(Business in Cameroon) – Bank financing in the CEMAC region saw a 7.9% increase in 2023, reaching CFA10,592.4 billion by December 31, 2023, according to the 2023 activity report from the Bank of Central African States (BEAC). The report attributes this growth to a significant rise in long-term bank credit, which jumped by 25.4% after a modest 3.8% increase in 2022, alongside gains in medium-term credit, which grew by 2.5% (down from 9.5% a year earlier), and short-term credit, which increased by 11.2% (up from 4.7%).
The surge in long-term credit, a key driver for investment, stands out as a major contributor to the overall growth in bank financing. While medium-term loans saw only a slight uptick, the sharp increase in long-term loans highlights a growing confidence in the region’s economic activities, particularly in sectors like construction, general trade, and services.
Cameroon’s economic operators were particularly active, securing CFA2,123.2 billion in medium-term loans, up 5% year-over-year, and more than CFA180 billion in long-term loans, a remarkable 48% increase.
This rise in bank lending, which continued into the first quarter of 2024, contrasts sharply with BEAC’s tight monetary policy, implemented since late 2021 and intensified in 2022. The policy aimed to restrict access to credit by progressively raising key interest rates, halting liquidity injections into commercial banks, increasing liquidity withdrawals, and issuing BEAC bonds, all designed to curb inflation, 20% of which BEAC attributes to monetary factors. Despite these measures, the banking sector in the CEMAC region, particularly in Cameroon, has demonstrated resilience and continued growth in credit activity.
