• COBAC raises bank capital requirement to 25 billion CFA francs from 10 billion

• Compliance deadline extended to 2029 as most banks face shortfalls

• Reform aims to boost financial resilience and regional market funding

The Central African Banking Commission (COBAC) will almost quadruple the minimum capital requirement for banks in the Central African Economic and Monetary Community (CEMAC) to 25 billion CFA francs ($43.7 million) from 10 billion, a threshold unchanged since 2009. The regulator announced the decision after a meeting with financial leaders on Thursday.

The reform also raises the minimum capital for financial institutions to 4 billion CFA francs from 1 billion. COBAC Secretary-General Marcel Ondele said the move aims to make banks more resilient and improve their ability to finance CEMAC economies.

COBAC advisor Vladimir Ombolo Mvogo outlined how the new thresholds were determined, explaining that discussions with industry executives covered ways for banks to raise capital through stock market listings, differentiated capital requirements based on ownership and business models, and the duration of the transition period.

COBAC Extends Compliance Period as Most CEMAC Banks Face Capital Shortfall

Following consultations, Ondele said COBAC would extend the compliance period from three to four years, starting in January 2026 and running through December 2029, to address concerns raised by banks. He urged lenders to turn to the regional financial market to raise the necessary funds.

The increase, the first in 15 years, aligns with a broader regional tightening of prudential standards. The West African Economic and Monetary Union (WAEMU) introduced a similar measure in December 2023, doubling its banks’ capital floor to 20 billion CFA francs and granting three years for compliance. CEMAC’s new rule sets a higher bar and allows more time to adjust.

A Finance Ministry study published in August 2025 by researcher Serge Nkoum showed that most of the 53 banks surveyed as of June 2024 will need to raise capital. About 77% held share capital between 10 billion and 20 billion CFA francs, including 32 banks between 10-15 billion and six between 15-20 billion. Three had exactly 20 billion, 15% had at least 30 billion, 5.7% were between 20-30 billion, and 1.9% were below the 10-billion minimum.

Chamberline Moko