International financial market: Investors scramble over Cameroon’s treasury bonds.

The Minister of Finance, Louis Paul Motaze, had on the high instructions of the Head of State, Paul Biya, led the delegation to London that completed the transaction on January 30, 2026. 

Minister Motaze detailed that the transaction, jointly arranged by the Banks Citl, JP Morgan and Cygnum Capital, mobilised a total of nearly one billion dollars from the leading international institutional investors, for an initially targeted amount of 600 million dollars. 

The minister’s release stated that the final amount retained was 750 million dollars, approximately 415 billion FCFA, in accordance with the State’s 2026 financing plan. 

The loan issuance has a maturity of seven years and a grace period of two years, at 7.79% interest rate. 

The oversubscription, Motaze stated, reflects the renewed confidence of financial markets in Cameroon´s sovereign signature, in a volatile international and sub-regional economic environment.

The resources thus mobilized, the minister further stated, are intended for the settlement of outstanding payments from the previous budget, particularly the accounts related to certain priority State projects, in accordance with the guidelines of the 2026 Finance Law. 

The resources made available, he added, will ensure projects continuity, completion within optimal timeframes, as well as guarantee the securing of resources necessary for the execution of the State Budget for the 2026 fiscal year.

“As part of its prudent and proactive public debt portfolio management strategy, the State of Cameroon implemented, concurrently with this transaction, a USD/EUR currency swap hedging mechanism, designed to limit exposure to foreign exchange risk and improve the financial terms of the borrowing,” the minister’s release stated. 

Minister Motaze disclosed that this arrangement has reduced the effective coupon of the transaction in euros to 7.79%, thereby contributing to the strengthening of public debt sustainability. 

Minister Motaze and his delegation, on the occasion of the operation in London, also held in-depth discussions with investors and rating agencies.

Exchanges focused particularly on macroeconomic prospects, ongoing reforms, and investment opportunities in Cameroon.

The encounters were to update the agencies with relevant information on the development of the Cameroonian economy and enable them improve their perception of Cameroon’s credit risk.

Minister Motaze also assured the investors of Yaounde’s ability to honour its commitments on time. He additionally spoke at length about the sustainability of the country’s public debt, which is well below the 70% ceiling set by the Economic Community of Central African States, CEMAC.

Motaze also highlighted the diversification and resilience of the economy, and the launch of a number of major development projects that should support growth.

Context of credibility

Amid fears, economists have saluted the context within which Cameroon is recording such high confidence from investors on the global financial market.

They cite the nine years crisis in the North West and South West Regions and Boko Haram terrorist attacks in the Far North Region that have threatened the economy.

There is also the influx of refugees from neighbouring countries such as Nigeria and the Central African Republic, CAR, that have also increased the burden on the country’s resources.

The same holds for Internally Displaced Persons, IDPs, of the Anglophone crisis on whom government has spent billions. The Russia-Ukraine war that has caused a sharp rise in freight transportation across the globe and disrupting the supply chain, is another challenge. 

Locally, it has resulted in an increase in the cost of production for most companies.

As if that is not enough, the prospects of peace in the Middle East have continued to elude the predictions of enthusiasts, further putting the world, especially financial markets, in constant instability. 

Experts indicate that the international business atmosphere is presently showing signs of recovery, reason why Cameroon, is considered by foreign investors as a low-level risk zone that could generate substantial returns on their investments.

They also report that the government plans to channel the money into renewal of production infrastructure, and upgrading of public services, as a strategy to improve the economic climate. 

Meanwhile, the American and European investors who bought a majority of the bonds, are calling for major structural reforms, that are considered to be weakening the economic production base, and accentuating Cameroon´s dependence on raw materials exports. 

Investors also want more transparency in the management of State finances, and explanations on the financial swap arrangements, so that the average Cameroonian understands exactly what is at stake. 

Independent observers continue to point out that the government must have the courage to implement reforms that translate into renewed infrastructure like roads, transform and guarantee a more robust industrial base, as indicators of a gradual move towards emergence.

This article was first published in The Guardian Post Edition No:3692 of Tuesday February 03, 2026