After 415 billion FCFA raised on int’l finance market: Treasury Director announces restart of major dev’t projects.

Talking about the priorities of the money, Tela said, in addition to what hierarchy had long made public, major projects which slowed down or stopped at the close of 2025 will resume in earnest.

He also addressed other details, relating to the resilience, dynamism and successes of the country in navigating the global financial market, amid hurdles and competition from other countries also battling to raise funds for development.

The in-depth and revealing interview he granted the Cameroon Radio Television, CRTV, also touches on the inner workings of the Treasury and other commitments of authorities to keep the country buoyant. Read on…

Mr. Director of the Treasury at the Ministry of Finance, you were in London with the Minister of Finance for the private bond placement on the international financial market with a maturity of seven years and a grace period of two years. Is the Cameroonian delegation satisfied with the results of the operation it has just carried out? 

Yes, we are pleased with the results obtained in London, and the satisfaction is based on at least three factors. The first factor is that we went out to raise $600 million. We got much more than that. So, out of a total offer of approximately $1 billion, we retained $750 million. 

The financial terms of the operation are also considered satisfactory in light of the projections we made based on Cameroon's rating and on the basis of issuance by other countries, particularly those in the sub region. And with the swap mechanism we put in place, we brought the coupon down to a rate that I would describe today as satisfactory. 

The Head of State’s decree of January 21, 2026 gives the Minister of Finance full power to commit the State to issuing bonds of approximately 400 billion on the domestic market. A direct loan from the banking system for 250 billion and international bonds issue for 1,000 billion FCFA. 

So, the operation that was just completed is the first part of this international financing. The result rewards the efforts already made by the Minister of Finance with the non-deal roadshow we conducted in 2025. 

You remember, we went to London, New York, and Boston to talk to investors. We didn't go there to raise money, but to talk to them about Cameroon's economic situation, its resilience, the diversification of its economy, its growth rate, and its low debt ratio. All these factors combined enabled us to successfully conclude this recent operation. 

And I can say that this is the very first transaction under the decree of the President of the Republic of January 21, which empowers the Minister of Finance to borrow on both the domestic and international markets. 

So, let's talk about the decree of the President of the Republic of January 21,2026 that has been the subject of much discussion. Indeed, the Head of State signed a decree within the framework of the implementation of the 2026 Finance Law, which was examined, adopted by the National Assembly, and promulgated into law. So, could this money that has been mobilized not raised elsewhere other than the international financial market?

It should be noted that the domestic market today shows two or three weaknesses on average. First, governments have drawn heavily on the domestic market. If you look at the outstanding securities between 2020 and 2025, the amount has increased almost fivefold. 

We have gone from an outstanding amount of 1.8 trillion in 2020 to nearly 9 trillion in December 2025. The market no longer has the capacity for all countries, particularly the six CEMAC countries, most of which finance themselves on this market, to meet our needs. It is therefore difficult to place 200 or 300 billion in interest on the domestic market. And even if the operation were possible, it would be short-term operations. 

You will see that, in terms of the overall outstanding amount on the domestic market, there is a high concentration of short-term bonds, meaning that countries are borrowing for six months, 12 months, and at most three years. You cannot finance development projects with long-term debt.

Another issue that has been a point of debate is the private placement of bonds. Why private placement rather than a more transparent public loan?

Well, the Minister of Finance has answered this question several times during discussions with investors. Private placement offers the advantage of speed. You see, we completed the operation in three weeks. It should also be noted that 2025 was a rather sensitive year with the presidential election. You know, usually in an election year, companies are quite cautious in terms of investment. As a result, the tax authorities' projections did not materialize.

But in the meantime, security costs have skyrocketed. You saw how much effort was required to maintain order and security in order to restore peace and guarantee the safety of citizens. This resulted in the postponement of various projects, such as road projects, which were already underway.

Those who were in Yaounde between September and October, 2025 noticed that there were several construction works in the city which, unfortunately, were all at a standstill in November and December.

This was because the limited resources available was not channeled into these projects, but rather into restoring security. The minister therefore wanted resources to be mobilized quickly at the start of the 2026 fiscal year to address these issues. 

