Cameroun faces risk of losing 292 billion cfa francs in bad funding

During a joint portfolio review held in Yaoundé on July 14, 2026, the Cameroonian government and the African Development Bank (BAD) uncovered a major financial risk looming over the country. Seven operations, totaling 373.419 million Special Drawing Rights (SDRs), equivalent to roughly 292 billion FCFA, now face potential cancellation. The issue stems not from resource shortages but from sluggish internal procedures that have stalled project implementation.

These funds are not already disbursed loans that Cameroon would need to repay. Instead, they represent approved loans and grants from the BAD where agreements either remained unsigned past deadlines or payments failed to materialize despite legal formalization. Six cases fall into the first category, while one belongs to the second. The total value of stalled financing reaches 339.419 million SDRs, or nearly 265 billion FCFA.

ngoura-yokadouma road project highlights administrative bottlenecks worth 207 billion

The most pressing case is the Transboundary Economic Basin Connectivity and Unlocking Program, which aims to upgrade the Ngoura-Yokadouma road in the eastern region. This project alone accounts for 265.4 million SDRs—about 207 billion FCFA—representing over 71% of the threatened funding. Approved on February 18, 2026, the loan agreement for this project had not been signed by the time of the review.

Five other initiatives share a similar fate. The second phase of the Pan-African University Support Project, funded by the African Development Fund (FAD) with 3.64 million SDRs and approved on December 19, 2024, remains unsigned. Other stalled projects include the Minkouma hydroelectric feasibility study on the Sanaga River (2.994 million SDRs), the CUA-Y2 university city study (2.320 million SDRs), and the Lake Chad risk prevention program (5.095 million SDRs).

A regional initiative, the transport and trade facilitation project involving a bridge over the Ntem River at the Equatorial Guinea border, adds to the list. Approved on November 29, 2023, it combines a BAD loan of 39.97 million SDRs and an FAD loan of 20 million SDRs.

parzik2 project stuck for 15 months despite signed agreement

A different challenge plagues the Kribi Port and Industrial Zone Access Roads Project, Phase 2 (PARZIK2). Though a signed agreement exists, no funds have been disbursed in the 15 months since its signing. This project, valued at 34 million SDRs (around 26.54 billion FCFA), now risks cancellation despite Kribi’s critical role in Cameroon’s industrial and port strategy.

execution delays twice as long as benchmarks

Data from the review paints a stark picture of inefficiency. The average time between funding approval and agreement signing stands at 12 months, far exceeding the BAD’s three-month benchmark. The average time to project activation is 16 months, compared to the expected five months, while the first disbursement occurs after 21 months—nearly double the 12-month target. This means nearly two years pass before any funds reach the ground.

The Minister of Economy, Planning, and Territorial Development, Alamine Ousmane Mey, acknowledged the severity of the situation. He cited inadequate project preparation, prolonged public procurement processes, weak project management units, and delayed mobilization of counterpart funds as key bottlenecks. These delays inflate costs and undermine the country’s credibility with international lenders.

Since its first operation in Cameroon in November 1972, the BAD has committed 130 loans and grants totaling an estimated 3,345 billion FCFA. The 2023-2028 program includes 11 operations worth 833.8 billion FCFA in approved funding. Yet, as financial partners have noted, the real challenge lies in converting these commitments into tangible infrastructure projects. For now, this remains the weakest link in Cameroon’s financial cooperation with the African Development Bank.