Cameroon is preparing a major financial reinforcement for its state owned Small and Medium Enterprises Bank, known as BC PME, as part of broader efforts to stimulate domestic production and expand access to credit for businesses. The institution has approved plans to increase its share capital by CFA40 billion, a move that would triple the bank’s equity base and strengthen its capacity to finance small and medium sized enterprises across the country.
The decision was taken during a multi year and mixed general assembly held on February 26, 2026 in the capital Yaoundé. However, the capital increase will only take effect after receiving authorization from the Central African Banking Commission, the regional banking regulator responsible for supervising financial institutions in the Central African Economic and Monetary Community.
If approved by the regulator, BC PME’s share capital will rise from CFA20 billion to CFA60 billion. The recapitalization will be achieved through the issuance of four million new shares with a nominal value of CFA10,000 each. These shares will be entirely subscribed by the Cameroonian state, which currently remains the bank’s sole shareholder.
The planned capital increase represents one of the most significant financial reinforcements for a public development bank in Cameroon in recent years. Government officials view the measure as a strategic step to enhance the country’s financial support mechanisms for small and medium sized enterprises, which are widely considered a critical engine for economic growth and employment.
Funding for the recapitalization will come from Cameroon’s Integrated Agropastoral and Fisheries Import Substitution Plan, a large scale public initiative designed to reduce the country’s dependence on imported food products and stimulate domestic production in agriculture, livestock and fisheries. The program forms part of a broader government strategy aimed at strengthening local value chains and improving food security.
Through this arrangement, the funds transferred to BC PME will be used to finance private sector operators involved in priority sectors targeted by the import substitution program. These sectors include crop production, livestock development, fisheries and agro processing activities that can replace imported goods with locally produced alternatives.
Cameroon has long faced a significant import bill for food products such as rice, wheat, maize and fish. According to government data, the country spent an average of about CFA3,000 billion annually between 2013 and 2022 on importing these essential commodities. This heavy reliance on imports has prompted policymakers to pursue aggressive strategies aimed at boosting domestic production capacity.
The Integrated Agropastoral and Fisheries Import Substitution Plan, which runs from 2024 to 2026, has been allocated an overall budget of around CFA1,500 billion to support the development of local production systems and reduce dependency on foreign food supplies. The initiative prioritizes investments in agricultural production, processing infrastructure and financial support mechanisms for local businesses.
Within this framework, BC PME plays a crucial role as a financial intermediary responsible for channeling funds to eligible enterprises. The bank specializes in providing credit and financial services tailored to small and medium sized enterprises, a segment that often struggles to access financing from traditional commercial banks.
In recent years, Cameroonian authorities have intensified efforts to strengthen the country’s SME ecosystem, recognizing the sector’s importance in job creation and economic diversification. Small businesses account for a large share of economic activity in Cameroon but frequently face barriers such as limited access to capital, high borrowing costs and insufficient technical support.
By significantly increasing BC PME’s capital base, the government aims to expand the bank’s lending capacity and allow it to finance more projects across strategic sectors of the economy. The additional capital will also strengthen the bank’s balance sheet, enabling it to comply with evolving regulatory requirements within the regional banking system.
Regulatory reforms within the Central African Economic and Monetary Community have recently raised minimum capital requirements for financial institutions, pushing banks to reinforce their equity positions to maintain compliance with prudential standards.
Analysts say that strengthening development focused financial institutions such as BC PME could play an important role in Cameroon’s broader economic transformation agenda. By facilitating access to financing for small producers, agro processors and rural entrepreneurs, the bank could help unlock new investment opportunities and stimulate job creation.
The planned recapitalization also reflects the government’s continued focus on supporting the non oil sector of the economy. While oil has historically been a key contributor to national revenue, policymakers increasingly view agriculture, manufacturing and small scale enterprise development as more sustainable sources of long term growth.
If approved by the regional banking regulator, the capital increase could mark a significant step in Cameroon’s efforts to build a stronger domestic production base while empowering local businesses to compete more effectively in regional and international markets.
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