In fact, approximately 498 billion has been allocated in the 2026 budget to address these outstanding issues. And this private placement, thanks to its speed, will enable us to address these issues and restart road and other projects that are practically at a standstill.

I would like you to tell us about the enthusiasm of investors surrounding Cameroon's bonds

As we said, Cameroon was looking for $600 million, and investors offered you nearly a billion.  You took $750 million. What explains this enthusiasm among investors surrounding Cameroon's signing?

This enthusiasm can be explained first and foremost by the quality of the roadshows we conducted. Already the 2025 non-deal roadshow and, above all, the characteristics of our economy. 

We have an average growth rate of around 4.5%; Cameroon has a diversified economy, unlike other countries in the sub-region, which are somewhat dependent on oil. We also have a relatively low debt ratio of around 42%, a budget deficit of around 1.7% and a controlled inflation rate of around 3%.

So, when you put all these elements together, it reflects the resilience of our economy, and investors are confident that if they invest their money in Cameroon, in terms of repayment, they have a certain guarantee that Cameroon will pay on time. 

What about the dollar/euro currency swap financial hedging mechanism you used. Why this mechanism? 

It is said to have improved financial conditions by reducing the coupon on the euro-denominated transaction to 7.79%. It is a somewhat complex mechanism. I will explain it very simply. Currently, the dollar is trading at around 560 francs to 1 FCFA. Two years ago, the dollar was at 625. So the dollar is currently at its lowest level ever. 

And as you pointed out in the debt characteristics, we have a two-year grace period and will start repaying in the third year for five years. It is highly likely that by the time the government starts repaying, the dollar will be at 590 or 600 or 625.

So, to protect ourselves against this exchange rate risk, we decided to convert the transaction directly into euros because, with a fixed exchange rate against the euro, we have visibility and stability for future cash flows. The difference between the two markets therefore allows us to reduce the rate. 

So, the coupon you saw posted is that the government will pay 7.79% interest each year. And these banks will pay 8.87% to investors in dollars. 

Mr. Director, we would now like to talk about the sustainability of this debt. Ultimately, how much will this loan cost Cameroon?

You know, opinions are divided on the issue of debt. The first assessment factor remains constant, which is the ratio of debt to Gross Domestic Product (GDP). 

Today, Cameroon's debt ratio is 42% of its GDP. I remember that the last economic program we concluded with the IMF, which we were very satisfied with, had a target of capping debt at 50%.

I believe that at the start of the program, we were at 44.5%. At the end of the program, we had dropped to 42%. This means that, contrary to popular belief, Cameroon did not accumulate as much debt as people think during the program period.

The debt remains sustainable. What does sustainability mean?

It means that we are able to repay the debt without compromising our development objectives. And to answer specifically the question of what we have been asked... Issues of debt divide opinion. The first assessment factor remains constant, which is the ratio of debt to gross domestic product (GDP).

 Today, Cameroon's debt ratio is 42% of its GDP...In the end, this operation cost us around 9.02% with the swap operation, which allowed us to save around 1% on the overall cost. With all commissions and fees included, it will be 9%. Is the perception of risk in Cameroon still high from an investor's point of view?

Let's say that the political risk has not fundamentally changed between 2024 and 2026. We have certainly improved many criteria, if you look at the rating sheets, whether they are from Moody's, Fitch, or S&P. 

There are areas where we have made substantial progress. But political risk, in quotation marks, remains constant and carries a lot of weight in the final rating. If you want to do a comparative analysis between the 2024 and 2026 transactions, I can tell you that the non-deal roadshow we did played an important role in improving financing conditions. 

You will also see that in terms of investors, we had many more investors for this operation. And in terms of coverage, we were oversubscribed. Whereas for the 2024 operation, Citibank, which was supporting us, had guaranteed that if investors did not subscribe, they would make up the shortfall.

And I believe that in the end, they had allocated about two-fifths of the budget. You will see that Cameroon paper was less popular in 2024 than in 2026. So that means that the international communication efforts of the Minister of Finance are now beginning to bear fruit because we have already been to London twice, we have been to New York, and I believe that in our annual activity planning, a Name Deal Roadshow is scheduled in New York in late March-early April.

