Banking the Informal Economy in Central Africa

Across Cameroon, motorcycle taxi drivers call it “bend-skin” - a nod to the bumpy roads that shake their bodies with every pothole.

This simple mode of transport has become an economic lifeline for millions across Central Africa. While most drivers don’t own their bikes outright, they represent a significant asset in economies where formal lending is scarce.

The Informal Finance Gap

Cameroon and neighboring countries like the Democratic Republic of Congo (DRC) face a unique challenge: vibrant informal sectors with limited access to formal credit. Here’s why:

• Prevalence of Informal Employment: Over 90% of Cameroon’s workforce is in the informal sector, including drivers, vendors, artisans, and small business owners.
• Cash-Based Economies: Transactions occur daily but often lack digital records that banks could use to assess creditworthiness.
• Mobile Money Adoption: While mobile payments are widespread (28% of adults have accounts), formal borrowing remains low.

This disconnect creates a significant financing gap for entrepreneurs who generate income every day but struggle to access capital for growth.

BEE’s Solution: Asset-Backed Lending

Enterprises like BEE are emerging to bridge this divide. They specialize in:

• Verifying Income: Using digital tools and partnerships with mobile money providers to track daily earnings.
• Securing Loans with Assets: Allowing drivers, vendors, and others to use their motorcycles, smartphones, or other equipment as collateral.
• Providing Flexible Repayments: Tailoring loan terms to match irregular income patterns common in informal sectors.

By leveraging these approaches, BEE is helping unlock access to finance for millions who were previously excluded from the formal banking system.

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