(Business in Cameroon) – The Cameroonian government has earmarked CFA110 billion for 2025 to clear outstanding debts owed by financially autonomous public entities, including local governments, state-owned enterprises, and public service organizations. This marks a 120% increase from the CFA50 billion allocated in 2024, Finance Minister Louis Paul Motaze announced.
The funds will cover a portion of the government’s broader debt repayment plan. Minister Motaze assured that payment decisions for other outstanding debts are being finalized to ensure disbursements begin early in the year. These debts include CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts, bringing the total to CFA261 billion.
This debt repayment effort is part of a larger plan to clean up public finances. “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019,” Minister Motaze said during the March 7 inauguration of the new Douala Treasury building. The goal is to reduce public debt, which poses risks to budget stability and the government’s financial credibility.
The minister acknowledged that delayed payments have serious consequences, affecting businesses’ access to credit, financing costs, investment decisions, employment, banking stability, and overall economic growth.
With the exception of tax and customs-related debts, which will be settled over seven years, the government plans to clear all other obligations between 2024 and 2026. Minister Motaze emphasized that this initiative aims to provide financial relief to businesses and service providers owed money by public entities.
