Countries within the Central African Economic and Monetary Community are increasingly shifting strategy to finance infrastructure projects using their own regional financial systems, as pressure mounts to reduce dependence on foreign capital.
The move took centre stage at the Colfini conference held in Yaoundé, where policymakers, investors, and financial experts gathered to explore how local capital markets can be better leveraged to fund large scale development across Central Africa. The discussions signal a growing recognition that relying heavily on external financing is becoming both costly and unsustainable.
For years, infrastructure development in the region has depended significantly on international lenders and development partners. Institutions like the World Bank and the International Monetary Fund have played major roles in funding projects and shaping fiscal priorities. However, rising debt concerns, global financial tightening, and shifting geopolitical dynamics are forcing governments to rethink that model.
At the heart of the new approach is the region’s underutilised financial ecosystem, particularly the Bourse des Valeurs Mobilières de l’Afrique Centrale. Despite having a functioning market, long term financing for critical sectors such as transport, energy, and telecommunications remains limited.
Current market activity is heavily dominated by sovereign bonds, with governments accounting for the bulk of issuances. This has left private sector participation relatively low, limiting the overall depth and efficiency of the market. Experts argue that without stronger corporate involvement and more diversified financial instruments, the region will struggle to mobilise sufficient capital internally.
The challenge is not just about access to funding but also about structure. Infrastructure projects typically require long term, stable financing, which local markets have yet to fully provide at scale. To address this, stakeholders are advocating for the expansion of structured finance tools, including project bonds, public private partnerships, and blended finance models that can attract both local and institutional investors.
There is also a broader economic rationale behind the shift. Financing infrastructure locally can help retain capital within the region, strengthen financial institutions, and reduce exposure to currency risks associated with foreign borrowing. It also gives governments greater control over project timelines and priorities, rather than being constrained by external funding conditions.
However, the transition will not be straightforward. CEMAC countries face structural constraints, including shallow financial markets, limited investor confidence, and regulatory gaps. Strengthening governance, improving transparency, and building institutional capacity will be essential to unlocking the full potential of local financing.
Another key issue is investor trust. Domestic and regional investors need assurance that infrastructure projects are viable, well managed, and capable of generating returns. Without that confidence, capital will continue to flow toward safer or more established markets.
The push toward local funding also aligns with broader continental trends. Across Africa, there is growing emphasis on financial independence and sustainable development financing. Governments are increasingly exploring ways to mobilise domestic resources to support long term growth, rather than relying predominantly on external debt.
Still, external partners are not being pushed out entirely. Institutions like the IMF and World Bank are expected to remain involved, but more as facilitators or co investors rather than primary funders. The goal is to create a more balanced financing structure where local markets play a leading role.
The stakes are high. Infrastructure gaps continue to constrain economic growth across Central Africa, affecting trade, productivity, and regional integration. Without significant investment, these challenges could persist, limiting the region’s development potential.
CEMAC’s shift toward internal financing represents a strategic pivot. If successfully implemented, it could redefine how infrastructure is funded in the region, reduce vulnerability to external shocks, and lay the foundation for more resilient economic growth.
