• Cameroon plans a CFA40 billion capital increase for BC-PME, pending regulator approval
• Funds will support lending to agriculture-linked sectors under an import-substitution program
• The move comes as the state bank faces losses, weak lending activity, and governance issues

Cameroon announced a major capital increase for its state-owned small business lender, the Banque camerounaise des petites et moyennes entreprises (BC-PME).  During a mixed general meeting held on February 26 in Yaoundé, shareholders approved a capital increase of CFA40 billion (about $70.4 million), subject to clearance from the Central African Banking Commission (Cobac). If approved, the bank’s capital will rise from CFA20 billion to CFA60 billion.

The increase will be carried out through the issuance of 4 million new shares with a nominal value of CFA10,000 each, fully subscribed by the Cameroonian state, the bank’s sole shareholder.

The funds for the recapitalization will come from the government’s integrated agropastoral and fisheries import-substitution program, which aims to boost domestic production. The capital injection is expected to support private operators in these sectors through increased lending.

The move also reflects broader regulatory pressure. Cobac now requires banks in the Cemac region to maintain a minimum capital of CFA25 billion. Several lenders have already adjusted their capital levels to comply, including Afriland First Bank (CFA50 billion), Bicec (CFA49 billion), CCA-Bank (CFA29.4 billion), and BGFIBank Cameroon (CFA50 billion).

Still, the recapitalization comes at a time when BC-PME is struggling to fulfill its mandate. Created in 2015 to improve access to finance for small and medium-size businesses, the bank has posted limited lending activity in recent years. According to the 2024 statistical yearbook on SMEs and the social economy, it extended just CFA1.95 billion in loans to 85 project holders, a modest level given its role.

Financial results point to deeper weaknesses. The bank reported a loss of CFA1.112 billion in 2023, highlighting persistent structural challenges.

Governance issues have added to the strain. In October 2023, the board appointed Amadou Haman, previously deputy general manager, as acting head of the bank. The decision followed sanctions by Cobac against former chief executive Agnès Ndoumbe Mandeng, who was stripped of her license and banned from working in Cemac banking institutions for ten years after disciplinary proceedings.

Beyond the capital increase, the February 2026 meeting also approved the bank’s 2025–2030 strategic plan. The plan calls for a renewed focus on core lending to SMEs, with particular emphasis on projects tied to the government’s import-substitution agenda.

Amina Malloum, Business in Cameroon