Economic activity across the Central African Economic and Monetary Community (CEMAC) improved during the second quarter of 2026, according to the Bank of Central African States (BEAC). However, the latest figures also show that inflationary pressures have not completely disappeared, despite the regional average remaining below the 3% benchmark.
BEAC reported that its Composite Economic Activity Index (ICAE) increased by 5.9% year-on-year in the second quarter of 2026, compared with 5.1% in the first quarter. The figures suggest that economic activity gained momentum during the period, supported by developments in trade, services and other productive sectors.
At the same time, average annual inflation in CEMAC stood at 1.4% at the end of June 2026, below the regional benchmark of 3%. However, year-on-year inflation rose from 1.0% in March to 2.3% in June, indicating that some price pressures were increasing.
For Cameroon, the largest economy in the CEMAC sub-region, the figures provide a mixed but generally encouraging picture of economic conditions.
Economic Activity Accelerates in the Second Quarter
According to BEAC, the 5.9% increase in the regional economic activity index represents an improvement over the 5.1% recorded during the first quarter of 2026.
The index measures changes in economic activity across several sectors in CEMAC’s six member countries: Cameroon, Gabon, Chad, the Central African Republic, Congo and Equatorial Guinea.
It is important to distinguish this indicator from Gross Domestic Product (GDP) growth. The 5.9% figure represents an increase in BEAC’s Composite Economic Activity Index and should not be interpreted as the region’s official GDP growth rate.
The improvement suggests that economic activity was stronger during the second quarter, although this does not necessarily mean that all sectors or businesses experienced the same level of growth.
In Cameroon, commercial activities, telecommunications, financial services and other service-related businesses play an important role in the country’s economy.
An improvement in these sectors can have wider effects on employment, consumption, transport and business transactions.
However, the regional index does not provide a complete picture of the financial situation of every company or household.
Cameroon Remains Important to Regional Economic Performance
Cameroon continues to play a central role in CEMAC’s economic performance because of the size and diversity of its economy.
Unlike some neighbouring countries that depend heavily on petroleum revenues, Cameroon has a comparatively diversified economic structure, covering agriculture, manufacturing, commerce, transport and services.
Economic developments in Douala, Yaoundé and other major commercial centres can therefore influence economic activity elsewhere in the sub-region.
For example, improvements in commercial activity may benefit transport operators, wholesalers, retailers and businesses involved in supplying goods across borders.
The expansion of digital financial services, particularly mobile money, has also contributed to changing how businesses and consumers carry out transactions.
Nevertheless, challenges such as unreliable electricity supply, transport difficulties, limited access to affordable financing and administrative costs continue to affect many enterprises.
For smaller businesses, particularly those operating informally, stronger regional economic indicators may not immediately translate into higher sales or improved profitability.
Related Reading: Cameroon’s business environment and the challenges facing SMEs
Inflation Remains Below 3%, but Price Pressures Persist
One important finding in BEAC’s report concerns inflation.
According to the central bank, average annual inflation in CEMAC stood at 1.4% at the end of June 2026, remaining below the regional benchmark of 3%.
However, this does not mean that prices were falling or that inflationary pressures had disappeared.
BEAC also reported that year-on-year inflation increased to 2.3% in June, compared with 1.0% in March 2026.
These figures measure inflation over different periods.
Average annual inflation reflects changes in consumer prices over a twelve-month period, while year-on-year inflation compares prices in a particular month with prices in the corresponding month of the previous year.
Both figures can therefore be correct without contradicting each other.
For households and businesses in Cameroon, the distinction is important.
Prices of food, transportation, construction materials and other essential goods can continue increasing even when average inflation across the sub-region remains relatively low.
A lower inflation rate simply means that prices are increasing more slowly than before. It does not necessarily mean that goods and services have become cheaper.
The report consequently presents a mixed picture: economic activity is improving, but businesses and households must still contend with price pressures and wider economic uncertainty.
What the Figures Mean for Cameroonian Businesses
For businesses in Cameroon, the BEAC report offers useful information for planning, investment and financial management.
Stronger economic activity may create opportunities for companies involved in trade, distribution, transportation, telecommunications, banking and professional services.
A relatively stable regional inflation environment can also make it easier for businesses to prepare budgets and anticipate operating expenses.
However, business owners should avoid relying entirely on regional economic indicators when making financial decisions.
A retailer in Douala, for example, may still face reduced customer purchasing power even when regional trade activity is improving.
Similarly, a manufacturer may experience higher production costs because of electricity shortages, transportation expenses or the cost of imported raw materials.
Companies considering expansion should therefore examine their own sales performance, operating costs, cash flow and market demand before committing additional resources.
For small and medium-sized enterprises, maintaining proper financial records remains particularly important during periods of economic uncertainty.
Related reading: The role of microfinance institutions in financing Cameroon’s economy
Economic Challenges Have Not Disappeared
Despite the improvement recorded during the second quarter, the CEMAC economy continues to face structural challenges.
These include dependence on commodity exports, infrastructure limitations, pressure on public finances and difficulties affecting private-sector investment.
Several economies in the sub-region remain vulnerable to changes in international oil prices and other global market conditions.
Cameroon also continues to face challenges relating to electricity supply, transport infrastructure, business financing and the cost of production.
These difficulties can limit the extent to which stronger regional economic performance translates into improvements in employment, household incomes and business profitability.
Consequently, an increase in BEAC’s economic activity index should not be interpreted as evidence that the region has overcome its economic problems.
It is a positive indicator, but only one of several measures needed to assess the wider economic situation.
Outlook for the Coming Months
The performance of the CEMAC economy during the coming quarters will depend on several factors, including regional trade, private investment, infrastructure development, public spending and international market conditions.
For Cameroon, improvements in electricity supply, transportation, access to financing and the business environment could help sustain economic activity.
The evolution of inflation will also require attention, particularly if year-on-year price increases continue to accelerate.
BEAC’s second-quarter figures nevertheless provide some encouragement.
Economic activity gained momentum in CEMAC during Q2 2026, while average annual inflation remained below the regional benchmark of 3%.
For Cameroon and other member countries, the challenge will be to translate that improvement into stronger businesses, increased employment and better living conditions.
The figures are encouraging, but they should be understood alongside the continuing economic difficulties faced by households and businesses throughout the sub-region.
Sources
Bank of Central African States (BEAC)
Composite Economic Activity Index (ICAE), second quarter of 2026.
Inflation developments in CEMAC, end-June 2026.
Official website: https://www.beac.int
Cameroon Tribune — 20 October 2026
CEMAC: Economic Activity Improves
Cameroon Tribune — 21 October 2026
CEMAC Economic Health: Effects of Rising Inflation
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