Financing agreement signed by two banks

The Arab Bank for Economic Development in Africa (BADEA) and the Development Bank of the Central African States (BDEAC) have signed a 30 million euro (33.6 million dollar) financing agreement to support small and medium-sized enterprises (SMEs) in the Central African Economic and Monetary Community (CEMAC). The agreement was announced by the BDEAC on Tuesday, October 13.

Goal of the funding initiative

The funds are intended to improve access to credit for SMEs in CEMAC and to strengthen private sector financing in the region. The initiative aims to accelerate investments that drive economic growth, create jobs, and promote regional integration among CEMAC countries.

BADEA president highlights benefits

Abdullah Almusabeeh, president of BADEA, stated that the agreement will enhance the BDEAC’s ability to finance projects with significant economic and social impact. These projects are expected to support regional integration, private sector development, job creation, and improved living conditions across CEMAC.

Challenges in accessing credit persist

Despite the new funding, access to credit remains a challenge for many businesses in the region. According to a report by the Bank of the Central African States (BEAC), the average effective interest rate for SME loans in CEMAC was 11 percent in the first quarter of 2026, slightly up from 10.73 percent the previous year.

Credit volume and costs remain high

The BEAC report also noted that new credit granted to SMEs totaled 565.9 billion CFA francs in the first quarter of 2026, a 5.76 percent decrease compared to the same period last year. Additionally, fees and commissions make up 40.49 percent of the total effective rate, highlighting the ongoing difficulties SMEs face in accessing affordable financing.