Cameroon: New Bank Guarantees Decline 26.5% in H1 2026

• New bank guarantees in Cameroon totaled CFA444.16 billion in the first half of 2026.
• This represents a 26.5% decline from the CFA604.35 billion issued in the first half of 2025.
• The first quarter of 2026 saw a 52% plunge in new guarantees compared to the previous year.
• A strong rebound occurred in Q2 2026, with CFA310.75 billion issued, a 133% increase from Q1.
• Despite the Q2 rebound, the 2026 figures remained below 2025 levels, indicating a tighter credit market.

Lawyers advising clients on project financing, mergers and acquisitions, or other major investments in Cameroon should be keenly aware of this trend.

The financial landscape in Cameroon experienced a notable contraction in the first half of 2026, particularly concerning new bank guarantees. Data compiled from reports by the Bank of Central African States (BEAC) reveals that Cameroonian banks issued a total of CFA444.16 billion in new guarantees during this period. This figure represents a significant decrease of 26.5% when compared to the CFA604.35 billion recorded in the corresponding period of the previous year. This substantial decline in Cameroon new bank guarantees in 2026 signals a tightening in the availability of such financial instruments within the nation's banking sector.

A closer examination of the quarterly data indicates that the bulk of this downturn occurred in the initial three months of 2026. New guarantees plummeted by 52% in the first quarter, falling from CFA277.96 billion in Q1 2025 to CFA133.41 billion in Q1 2026. This sharp reduction in the early part of the year set the tone for the overall half-year performance, despite a subsequent recovery. The overall trend suggests a more conservative approach by financial institutions or reduced demand for guarantees from businesses.

Despite the challenging start to the year, the second quarter of 2026 witnessed a considerable resurgence in the issuance of new bank guarantees. Between April and June, banks in Cameroon issued CFA310.75 billion in guarantees, as detailed in Table A.6 of the BEAC's latest report, which was published on October 22. This quarterly total accounts for nearly 70% of all guarantees recorded for the entire first half of 2026. The Q2 figure represents a robust increase of CFA177.34 billion, or 133%, compared to the CFA133.41 billion issued in the preceding quarter.

However, even with this strong quarterly rebound, the volume of new guarantees in Q2 2026 did not manage to surpass the figures from the previous year. In the second quarter of 2025, Cameroonian banks had issued CFA326.39 billion in guarantees, which is 4.8% higher than the CFA310.75 billion recorded for the same period in 2026. This indicates that while there was a significant quarter-on-quarter improvement within 2026, the market for Cameroon financing through bank guarantees remains below its previous year's levels, reflecting broader Cameroon financial market trends.

The observed decline in new bank guarantees, particularly the substantial drop in the first quarter of 2026, carries significant implications for businesses operating in Cameroon, especially those engaged in large-scale projects or seeking substantial credit. Lawyers advising clients on project financing, mergers and acquisitions, or other major investments in Cameroon should be keenly aware of this trend. The reduction in available guarantees suggests a tighter credit market, which could necessitate a more rigorous and cautious approach to deal structuring, risk assessment, and overall financial planning for clients who rely on such instruments.

This shift in the availability of bank guarantees is not an isolated event but rather occurs amid a broader slowdown in new bank financing across the country. For large businesses seeking credit in 2026, this environment implies that securing the necessary financial backing may become more challenging or require more stringent conditions. Understanding these dynamics, as highlighted by the Bank of Central African States guarantees data, is crucial for strategic decision-making and mitigating potential financial hurdles in the Cameroonian market.

Lawyers advising clients on project financing, M&A, or large-scale investments in Cameroon should be aware of the significant decline in new bank guarantees, indicating a tighter credit market. This trend necessitates a more cautious approach to deal structuring, risk assessment, and financial planning for clients reliant on such guarantees, particularly those in the large business sector.

Source: Original reporting via BEAC data analysis