The Cameroonian government is in discussions with the African Development Bank (AfDB) and the African Trade & Investment Development Insurance (ATIDI) to secure guarantees covering a planned CFA585 billion borrowing on international capital markets in the coming months.
Finance Minister Louis Paul Motazé disclosed the information on February 19, 2026, in Douala during a presentation to investors of the government’s 2026 financing program.
The planned operation 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 transaction, 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 involves a specialized institution providing a guarantee to a borrower in capital markets. Because the guarantor typically holds a strong credit rating, the mechanism can help lower the interest rate at which funds are raised.
Guarantees and Market Realities
In 2024, without credit enhancement, Cameroon raised CFA332 billion on international markets at an interest rate of 10.75%. Under similar conditions, on January 30, 2026, the country mobilized CFA415 billion at 10.12%. For that transaction, 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 guarantees under negotiation with AfDB and ATIDI aim to reduce borrowing costs further. However, favorable global market conditions remain essential. A highly rated guarantor does not automatically ensure lower interest rates.
In 2015, during its first international capital 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 just 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’s Expanding Role
Beyond lowering interest rates, the negotiations could strengthen ATIDI’s position in Cameroon’s public sector. Since Cameroon joined the pan-African institution in 2021, ATIDI’s interventions in the country have focused mainly on the private sector.
According to ATIDI Director General Manuel Moses, speaking on May 6, 2025, in Yaoundé during the official launch of the institution’s operations in Cameroon, guarantees and financial services provided by ATIDI have helped mobilize about CFA130 billion in investments over four years. These investments covered renewable energy, agriculture, financial services and trade.
Brice R. Mbodiam
