The Cameroonian government is in talks with the African Development Bank (AfDB) and the African Trade & Investment Development Insurance (ATIDI) to secure guarantees for a planned CFA585 billion borrowing on international capital markets in the coming months.
Finance Minister Louis Paul Motazé disclosed the discussions on February 19, 2026, in Douala during a presentation to investors of the government’s 2026 financing program.
The targeted funds would complete the CFA415 billion raised on January 30, 2026, in London through a private placement arranged by Citigroup, JP Morgan and Cygnum Capital. “Following this operation, and regarding the remaining CFA585 billion out of the total CFA1 trillion planned for international markets under the 2026 borrowing program, we have already initiated discussions with certain multilateral institutions, notably the AfDB and ATIDI, to put in place a credit enhancement mechanism that could allow us to secure more attractive financial terms and optimize our borrowing costs,” Motazé said.
Technically, credit enhancement is a financial arrangement in which a specialized institution provides a guarantee to a borrower on capital markets. Because the guarantor typically has a strong credit rating, the borrower may be able to raise funds at a lower interest rate.
Guarantees Tested by Market Conditions
In 2024, without credit enhancement, Cameroon raised CFA332 billion on international markets at a rate of 10.75%. Under similar conditions, on January 30, 2026, the country mobilized CFA415 billion at 10.12%. For that latest operation, the government executed a currency swap — shifting from a dollar-denominated loan to a euro-denominated one — reducing the effective rate to 7.79%.
The guarantee under negotiation with the AfDB and ATIDI aims to lower borrowing costs further. However, this will depend on overall market conditions. A highly rated guarantor does not automatically ensure lower interest rates.
In 2015, during its first international market issuance, Cameroon launched a $1.5 billion Eurobond. Despite a partial AfDB guarantee of €500 million, the country raised $750 million at 9.75%, later reduced to above 8% after a swap. That same year, Ghana issued debt with a partial World Bank guarantee but paid an even higher rate of 10.75%.
ATIDI Eyes Expanded Role in the Public Sector
Beyond interest rate reductions, the negotiations could strengthen ATIDI’s presence in Cameroon’s public sector. Since Cameroon joined the pan-African institution in 2021, ATIDI’s interventions have focused mainly on the private sector.
According to ATIDI Director General Manuel Moses, speaking May 6, 2025, in Yaoundé at the official launch of the institution’s operations in Cameroon, the guarantees and financial services provided by ATIDI helped mobilize around CFA130 billion in investments over four years. These investments covered renewable energy, agriculture, financial services and trade.
Brice R. Mbodiam
