• Cameroon approved $298 million in loans to fund road, agro-industry, and energy projects.
• The IsDB will provide €163.7 million for a key transport corridor linking central and northern regions.
• Standard Chartered financing will help revive the troubled Cameroon Development Corporation.

Cameroon President Paul Biya signed decrees on September 22 approving €252.4 million ($297.9 million) in financing agreements. The decrees ratify a loan deal with the Islamic Development Bank (IsDB) and authorize the economy minister to finalize additional agreements with Standard Chartered Bank and Deutsche Bank Spain.

The government said the loans will target road infrastructure, agro-industry, and energy.

The IsDB will provide €163.68 million to finance the Ngati–Fébadi–Likok road section, part of phase II of the Batchenga–Nui–Yoko–Thaïti–Ngaoundéré corridor. Authorities said the project will connect Cameroon’s central and northern regions, boost trade, and open isolated areas.

The government also secured approval to borrow more than €78.9 million from Standard Chartered Bank. The package includes a buyer’s credit of €71.8 million backed by Bpifrance Assurance Export and a €7.1 million commercial loan.

Officials said the funds will restore the industrial capacity of Cameroon Development Corporation (CDC), the country’s largest agro-industrial company. CDC specializes in bananas and rubber.

CDC’s operations have weakened since 2018 due to unrest in English-speaking regions and internal challenges. The company posted losses of 38.7 billion CFA francs ($69.5 million) between 2019 and 2021 and cut thousands of jobs. The new financing aims to revive competitiveness and safeguard employment.

Cameroon will also borrow €11.1 million from Deutsche Bank Spain to fund phase I of the PLANUT project. The package includes a buyer’s credit and a commercial loan.

Authorities said the funds will stabilize and reinforce electricity transmission in Yaoundé. The project will improve access to power, reduce technical losses, and limit frequent outages that disrupt economic activity.

Debt Strategy and Risks

The government said the loans align with its debt-driven development strategy to modernize infrastructure and strengthen key sectors. However, the International Monetary Fund has warned about Cameroon’s elevated debt risks. The IMF classifies the country as facing high risk of debt distress, despite recent improvements in debt indicators.

Official data show Cameroon’s public debt stood at CFA14.1 trillion on June 30, 2025, equivalent to 43% of GDP. The stock declined 1.1% month-on-month and 3.3% quarter-on-quarter but rose 1.8% year-on-year. Central government debt accounts for 93% of the total, while state-owned enterprises hold 6.8% and local governments just 0.2%.

This article was initially published in French by Sandrine Gaingne

Adapted in English by Ange Jason Quenum