About 48.7% of microfinance institutions in the CEMAC region were rated “very fragile” as of 31 December 2025, according to the Central African Banking Commission’s annual report published on 22 October 2026. Only 17.9% were considered broadly sound.
The rating points to severe prudential weakness but does not automatically mean that an institution has stopped operating. It nevertheless shows that a large part of the sector has limited room to absorb a further deterioration in loan quality.
Non-performing loans increased by 33.2% over the year. The regional microfinance sector’s combined net profit collapsed by 89.4%, falling from CFAF 22.5 billion in 2024 to CFAF 2.4 billion in 2025.
The COBAC linked the deterioration to a higher cost of risk. Net provisions and depreciation charges rose 46.7% to CFAF 33.6 billion. General expenses increased 2% to CFAF 133.8 billion while net financial income edged down to CFAF 147.6 billion.
Cameroon, the region’s largest market, posted a combined loss of CFAF 6.87 billion after a CFAF 5.24 billion profit a year earlier. Congo and Gabon remained profitable at CFAF 5.24 billion and CFAF 3.3 billion respectively, while Chad earned CFAF 933 million.
A microfinance institution that raises provisions retains less profit to reinforce capital and extend new loans. That pressure can tighten credit supply for households and small businesses that rely on such lenders when conventional bank financing is difficult to obtain.
The report also recorded seven new provisional administration proceedings and five liquidation proceedings in 2025. Fourteen microfinance institutions were under provisional administration at year-end.