(Business in Cameroon) – Cameroon’s financial sector grew 6.52% on average from 2019 to 2024 but still accounts for only 2–3% of GDP.
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Bank lending rose 19.6% to CFA6.1 trillion by March 2025, but most loans fund consumption, not industry or agro-business.
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Financial inclusion lags, with 28% bancarization versus 32% in Côte d’Ivoire, despite rising mobile money use.
Cameroon’s financial sector grew at an average annual rate of 6.52% between 2019 and 2024, according to national accounts published by the statistics agency INS. The expansion supported a 4.2% rise in the services sector in 2024.
However, the sector’s contribution to the broader economy remains limited at only 2–3% of GDP, or CFA3.57 trillion ($5.7 billion), underscoring what analysts describe as “quantitative but not structural growth.”
Bank Lending Imbalances
Outstanding bank loans reached CFA6.13 trillion in March 2025, up 19.6% year-on-year. More than 22% of these credits went to households, with 16% allocated to consumption. By contrast, industrial equipment financing accounted for just 13.65%, while individual businesses received only 5%.
Medium-term loans represented 43.5% of credit, mainly supporting trade and imports. Long-term financing remained marginal at 2.77%, largely limited to housing and real estate. Strategic sectors such as agro-industry remain underfunded, raising concerns about competitiveness.
Cameroon’s GDP grew 3.5% in 2024, mirroring final consumption growth. Productive investment rose 3.8%, but this was mainly driven by public spending. Financial services contributed CFA719 billion to GDP, compared to nearly CFAF 6 trillion from the primary sector, highlighting the sector’s marginal role in structural transformation.
Regional Comparison and Inclusion Gaps
In Côte d’Ivoire, bancarization reached 32% in 2025, with nearly 30% of loans going to SMEs, supported by targeted policies and digital banking. Cameroon’s rate remains at 28%, according to banking association Apeccam.
Mobile money services cover 40% of adults and digital payments now represent 30% of GDP. Yet this growth is concentrated in urban areas, limiting its effect on national financial inclusion.
Non-performing loans spiked to 10–15% between 2020 and 2022 amid global and local crises, including the pandemic and the war in Ukraine. Despite holding CFA402 billion in excess liquidity, banks remain cautious in funding industrial projects, seen as riskier.
This structural underfinancing continues to constrain competitiveness and sustain reliance on imports, even though the trade deficit narrowed to CFA256 billion in 2024.
Cameroon faces the dual challenge of channeling domestic savings into productive investment and widening financial inclusion beyond urban centers. Meeting the national SND30 strategy target of 8% average growth will require a more proactive financial sector.
This article was initially published in French by Amina Malloum
Adapted in English by Ange Jason Quenum
