Yemisi Izuora
Businesses and public Institutions in Central Africa are facing tough economic times as the cost of borrowing continued to climb across the Central African Economic and Monetary Community (CEMAC).
According to report borrowing during the first quarter of 2026 rose significantly making access to credit more expensive for households, businesses, and public institutions.
According to a report published on June 15 by the Bank of Central African States (BEAC), the average lending rate charged by banks in the region reached 12.38 per cent, compared with 9.96 per cent during the same period a year earlier. The increase of 242 basis points reflects a broad rise in financing costs across most CEMAC member states.
Gabon posted the largest increase in borrowing costs in the region. Average lending rates in the country rose from 14.48 per cent in the first quarter of 2025 to 21.51 per cent a year later, an increase of 704 basis points.
The figures reinforce Gabon’s position as the most expensive banking market in the CEMAC region.
During the fourth quarter of 2025, the country’s average effective lending rate already stood at 21.06 per cent, compared with a regional average of 10.91 per cent.
Equatorial Guinea also recorded a significant increase, with average lending rates rising from 15.64 per cent to 17.44 per cent over the period.
In the Republic of Congo, the average cost of credit increased from 9.47 per cent to 10.07 per cent.
The Central African Republic was the only country in the bloc where borrowing costs declined. Average lending rates fell to 13.03 per cent in the first quarter of 2026 from 15.35 per cent a year earlier, a decrease of 232 basis points.
The decline eased financing conditions for businesses and households, making the country an exception to the broader regional trend.
In Cameroon, average lending rates increased from 8.26 per cent to 9.03 per cent between the first quarters of 2025 and 2026. Despite the increase, Cameroon continued to post the lowest average lending rate in the region.
The report also highlights significant differences between borrower categories. Individuals continued to face the highest borrowing costs, with an average lending rate of 17.18 per cent.
Small and medium-sized enterprises benefited from the most favorable conditions, securing financing at an average rate of 11 per cent.
Large companies borrowed at an average rate of 11.82 per cent, up from 9.24 per cent a year earlier.
According to the BEAC, these differences reflect how banks assess credit risk across different borrower profiles.