Cameroon plans to borrow $1.7 billion (960 billion CFA francs) from domestic and foreign markets to finance development projects and settle arrears, even as the International Monetary Fund (IMF) flagged the country’s high risk of debt distress.
A presidential decree issued on Monday said the financing package will include $621 million (350 billion CFA francs) from domestic treasury bond issues, $444 million (250 billion CFA francs) from domestic private lenders, and $586 million (330 billion CFA francs) from international banking institutions.
Kelly Mua Kingsly, Head of Finance Operations at the Finance Ministry, said the move was aimed at maintaining stability. “The decision signals market confidence, boosts liquidity and maintains debt sustainability within CEMAC norms, reinforcing Cameroon’s commitment to macroeconomic stability and structural reform continuity,” he said.
The IMF, in a review published on August 1, warned that Cameroon’s debt-carrying capacity “continues to be weak,” with two out of four external debt indicators breaching thresholds under its baseline scenario. While the Fund noted that overall debt remains sustainable, it maintained the country faces a high risk of external debt distress.
The government did not disclose which projects will be financed.
Cameroon has faced delays in disbursements of external financing and persistent revenue mobilisation shortfalls, particularly in non-oil tax collection.
Central Africa’s largest economy, with key sectors in oil, cocoa and timber, has relied increasingly on borrowing to bridge fiscal gaps.
In May, Louis Paul Motazé, the country’s finance minister, received approval to raise up to $348 million from international markets to support government cash flows for the 2025 fiscal year.
Public debt stood at 43% of gross domestic product in June, well below the 70% threshold set by the Central African Economic and Monetary Community (CEMAC), according to the Autonomous Sinking Fund.
Analysts warn that inefficient use of borrowed funds could deepen fiscal risks.
“The effectiveness greatly depends on the use of borrowed funds. In the case of Cameroon, a significant envelope remains idle, a symptom of a governance or strategic planning deficit,” said Haiwang Djamo Ferdinand, Economic Policy Analyst at the Cameroon Economic Policy Institute in Yaounde.
With presidential elections scheduled for October 2025, the IMF cautioned that political pressures could complicate fiscal consolidation.
“The presidential campaign has been marked by social discontent and heightened public scrutiny,” it said.
Note: $1 = 562.8 CFA francs as of August 20, 2025
