Cameroon's government is struggling to raise funds on the Central African financial market, securing only 33.2 billion CFA francs out of a targeted 60 billion in three Treasury bill issuances on September 1. The public debt manager, Caisse autonome d'amortissements (CAA), revealed that the average weighted interest rates for the 13, 26, and 52-week notes ranged from 6.2% to 6.75%, a significant increase from the sub-5% rates of a few years ago.
The Central Bank of Central African States (BEAC) data shows the 52-week bond issuance was the most challenging. Investors provided just 5.5 billion CFA francs, well short of the 20 billion sought by Cameroon, at an average interest rate of 6.75%. In contrast, the country raised 11 billion out of a requested 15 billion at a 6.2% interest rate for the 13-week bills, and 16.7 billion out of a 25 billion request for the 26-week bills at a 6.56% interest rate.
These figures highlight the increasing difficulty that CEMAC countries—Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic—face in raising funds from the sub-regional market, which has been a primary source of financing for years. Market experts attribute these difficulties to soaring interest rates, driven by a surge in financing demands, and the need for market intermediaries to adhere to prudential ratios.
In response, Cameroon is exploring alternatives to the BEAC public securities market. The CAA noted that the President signed a decree on May 19, 2025, authorizing the finance minister to borrow up to 200 billion CFA francs from international financial markets to finance 2025 treasury operations.
BRM