Cameroon’s debt burden hits households and businesses where it hurts

Cameroon’s public debt has climbed to 15,607 billion FCFA, and the effects are already rippling through the daily lives of citizens and companies. As the government borrows more to build roads and keep the lights on, the cost of servicing those loans is quietly reshaping the country’s economic landscape — from the taxes people pay to the projects that get delayed.

How the debt reached 15,607 billion FCFA

By the end of June, the outstanding public debt stood at 15,607 billion FCFA, equal to 44.2% of GDP, up from 14,409 billion FCFA a year earlier. The increase reflects fresh borrowing signed during the first half of 2026 as the government sought to fund infrastructure, cover budget gaps and meet existing obligations.

In January, President Paul Biya authorised the Ministry of Finance to raise up to 1,650 billion FCFA in domestic and external loans. That ceiling included 400 billion FCFA in Treasury bills, 250 billion FCFA in direct loans from private national institutions, and 1,000 billion FCFA from international financial markets. The funds were earmarked for development projects and clearing payment arrears.

But an authorised ceiling is not the same as money already borrowed. By the end of June, the government had raised 800.7 billion FCFA on the domestic market, according to the Autonomous Sinking Fund (CAA). New project financing commitments reached about 514 billion FCFA during the first six months.

Where the money is going — and what it costs

Major loans include 130.4 billion FCFA for the Ebolowa-Akom II-Kribi road, signed in May with Standard Chartered Bank under a guarantee from UK Export Finance. A separate commercial loan of 7.8 billion FCFA had already been secured for the same project.

In October, the government approved a 347.5 million euro World Bank loan — about 228 billion FCFA — for the Douala-Bangui economic corridor. Another financing agreement of roughly 212.35 million euros (about 139 billion FCFA) was cleared for the Douala-Bafoussam road rehabilitation. Together, these two deals add around 367 billion FCFA in authorised project funding.

The 2026 budget plans for 3,104 billion FCFA in borrowing and other financing needs out of a total budget of 8,816 billion FCFA. These needs cover the fiscal deficit, debt repayment and other obligations.

Debt service alone consumed about 1,059 billion FCFA in the first half of 2026, according to figures from the IMF and the CAA. That is money that could otherwise have gone to schools, hospitals or tax relief for struggling businesses.

The real-world consequences for citizens and the economy

The IMF, after a September mission, warned on 1 October that Cameroon’s debt sustainability analysis still shows a high overall risk of debt distress, even though the debt is deemed sustainable in the medium term. The Fund called for tighter fiscal policy, stronger domestic revenue mobilisation and greater reliance on concessional financing.

It also flagged significant liquidity pressures, driven by large debt repayments and growing dependence on commercial borrowing. In its 2026 Article IV assessment, the IMF stressed that the government must borrow prudently given limited liquidity and the saturated regional domestic debt market.

For ordinary Cameroonians, the squeeze translates into fewer resources for public services, higher taxes or fees, and a private sector that struggles to access credit as the government absorbs available funds. Businesses face a crowding-out effect, making it harder to invest and create jobs. Households feel it through rising prices and stagnant wages.

The central question is no longer how much the government is allowed to borrow. It is how much has actually been raised and disbursed, what projects are being financed, what those loans cost, and how much the country will have to repay. With public debt already above 15,600 billion FCFA, that distinction matters more than ever — because the consequences are not just numbers on a ledger, but real effects on people’s lives and the country’s economic future.

By Boureima Amadou — Reporter