(Business in Cameroon) – The outstanding stock of government securities issued by CEMAC countries reached 9,086.6 billion CFA francs on the regional market managed by the Bank of Central African States (BEAC) at end-July 2025, up 31.1% year on year.
According to the Settlement and Securities Custody Unit (CRCT), the rise came as borrowing costs increased across all government instruments.
During the period, the average yield on fungible Treasury bills (BTAs) , short-term instruments used to cover liquidity needs , rose from 6.52% to 6.92% year on year. A similar rise occurred for fungible Treasury bonds (OTAs), which finance medium- and long-term projects, where yields reached 9.48% at end-July 2025, up from 9.06% a year earlier. This underscores higher financing costs for member states, though investor appetite remains strong.
The steady rise in public debt securities points to growing financing needs across the region. Specialized Treasury Securities Banks (SVTs) have been stepping in to meet demand, attracted by high yields and a repayment mechanism guaranteed by the BEAC.
However, SVTs are beginning to show strain under heavy demand. The average subscription rate fell sharply, from 71.81% to 6.40% year on year at end-July 2025, according to central bank data. Analysts attribute this to two factors: the sustained increase in sovereign borrowing and the requirement for SVTs to comply with prudential ratios.
The BEAC warned in its September 2025 Monetary Policy Report that the growing exposure of banks to government debt “warrants close monitoring,” citing risks of crowding out private lending and increasing sovereign risk exposure.
Despite rising costs and tighter coverage, the CEMAC government securities market remains a key source of financing for member states, highlighting the need to balance sovereign borrowing with the resilience of the regional banking system. Trends in debt levels, yields, and SVT oversight will remain central to assessing the market’s financial health.
BRM
