By the end of September 2024, Cameroon had borrowed CFA1,541.1 billion from the money market, with CFA1,076.7 billion in Treasury bonds with maturities ranging from 2 to 10 years, typically used to finance infrastructure projects. Additionally, short-term Treasury bills (BTA) amounted to CFA464.4 billion, primarily used to address temporary cash flow shortages.
Investors from BVMAC, the unified financial market for CEMAC countries, claimed a total debt of CFA411.2 billion from Cameroon as of September 2024. 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. In 2023, Cameroon’s public savings campaign raised CFA176.7 billion, surpassing its CFA150 billion target.
Cameroon’s strong solvency and consistent success in the financial markets have contributed to the credibility of its debt, attracting investors to its bonds in nearly all of its fundraising operations. 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.
The debt situation of Cameroon’s public companies is a reflection of broader economic challenges facing the country. The government has been grappling with economic instability, partly due to fluctuating global commodity prices and internal security issues. The government’s efforts to diversify the economy and improve fiscal management are ongoing, but the high debt levels of public enterprises remain a significant hurdle.
The government has also been working on various reforms to improve the efficiency and financial health of state-owned enterprises. These reforms include better governance practices, increased transparency, and accountability measures. The goal is to ensure that these companies can operate more sustainably and contribute positively to the national economy.
Cameroon’s Public Debt Issuances Reach CFA1.95 Trillion by September 2024
