• CEMAC MFI Non-Performing Loans edge up 8.9 % to 178B CFA in 2024, regional review shows
• BEAC study notes one member hosts 73.7 % of CEMAC’s 521 MFIs, influencing portfolio trends
• Congo 9 %, Gabon 7 % join largest network in shaping sub-regional loan-quality metrics

According to the Bank of Central African States (BEAC), non-performing loans in the Central African Economic and Monetary Community (CEMAC) microfinance sector hit 178 billion CFA francs ($295 million) in 2024, an increase of 14 billion CFA francs or 8.9% from 2023.

Cameroon accounts for 81% of these bad loans, with Congo at 9% and Gabon at 7%, the report states. As CEMAC’s largest economy, Cameroon hosts 384 of the region’s 521 licensed microfinance institutions (MFIs), or 74%. Chad has 59, Congo 46, Gabon 18, the Central African Republic 12, and Equatorial Guinea 2.

BEAC highlights rising credit risks in the microfinance sector, critical for financial inclusion in the region.

The Central African Banking Commission (COBAC) categorizes non-performing loans as frozen (overdue over three months but recoverable), unpaid (missed due payments), or doubtful (at risk of partial or no recovery, even with collateral).

This loan surge signals challenges in credit management, regulatory oversight, and MFI resilience amid economic pressures.

Original story by Brice R. Mbodiam