Scrutinizing AFD’s 622.8 billion FCFA investment in Cameroon: a sectoral divergence

The Agence Française de Développement (AFD) stands as Cameroon’s leading bilateral donor, managing an active portfolio exceeding 622.8 billion FCFA across 51 distinct projects. However, a detailed examination of its 2025 financial commitments reveals a striking sectoral imbalance: 44.2% of the allocated funds target infrastructure and urban development, while a mere 1.7% is directed towards agriculture and food security. This disparity warrants close scrutiny, especially given Yaoundé’s stated national strategy prioritizing import-substitution and agricultural self-reliance.

The figures speak volumes about the scale of the AFD Group’s operations in Cameroon. By December 31, 2024, the group’s portfolio in the country surpassed 594 billion FCFA, representing the largest share of the approximately 1,705.4 billion FCFA committed across Central Africa. This volume further expanded in 2025, reaching an estimated 622.8 billion FCFA, distributed among 51 projects. Of these, 47 are managed directly by the AFD, with Expertise France overseeing four. The group’s activity report delineates the allocation among its entities: 574.4 billion FCFA for the AFD itself, 40.5 billion FCFA for Proparco, its private sector financing arm, and over 7.8 billion FCFA for Expertise France.

What these aggregate figures do not immediately convey is the precise sectoral distribution. This is where a deeper analysis becomes particularly enlightening. In 2025, infrastructure and urban development projects collectively absorbed 44.2% of the group’s commitments. Financing for private financial institutions accounted for a substantial 35.9%. Governance initiatives received 6.8%, while education, training, and employment programs secured 6.4%. At the opposite end of the spectrum, agriculture and food security projects garnered only 1.7% of the funds, water and sanitation 2.2%, and the productive sector a modest 2.9%.

INFRASTRUCTURE: A DELIBERATE AND HISTORIC FOCUS

The pronounced concentration on infrastructure is not accidental. It aligns with a long-standing strategic rationale and addresses genuine developmental needs. The AFD has maintained a presence in Cameroon since 1960, and the nation has historically been one of the primary beneficiaries of its financing across Africa, with annual commitments averaging nearly 150 billion FCFA since 2002. The flagship project for 2025 powerfully illustrates this directional emphasis.

On January 21, five financing agreements totaling 175.5 million euros were formally signed at the Ministry of Economy. The most significant of these agreements supported the Douala and Yaoundé Flood Control Program (PLIDY) with a sovereign loan of 150 million euros. This initiative aims to tackle the recurring floods plaguing the country’s two major urban centers, with a long-term objective of substantially reducing the vulnerability of both populations and essential infrastructure. This single project’s value is equivalent to almost five times the entire three-year budget recently allocated by the Cameroonian government for revitalizing its wheat sector. The AFD also extended its support to the Regional Capitals program, financed through the C2D mechanism, which seeks to modernize urban infrastructure in five secondary cities, as well as the Sporcap initiative, aimed at enhancing access to sports facilities.

AGRICULTURE REMAINS MARGINALIZED

The contrast concerning the agricultural sector is stark. The Cameroonian government has explicitly positioned food sovereignty as a cornerstone of its National Development Strategy 2020-2030 (SND30). Furthermore, the Integrated Agro-pastoral and Fisheries Import-Substitution Plan (PIISAH) 2024-2026 has committed 1,500 billion FCFA to lessen dependence on imports of staple commodities such as rice, wheat, and palm oil. Within this strategic framework, the AFD’s allocation of just 1.7% of its 2025 commitments to agriculture and food security raises significant questions.

This remarkably small share stands in sharp contrast to the institution’s activities in other nations. Between 2018 and 2024, Proparco, the AFD Group’s private sector arm, doubled its annual financing across Africa, mobilizing over 7.6 billion euros—approximately 1.2 billion annually—specifically targeting infrastructure, agriculture and food security, financial systems, and essential services.

These continent-wide priorities, while clearly articulated, do not appear to translate with the same intensity into the Cameroonian portfolio. Yet, strong precedents exist within Cameroon itself. The AFD previously supported 8,000 productive projects through its ACEFA program, which reached 260,000 agricultural operations and financed micro-projects spanning cereals, livestock, agro-processing, and commercialization. The consolidation phase of this program now aims to assist one million Cameroonian family farms by 2035, recognizing that these two million family farms are responsible for nearly 80% of the national agricultural output. While these achievements are notable, their budgetary weight within the 2025 portfolio remains marginal when compared to the substantial urban projects.

SOVEREIGN LOANS AT THE CORE OF FINANCING

An examination of the financial tools employed reveals another critical dimension of the portfolio. In 2025, sovereign loans constituted 33.9% of the total commitments, followed by senior loans at 23.2%, C2D financing at 16.2%, and guarantees at 12.6%. Subsidies—a non-reimbursable instrument inherently suited for social impact projects with no immediate financial return, such as those in agriculture—represented only 6.3% of the overall funding. This financial architecture operates on a specific logic. Large-scale infrastructure projects are naturally amenable to sovereign loans, as they generate tangible assets that can secure repayment.

Agricultural projects, conversely, frequently involve dispersed populations, uncertain yields, and extended return horizons—conditions that are often incompatible with conventional debt instruments. Consequently, the limited proportion of subsidies in the overall portfolio may partially explain the relative underfunding of the agricultural sector. Across Central Africa, during the period under review, 64% of AFD’s commitments were directed towards infrastructure and development projects.

Cameroon, as the region’s primary recipient, faithfully mirrors this continental orientation. This raises an important question: does Yaoundé actively choose this allocation strategy, or is it a consequence of its negotiations with its key donor?

SND30 AND AFD: STRATEGIES SEEKING ALIGNMENT

The SND30 articulates precise targets for structural transformation, including the reduction of food imports, the development of agro-industry, and the creation of local added value. However, the operational logic of a donor whose primary instruments are sovereign loans tends to favor highly visible urban projects—such as roads, drainage, and equipment—over agricultural value chains that demand years of sustained, diffused support before yielding measurable results.