Cameroon accounts for nearly 74% of all MFIs in the CEMAC zone, with 385 licensed institutions in 2025, slightly down from 390 in 2024. These institutions are especially crucial in rural areas where traditional banks are scarce, providing loans and financial services to populations otherwise excluded from the formal banking system. In 2024, Cameroonian MFIs issued 659.4 billion FCFA in loans, up 41 billion FCFA from the previous year, representing over 57% of microfinance credit in the sub-region. These figures highlight the sector’s role in supporting small businesses, household financing, and the broader national economy.
The cumulative net profit of Cameroonian MFIs reached 5.24 billion FCFA in 2024, marking a 54.5% increase from 2023, demonstrating both the sector’s profitability and its contribution to economic activity.
A dense network with benefits and risks
Cameroon’s dominance in the region does not stop at the number of institutions. A dense network improves access to credit and stimulates economic activity, but also exposes the sector to over-competition and aggressive lending practices. COBAC data shows Cameroonian MFIs issue three times more loans than MFIs in the Republic of Congo and six times more than those in Gabon, reflecting growing dependence on microfinance. However, this rapid expansion comes with vulnerabilities: liquidations and provisional administration cases are increasingly common, raising concerns about deposit security and service continuity.
Over-indebtedness and non-performing loans: the sector’s downside. Non-performing loans in the CEMAC microfinance sector totaled 178 billion FCFA in 2024, with 81% concentrated in Cameroon, signaling persistent credit quality issues. Many borrowers struggle to repay loans, creating a cycle of over-indebtedness, particularly among vulnerable populations. High interest rates, weak internal controls, and inconsistent risk assessments in some MFIs further increase the potential for financial distress, showing that microfinance can shift from a development tool to a debt trap if poorly managed.
Stronger regulations to safeguard the sector
To address these challenges, COBAC has tightened oversight since 2015, introducing stricter requirements for: operational management, regulatory compliance, risk management and internal auditing. After a transition period until 2020, enforcement intensified from 2021 onwards, leading to closures and provisional administration of non-compliant MFIs. These measures aim to protect depositors and stabilize a sector critical to the sub-regional economy. Experts highlight that stricter supervision enhances transparency, reduces risky practices, and strengthens trust, while allowing MFIs to continue promoting financial inclusion.
Microfinance remains a key instrument for financial inclusion, enabling millions of Cameroonians to access credit and savings, and supporting small businesses and rural activities. The sector has proven it can be profitable and economically significant, provided it operates under robust regulation. However, the risk of over-indebtedness and non-performing loans is real, especially in rural communities and among low-income borrowers. The benefits of microfinance thus depend on strong regulatory oversight, sound governance, and financial literacy for clients.
Microfinance in Cameroon offers a genuine pathway to inclusion and economic empowerment, but it is a double-edged sword capable of fostering development while also creating debt traps if risks are not carefully managed.
