Cameroon: SME Bank Credit Gap Remains 4.71 Points Despite Rate Declines

• SMEs in Cameroon continue to pay significantly more for bank credit than large companies, despite a recent decline in average borrowing costs.
• In Q4 2025, the average effective lending rate (TEG) for SMEs was 11.43%, compared to 6.72% for large companies, a gap of 4.71 percentage points.
• This disparity, reported by the Bank of Central African States (BEAC), narrowed slightly from 5.17 points in Q4 2024, when SME rates averaged 12% and large company rates 6.83%.
• Over the year, SME rates fell by 0.57 points, while large company rates decreased by 0.11 points.
• SMEs faced an even wider gap for working-capital loans (excluding overdrafts and discounted bills), with their average TEG reaching 13.82%.

The persistent cost disparity between small and medium-sized enterprises and larger corporations in Cameroon underscores a critical challenge within the nation's financial landscape.

Small and medium-sized enterprises (SMEs) in Cameroon continue to face significantly higher borrowing costs from banks compared to their larger corporate counterparts, a persistent issue despite a recent decline in overall average lending rates. Data from the Bank of Central African States (BEAC) for the fourth quarter of 2025 reveals that the average effective lending rate for SMEs stood at 11.43%.

This figure starkly contrasts with the 6.72% average effective lending rate applied to large companies during the same period. The effective lending rate, known as the Taux Effectif Global (TEG), encompasses the total cost of a loan, integrating the nominal interest rate, various commissions, and other fees charged by financial institutions. This comprehensive measure highlights the true financial burden on borrowers.

The resulting Cameroon SME bank credit gap reached 4.71 percentage points in Q4 2025, indicating that small businesses are consistently paying substantially more for access to capital. This disparity underscores a fundamental challenge for the growth and development of the SME sector within the Cameroonian economy, impacting their ability to invest and expand.

While the disparity remains substantial, the gap between the Cameroon small business lending rates and those for large corporations did narrow slightly over the past year. In the fourth quarter of 2024, SMEs were subjected to an average TEG of 12%, while large companies paid 6.83%. This represented a wider difference of 5.17 percentage points at that time.

Comparing the two periods, the average effective lending rate for SMEs saw a reduction of 0.57 points from Q4 2024 to Q4 2025. Large companies also experienced a decrease in their average rate, though more modest, falling by 0.11 points over the same year. Despite these declines in the BEAC effective lending rate Cameroon for both segments, the fundamental Cameroon corporate loan disparity persists, continuing to place a disproportionate financial burden on smaller businesses.

The challenge of higher borrowing costs for SMEs becomes even more pronounced when examining specific loan categories. For working-capital loans, excluding overdrafts and discounted bills, small and medium-sized businesses faced an even wider gap in their effective lending rates. This particular segment of financing is crucial for the day-to-day operations and liquidity management of businesses.

For these vital working-capital facilities, the average Taux Effectif Global SME Cameroon reached 13.82%. This elevated rate for operational funding further exacerbates the financial strain on SMEs, making it more expensive for them to manage cash flow and invest in short-term growth opportunities. The increased cost for such essential financing highlights a critical area of concern within the overall Cameroon SME bank credit gap.

The persistent cost disparity between small and medium-sized enterprises and larger corporations in Cameroon underscores a critical challenge within the nation's financial landscape. This data provides crucial context for legal professionals advising SMEs on financing options and loan negotiations, highlighting the significant cost disadvantages they face compared to larger entities. Understanding these market realities is essential for developing effective financial strategies and advocating for fair terms.

For compliance officers and legal counsel within financial institutions, these figures underscore the ongoing market reality of SME lending and could signal potential areas for regulatory or public scrutiny regarding equitable access to credit. The substantial difference in Cameroon small business lending rates, particularly the Taux Effectif Global SME Cameroon, suggests that existing Cameroon finance regulations SMEs may need further review to address this enduring credit gap and foster a more inclusive financial environment for smaller businesses.

This data provides critical context for lawyers advising SMEs on financing options and loan negotiations in Cameroon, highlighting the persistent cost disparity compared to large enterprises. For compliance officers and legal counsel at financial institutions, it underscores the market reality of SME lending and potential areas for regulatory or public scrutiny regarding fair access to credit.

Source: Data compiled by the Bank of Central African States.