Financing a business in Cameroon
Finding money remains the main hurdle for people starting a business in Cameroon. Banks lend mostly to large companies, microfinance is widespread but fragile, and the state has multiplied schemes for young people, with mixed results. Most projects therefore start on personal savings, family money or a tontine before they can qualify for a loan.
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Banks: what does a loan cost?
The Bank of Central African States (BEAC) publishes every quarter the average annual percentage rate (TEG) of loans, that is their total cost including fees and insurance. In the fourth quarter of 2025, Cameroonian lenders granted 208,919 new loans worth 1,922.4 billion CFA francs, at an average rate of 8.38%. But the average hides wide gaps: large companies borrowed at 6.72% from banks, SMEs at 11.43% and individuals at 14.78%.
| Borrower | Amount | Average rate (banks) |
|---|---|---|
| Large companies | 1,236 billion CFA francs | 6.72% |
| SMEs | 376 billion | 11.43% |
| Public bodies | 167 billion | 8.10% |
| Individuals | 137 billion | 14.78% |
Non-bank financial institutions (leasing, consumer credit) cost more: an average of 19.16% for SMEs in the same quarter, according to the BEAC.
Microfinance
Cameroon accounts for most of Central Africa's microfinance: 384 microfinance institutions (MFIs) were operating there in 2024 according to the Central African Banking Commission (COBAC), or 73.7% of the 521 MFIs in the CEMAC zone, and they lent 659.4 billion CFA francs that year. The Ministry of Finance puts the number at more than 400.
The sector remains fragile. Several MFIs have closed in recent years, including Cofinest, Comeci, City Trust and Crédit du Golfe, as listed by Ecomatin. By a decision of 26 June 2025, COBAC placed UNICS Plc in Yaoundé under provisional administration for six months; on 25 March 2026 it withdrew the licence of CECIL, licensed since 2008, and ordered its liquidation over governance failures. Before depositing savings or borrowing, it is wise to check that the institution is licensed and not subject to a COBAC measure.
The Cameroon SME Bank (BC-PME)
Set up in 2015 with 20 billion CFA francs of entirely public capital, BC-PME was meant to ease SMEs' access to credit. Its lending has fallen sharply: in 2024 it financed only 85 project holders (77 men, 8 women) and turned down 42 applications, over insolvency, weak profitability or a business plan judged inadequate, according to Ecomatin. It lost 1.1 billion CFA francs in 2023; in February 2026 its shareholders approved a 40 billion capital increase, subject to COBAC approval (Agence Ecofin).
| Year | Loans |
|---|---|
| 2018 | 12.3 |
| 2019 | 6.7 |
| 2020 | 8.7 |
| 2021 | 19.1 |
| 2022 | 10.9 |
| 2023 | 7.05 |
| 2024 | 1.95 |
Public schemes for young people
| Scheme | Who | What it offers |
|---|---|---|
| FOGAJEUNE (young entrepreneurs' guarantee fund), MINJEC | Cameroonians aged 15 to 35 registered with the National Youth Observatory | Grants of up to 1.5 million CFA francs, interest-free loans, 8% loans from 10 to 25 million, guarantees on bank loans |
| PAJER-U (rural and urban youth support programme), created 2007, MINJEC | Cameroonians aged 15 to 30, with or without qualifications | Training, mentoring, grants and loans on a business plan; amounts not published |
| PIAASI (integrated support programme for informal sector workers), MINEFOP, created in the early 2000s | Young people and informal sector workers | Repayable microloans, with eleven months' grace and fifteen months to repay |
| FNE (National Employment Fund) | Jobseekers | Self-employment schemes, including MICROPAR for micro-businesses and PARIC for returning emigrants |
Announced by President Paul Biya on 10 February 2022 to replace the National Youth Integration Fund (FONIJ), FOGAJEUNE says it mobilised 26.5 billion CFA francs between 2023 and 2025: 6.5 billion in direct funding for 4,273 projects and a reported 12,861 jobs, and more than 20 billion in guarantees, through agreements signed with financial institutions in April 2024 (Campost, CCA, Crédit du Sahel, NFC Bank and Express Union among others). These are the fund's own figures. For PIAASI, about 4 billion CFA francs of loans were still to be recovered according to 237online, in a 2010 article updated in 2025.
Incubators and venture capital
Venture capital remains marginal: according to Partech, quoted by Forbes Afrique, Cameroonian start-ups raised only $14 million in 2024 across three deals, ranking the country 12th in Africa, far behind Nigeria ($520 million) and South Africa ($459 million). The support organisations named by Forbes Afrique in 2025 include ActivSpaces, Mountain Hub, Le Boukarou and Fako Capital.
ActivSpaces, an incubator in Buea chaired by the entrepreneur Rebecca Enonchong, is at the heart of the ecosystem she popularised as “Silicon Mountain” at a 2013 Barcamp. The Anglophone crisis hit it hard: according to Frenchweb (2019), the three-month internet shutdown imposed on the two English-speaking regions in 2017 pushed start-ups to move to Douala, and ActivSpaces, which had hosted about ten young firms, had just one left in 2019.
Mobile money and diaspora money
For small traders, mobile money has become the basic payment tool. According to the BEAC's 2024 payment services report, Cameroon had 30,992,177 mobile money accounts, which carried out 2.7 billion transactions worth 26,773 billion CFA francs, or 76.9% of the CEMAC total. Diaspora remittances via mobile money reached 1,354 billion CFA francs across the CEMAC in 2024, up 77%, with 60% coming from the European Union; the articles consulted do not give Cameroon's share alone.
These flows are mainly used for payments and transfers: the sources consulted give no reliable figures on mobile money microcredit or on productive investment by the diaspora. Support for returnees is covered on the diaspora return page, and group savings on the page about tontines and njangi.
Frequently asked questions
What interest rate do SMEs pay in Cameroon?
In the fourth quarter of 2025, SMEs borrowed from banks at an average all-in rate of 11.43%, according to the BEAC, against 6.72% for large companies.
How many microfinance institutions are there in Cameroon?
384 microfinance institutions were operating in 2024 according to COBAC, nearly three-quarters of the CEMAC total. The Ministry of Finance counts more than 400.
What is FOGAJEUNE?
The young entrepreneurs' guarantee fund, under the Ministry of Youth, funds and guarantees projects by Cameroonians aged 15 to 35: grants of up to 1.5 million CFA francs and low-interest loans.
Does the BC-PME lend to small businesses?
Yes, that is its mission, but its lending fell to 1.95 billion CFA francs for 85 project holders in 2024, the lowest in seven years according to Ecomatin.
How do you fund a start-up in Cameroon?
Venture capital is scarce: $14 million raised in 2024 according to Partech. Founders rely mostly on incubators such as ActivSpaces, public youth schemes and their own funds.
Handle with care
FOGAJEUNE's figures (projects funded, jobs) are its own and have not been independently verified. PAJER-U amounts are not published. The 4 billion CFA francs PIAASI recovery figure comes from a 2010 article, and its creation date varies by source (2002, 2003 or 2005). No reliable data was found on mobile money credit or on any FOGAC guarantee fund.