Cameroun’s treasury secures 800 billion FCFA on domestic market

The Cameroonian public treasury successfully mobilised 800.7 billion Central African CFA francs (FCFA) on the domestic market during the first half of 2026, translating to roughly $1.4 billion. This figure, shared in the monthly public debt report published by the Autonomous Amortization Fund (CAA) – the body responsible for managing Cameroon’s sovereign debt – underscores a strategic shift in Yaoundé’s domestic financing approach.

Domestic market issuance slows down

The total raised over six months represents a noticeable deceleration compared to the 1,525.9 billion FCFA mobilised throughout 2025. If this downward trend persists, the state is projected to close the year at around 1,600 billion FCFA, a figure comparable to 2025 but significantly lower than previously anticipated growth projections. The adjustment appears to reflect either a deliberate reduction in the pace of public bond issuances – including negotiable Treasury bills (BTA) and bonds (OTA) – or a more discerning appetite from regional investors for sovereign securities.

Multiple factors contribute to this slowdown. The banking liquidity in the CEMAC region, historically anchored to oil-related deposits and foreign exchange reserves managed by the Bank of Central African States (BEAC), remains vulnerable to fluctuations in hydrocarbon revenues. Additionally, the surge in competing sovereign bond issuances, particularly from Gabon, Chad, and the Republic of the Congo, is intensifying competition for the limited absorption capacity of primary banks, who are the main subscribers to public securities across the subregion.

Financing strategy constrained by regional dynamics

The decline in mobilised funds also reflects Yaoundé’s efforts to manage the rising cost of domestic debt servicing. Recent issuance rates within CEMAC have trended upward, driven both by the BEAC’s restrictive monetary policy and the risk premium demanded by subscribers. For the Treasury, balancing between volume raised and weighted cost has become increasingly complex, especially considering the average maturity of issued securities and its implications for future refinancing profiles.

The CAA’s monthly monitoring typically aligns treasury cash needs, debt maturities, and actual mobilised resources. As the largest economy in CEMAC, Cameroon holds a benchmark status in the public securities market – a position that carries the responsibility of maintaining investor confidence. While a controlled slowdown may signal prudent fiscal management, an involuntary decline could raise concerns about long-term budgetary sustainability.

What lies ahead for the second half of 2026

The schedule of second-half bond auctions will be pivotal in determining the trajectory of domestic borrowing. Upcoming operations must carefully balance debt repayment obligations with financing requirements for public investment programs, particularly in infrastructure and energy sectors. The Ministry of Finance, led by Louis Paul Motaze, has historically balanced domestic market fundraising with external financing, including drawdowns from multilateral partners such as the International Monetary Fund (IMF) and the World Bank.

Yet, the depth of the subregional capital market remains a critical question. The Central African Securities Exchange (BVMAC) continues to struggle in attracting investment flows comparable to those seen on platforms like the BRVM in West Africa. In this context, Cameroon’s ability to diversify its investor base – by appealing to pan-African funds or non-bank institutional investors – will be decisive for the success of future bond issuances. The next six months will serve as a definitive test for Yaoundé’s domestic financing strategy.