Cameroon’s finance minister has been granted approval to secure up to 930 billion CFA francs ($1.67 billion) in domestic and external loans to finance development projects and clear arrears, according to a presidential decree.
The funding will be sourced through several channels, including 350 billion CFA francs from treasury bond issues on the local market, 250 billion CFA francs from domestic private lenders, and 330 billion CFA francs from international banks, the decree outlined.
The country has been struggling with delays in external financing and shortfalls in revenue collection, particularly in non-oil taxes.
“The decision signals market confidence, boosts liquidity and maintains debt sustainability within CEMAC norms, reinforcing Cameroon’s commitment to macroeconomic stability and structural reform continuity,” said Kelly Mua Kingsly, head of finance operations at the finance ministry.
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As Central Africa’s largest economy, with key industries in oil and gas, cocoa, and timber, Cameroon has increased its borrowing in recent years to cover budget deficits and invest in infrastructure. But concerns remain.
The International Monetary Fund warned last month that the country faces a high risk of debt distress, even as it noted that overall debt is still sustainable.
Figures from the Autonomous Sinking Fund, Cameroon’s debt management agency, show public debt stood at 43% of GDP in June 2025, well below the 70% ceiling set by the Central African Economic and Monetary Community (CEMAC).
Still, analysts caution that growing dependence on loans and weak debt management practices could heighten exposure to economic shocks.
“The effectiveness greatly depends on the use of borrowed funds. In the case of Cameroon, a significant envelope remains idle, a symptom of a governance or strategic planning deficit,” said Haiwang Djamo Ferdinand, an economic policy analyst at the Cameroon Economic Policy Institute in Yaoundé.
The government has yet to specify which projects will be financed with the new borrowing.
In recent years, Cameroon has leaned heavily on both domestic and external loans to close budget gaps. ($1 = 558.0000 CFA francs), Reuters reported.
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Image Credit: The RECORDER Newsline
