Cameroon has placed securing a new agreement with the International Monetary Fund (IMF) at the heart of its 2027-2029 medium-term economic and budgetary framework. According to the Document de programmation économique et budgétaire à moyen terme submitted to Parliament by the Ministry of Finance as part of the budget orientation debate, Yaoundé is banking on FCFA 300 billion in IMF-linked support. This amount represents nearly 9.5% of the projected financing needs for 2027, estimated at FCFA 3,161.5 billion.
The stakes are high. The previous IMF program, signed in 2021 and extended by one year, expired in July 2025. Since then, Finance Minister Louis Paul Motazé has publicly advocated for a new accord, as reiterated during the cabinet meeting on October 30, 2025. While the Prime Minister has deferred the formal decision to open negotiations to the Presidency, the inclusion of this funding in the three-year budget plan signals that the government is treating it as the baseline scenario.
Financing gap tied to IMF program
Cameroon’s overall budget deficit is projected at FCFA 1,018 billion for 2027, up from FCFA 808.5 billion in 2026. Nearly 30% of this deficit would be covered by IMF-linked support. In addition, FCFA 2,143.5 billion is earmarked for financing costs and cash flow, primarily driven by debt repayments and arrears settlement. The financial debt alone to be repaid totals FCFA 1,602.5 billion.
To balance the books, the government plans FCFA 866.7 billion from project loans, FCFA 400 billion from public bond issuances, FCFA 250 billion from direct bank financing, and FCFA 131.5 billion drawn from reserves held with the Bank of Central African States (BEAC). A new external borrowing of FCFA 1,000 billion is also envisaged for 2027, mirroring a similar operation planned for 2026. The medium-term economic framework explicitly labels the absence of an IMF agreement as a major risk to public finance sustainability.
Without an IMF deal, the Treasury would have to plug the FCFA 300 billion shortfall through additional borrowing, enhanced domestic revenue mobilization, or spending cuts. The Ministry of Finance itself highlights the challenges: rising domestic borrowing costs, stubbornly high interest rates, and the still-nascent depth of the CEMAC financial market. These constraints make it difficult to easily replace concessional support with commercial debt.
IMF program catalyzes support from other lenders
Beyond direct IMF disbursements, a new program with the Washington-based institution acts as a catalyst for financing from the World Bank, African Development Bank (AfDB), European Union, and bilateral partners. These creditors frequently tie their support to the implementation of reforms and adherence to macroeconomic targets embedded in the IMF framework.
Between 2017 and 2025, the two IMF programs enabled Cameroon to secure approximately FCFA 2,600 billion in budget support, combining IMF disbursements with associated funds from other partners. “Without a new program, we would lose this vital funding,” cautioned Minister Motazé. The government is also pursuing measures to broaden the non-oil tax base, modernize revenue collection agencies, and streamline current expenditures in favor of investment.
A regional hurdle before Washington’s approval
Cameroon’s efforts are, however, contingent on broader developments within the Central African Economic and Monetary Community (CEMAC). Any IMF-backed national program in the region requires regional assurances on monetary policy, foreign exchange reserve rebuilding, and alignment of member states’ fiscal trajectories.
The review of CEMAC’s common policies, originally slated for December 2025, has been postponed. Authorities cite insufficient alignment of national budgetary policies with the regional strategy and incomplete agreements on reform-linked assurances. While this validation is a prerequisite, it does not automatically greenlight a bilateral deal between Cameroon and the IMF.
The timing is critical. By including FCFA 300 billion in conditional IMF support in its 2027 financing plan, the government is tying part of its fiscal credibility to the outcome of negotiations. Prolonged delays would force greater reliance on commercial debt or spending cuts, undermining investment ambitions. The stakes could not be higher as Cameroon navigates a delicate balance between reform, financing, and economic stability.