The Credit Information Bureau (CIB), established on January 20, aims to transform access to financing by reducing information asymmetry between lenders and capital seekers. This is great news for SMEs.

Cameroon now has a Credit Information Bureau(CIB). The institution was officially launched in Douala on January 20. With branches set to open across the country, the CIB will collect data on borrower credit worthiness from banks, microfinance institutions, and service providers, allowing for more precise and reliable risk assessment. This initiative is expected to lower the cost of credit, improve risk management, and accelerate the financing of SMEs by banks and other credit institutions.

The Credit Information Bureau will gather available data on a borrower’s credit or payment history from financial organizations, public sources, and major utility providers (electricity, water, and telecommunications companies). The CIB will then process the collected information using appropriate statistical and IT techniques. Finally, it will commercialize or provide this processed information to credit institutions in the form of credit worthiness reports or credit scoring.

Essential Decision-Making tools for granting loans

Banks will now have access to reliable information on loan applicants, enabling them to make swift decisions on whether or not to grant credit. "We have frequently deplored the fact that SMEs lack access to financing. One of the reasons is the lack of information that would allow lenders to better analyze the risk associated with a potential loan. This credit bureau, which serves as a type of information database, will therefore allow banks and microfinance institutions to better understand the risk and thus accelerate SME financing," stated Michel Dzombala, Vice-Governor of the BEAC.

This position is shared by Dr. André Arnaud Enguene, an economics lecturer at the University of Yaoundé 2 (Soa). For him, the CIB represents a significant opportunity for SMEs. "In a context marked by high levels of non-performing loans, an under-utilization of credit lines (often below 50% in the CEMAC zone), and difficulties for SMEs to access financing, this initiative brings undeniable added value. Notably, it reduces the information asymmetry between banks and borrowers, facilitating a more accurate risk assessment. For SMEs, which are often excluded from the financial system due to a lack of reliable information, the generation of credit scores enhances their 'reputational capital.' The lack of a previous track record thus becomes an opportunity rather than a barrier, encouraging their inclusion in the credit circuit. This mechanism also contributes to restoring trust between banks and SMEs," he maintained.