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Socio-economic development : PR Paul Biya approves CFA 125 billion in borrowing for youth, health, and agriculture sectors

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President PAUL BIYA signed 3 decrees on July 31 ,2025 , authorizing the Minister of Economy, Planning and Regional Development to secure a loan totaling CFA 125 Billion from Standard Chartered BANK, The African Development Bank and OPEC Fund

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The targeted amount for these operations represents nearly a third of the budget deficit projected for 2025. Cameroon's public debt reached 14,105 billion CFA francs as of June 2025, accounting for 43% of the country's GDP. Although this ratio is climbing each quarter, it remains below the 70% threshold set by the Economic and Monetary Community of Central Africa .The additional 125 billion CFA francs in borrowing represents 1.3% of Cameroon's GDP, bringing the total debt servicing burden to 1,259 billion CFA francs between 2025 and 2027. Despite the significant debt burden, the sectors benefiting from these operation : agriculture, health, and youth employability appear to justify the approach.This strategic borrowing aims to stimulate economic growth and development in critical sectors, potentially enhancing Cameroon's economic prospects.The first component focuses on agriculture, with an en envelope of approximately 15 billion CFA francs ratified recently with the OPEC Fund for International Development. The project aims to develop the rice value chain, from seeds to market display. Over five years, authorities expect to produce an additional 120,000 tons of paddy rice, primarily in the irrigated areas of Yagoua, Ndop, and Nanga-Eboko. This initiative aligns with Cameroon's goal to achieve 97% self-sufficiency in rice production by 2030, with a target of producing 750,000 tons annually. The country's rice imports reached a record 318.5 billion CFA francs in 2024, highlighting the need for increased domestic production.The objective is to reduce imports by $50 million annually by gradually phasing out the purchase of Asian rice. Each billion invested in the sector is expected to generate 2 billion in indirect tax revenue through import substitution.The second component focuses on health, with approximately 15 billion CFA francs to be mobilized from Standard Chartered Bank in London, guaranteed by UK Export Finance. The health authorities are banking on a reduction in treatment expenses abroad, estimated at $10 million per year, and the creation of 1,000 direct jobs once the two facilities are fully operational. If the projects meet their targets, the country could reduce its cereal trade deficit by 30% and create tens of thousands of direct and indirect jobs

 

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christelle
JESSICA CHRISTELLE KOAMBI
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