The Cameroonian public treasury successfully mobilized 800.7 billion Central African CFA francs (FCFA) on the domestic market in the first half of 2026, an amount equivalent to approximately 1.4 billion US dollars. This figure, highlighted in the monthly public debt report released by the Autonomous Amortization Fund (CAA) in July 2026, underscores a significant yet nuanced shift in Yaoundé’s domestic financing strategy.
Domestic market issuance slows down
When compared to the 1,525.9 billion FCFA raised throughout 2025, the half-year total suggests a measurable deceleration in the government’s reliance on domestic borrowing. Should this trend continue, the state could conclude the year at around 1,600 billion FCFA—levels consistent with 2025 but falling short of earlier growth projections. Specifically, the pace of public bond issuances, including bons du Trésor assimilables (BTA) and obligations du Trésor assimilables (OTA), appears to have been deliberately scaled back, possibly in response to a more selective investor appetite across the Central African Economic and Monetary Community (CEMAC) region.
Several underlying factors may explain this slowdown. Liquidity within the CEMAC banking sector remains heavily tied to hydrocarbon revenues and foreign exchange reserves managed by the Bank of Central African States (BEAC). Additionally, the surge in competing sovereign bond issuances by neighboring countries such as Gabon, Chad, and the Republic of the Congo has intensified competition for the limited absorption capacity of primary banks, which traditionally serve as the main subscribers to regional public debt instruments.
Constrained financing amid regional pressures
The reduction in funds raised also reflects Cameroon’s efforts to manage the rising cost of servicing domestic debt. Recent issuances across CEMAC have seen interest rates climb, driven by both the BEAC’s restrictive monetary policy and heightened risk premiums demanded by investors. For the treasury, balancing the volume of funds raised with the weighted cost of borrowing has become an increasingly complex balancing act. The average maturity of issued bonds further complicates the refinancing outlook for the coming years.
The CAA’s monthly monitoring typically aligns cash flow needs tied to budget execution, debt maturities, and actual funds raised. As the largest economy in CEMAC, Cameroon holds a reference status in the public bond market, a position that carries significant responsibility in shaping investor sentiment. A controlled slowdown may be interpreted as prudent fiscal management, while an involuntary decline could fuel concerns over budgetary sustainability.
Outlook for the second half of 2026
The timing and volume of second-half bond auctions will be critical in assessing the trajectory of Cameroon’s domestic borrowing. Future issuances must account for upcoming repayment deadlines and the financing requirements 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 funding sources, including multilateral financing from institutions like the International Monetary Fund (IMF) and the World Bank.
Yet the depth of the regional 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 participation. In this context, the treasury’s ability to diversify its investor base—by engaging panafrican funds or non-bank institutional investors—will be pivotal to the success of future fundraisings. The next six months will serve as a real-world test of Yaoundé’s domestic financing strategy.
