Cameroon is preparing to raise 585 billion CFA Francs on the international financial market to complete its 2026 external financing programme, following a first successful bond operation that mobilised 750 million US dollars, equivalent to about 415 billion CFA Francs. The new operation will bring total international mobilisation to the targeted 1,000 billion CFA Francs authorised for external markets.
The move forms part of a broader financing envelope approved by President Paul Biya, allowing the government to raise up to 1,650 billion CFA Francs to fund development projects and clear state arrears. The plan includes 400 billion CFA Francs on the domestic market, 250 billion CFA Francs from banks, and 1,000 billion CFA Francs internationally.
On 30 January 2026, Cameroon completed a 750 million US dollar bond issuance through a private placement in London. The seven-year bond, with a two-year grace period, was initially set at 600 million dollars but attracted demand close to 1 billion dollars, according to the Ministry of Finance. The transaction was arranged jointly by Citi, J.P. Morgan and Cygnum Capital.
The proceeds are earmarked for clearing outstanding payments from previous budgets, settling certified invoices linked to priority state projects, ensuring continuity and completion of public investments, and securing financing for the 2026 state budget. The government also implemented a USD/EUR currency swap to reduce exchange rate risk, bringing the effective coupon to 7.79 per cent in euro.
To secure more favourable terms on the forthcoming operation, the government is seeking the backing of the African Development Bank (AfDB) and the Africa Trade and Investment Development Insurance agency (ATIDI), which could provide guarantees for the transaction. The funds are earmarked to clear outstanding payment arrears from previous budgets, settle deductions related to priority state projects, and secure financing for the 2026 state budget.
Minister of Finance Louis Paul Motaze said debt should be assessed in terms of sustainability rather than volume. “It would be very important for everyone to understand that debt is not a problem. You can only finance your development if you have sufficient own resources, which is not the case for a country like Cameroon, notably with declining oil production,” he stated, adding that debt ratios depend on both the stock of debt and the country’s Gross Domestic Product.
The minister made the remarks in the context of falling oil revenues, noting that Cameroon, like other Central African economies, cannot rely solely on domestic resources to finance development.
As of end-2024, Cameroon’s general government debt stood at 43.4 per cent of GDP, well below the 70 per cent debt ceiling established by the Central African Economic and Monetary Community (CEMAC). While external debt stock indicators remain below the sustainability threshold, the country’s external debt service-to-exports and debt service-to-revenue ratios remain above the threshold, though both are on a downward trend.
The government said the forthcoming 585 billion CFA Francs raise remains consistent with its commitment to securing the resources needed to deliver on its economic and social priorities for the 2026 fiscal year.
Mercy Fosoh
