At launch of Int’l Financial Colloquium: MINFI boss reiterates sustainability of Cameroon's sovereign debt .

Discussions during the hybrid gathering are centrered on the theme: “CEMAC member States’ sovereign debt and restructuring opportunities”. 

It is organised by a consortium of stockbrokers, notably Horus Investment Capital, Akoa Mballa & Co. and Contacturer Capital.

The high-level symposium, which has brought together key economic and financial stakeholders from the CEMAC Subregion, serves as a strategic platform for discussions on sovereign debts, its current challenges, and restructuring opportunities. 

It is also a platform to highlight local expertise in public debts management and optimisation.

In his inaugural statement, Minister Motaze said Africa in general and the Central Africa Subregion in particular, have in recent years been faced with profound global economic turbulence, including health crisis, geopolitical tension, the volatility of primary raw materials and international budgetary constraints. 

As regards Cameroon, he stressed that government has made it a priority to be prudent, responsible and transparent in the management of public finances. 

He revealed that the country currently sits on a debt rate of 42%, which he added is one of the lowest in Sub-Saharan Africa.

“This only shows the viability of our debts ratio but also budgetary discipline that guides our actions,” he said.

The minister added that: “Budget deficit is rated at 0,9% of GDP of the country in 2024. A performance lauded by our technical and financial partners, and demonstrates government’s resolve to preserve the major macroeconomic balance”. 

Beyond sustainability concerns, the grand argentier pointed out that Cameroon’s public debt is strategically oriented towards projects in the economic and social domains, notably energy infrastructure, developments of port, road network, agriculture amongst others. 

“These structured investments…can accelerate the structural transformation of our economy, support regional integration, and ameliorate the living condition of our citizens,” Motaze elucidated.

Rubbishes polemics on country’s debt situation

The member of government also used the opportunity to clarify public debates over the country’s indebtedness, which he insisted is under control.

“It is important for everyone to understand that incurring debts is not a problem…if you don’t have resources at a certain level, you have to incur debts. So, debt is not a problem. The issue is the sustainability of the debt,” he sounded.

He then emphasised that the main concern with incurring debt is ensuring that it doesn’t choke the public treasury. 

“However, each time people talk about public debts, I have the impression that people focus only on the debts forgetting that even if debt is rising and the growth rate of the debt is less than the growth rate of the GDP, then the burden will lessen,” the minister clarified. 

He was optimistic that the colloquium, which comes at a time when CEMAC member States have to consolidate their achievements, will anticipate challenges and envisage innovative ways to maintain a sustainable debt. 

Enter organisers

Speaking on behalf of the Organising Committee, the Chief Executive Officer, CEO, of Brokerage Firm, Contacturer Capital SA; Paul Onono, said the colloquium is a platform for exchanges between CEMAC member States and financial market professionals, with the aim of discussing issues related to CEMAC member States and proposing restructuring opportunities.

He lauded government for its constant support for initiatives that contribute to a better understanding of the challenges facing the financial ecosystem in CEMAC community.

“The spectacular growth of the sovereign debt market in the CEMAC zone is one of the most relevant indicators of this change, whatever the segment...,” he added.

Enter treasury DG

Speaking to the press at the end of the launching ceremony, the Director General of the Treasury, Financial and Monetary Cooperation, Moh Sylvester Tangongho, explained that the CEMAC Subregion sovereign bonds have risen far above 6,000 billion FCFA over the years. 

Despite the saturation of the CEMAC regional finance market, since it became operational in 2010, Moh Sylvester pointed out that the situation is not favourable as member States find it challenging to finance infrastructure or projects with short term loans.

“Most of the things we are doing now is mostly three months to six months treasury bills. Bonds of above three years, five years are rare and the situation is because the market is saturated,” he enlightened. 

He then saluted the holding of the colloquium, which he said would proffer solutions to some of the problems facing the Subregion. 

Regarding the country’s indebtedness, the Treasury DG rated the situation as favourable, given that Cameroon’s debt of 43% of the GDP, is among the lowest in Africa. 

“Cameroon is amongst 10 least indebted countries in Africa. Most of the time, people are focus on debts, but they forget the ratio is actually debts divided by the GDP. So, if you borrow 1,000 billion FCFA and you have an increase of 1,500 billion on the GDP, you will see that the ratio will actually go down,” he noted. 

“People are focused more on the debt, instead of looking at what the debt is doing to increase the GDP. We have to borrow to finance projects that create jobs and generate revenue, so that the ratio doesn’t get deteriorated,” he added.   

The high-level symposium, which has brought together some of the brightest brains of the sector in the Subregion, will be marked by panel discussions on varied topics, with recommendations made for member States to chart the way forward, amidst different challenges. 

This article was first published in The Guardian Post Edition No:3417 of Friday April 11, 2025