Central Africa Individuals Pay 15.5% on Bank Loans

Central Africa lending rates fell in the second quarter of 2026, but ordinary people still paid far more than businesses. Individuals paid an average 15.48 percent on bank loans, against 10.36 percent for large companies.

The figures come from the Bank of Central African States (BEAC), the shared central bank of six countries. Its quarterly monetary policy report was published on Wednesday, 30 September.

Those six countries form the Central African Economic and Monetary Community, known by its French acronym CEMAC. They are Cameroon, Chad, the Central African Republic, the Republic of Congo, Equatorial Guinea and Gabon.

Together they have about 65 million people. All use the Central African CFA franc, which is pegged to the euro.

Their combined economy was roughly US$134 billion in 2025, close to Kenya’s, according to International Monetary Fund (IMF) data.

What borrowers paid from April to June

The report measures the effective rate, which adds fees and commissions to the nominal interest on a loan. Across the region, that average fell to 10.94 percent from 12.36 percent in the first quarter.

Individuals paid 15.48 percent, down 1.71 points from 17.19 percent. Small and medium-sized enterprises (SMEs) paid 10.97 percent, large companies 10.36 percent and public administrations 10.22 percent.

That leaves individuals more than five points above large companies and about 4.5 points above SMEs. Only a group the BEAC calls “other legal entities” came close, at 14.84 percent.

The relief was uneven. Large companies saw their rate drop from 11.82 percent, while SMEs paid marginally more than the 10.91 percent of the first quarter.

What the rate means in money

The CFA franc traded at about 583 to the US dollar at Friday’s close, 2 October. On that basis, a loan of 1 million CFA francs is worth about US$1,715.

At 15.48 percent, a year of interest and fees on that sum comes to roughly 155,000 CFA francs (about US$266). At the large-company rate, it would be about 104,000 CFA francs (about US$178).

This is a simplified annual illustration. Actual costs depend on loan length, the repayment schedule and each bank’s tariffs.

Fees take a large bite

The BEAC splits the effective rate into nominal interest and other charges. For individuals, fees and commissions made up 31.18 percent of the rate in the second quarter.

In plain terms, close to five of the 15.48 percentage points came from charges rather than interest. Fees weighed less for SMEs, at 18.2 percent, and for public administrations, at 16.9 percent.

Large companies had a higher fee share, 42.4 percent, but a much lower overall rate. The nominal interest they paid was therefore far below what individuals were charged.

Why households pay more

The report documents the gap but does not explain it. Banks generally charge households more because they see higher default risk, weaker collateral and higher costs per small loan.

Credit risk in the region remains high. Bad loans were 15.4 percent of gross bank credit in June, down from 17.4 percent a year earlier, the BEAC said.

Where you borrow matters even more

Differences between countries were wider than the gap between borrower types. Cameroon had the lowest average effective rate at 8.31 percent, followed by Chad at 8.47 percent and Congo at 10 percent.

Gabon was the most expensive at 21.51 percent, about 2.6 times Cameroon’s level. The Central African Republic stood at 14.36 percent and Equatorial Guinea at 13.82 percent.

Cameroon weighs most in the regional picture. It produces about 44 percent of the bloc’s economic output, based on IMF estimates for 2025.

The central bank holds its key rate

The BEAC’s Monetary Policy Committee met on Monday, 28 September, and kept its main lending rate at 4.50 percent. It had cut that rate from 4.75 percent in June.

The committee also left the marginal lending rate at 5.75 percent and bank reserve requirements unchanged. The report said the effects of the June cut take about eight quarters to work through fully.

Inflation is not the obstacle. Average annual inflation was 1.4 percent in June, below the bloc’s 3 percent ceiling, though the year-on-year rate rose to 2.3 percent.

The BEAC expects regional growth to slow to 3.0 percent in 2026 from 3.7 percent in 2025. It cited wars abroad and strains on world trade as reasons for caution.

What it means for residents, businesses and investors

For foreigners living or running a small business in the region, local credit is costly and heavy on fees. Comparing the full effective rate, not the headline interest rate, is essential.

For investors, the data show a lending market that favours large, established borrowers. Retail lending carries the widest pricing gap, but also the highest credit risk.

What to watch next

The BEAC’s next committee meeting will show whether it eases further to support slowing growth. Third-quarter lending rates should appear in its next quarterly report.

The key question is whether lower policy rates bring down Central Africa lending rates for households. In the second quarter, individuals gained the most in points, yet still paid the highest rate.

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