And also, as part of the International Monetary Fund's annual meetings, the Minister of Finance always finds time to talk to investors to sell them on Cameroon. 

You mentioned investors. You have a good dozen of them in your basket, but who are they?

These are investment funds, pension funds, insurance companies, and large international banks. They carry considerable weight. Moreover, unlike public offerings, private placements involve banks that support us, known as joint arrangers, who search their portfolios for the most powerful investors to whom we can sell the missions. So, the sample is highly representative and guarantees the success of the operation. 

Can you tell us again specifically what this money will be used for? Will it be used to finance projects that are visible to everyone, tangible even to the average person, or will it simply be used to fill a cash flow deficit?

As the Minister of Finance said in his speech, these resources will address the issue of outstanding payments, with priority given to infrastructure.

The Minister of Finance had a meeting with the Minister of Public Works, I believe, the day before he left for London. And he assured him that a large part of the funds would be devoted to infrastructure.

The Director General of the Treasury also had a meeting with his close associates on this subject. Because, to tell the truth, we ended 2025 with approximately 1 trillion in outstanding payments. 

The 400 billion FCFA obtained will not solve all the problems, but what he asked the accountant to do was to prioritize all projects related to investments. 

So, we are convinced that in the coming days, we should see abandoned construction sites in Yaounde, for example, come back to life. 

In a few days, we hope to see trucks back on roads that had been abandoned, so that we know that these resources have effectively helped to restart the economic machine.

Mr. Director, but the question of Cameroon's debt rate continues to arise, as does that of the quality of the debt. What is your response to all those who express reservations about the rate and quality of our country's debt? 

So, coming back to your question, perhaps I responded to this concern in advance, but there are not a thousand criteria for assessing debt. 

There are two: your ability to repay and the total amount to be repaid, known as debt, which is reported as a percentage of Gross Domestic Product.

Cameroon has just completed its fourth major international operation. We have fully repaid the 2015 rebound. We have had no defaults. That means people trust us. 

The pace of debt may slow down several times a year, but for very small amounts. Let me give you an example. I believe it was in 2025 or February 2026 that Côte d'Ivoire issued a $3 billion Eurobond.

That's about 2 trillion FCFA. What Côte d'Ivoire issued in a single year is perhaps what Cameroon will issue over two or three years. 

This means that in terms of achievement, we cannot compare Côte d'Ivoire's achievements with those of Cameroon because the same resources are not being used.

These are framing objectives, perhaps framing constraints, or perhaps things that are overlooked. 

Because the budget for Côte d'Ivoire in 2025 was 15 trillion. Cameroon's was 7 trillion and a few billion. So practically half. 

It's true that we often hear on the radio that the Head of State has authorized the Minister of the economy to take a loan of 20 billion to carry out a particular project, and so on. Perhaps it's the frequency with which we hear about these decrees for very small amounts that can lead the average citizen to believe that we are going into debt at a frantic pace.

No, at the end of the day, we need to add up the figures to determine the total amount of debt, the amount of debt incurred during the year. 

I have taken a very simple example. At the start of the economic program in 2020, the debt ratio was around 44.5%. The program's objective was to cap debt at 50%. But at the end of the program, we are at 42%. Yes, there are these long implementation period. 

Director, but listening to you, we want to ask if you are surprised by this issue, the long implementation times. Are you are surprised by the lack of maturity of the projects? It seems like they haven't thought it through. Are we going to seek funding even though we're not yet sure how that money will be used?  What's the problem?

I still believe that the issue of project maturation has been resolved. I believe the Prime Minister issued a decree two years ago that for a project to be included in the finance bill; It must go through all the stages of maturation so that, as soon as it is included, we can award the contract and start implementation. 

It could also be that during implementation, in the field, we may encounter some issues... It must be said that there is a short- and medium-term debt strategy.

Every year, when the Minister of Finance defends the finance bill, the medium- and long-term government debt strategy is appended to the finance bill..., which may give rise to amendments and ultimately result in the cost of the project... being higher than its initial cost.

Can you assure us that these repayment deadlines will be met without any problems? 

Yes, very well. It should be noted that there is a short- and medium-term debt strategy. Every year, when the Minister of Finance presents the finance bill, the government's medium- and long-term debt strategy is appended to the finance bill.

