CEMAC banking sector shows high credit costs and sovereign debt dominance

Financial data from the Bank of Central African States (BEAC) reveals significant disparities in credit access and high levels of sovereign debt within the Central African Economic and Monetary Community (CEMAC) zone.

As of the second quarter of 2026, individuals in the region faced much higher borrowing costs than corporations. The effective interest rate for individuals reached 15.48%, while small and medium-sized enterprises (SMEs) saw rates of 10.97% and large companies 10.36%. This 5.12 percentage point gap is attributed to differences in risk profiles, available collateral, and income stability.

Furthermore, bank lending to national treasuries in the six CEMAC states—Cameroon, Gabon, Congo, Chad, Central African Republic, and Equatorial Guinea—has reached nearly 90% of the total volume of credit granted to the private sector. This phenomenon, known as the crowding-out effect, occurs as banks prioritize low-risk sovereign debt over lending to the real economy, limiting the financial resources available to businesses and households.