(Business in Cameroon) - The average interest rates applied by banks in the Economic and Monetary Community of Central Africa (CEMAC) increased by 106 basis points (1.06%) between Q1 and Q2 2023, reaching around 8.44%. The central bank Beac, which reported the figures, explained that the increase reflects a tightening in monetary policy, highlighted by an increase in the bank’s benchmark rates. This adjustment is intended to further limit credit access as a strategy to curb inflation.

Cameroon, as the main provider of bank loans in this community space, is identified by BEAC as the principal driver of the surge. "The quarterly increase in borrowing rates is more influenced by the evolution of bank credit costs in Cameroon (accounting for 62.85% of CEMAC's credits). Indeed, between the first and second quarters of 2023, borrowing rates in Cameroon increased by 129 basis points, rising to 9.06% from 7.68%," Beac reported, stressing that, during the period under review, "rates also increased in the CAR, moving from 13.38% in Q1 2023 to 16.39% in Q2 2023. In Congo, the average lending rate to customers increased to 10.17%, from 9.41%. In Gabon, rates also rose, averaging 18.29%, compared to 10.90%”.

However, decreases were observed in Equatorial Guinea, where lending rates fell to 10.94% from 13.17%, and in Chad, where the rate went down by 61 basis points, sitting at 5.66% compared to 6.27%.