Cameroon faces soaring short-term debt of $1.8 billion by early 2026

By the end of the first quarter of 2026, Cameroon’s dette flottante—the accumulated unpaid bills beyond regulatory deadlines—reached nearly $1.8 billion USD. This figure underscores a persistent structural imbalance between the state’s financial commitments and its actual payment capacity, straining public treasury operations. The arrears primarily affect domestic suppliers, contractors, and service providers, triggering widespread concerns over fiscal governance and the government’s fiscal maneuverability amid tightening external financing conditions.

Short-term debt as a budgetary crutch

While not a new phenomenon in Cameroon, the current scale of dette flottante reflects a worrying escalation. At 1.8 billion USD, this backlog now accounts for a substantial portion of annual public expenditure, excluding debt servicing and salaries. To preserve cash flow, the government routinely delays settling obligations, effectively shifting the burden onto local private enterprises. This approach, though common across the CEMAC region, functions as an indirect form of forced financing from domestic suppliers.

Small and medium-sized enterprises (SMEs), often the backbone of this arrangement, bear the brunt of payment delays. These ripple effects manifest in delayed contractor payments, banking liquidity crunches, and cash flow disruptions for employees. Cameroonian banks, heavily exposed to state-linked suppliers, see a corresponding rise in non-performing loans within their portfolios. Regulators like the Banque des États de l’Afrique Centrale (BEAC) and the regional banking commission are closely monitoring this growing interdependence between public finances and private sector credit risk.

A red flag for international lenders

The revelation of this debt figure coincides with ongoing negotiations for an extended program with the International Monetary Fund (IMF) and frequent reliance on regional markets through BEAC-issued sovereign bonds. Multilateral partners view dette flottante as a critical indicator, alongside official debt metrics. Its unchecked growth signals systemic inefficiencies in the expenditure chain—from procurement to disbursement—and fuels skepticism about fiscal transparency and accountability.

Past attempts to clear arrears yielded inconsistent results. Rather than shrinking, the backlog has a tendency to rebuild quarter after quarter. For years, institutions like the World Bank and IMF have urged structural reforms, including systematic audits of overdue payments, stricter controls on off-budget commitments, and upgrades to the integrated public financial management system.

Real economy caught in the crossfire

The consequences of mounting dette flottante extend far beyond macroeconomic indicators. Public procurement has ground to a near-standstill in key sectors. Businesses, wary of payment delays, embed high-risk premiums into their bids, inflating project costs and reducing competition. Some firms opt out of tenders altogether, further eroding service quality and innovation in public contracts. Contrary to expectations, the national productive sector—meant to benefit from state-led spending—finds itself hampered by these very delays.

The construction industry, a major creditor to the state through infrastructure projects, exemplifies this crisis. Roadworks stall, equipment deliveries lag, and legal disputes pile up in administrative courts—each delay adding hidden costs to the nominal arrears total. Sectors such as health and education also face supply chain disruptions due to unpaid bills, threatening service delivery at a time of heightened public need.

Looking ahead, the government has pledged to bring arrears down to levels aligned with regional and international commitments. However, the 2026 outlook presents challenges: moderate growth forecasts and underperforming tax revenues complicate fiscal consolidation. Without fundamental reforms to the expenditure cycle, dette flottante risks becoming a chronic marker of fiscal fragility for the largest economy in the CEMAC zone.