Cameroon is looking to raise CFA25 billion through two new short-term bond issues on the regional debt market operated by the Bank of Central African States (BEAC). The issuance, carried out on April 2 involves Treasury bills with 13- and 52-week maturities, a common tool used by the government to manage short-term cash flow needs.
The final results of the operation have not yet been disclosed, but the timing of the move highlights growing pressure in the market. Interest rates on short-term government securities, especially Treasury bills—known locally as BTA—have been rising steadily, making it more expensive for governments to borrow.
Speaking to investors in Douala earlier this year, Finance Minister Louis Paul Motazé pointed out that Cameroon’s yields on BTAs have more than doubled over the past five years. Rates climbed from 2.67% in 2020 to 6.33% in 2024, reflecting a toughening financial environment.
By February 2025, the average yield offered by the Cameroonian Treasury had jumped to 6.95%—the highest level recorded since the regional bond market was launched nearly 14 years ago. It was also the highest rate across the entire BEAC market during that period.
Back in February 2022, yields were still around 2.8%. A year later, they had climbed to 4.12%. But as the market tightened and investors demanded better returns, Cameroon—once known for offering the lowest rates in the region—was forced to adapt.
Some of the pressure also stems from neighboring CEMAC countries that have shown a greater willingness to pay more in order to secure funding. With competition heating up, Cameroon has had little choice but to follow suit, driving up the cost of its short-term debt.