In the first half of 2026, Cameroon’s public Treasury successfully mobilized 800.7 billion FCFA through domestic borrowing, equivalent to approximately 1.4 billion US dollars. The figure, disclosed in the Monthly Public Debt Outlook published by the Autonomous Amortization Fund (CAA)—the body tasked with managing Cameroon’s sovereign debt—highlights a strategic shift in Yaoundé’s financing approach within the Central African Economic and Monetary Community (CEMAC).
Domestic borrowing slows amid market adjustments
Compared to the 1,525.9 billion FCFA raised across the entire 2025 fiscal year, the six-month total suggests a measurable deceleration in reliance on domestic financing. If this trend continues, the Cameroonian government could conclude 2026 with around 1,600 billion FCFA in domestic borrowing—a figure aligned with last year’s levels but falling short of earlier growth projections. This moderation may reflect either a deliberate scaling back of public bond issuances—such as assimilable Treasury bills (BTA) and assimilable Treasury bonds (OTA)—or a more selective investor appetite across the CEMAC region.
Several structural and cyclical factors could explain this slowdown. Liquidity within the CEMAC banking sector, heavily influenced by oil-related deposits and foreign exchange reserves managed by the Bank of Central African States (BEAC), remains vulnerable to fluctuations in hydrocarbon revenues. Additionally, the surge in competing sovereign bond issuances—particularly from Gabon, Chad, and the Republic of the Congo—has intensified competition for limited absorption capacity among primary banks, the main subscribers to regional public debt instruments.
Balancing volume and cost in a constrained regional environment
The decline in mobilized funds also reflects Cameroon’s efforts to manage the rising cost of servicing domestic debt. Recent issuance rates in the CEMAC region have trended upward, driven by both the BEAC’s restrictive monetary policy and heightened risk premiums demanded by investors. For the Treasury, striking a balance between the volume of funds raised and their weighted cost has become increasingly complex, especially as the average maturity of issued securities impacts future refinancing profiles.
The CAA’s monthly monitoring typically compares cash flow needs tied to budget execution, debt maturities, and actual resource mobilization. As Cameroon remains the CEMAC’s largest economy, it holds a pivotal role as a benchmark issuer in the public debt market. This position carries significant responsibility: a controlled slowdown may signal prudent fiscal management, whereas an unplanned contraction could raise concerns over budget sustainability.
Outlook for the second half of 2026
The schedule of public bond auctions in the coming months will be critical in assessing the trajectory of domestic borrowing. Upcoming issuances must account for upcoming repayment deadlines and the financing requirements 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 sources, including disbursements from multilateral partners such as the International Monetary Fund (IMF) and the World Bank.
Yet, the depth of the regional debt market remains a pressing challenge. The Central African Securities Exchange (BVMAC) continues to lag behind counterparts like the West African regional exchange (BRVM) in attracting comparable investor flows. 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 determine the success of future fundraising efforts. The next six months will serve as a decisive test for Yaoundé’s domestic financing strategy.
