer base for financial institutions, including both microfinance institutions and commercial banks.
This role is particularly evident in financing small businesses and households, especially in rural areas where banks are absent or have a limited presence. Despite this momentum, the sector faces several structural challenges. In recent years, liquidations and decisions to place microfinance institutions under temporary administration have multiplied in Cameroon, fueling customer concerns about deposit security and the continuity of credit services.
According to experts, the increase in sanctions stems from the strengthening of the regulatory framework implemented by COBAC since the 2015 reform, which expanded supervision beyond prudential ratios alone. Until 2015, an institution that met its financial ratios was considered sound. However, some institutions posted strong figures while being weakened by governance conflicts or poor internal controls, said David Kengne, chief executive officer of Microfinance Academy.
The reform introduced stricter oversight standards for microfinance institutions, including operational controls, compliance, risk management, and strengthened internal audits. After a transition period lasting until 2020, COBAC stepped up inspections from 2021, leading to the closure or placement under administration of institutions deemed non-compliant in Cameroon and across CEMAC. This tightening reflects the determination of public authorities to clean up a sector that has become strategic for financing the sub-regional economy.
Brice R. Mbodiam
