Cameroon’s Road Fund is operating with barely half of its planned annual budget, as recurring cash shortages have prevented the full transfer of funds allocated under successive finance laws, according to official figures.
The Road Fund, which finances maintenance of the country’s road network, was allocated CFA60 billion per year in recent budgets. However, actual collections reached CFA35 billion in 2023, CFA30 billion in 2024 and CFA35 billion in 2025, the Ministry of Public Works said.
The ministry, which serves as the fund’s technical supervisor, argues that the shortfall contravenes the mechanism established to ensure stable financing of road maintenance. Under the agreement, the Treasury is required to transfer to the Road Fund each month one-twelfth of its annual allocation through an automatic debit system, guaranteeing predictable cash flow for ongoing works.
In practice, liquidity constraints have repeatedly disrupted that mechanism.
In November 2025, transfers to the Road Fund were suspended altogether, reflecting mounting fiscal pressures and competing budget priorities.
More Read
In a letter dated Nov. 11, 2025, Finance Minister Louis Paul Motaze informed the fund’s administrator that automatic debits would be halted for November and December. The decision, he wrote, was intended to enable the Treasury to meet urgent obligations, including the payment of salaries and pensions as well as part of the country’s external debt service.
At the time, arrears on external debt stood at CFA145 billion, underscoring the strain on public finances.
The move to divert resources from road maintenance highlights the government’s fiscal hierarchy, with wage bills, social payments and debt servicing taking precedence amid tightening liquidity conditions.
More Read
For the 2025 fiscal year, the Road Fund reported a projected budget of CFA61.4 billion. Of that amount, CFA25.8 billion was injected into the domestic economy through payments to contractors executing maintenance works, according to official data.
The persistent gap between the CFA60 billion annual allocation and the CFA30–35 billion actually disbursed has weighed on maintenance planning and the regular execution of projects across the national road network.
Industry observers say unpredictable funding complicates contract scheduling and increases costs, as contractors face delays in payment and interruptions in works. Over time, insufficient maintenance can accelerate the deterioration of road infrastructure, potentially raising rehabilitation costs in the future.
The Road Fund plays a central role in preserving Cameroon’s transport network, which is critical for trade, agriculture and regional connectivity in Central Africa. Roads link production zones to urban markets and to neighbouring countries, supporting both domestic commerce and exports.
However, the Treasury’s recurring cash management challenges have exposed structural vulnerabilities in public finance execution. While finance laws provide for dedicated allocations, actual disbursements depend on available liquidity and competing state obligations.
Officials have not indicated whether measures will be introduced in 2026 to restore the full automatic transfer mechanism or compensate for past shortfalls.
For now, the fund continues to operate with reduced resources, adjusting its maintenance programme to available cash rather than approved budget ceilings, as fiscal pressures persist.
Cameroon’s Road Fund was created to secure predictable financing for the maintenance of the national road network, amid concerns that reliance on the central budget led to chronic underfunding and rapid infrastructure deterioration.
Established in the late 1990s as part of broader public finance and transport sector reforms, the fund was designed as a second-generation road fund, meaning it would benefit from dedicated revenue streams and an automatic transfer mechanism intended to shield maintenance spending from political and cash management pressures.
Its resources are primarily drawn from levies on fuel consumption, road user charges and other earmarked fees collected by the Treasury. In principle, these revenues are consolidated and transferred monthly to the fund in amounts equivalent to one-twelfth of the annual allocation voted in the finance law.
The objective is to guarantee continuity in routine and periodic maintenance works, which are generally less costly than full rehabilitation or reconstruction once roads have deteriorated. Stable funding is considered essential for planning multi-year contracts and maintaining the confidence of private contractors.
Background to Cameroon’s road network
Cameroon’s road network spans tens of thousands of kilometres, but only a portion is paved. Many secondary and rural roads remain vulnerable to seasonal damage, particularly during heavy rains. Poor maintenance can lead to higher vehicle operating costs, longer travel times and disruptions in the movement of agricultural produce from rural areas to urban markets.
The Road Fund finances maintenance works, while major new construction and rehabilitation projects are typically handled directly by the Ministry of Public Works through separate budget lines or external financing arrangements with development partners.
In recent years, Cameroon has relied on external borrowing to finance large-scale infrastructure, including highways, bridges and port access roads. This has contributed to rising public debt and heightened sensitivity to debt service obligations, which compete with domestic spending priorities such as wages and pensions.
The government has been implementing fiscal consolidation measures under programmes supported by the International Monetary Fund, aimed at stabilising debt levels and improving public financial management. These reforms include efforts to enhance revenue mobilisation and rationalise expenditures.
However, cash flow constraints at the Treasury level have periodically disrupted earmarked transfers to autonomous funds, including the Road Fund. Analysts say that while allocations appear in finance laws, effective disbursement ultimately depends on liquidity conditions and the state’s immediate payment obligations.
Transport infrastructure is considered critical to Cameroon’s ambition to serve as a logistics hub in Central Africa, given its access to the Atlantic coast and its role as a transit corridor for landlocked neighbours such as Chad and the Central African Republic. Road quality directly affects trade flows through the port of Douala and along regional corridors.
Persistent underfunding of maintenance risks undermining the long-term value of past infrastructure investments. Experts note that every year of deferred maintenance increases the eventual rehabilitation cost, placing additional strain on future budgets.
As fiscal pressures continue, the challenge for authorities will be to reconcile debt servicing, social spending and infrastructure upkeep, while preserving the integrity of mechanisms designed to ensure predictable financing for essential public assets.
