• Government authorizes up to CFA1,650 billion in new borrowing
• Funds to cover unpaid state bills and finance development projects
• Public debt rises to 43.9% of GDP, with high risk flagged by IFIs

Cameroon is seeking to raise close to $3 billion to clear state arrears and finance development projects, after President Paul Biya signed a decree on January 21 authorizing the finance minister to contract new loans.

Under the decree, Finance Minister Louis Paul Motaze is allowed to borrow up to CFA1,650 billion (more than $2.9 billion) on domestic and international markets. The funds are intended to finance development projects and settle the government’s “restes à payer,” referring to outstanding debts owed to suppliers and service providers.

Most of the amount, CFA1,000 billion, is to be raised on international markets. Domestic financing will account for CFA400 billion through Treasury bond issuances, while CFA250 billion will come from loans contracted with local private institutions.

The new borrowing plan comes as public debt continues to rise. According to data from the Autonomous Sinking Fund (CAA), Cameroon’s outstanding public debt stood at CFA14,591 billion at the end of September 2025, up 2.6% year on year. This represents 43.9% of gross domestic product (GDP), still below the 70% ceiling set within the Central African Economic and Monetary Community (Cemac), which includes Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic.

Despite the debt-to-GDP ratio remaining within regional limits, international financial institutions remain cautious. The African Development Bank and the International Monetary Fund consider Cameroon to face a high risk of debt distress, citing increased reliance on borrowing in recent years. They also note that several debt sustainability indicators, particularly ratios linking debt service to budget revenues and exports, exceed recommended thresholds, adding pressure on public finances.

SG