From 2026, the exemption from the tax on income from movable capital (IRCM) will no longer apply only to investments in public securities issued by the Cameroonian state on the monetary (BEAC) and financial (Bvmac) markets. Investors holding sovereign bonds issued by other Cemac countries will also fall within the scope of the measure.
Cameroon’s 2026 finance law extends to bonds issued by the five other Cemac states the exemption from a 16.5% tax on the taxable amount, including 1.5% in additional municipal surcharges. The tax is normally applied to profits earned on financial investments, such as dividends on shares and interest income from securities.
In practical terms, the government is no longer limiting its efforts to encouraging local and foreign investors to finance public projects in Cameroon through fund-raising on the BEAC public securities market and the subregional financial market. It is also seeking to promote public investment across the entire Cemac zone by leveraging these two capital markets.
Already dominant role of Cameroonian investors
According to a senior official at the tax department of the Ministry of Finance, the reform is part of a subregional integration strategy, as it “harmonizes the treatment of public bonds in the region, while encouraging cross-border investment and improving the liquidity of the Cemac financial market.”
Extending the IRCM exemption to profits earned on public securities issued by other Cemac countries is expected to further strengthen the already dominant role of Cameroonian investors in the subregional market. As of the end of February 2025, they held more than 50% of the total debt raised by Cemac states on the subregional market, according to central bank data.
Beyond Cameroonian Treasury securities, which are already in high demand, the IRCM reform on regional bonds is expected to increase the appeal of securities issued by other Cemac countries among investors based in Cameroon. This could help energize a subregional market that is increasingly used by states, both to meet short-term cash needs and to finance investment projects.
Brice R. Mbodiam
