(Business in Cameroon) – Cameroon plans to secure a “major external loan” of 650 billion CFA francs, approximately $1.16 billion, in 2026, according to an official document. The specifics of the transaction, which requires approval through the national budget law, have not yet been disclosed. It remains unclear whether the financing will come from international banks, multilateral institutions, partner nations, or through a bond issuance on public or private global capital markets.
Preliminary data as of March 31, 2025, shows Cameroon’s external debt stock at 8.56 trillion CFA francs, or about $14.1 billion. This figure notably appears to exclude the $550 million Eurobond arranged in 2024 by UK-based Cygnum Capital and U.S. investment bank Citigroup.
Breaking down the debt profile, 4.32 trillion CFA francs is owed to multilateral financial institutions, 2.88 trillion to bilateral lenders or partner states, and 1.69 trillion constitutes commercial debt. Of the commercial debt, 813.5 billion CFA francs comprises Eurobonds, including the 2024 issuance.
Another venture into international capital markets would not be surprising. However, Fitch Ratings downgraded the country’s sovereign risk rating to a negative outlook in May 2025. During its last Eurobond issue in 2024, Cameroon secured financing at a 9.5% interest rate, highlighting investor concerns about its credit profile. As of now, there has been no official confirmation of ongoing discussions with the International Monetary Fund, the African Development Bank, or other multilateral or bilateral lenders regarding this financing package.
Cameroon’s financial flexibility may expand with the anticipated repayment of its first Eurobond, issued in 2015, on November 19, 2025. This could open the door for new market activity. The proposed 2026 loan may, therefore, present an opportunity for investment banks and financial advisors specializing in sovereign debt operations.
According to government estimates, the funds will help bridge a 2026 budget financing gap of 2.12 trillion CFA francs. Should Cameroon opt for another Eurobond, it would mark its fourth such operation since 2015. The stakes are high, especially as investors assess the country’s economic stability in the lead-up to what is expected to be a contentious presidential election year.
Written in French by Idriss Linge,
Translated and adapted into English by Mouka Mezonlin
