Cameroon is gearing up to raise 585 billion CFA francs (US$985 million) on international markets, following a successful US$750 million bond placement in London earlier this year, the Ministry of Finance said on Thursday. The new issuance is part of the government’s broader 2026 financing program, targeting a total of 1,000 billion CFA francs from external markets.
The move comes under a development envelope approved by President Paul Biya, allowing the state to raise up to 1,650 billion CFA francs through a combination of domestic and international sources: 400 billion CFA francs domestically, 250 billion CFA francs from banks, and 1,000 billion CFA francs internationally.
Cameroon’s first 2026 international operation, completed on January 30, involved a seven-year bond with a two-year grace period. Initially set at US$600 million, the issue drew nearly $1 billion in demand, reflecting strong investor appetite. The London transaction was arranged by Citi, J.P. Morgan, and Cygnum Capital, with proceeds allocated to clear arrears from previous budgets, finance priority state projects, and support the 2026 state budget. A USD/EUR currency swap was also implemented to reduce exchange rate risk, bringing the effective euro coupon to 7.79 percent.
For the upcoming CFA585 billion operation, the government is seeking guarantees from the African Development Bank (African Development Bank) and the Africa Trade and Investment Development Insurance (ATIDI) agency to secure favorable terms. The funds will similarly be directed to settle outstanding invoices, finance priority projects, and ensure continuity of public investment.
Finance Minister Louis Paul Motaze stressed that the focus should be on debt sustainability rather than volume. “Debt is not a problem. You can only finance your development if you have sufficient own resources, which is not the case for a country like Cameroon, notably with declining oil production,” he said, noting that debt ratios depend on both the stock of debt and GDP.
Cameroon’s general government debt stood at 43.4 percent of GDP at the end of 2024, well below the 70 percent ceiling set by the Central African Economic and Monetary Community (CEMAC). While external debt service-to-exports and debt service-to-revenue ratios remain above recommended thresholds, both indicators are trending downward, according to the ministry.
The government emphasized that the forthcoming bond issuance aligns with its commitment to securing resources necessary for delivering economic and social priorities for 2026, particularly amid declining oil revenues and limited domestic resources. Analysts view Cameroon’s strategy as a continuation of a cautious but proactive approach to leveraging international capital markets while maintaining debt sustainability.
If successful, the new issuance will complement the January London bond, bringing Cameroon closer to meeting its external financing target for the year and reinforcing investor confidence in its debt management strategy.
Cameroon, a Central African nation with a diverse economy anchored in oil, agriculture, and services, relies heavily on external financing to support public investment and fiscal stability. Domestic revenues, particularly from oil, have been declining in recent years, prompting the government to supplement its budget through international bond markets.
The country operates under the debt framework of the Central African Economic and Monetary Community (CEMAC), which sets a 70 percentof GDP ceiling for general government debt. As of end-2024, Cameroon’s debt stood at 43.4 percent of GDP, well below the ceiling, though external debt service ratios remain a key metric for assessing sustainability.
Cameroon has increasingly turned to international capital markets to finance development priorities, including infrastructure projects, social programs, and the clearance of past budget arrears. Its bond issuances, typically arranged through major international banks such as Citi, J.P. Morgan, and Cygnum Capital, attract strong investor demand, reflecting confidence in the country’s fiscal management and economic stability.
The government also seeks guarantees from multilateral institutions like the African Development Bank (African Development Bank) and the Africa Trade and Investment Development Insurance (ATIDI) agency to secure better terms and mitigate risk.
Cameroon’s debt strategy emphasizes sustainability over absolute volume, prioritizing prudent borrowing to support development while managing currency, interest rate, and repayment risks. International bonds are complemented by domestic market operations and bank financing, forming part of a broader 2026 financing envelope approved by President Paul Biya to fund public investments and maintain fiscal stability.
This strategy reflects Cameroon’s approach to leveraging capital markets for long-term development goals while keeping debt ratios within regional and international benchmarks, ensuring continued investor confidence and macroeconomic resilience.
