Cameroon’s government has authorised its finance minister to secure up to 200 billion CFA francs ($348 million) from international markets for fiscal year 2025, a presidential decree revealed.
Kelly Mua Kingsly, Head of Finance Operations at the Ministry of Finance, told Reuters the government plans to focus mainly on syndicated loans.
He explained that syndicated loans offer a swift solution with flexible drawdown options, fitting the urgent liquidity needs.
Other options under consideration include concessional or semi-concessional loans aimed at budget support and treasury bonds or bills on the regional BEAC market.
Eurobonds appear less likely due to soaring global interest rates, Cameroon’s low sovereign credit ratings, and decreased appetite for frontier markets amid ongoing geopolitical risks.
This borrowing strategy arises amid slow disbursement of external funds and shortfalls in non-oil tax revenues, squeezing government cash flows.
The Bank of Central African States’ tight monetary policy to combat inflation has intensified liquidity pressures across the region, impacting Cameroon’s treasury reserves.
Authorities emphasise the importance of diversifying borrowing sources to avoid crowding out private sector investment through excessive domestic debt.
In recent years, Cameroon has increasingly relied on a mix of domestic and external borrowing to manage persistent budget deficits.
With this fresh external borrowing approval, the government aims to stabilise its finances while navigating a challenging global and regional economic environment.
