With the release of the International Debt Report 2026, the invisible pressure on Cameroon’s external finances has become undeniable. Last year, the country allocated 1,101 billion CFA francs—equivalent to $1.896 billion—to servicing its external debt, up from 1,023 billion francs the previous year. This 12.3% increase in dollar terms was driven primarily by capital amortizations, which surged 19.7% to $1.38 billion, while interest payments edged slightly lower to $510 million. Meanwhile, total external debt climbed 10.5% to reach $17.57 billion by the end of 2025.
The mechanics behind the repayment surge
The sharp rise in Cameroon’s debt repayments is not an isolated shock but the result of strategic financial decisions made years ago. A closer look reveals how earlier borrowing to fund large-scale infrastructure projects, such as the Kribi port, the Memve’ele dam, and major road networks, has now entered a phase of heavy amortization. Eurobonds issued in 2015 and refinanced in 2021 are also reaching critical repayment stages. Bilateral creditors from Asia, who played a key role in financing these projects, now demand larger repayments than ever before. Additionally, repurchases from the IMF surged in 2025, totaling $130.4 million compared to $84.3 million the previous year—a direct outcome of pandemic-era financing packages.
This repayment spike is unfolding against a backdrop of shrinking foreign exchange inflows. Cameroon’s export revenues from goods, services, and primary income fell by 2.9% in 2025, dropping to $8.57 billion. Structural decline in oil production—ongoing since the mid-2010s—and weaker global prices for cocoa and timber have eroded the country’s foreign exchange base, which has traditionally relied heavily on hydrocarbons and agro-industrial exports.
How debt repayments are reshaping public spending
The growing burden of external debt repayments is reshaping Cameroon’s public finances in real time. Net inflows of new external financing fell by 32.8% in 2025, to $624 million, while net transfers after interest payments plummeted 71.5% to just $113 million. In essence, Cameroon is no longer benefiting from external debt as a net financial resource—it has flipped into a net outflow. This explains why public investment has begun to contract. First-quarter 2026 budget execution data show a 27.7% drop in public investment compared to the same period in 2025, as fiscal consolidation aligns with the IMF program’s demands.
The strain extends beyond currency flows. With external debt now consuming 22.1% of Cameroon’s export and primary income earnings—up from 19.1% in 2024—the government faces a widening gap between debt obligations and the hard currency needed to meet them. In comparison, neighboring Gabon and the Republic of the Congo are also experiencing tighter external financing conditions, but Cameroon remains the most exposed in absolute terms within the Central African Economic and Monetary Community (CEMAC).
What lies ahead after Biya’s presidency
While Cameroon’s total external debt stands at 30.3% of gross national income, the real vulnerability lies in its reliance on foreign earnings. At 205.1% of external receipts, the country’s debt sustainability hinges on its ability to generate hard currency—not just the size of the debt itself. The International Debt Report 2026 and joint IMF-World Bank debt sustainability analysis of March 2026 both classify Cameroon as at high risk of debt distress, despite the debt being deemed manageable over the medium term.
As Cameroon prepares for its first leadership transition in over four decades, the 2026–2027 fiscal period emerges as a decisive test. Every CFA franc diverted to debt servicing limits the next government’s ability to fund social programs, wages, and security initiatives. Future fiscal flexibility will depend on renegotiating bilateral loans, reviving regional bond issuance through the Bank of Central African States (BEAC), and expanding non-oil tax revenues. The choices made now will determine whether Cameroon can break the cycle of high debt and low growth—or fall deeper into fiscal tightness.
