Cameroon’s government is planning to secure a significant external loan of 650 billion CFA francs — equivalent to approximately $1.16 billion — in 2026, despite a recent sovereign credit downgrade that has raised investor caution.
The proposed borrowing was revealed in an official document, though details remain scarce and subject to parliamentary approval through the national budget law.
It is not yet clear whether the financing will be sourced from international banks, partner governments, multilateral institutions, or through bond issuance in public or private global markets.
As of March 31, 2025, Cameroon’s external debt stock stood at 8.56 trillion CFA francs, or around $14.1 billion.
Notably, this figure does not appear to include the $550 million Eurobond issued in 2024 with the assistance of UK-based Cygnum Capital and US financial giant Citigroup.
A breakdown of the country’s debt reveals 4.32 trillion CFA francs owed to multilateral institutions, 2.88 trillion to bilateral lenders or partner states, and 1.69 trillion as commercial debt.
Within the commercial segment, Eurobonds account for 813.5 billion CFA francs, including the latest 2024 issuance.
Despite the rising debt load, the government’s intent to return to international capital markets is not unexpected.
However, this strategy faces challenges after Fitch Ratings downgraded Cameroon’s credit outlook to “negative” in May 2025.
The 2024 Eurobond was issued with a 9.5% interest rate — a reflection of investor concerns over the country’s fiscal discipline and creditworthiness.
So far, there has been no official confirmation of negotiations with the International Monetary Fund, African Development Bank, or any other bilateral or multilateral financial partners regarding the upcoming loan package.
Cameroon’s financial manoeuvrability may improve with the expected full repayment of its first Eurobond, issued in 2015, which is due on November 19, 2025. That event could pave the way for fresh engagement with debt markets.
The government estimates the proposed 2026 loan will help close a budget financing gap of 2.12 trillion CFA francs.
If the administration proceeds with another Eurobond issuance, it would be the country’s fourth since 2015 — a significant move as global investors watch closely ahead of what is expected to be a tense presidential election year.
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