According to the latest monthly public debt report published by the Autonomous Sinking Fund (CAA), as of September 30, 2025, Cameroon held FCFA 5,641.9 billion in external financing that was either committed but undisbursed, or authorised but not yet signed. According to the latest monthly public debt report published by the Autonomous Sinking Fund (CAA), as of 30 September 2025, Cameroon held FCFA 5,641.9 billion in external financing that was either committed but undisbursed or authorised but not yet signed.This figure, which equates to nearly 1.5 times the FCFA 3,000 billion in debt projected in the 2026 Finance Law to cover the budget deficit, underscores the sheer scale of resources mobilised but awaiting implementation. This bottleneck comes at a time when the country faces critical needs in infrastructure, energy, and agricultural development.
The bulk of these resources consists of Committed Undisbursed Balances (SEND), which totalled FCFA 4,714.7 billion at the end of September 2025. These represent loans already signed with creditors—primarily multilateral institutions and bilateral partners—but for which disbursements have not yet been made. An additional FCFA 927.2 billion corresponds to financing authorised by presidential decree, for which loan agreements remain to be finalised. Once signed, these resources will feed into the same external financing pipeline. Together, they constitute a significant volume of contractually available capital whose economic impact remains deferred.
“Constrained” Balances and Bottlenecks
Within the stock of undisbursed loans, the CAA notes a significant proportion classified as “constrained,” valued at FCFA 2,856.4 billion—approximately 63% of the total committed undisbursed balances. This includes FCFA 1,943 billion linked to loans signed more than 5 years ago, FCFA 1,001.9 billion in financing that has seen no disbursements 6 months after signature, and FCFA 2,282 billion associated with projects where disbursement deadlines have expired or been extended. According to the CAA, these situations are primarily driven by delays in donors issuing no-objection letters, recurring difficulties in mobilising counterpart funds, and constraints related to expropriation procedures and the clearing of rights-of-way.
Although these funds have not yet been deployed on the ground, some continue to incur financial charges, particularly commitment fees under various external loan agreements. The State bears these costs without any immediate economic return. Furthermore, delays in project execution expose investments to inflationary pressures, progressively eroding the real value of the amounts initially negotiated. This situation persists amid debt service of FCFA 1,030.3 billion in the first nine months of 2025, underscoring the urgent need for more efficient use of borrowed resources.
The agricultural sector provides a concrete illustration of these dynamics. Among the authorised financings awaiting finalisation are two loans destined for the Cameroon Development Corporation (CDC), to be contracted with Standard Chartered Bank. They cover FCFA 47.07 billion for the construction of a rubber and palm oil processing unit, and FCFA 4.67 billion for related implementation costs. Totalling approximately FCFA 51.7 billion, these funds aim to support the revitalisation of one of the country’s leading agro-industrial players.
However, their objective echoes past initiatives. In 2012, authorities announced the mobilisation of roughly FCFA 51.8 billion for the modernisation of CDC facilities, with similar goals of reducing imports and boosting local value addition. More than a decade later, the persistence of these same priorities raises questions regarding the continuity of investments and the impact of the security and operational constraints that have affected the company in recent years.
Beyond agriculture, several strategic sectors are plagued by implementation delays. In the water supply sector, funding mobilised for the reconfiguration of the Yaoundé distribution system, backed by a consortium of international banks, remains partially undisbursed. In road infrastructure, the Ebolowa–Akom II–Kribi road project, authorised for an amount exceeding FCFA 130 billion, has not yet fully entered its execution phase. Finally, in the education sector, several credit lines for the Basic Education Support Project (PAEBC)—notably those from the Islamic Development Bank—remain in a preliminary deployment state. In each case, the availability of funding stands in stark contrast to the slow progress of deliverables.
Structural Factors and Recommendations
The CAA identifies several structural factors explaining these lags. Projects are often engaged before the full completion of preparatory phases, such as technical studies, land acquisition, or the compensation of affected populations. Additionally, the mobilisation of counterpart funds—generally ranging between 15% and 20% of the total project cost—remains a delicate exercise within a constrained budgetary environment. This is compounded by procurement procedures and approval circuits that can be lengthy, both at the national level and with technical and financial partners.
While authorities assess the global absorption rate of external financing as “average,” the volume of resources still awaiting disbursement indicates significant room for optimisation. To this end, the CAA recommends cancelling inactive balances linked to closed or permanently stalled projects, strengthening upstream project preparation before financing agreements are signed, and establishing more secure mechanisms for mobilising counterpart funds. Implementing these directives will be decisive in improving the economic impact of external financing while controlling the budgetary cost of non-productive debt.
Idriss Linge
