Cameroun’s treasury raises 800 billion FCFA on domestic market

In the first half of 2026, Cameroon’s public Treasury successfully mobilised 800.7 billion Central African CFA francs on the domestic market, equivalent to approximately $1.4 billion. This figure, highlighted in the monthly public debt report released by the Autonomous Debt Management Agency (CAA), underscores a strategic shift in Yaoundé’s approach to domestic financing. While substantial within the Economic and Monetary Community of Central Africa (CEMAC), the amount reflects a noticeable moderation in the country’s reliance on internal borrowing.

Domestic borrowing slows down

When compared to the 1,525.9 billion FCFA raised throughout 2025, the mid-year figure suggests a tangible deceleration in domestic market activity. If this trend persists, the Cameroonian government could conclude 2026 with around 1,600 billion FCFA in domestic borrowing—a figure similar to 2025 but one that falls short of earlier growth projections. Specifically, the pace of public bond issuances—including Treasury bills (BTA) and Treasury bonds (OTA)—appears to have been adjusted downward, potentially due to a more selective investor appetite across the CEMAC region.

Several factors could explain this slowdown. Banking liquidity in the CEMAC zone, 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 from countries like Gabon, Chad, and the Republic of the Congo is increasingly straining the absorption capacity of primary banks, which are the main subscribers to public securities in the subregion.

Financing strategy under regional pressure

The decline in mobilised funds aligns with efforts by Cameroonian authorities to curb the rising costs of servicing domestic debt. Recent bond issuances in the CEMAC region have seen interest rates tighten, reflecting both the BEAC’s restrictive monetary policy and the risk premium demanded by investors. For the Treasury, balancing between the volume of funds raised and the weighted cost of debt has become a delicate balancing act, particularly 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 mobilised resources. As the largest economy in CEMAC, Cameroon holds a benchmark status for public securities issuance, but this also carries the responsibility of signalling fiscal prudence to investors. A controlled slowdown may be viewed as cautious management, whereas an involuntary decline could fuel concerns about fiscal sustainability.

Outlook for the second half of 2026

The second half of the year will be critical in determining the trajectory of domestic borrowing. Upcoming issuances must account for upcoming repayment deadlines and the financing needs of public investment programs, particularly in infrastructure and energy. The Ministry of Finance, led by Louis Paul Motaze, has historically balanced domestic market 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 persistent challenge. The Central African Securities Exchange (BVMAC) continues to struggle in attracting the same level of investor interest as markets like the BRVM in West Africa. In this context, the Cameroonian Treasury’s ability to diversify its investor base—by attracting pan-African or non-bank institutional investors—will be pivotal to the success of future fundraising efforts. The next six months will serve as a litmus test for Yaoundé’s domestic financing strategy.