To service internal, external debts: Biya authorises MINFI to acquire 930 billion FCFA loan.

The statement announcing the decree indicates that the borrowed funds will be split across three sources: 350 billion FCFA through Treasury Bonds on the domestic market, 250 billion FCFA in direct loans from local private institutions, and 330 billion FCFA from foreign banking markets.

According to government sources, the funds will finance development projects and settle internal and external outstanding payments.

Economists in the country have observed that the country has recently intensified its borrowing efforts both externally and domestically, seeking to strike a balance between financing development projects and maintaining fiscal sustainability. 

With pressing infrastructure needs and economic resilience goals, the government has turned to international partners and local markets to mobilise resources.

In 2024, the International Monetary Fund, IMF, approved US $183.4 million for Cameroon under the Resilience and Sustainability Facility, RSF, aimed at strengthening climate resilience and economic stability. 

As of April 2025, the country’s total outstanding IMF-supported credit facilities stood at SDR1.18 billion covering instruments such as the Extended Fund Facility, EFF, and the Resilience and Sustainability Trust, RST.

In addition, the African Development Bank, AfDB, approved a €203.11 million loan in October 2023, complemented by a €30 million grant from the European Union, to support land-use development and private sector growth in Cameroon’s Far North Region.

On the domestic front, Cameroon has been active in issuing treasury securities. By September 2024, public debt issuances totaled 1,953.3 billion FCFA, broken down into 1,076.7 billion FCFA in treasury bonds and 464.4 billion FCFA in short-term treasury bills. An additional 411.2 billion FCFA was raised on the Central African Stock Exchange.

In 2023, the seventh edition of Cameroon’s public savings campaign raised 176.7 billion FCFA, surpassing the 150 billion FCFA target. The campaign introduced multi-tranche bonds, offering varied maturities and interest rates, making them more attractive to investors across the region.

Cameroon’s total public debt reached 13,070 billion FCFA by June 2024, representing 43.3% of GDP, well below the CEMAC threshold of 70%.

However, debt levels rose by nearly 5% compared to the previous year. Servicing costs are also significant, with 1,058.9 billion FCFA repaid by September 2024, about 65% of the annual target.

This rising burden, experts say, is largely due to increased infrastructure spending and repayment obligations, prompting concerns over long-term fiscal sustainability.

In 2025, Cameroon earmarked 110 billion FCFA to settle longstanding public-sector arrears, more than double the allocation from 2024. These arrears include commercial liabilities, rental debts, academic arrears, and social obligations totaling around 261 billion FCFA.

The government has outlined a multi-year strategy to audit and clear debts accumulated between 2000 and 2019, while addressing tax and customs liabilities within the next seven years.

By Ndi Mark Kanjo, Journalism student on internship 

This article was first published in The Guardian Post Edition No:3540 of Thursday August 21, 2025