Yaoundé - 13 April 2024 -

CEMAC: Investment financing drops to 19.6% of total lending in Q2 2023

CEMAC: Investment financing drops to 19.6% of total lending in Q2 2023
  • Comments   -   Wednesday, 13 March 2024 16:17

(Business in Cameroon) - Banks operating in the CEMAC region primarily issued short-term loans, with durations under 24 months, over the second quarter of 2023 as reported by the Central Bank BEAC. These types of loans made up more than 80% of the total lending during this period, we learned.

According to Beac, this category of loans is generally intended "to finance household consumption needs or the cash flow requirements of legal entities", and is therefore far superior to medium- and long-term loans. Because of their long maturities, the latter two categories of credit are, according to financial analysts, more conducive to business development, notably through the realization of various investments.

Between April and June 2023, the proportion of medium- and long-term loans aimed at investments was merely 19.6% of the overall financial support provided by banks. And Beac detailed that "medium-term bank loans (between 24 and 60 months of maturity) accounted for 16.82% of total loans, while long-term loans (over 60 months) accounted for just 2.81%."

Nigerian airline Air Peace has expanded its operations in Cameroon with the opening of a new flight route from Abuja, Nigeria's capital, to Yaoundé, the...
The Cameroonian Ministry of Commerce announced yesterday a significant reduction in rice prices effective Friday. This price adjustment follows the...
Cameroon, grappling with a chronic shortage of palm oil production, exported 657.3 tons of the commodity in 2022. This export generated about 713.6...
Cameroon’s trade deficit has significantly worsened from 2017 to 2022, totaling a loss of CFA256 billion over the six-year period, according to the...

Mags frontpage

Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer

Albert Zeufack: “Today, the most important market is in Asia”

Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir

Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »