 China is now Cameroon’s largest bilateral creditor, according to the Caisse autonome d’amortissement (CAA), the country’s public debt agency.
China accounts for 65% of Cameroon’s bilateral debt, representing 20.2% of total external debt, officially estimated at CFA2,648.3 billion.
This puts China’s share at 2.5 times that of France, a historic partner, which holds 25.6% of Cameroon’s bilateral debt, or 8% of total external debt. The CAA said China continues to be “a preferred partner in the infrastructure and energy sectors.”
China has become Cameroon’s main investor over the past decade, driven by large infrastructure projects launched in the 2010s. These include bridges, roads, and dams, mostly financed by Eximbank China. The loans are tied to Chinese firms, meaning each agreement designates a Chinese contractor to carry out the work.
Chinese companies remain active in Cameroon’s infrastructure and energy sectors. Major players include CCCC, CWE, CHEC, and Sinohydro in construction, and Huawei and ZTE in telecommunications.
While these loans have funded key infrastructure, they come with high repayment obligations. Chinese loans are typically non-concessional, adding pressure to debt servicing. In the first quarter of 2024, Cameroon repaid CFA148.2 billion to Eximbank China—CFA34.7 billion in interest and CFA113.5 billion in principal. These were the country’s largest repayments to any creditor group during that period.
The size of China’s loan portfolio has created repayment difficulties. In July 2019, Cameroon secured a rescheduling agreement with Eximbank to avoid default. The deal covered 22 projects valued at about CFA150 billion and allowed 70% of the principal due from July 2019 to March 2022 to be rescheduled.
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