• CEMAC non-performing loans fall to 16.0% in 2025, BEAC says

• Lending rises 10.7% despite tighter liquidity and higher borrowing costs

• Growth, lower inflation support banks, but risks from government exposure remain

The rate of non-performing loans in the Economic and Monetary Community of Central Africa (CEMAC) fell by 0.2 percentage points in 2025 to 16.0% of total loans.

The Bank of Central African States (BEAC) reported the figure in its latest monetary policy report published in early April, describing the decline as the start of a cleanup of bank portfolios across the subregion.

The drop, though modest, came as lending to the economy rose 10.7% in 2025 to 13,742.8 billion CFA francs, roughly $24.5 billion. Banks contained bad loans despite the increase in credit.

The improvement was partly driven by non-oil economic growth, which stood at 4.3% in 2025, up from 3.4% in 2024. Agro-industrial, commercial, services and construction sectors received most of the new lending.

Banks increased short-term lending, up 10.7%, to support corporate cash flow. Inflation fell to 2.1% in 2025 from 4.1% a year earlier. Borrowing costs rose, however, with the average effective rate reaching 11.50% in the fourth quarter.

Despite these trends, vulnerabilities remain. Net bank liquidity fell 7.3% in 2025, reflecting tighter conditions. Claims on governments rose 9.4%, potentially constraining private sector lending.

The BEAC kept its key interest rates unchanged in April 2026, taking a cautious stance to preserve monetary and financial stability.

Sandrine Gaingne