Debt servicing is included in the annual budget, which means that for all outstanding loans, a certain amount is set aside in the finance law to pay the interest on these loans and to pay the installments due during the year, so it's not a matter of improvisation. 

And we, at the Treasury, for example, for international operations, which are very delicate, we have set up escrow accounts, which allow us to gradually build up provisions so that we can meet the deadline. That is why we had no difficulty repaying the 2015 rebound, which matured in 2025. 

Could we consider buying back the 2026 Eurobond?

In 2021, I think we need to say that we took advantage of favorable market conditions. The market in 2021, post-COVID, was quite liquid. And we just seized this opportunity because we had a debt, the 2015 rebound, which is due to be repaid in 2023, 2024, and 2025.

So, given market conditions, we repaid this debt early by issuing a new one. This allowed us to replace a debt that was costing us a little more at the time with another debt that cost us less and had longer maturities. 

The Eurobond will mature in 2033. So if, in 2027 or 2028, for example, market conditions are very favourable, we could replace this Eurobond, which currently costs us 7.79% in euros, with a new Eurobond that would have more favourable terms. In fact, this is how modern states manage their debt. 

This is active debt management. Can we have a word on committed but undisbursed balances? 

Yes, committed but undisbursed balances. In fact, these are commitments made by the State as part of the project financing. 

In other words, when the Minister of Economy, for example, signs a contract, a debt agreement with a development institution for the implementation of project X, the International Bank only disburses funds based on the execution of the work on the ground.

But sometimes, because of a misplaced comma or a missing document, you have to obtain approval from the funding agency, and sometimes the delays are quite long. 

So sometimes you end up with very large amounts, balances that are committed but not disbursed. We may have signed a five-year contract to build, say, a road. But the pace of work on the ground does not allow us to use up these funds over the five years. And at some point, we find ourselves with a large amount of funds that are committed but have not been disbursed because the work has not progressed. 

Director, earlier you mentioned rating agencies. You said, for example, that Benin is rated higher than Cameroon. What is the perception of these rating agencies? What is their perception of Cameroon today, and what are you doing on your side to try to improve that perception, knowing that this perception matters when you go to the international financial markets?

So, I think we first need to clarify the role of rating agencies. Take, for example, investors who have subscribed to Cameroon bonds. Some of them would struggle to locate Cameroon on a map. So for them, the only sources of information on Cameroon are the IMF and the ratings that these agencies give to Cameroon, for example. And when it comes to ratings, I think African countries are capped, because no African country has an A rating. Even the most dynamic economies, even countries with proven democracies, i.e., in terms of political change, do not have as high ratings as one might think.

I remember, during a meeting at the Paris Club, the Beninese finance minister saying that Benin is making a lot of efforts in terms of reforms.

But these reforms are not sufficiently taken into account in terms of ratings. So the same efforts made by a European country, or let's say a European country, will be valued much more highly than those made by an African country. So it's as if African countries have a rating threshold that they cannot exceed.

Unfortunately, this factor strongly influences the perception of risk and the level of government debt costs. Cameroon remains at B- with a negative outlook. But every time we meet with investors, we tell them: "We have a low debt ratio, we have a diversified economy, we have an average growth rate of 4 to 4.5%, and oil accounts for perhaps 10 or 15% of budgetary resources. And they are always surprised to learn that we have this rating. So everything suggests that political risk must weigh heavily on Cameroon's current rating. And they are always surprised to learn that we have this rating.

So, everything suggests that political risk must weigh heavily in Cameroon's current rating. And the last part of your question, how do we improve this perception? The Minister of Finance has signed a contract with an international financial advisor who is assisting us in discussions with rating agencies.

This means that every time Cameroon's rating is reviewed, whether by Moody's, Standard & Poor's, or Fitch, they assist us. There are areas where we have made progress, as I mentioned, but there are also areas where we have regressed. 

As a result, our rating remains at B-, and what's more, we are not yet under a program with the Fund. It is true that at the end of the extraordinary summit of CEMAC Heads of State, the States committed to pushing forward with current programs and encouraging those that did not yet have a program to sign new programs with the IMF.

