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Finance development Projects and Debt settlement:Cameroon is set to borrow approximately $1.6 billion

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Cameroon plans to borrow a total $1.6 billion, from national and international financial markets. To achieve this, Finance Minister Louis-Paul Motaze received authorization from President Paul Biya through a decree signed on August 18, 2025

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The borrowed funds will be used to finance development projects outlined in the 2025 budget  and settle outstanding payments : clear payment arrears, known as "Restes-à-payer" (RAP), accumulated by the state. According to the decree, 350 billion FCFA will be raised on the domestic market, either through: Treasury Bond Issuance and Assimilated Treasury Bonds on the BEAC public securities markeAdditionally, Cameroon plans to secure direct loans from local private institutions  250 billion FCFA and external banking markets 330 billion FCFA. The mobilization of 330 billion FCFA will bring the total resources raised by the state to 530 billion FCFA in 2025 to clear payment arrears (RAP). Previously, in May, a decree authorized a 200 billion FCFA loan for the same purpose. As of June 30, 2025, outstanding payment arrears stood at 485.4 billion FCFA, according to the Autonomous Sinking Fund . These new borrowings will contribute to increasing Cameroon's public debt level. As of June 2025, the debt stood at 14,105 billion FCFA, representing a 1.8% increase over the past year. Despite this growth, the country remains on a sustainable debt trajectory, according to the Autonomous Sinking Fund. The government sets a sustainability threshold at 50% of GDP, below the regional ceiling of 70%, Central Administration  93% of total debt ,Public Enterprises 6.8%

  and Decentralized Local Authorities 0.2%

 

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JESSICA CHRISTELLE KOAMBI
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