(Business in Cameroon) – As of September 30, Cameroon’s public debt, issued through the Treasury securities market of the Bank of Central African States (BEAC) and the Central African Stock Exchange (BVMAC), reached CFA1,953.3 billion. This amount was reported by the National Sinking Fund (CAA), which manages the country’s public debt. According to the CAA’s latest economic update, the majority of this debt consists of loans raised through the money market.
On this market, which offers an alternative financing source for the six CEMAC countries (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic), Cameroon’s borrowings stood at CFA1,541.1 billion by the end of September 2024. Of this amount, CFA1,076.7 billion are Treasury bonds with maturities ranging from 2 to 10 years, typically used to finance infrastructure projects. Meanwhile, Cameroon’s short-term Treasury bills (BTA) amounted to CFA464.4 billion as of September 30, 2024. These are primarily used to address temporary cash flow shortages and have a maturity of less than one year.
On top of these market-based borrowings, investors from BVMAC, the unified financial market for CEMAC countries, claim a total debt of CFA411.2 billion from Cameroon as of September 2024. According to the CAA, this amount results from two bond issues launched by the country in 2022 and 2023. The 2022 bond, with a 7-year maturity and an interest rate of 6.25%, raised CFA235 billion—exceeding its CFA200 billion target. On May 26, 2023, Cameroon paid CFA14.6 billion to cover the first tranche of this loan.
Cameroon’s 2023 public savings campaign, the seventh in the country’s history, raised CFA176.7 billion, surpassing its CFA150 billion target. To increase the chances of success in the challenging capital market environment, which was marked by rising interest rates, Cameroon opted for a multi-tranche bond. This made the country a pioneer in this type of bond issuance in the CEMAC region. Multi-tranche bonds offer flexibility to investors, allowing them to choose longer maturities with higher interest rates or shorter maturities with lower rates.
According to the CAA, Cameroon’s public debt on the regional market accounts for 54% of the country’s domestic debt. Given Cameroon’s strong solvency, as demonstrated by the Treasury’s consistent success in the financial markets, repayment of these loans is unlikely to pose a problem. Since its first public savings campaign in 2010 and its first Treasury bond issuances on the BEAC market in 2011, Cameroon has not defaulted on any debt payments in nearly 15 years. This track record has contributed to the credibility of its debt, attracting investors to its bonds in nearly all of its fundraising operations.
