Cameroon’s public treasury successfully mobilized 800.7 billion CFA francs on the domestic market during the first half of 2026, translating to approximately 1.4 billion US dollars. This figure, highlighted in the monthly public debt report released by the Autonomous Amortization Fund (CAA)—the body overseeing Cameroon’s sovereign debt—underscores a strategic shift in Yaoundé’s financing approach within the Central African Economic and Monetary Community (CEMAC).
Domestic market borrowing slows down
When compared to the 1,525.9 billion CFA francs raised throughout 2025, the first-half performance indicates a noticeable deceleration in domestic financing. If this trend persists, the Cameroonian government could conclude the year with around 1,600 billion CFA francs in domestic borrowings, a figure closely aligned with 2025 levels but markedly different from earlier growth projections. The reduced pace of public bond issuances—including assimilable Treasury bills (BTA) and assimilable Treasury bonds (OTA)—suggests either a deliberate scaling back or a more selective investor response across the CEMAC region.
Several underlying factors contribute to this slowdown. The banking liquidity in CEMAC, historically tied to oil revenues and foreign exchange reserves managed by the Bank of Central African States (BEAC), remains highly sensitive to fluctuations in hydrocarbon earnings. Additionally, the surge in competing sovereign bond issuances from neighboring countries such as Gabon, Chad, and the Republic of the Congo has intensified competition for the limited absorption capacity of primary banks, which are the main subscribers to public debt instruments in the subregion.
Constrained financing amid regional pressures
The decline in mobilized funds also reflects Cameroon’s efforts to manage the rising cost of servicing domestic debt. Recent bond issuances in CEMAC have seen interest rates climb, driven by both the BEAC’s restrictive monetary policy and the risk premium demanded by investors. For the Treasury, striking a balance between raising sufficient funds and controlling borrowing costs has become increasingly complex, particularly as the average maturity of issued bonds impacts future refinancing needs.
While the CAA regularly compares cash flow requirements, debt maturities, and actual funds raised, Cameroon’s position as the largest economy in CEMAC grants it a benchmark status in the public bond market. This status carries significant responsibility, as a controlled reduction in issuance volumes may signal prudent fiscal management, whereas an involuntary decline could raise concerns about long-term debt sustainability.
What lies ahead for the second half of 2026
The second-half issuance schedule will be critical in determining the trajectory of domestic borrowing. Future operations must align with upcoming repayment deadlines and the financing needs of public investment programs, particularly in infrastructure and energy sectors. The Ministry of Finance, led by Louis Paul Motaze, has historically balanced domestic borrowing with external financing, including drawdowns from multilateral partners such as the International Monetary Fund (IMF) and the World Bank.
Yet, the depth of the regional market remains a lingering challenge. The Central African Stock Exchange (BVMAC) continues to struggle in attracting investment flows comparable to those seen in West African markets like the BRVM. In this context, the Cameroonian Treasury’s ability to diversify its investor base—by appealing to pan-African funds or non-bank institutional investors—will be pivotal to the success of future fundraising efforts. The next six months will serve as a decisive test for Yaoundé’s domestic financing strategy.