State treasury to raise 375 billion FCFA for projects financing.

The meeting had as prime aim, the presentation of the financing plans of the State for the current financial year. 

Highly attended by bank experts, brokers and jobbers in the stock exchange markets, private investors amongst other financial institutions, the meeting was presided by the Minister of Finance, Louis Paul Motaze.

Minister Motaze noted that the ceremony was natural and logical materialisation of the course set by President Biya, who, faced with insufficiency in necessary financial resources, prescribed to the government the rationalisation of public expenditure as well as the search for additional ways and means to increase public resources. 

In 2023, he said, concerted efforts, despite a very difficult economic context, made it possible to meet all the challenges in terms of mobilising the necessary financial resources for the implementation of national public policies. 

Given that the international situation over the past years, has made it increasingly unfavourable for developing countries to access financing, the state, he noted, however, improved the yield of internal revenues through good tax administration and a broadening of the tax base. 

"We continued our financing strategy on the domestic market through the diversification of instruments on the two markets, namely the sub-regional financial market, with bond issues and on the central bank money market with the bonds, and bonds of the central bank," the minister said.

Concretely, on the Central Africa financial market, Cameroon issued a bond called ECMR 2023 with multiple tranches and at a volume of 150 billion FCFA. 

At the end of this operation, Minister Motaze disclosed that they obtained a result which "we can legitimately rejoice in maturity within 3,4,6 and 8 years of 118 billion FCFA, number of subscribers: 560. Total amount subscribed, 176.60 billion FCFA, coverage rate 117.52. Amount retained, 176.27 billion FCFA".

Remarkable presence in financial market

On the money market, the state treasury was very much present in various components. That is 49 lines including 41 lines of treasury bonds issued for a total amount of more than 741 billion FCFA, including three securitisations. 

In the bond component, they state issued eight lines for maturities ranging from three to ten years for an amount of more than 106 billion FCFA.

Quoting decree 2024/043 of February 2, 2024, giving authorization to resort to issues of public securities of a maximum amount of 375 billion FCFA, intended to finance development projects included in the 2024 finance law, Minister Motaze stated that the treasury's presence in the stock market will still be felt .

Completion of numerous projects in strategic sectors

The mobilised resources would enable the State to continue and complete numerous projects in various strategic sectors as defined by the National Strategic Development Plan, SND30. 

They include the road, mining, energy and social sectors. The minister reassured investors of the resilience of the Cameroonian economy in the face of shocks of all kinds. 

"We have a controlled debt policy, with debt increasing to 41 of GDP in December 2023, compared to 44 at the end of 2022. This rate is well below the ceiling of 70 set by the CEMAC directives. Likewise, despite the very difficult international situation, our economy remains resilient and projects a growth rate of 4.5 per cent," he said. 

Dynamising financial, monetary markets

As a prelude to a ceremony with investors, the Treasury Department, led by Director General of Treasury, Monetary and Financial Cooperation, Moh Sylvester, held a colloquium with experts from banks, brokers and jobbers of the stock exchange. 

This was to deliberate on how to dynamise the local financial market and the money market. 

Speaking to reporters, Moh Sylvester said this was because they have an impression that there is a kind of saturation of the project, with too many people soliciting the same investors. 

"So, the idea is actually to see how to extend the number of people who subscribe to public treasury bonds through digitalisation. This is because we realised that in terms of mobile money, many people now use them more than bank accounts. So, this means the potential is much if we are able to reach more people through digitalisation," he noted.  

The import substitution policy was again projected as government's strategy in balancing external payments with more exports, permitting the harvesting of more foreign currency. 

This should be done by promoting industrialisation, encouraging people to produce what they consume and consume what they produce.