This also improves perception because international investors know that when the country whose bonds they hold is under an IMF program, it acts as a kind of last resort guarantee that if the country fails to pay, the IMF will take action to ensure that it does. 

This mitigates risk and can also have an impact on the debt ratio. So, Cameroon has made a good start on the international financial market at the beginning of this year. 

Do you think this momentum can be sustained in view of the enabling decree issued by the President of the Republic? 

Yes, indeed, the Head of State has authorized the Minister of Finance to borrow, as I said earlier, 400 billion on the domestic financial markets, to negotiate 250 billion with the banks, and to issue 1 trillion internationally. So we are looking to raise 415 billion internationally.

We hope that market conditions will improve so that we can raise the remaining amount of approximately 585 billion. To this end, we have entered into discussions with the African Development Bank for a guaranteed loan. 

In other words, if it cannot lend us money directly at concessional rates, the African Development Bank, which has a better credit rating than Cameroon, can act as guarantor and enable us to borrow from investors on more favorable terms. 

We have initiated the same process with Atidi, which is a loan insurance organization of which Cameroon is a member and which also chairs the Board of Directors.

We have entered into discussions with Atidi and insurance companies so that they can also provide us with guarantees to mobilize all or part of the remaining amounts. Moreover, when the Director General of the Treasury explained this to the IMF mission on financing, the fund's experts said: “If these negotiations for rate subsidies do not work, how do you intend to finance the deficit that is likely to persist?”

So we are keeping in mind that if market conditions improve and the avenues we are exploring do not pan out, we can issue a new Eurobond at the end of the second quarter. 

But this time, it will not be a private placement, but rather a public offering with all that that entails in terms of roadshows and documentation. 

Let's focus on the financial market, the local market. As you said, it lacks depth due to the very high demand from member states in the sub-region. How are you going to tackle this market when it has some weaknesses, to put it bluntly? 

Yes, we have begun discussions with our treasury specialists, who are our main partners in the domestic market. We also believe that the resources mobilized by the Eurobond should inject liquidity into the domestic market and perhaps improve the banks' capacity to intervene.

I'll outline a simple scenario. If, out of the $400 billion that has been mobilized, the banks rebuild their cash reserves by as much as $100 or $150 billion, this will give them new margins to participate in the subscriptions. And out of the $400 billion, what we plan to do is spread the operations out over the year. We do not plan to raise 200 billion or 300 billion in one go. We are going to spread the issues over the year so that we can capture the resources each time we inject them.

In terms of communication, for example, because Cameroonians are sometimes not very aware or pretend not to know that this type of operation is being carried out. Yes, absolutely, you are absolutely right.

In fact, we are working together to improve this financial culture and, above all, to expand the secondary market. We are also working with the Central Bank to attract foreign direct investors. 

We had a very positive experience in 2025 with AfreximBank, which is becoming a major partner of the State in terms of financing. AfreximBank participated in a domestic market issue for €200 million, approximately €300 million, or about 200 billion. 

As you can see, this is significant. This example could be extended to other countries in the sub-region, and we are also working with them, in case there are residual margins, to ensure that this type of operation is replicated. 

So we have no doubt about our ability to mobilize 400 billion FCFA on the domestic market, especially since it will be spread out.

Before we take leave of you Mr Director of Treasury. How is Cameroon's treasury faring?

If you ask an economic operator, they will tell you that the treasury is doing very badly because it has unpaid bills, some of which date back to 2024. And I could perhaps reassure them that this is being resolved because I believe that the theme of the annual conference of the central and external services of the Ministry of Finance focused on this issue. 

So, as instructed by the Minister of Finance, cash flow and liquidity issues are the main concern of all his staff. In the tax administrations, we work every day to mobilize resources and enable the Treasury to pay. And the Treasury's objective is to pay on time. We are in the process of implementing reforms.

The resources we have mobilized through this Eurobond will enable us to begin clearing these outstanding payments, with a focus on infrastructure projects so that they can be revived. And with the resources we will mobilize during the year, we will strive to maintain a steady pace of payments in order to avoid the accumulation of new outstanding payments.

This article was first published in The Guardian Post Edition No:3713 of Tuesday February 24, 2026