Cameroon  Surviving  on Borrowed Money as Gov’t seeks CFA930 billion loan for projects and unpaid state bills

President Paul Biya  has signed a decree authorizing Finance Minister Louis Paul Motazé to borrow CFA930 billion from both domestic and international capital markets.

CFA350 billion of the total will be raised on the local market. This will be done either through Treasury bonds issued on the Central Africa Stock Exchange (BVMAC), or through Fungible Treasury bonds on the BEAC public securities market, or through both.

Another CFA250 billion will be secured through direct loans from domestic private institutions. In addition, CFA330 billion will be borrowed from international banking markets. The funds will finance development projects and clear pending Treasury bills that have been unpaid for about three months, commonly known as arrears (RAP).

The CFA330 billion in foreign loans will bring Cameroon’s total financing raised since the start of 2025 to CFA530 billion for arrears settlement. In May 2025, President Biya had already approved an international loan of CFA200 billion to support 2025 Treasury operations.

The growing stock of arrears, estimated by the National Sinking Fund (CAA) at CFA485.4 billion by the end of June 2025, has raised concerns for both the government and the International Monetary Fund (IMF), as it undermines the cash flow of businesses working with the state. Under its 2021-2025 economic program with Cameroon, the IMF has urged the government to use capital markets to pay down arrears.

In July 2024, the government borrowed CFA323.9 billion from U.S.-based Citi Group for this purpose.

In total, the government is authorized to raise CFA530 billion on international markets in 2025 to reduce arrears.

The new CFA930 billion borrowing plan will add to Cameroon’s public debt. The CAA reported that state debt stood at CFA14,105 billion at the end of June 2025, a 1.8% increase year-on-year. It added that this remains consistent with the medium-term debt strategy for 2025-2027, which sets a sustainability ceiling at 50% of GDP, compared to the 70% benchmark allowed at the regional level.