Expert says debt catalyst for economic development.

He affirmed that in Cameroon, sovereign debt is perceived as an opportunity rather than a grave concern. Enoh Tonye highlighted that the country's debt represents approximately 43% of its Gross Domestic Product, GDP, roughly 13,000 billion FCFA. 

He added that the figure should not incite alarm. Instead, he argued that restructuring sovereign debt constitutes an important financial instrument to improve the effectiveness and efficiency of critical debt in the CEMAC zone. 

According to him, the CAA's approach to leveraging sovereign debt for sustainable development in CEMAC countries is built on four core principles. 

He stated that, debt restructuring must be precisely targeted, meticulously aligning with the country's medium-term debt strategy and the annual finance law. 

Secondly, debt, Tonye noted, is managed opportunistically, designed to generate tangible, positive net gains for the state. He continued that debt must be innovative in terms of the instruments that accompany it. 

Faced with a certain saturation of the financial market in the CEMAC zone, combined with prudential rules that tighten the banking sector, he said it is essential to have new players in the market. 

This, he added, will help to provide a breath of fresh air to the financial system. Restructuring efforts, he said, are consistently accompanied by broader economic and financial reforms. 

"We do not restructure because we simply think so. We must have figures that demonstrate that by restructuring, sovereign debt can be flexible, more efficient, and sustainable in the short, medium, and long term," Enoh Tonye underscored.

He sent a message of confidence, noting that the nation's debt is under constant, meticulous monitoring and expert management by all stakeholders involved, including the Ministry of Finance and the CAA. 

Tonye reassured the public that robust instruments are in place for active debt management, concluding that debt is globally a vital tool for a country's development. 

"At the CAA, we work every day to maintain the efficiency and effectiveness of this tool, which is debt, for both the present and future generations," the official noted.

According to him, a cornerstone of the pro-development debt strategy is the allocation of funds to productive investments. Tonye revealed that across Cameroon and the other five CEMAC countries, an impressive average of 80% of sovereign debt is oriented towards investment initiatives. 

These investments, he disclosed, span critical sectors such as infrastructure, roads, energy, sanitation, and increasingly, critical social sectors like education and healthcare.

He further highlighted concrete examples of regional integration and growth driven by such investments, citing the Sangmelima-Djoum road, the recently completed bridge connecting Yagoua in Cameroon, to Bongor in Chad, as well as electrical interconnection projects. These initiatives, he noted, are "a very beautiful initiative to promote economic development between the two countries".

This article was first published in The Guardian Post Edition No:3457 of Tuesday May 27, 2025