Cameroon SMEs face high borrowing costs despite narrowing credit gap

Small and medium-sized enterprises (SMEs) in Cameroon continue to face significant disparities in access to affordable bank credit compared to large corporations. According to data from the Bank of Central African States (BEAC), the average effective lending rate for SMEs stood at 11.43% in the fourth quarter of 2025, while large companies paid an average of 6.72%. Although the gap narrowed slightly from 5.17 percentage points in late 2024 to 4.71 percentage points in late 2025, SMEs still bear a substantially higher total cost of borrowing.

Structural challenges persist in the Cameroonian financial sector, including limited bank capacity to assess borrower solvency and a high rate of non-performing loans, which sits near 16%. These factors contribute to increased credit costs for smaller businesses. Additionally, the availability of long-term financing remains low, with rates for such loans often insufficient to support industrial modernization.

In response to these hurdles, the Groupement inter-patronal du Cameroun (Gecam) is organizing a dialogue session titled ‘Je parle à mon banquier’ (I speak to my banker). The meeting aims to facilitate direct communication between CCA Bank and business leaders to address credit accessibility and foster economic growth through improved financing for SMEs and micro-enterprises.