Yaoundé - 02 October 2023 -
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Govt mulls over addressing high SME bankruptcy rate

Govt mulls over addressing high SME bankruptcy rate
  • Comments   -   Friday, 02 June 2023 03:48

(Business in Cameroon) - The Cameroonian government is considering solutions to tackle the alarming bankruptcy rate among SMEs in the country. While presenting the 2022 yearly stats on these businesses last May 30 in Yaoundé, Minister Achille Bassilekin III said the situation is due to “the business environment in Cameroon and the difficulties SMEs face in accessing financing”. He did not however specify the number of companies that had to close down during the period under review.

In its report on the second general business census (RGE-2) published in 2019, the national statistics institute (INS) revealed that 2,316 businesses out of 6,458 closed down between 2009 and 2016; a bankruptcy rate of about 36% over the period. INS mainly blamed this reality on the size of the company, the degree of the manager (or main promoter), and the company's legal form. According to the institute, compared with large companies (GE), a medium-sized company (ME) is almost 20% more likely to go bankrupt. The risk is 31% for a small business and 39% for a very small business.

The government is however making efforts to promote SMEs and allow them to flourish in the business market. Thanks to the Business Creation Formalities Centers (CFCE), 15,601 new SMEs were created in 2022, slightly up on the 15,591 registered in 2021.

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