In the first half of 2026, Cameroon’s public Treasury successfully raised 800.7 billion Central African francs (FCFA) through domestic borrowing, translating to roughly 1.4 billion US dollars. This figure, highlighted in the monthly public debt report published by the Autonomous Debt Management Fund (Caisse autonome d’amortissement, CAA), marks a significant milestone for the Central African Economic and Monetary Community (CEMAC) region while also revealing a deliberate shift in Yaoundé’s financing strategy.

Slower pace observed in domestic borrowing

When compared to the 1,525.9 billion FCFA mobilized throughout 2025, the six-month total suggests a clear deceleration in domestic financing. If this trend continues, the Cameroonian government could conclude the year with collections hovering around 1,600 billion FCFA—a figure similar to 2025 but falling short of earlier growth projections. A closer look reveals that the pace of public debt issuances, including negotiable Treasury bills (BTA) and negotiable Treasury bonds (OTA), has either been deliberately moderated or met with more selective investor demand across the region.

Several underlying factors contribute to this slowdown. Banking liquidity in CEMAC remains closely tied to hydrocarbon revenues and foreign exchange reserves managed by the Bank of Central African States (BEAC). Additionally, the surge in competing sovereign bond issuances from neighboring countries such as Gabon, Chad, and the Republic of the Congo is placing increasing strain on the absorptive capacity of primary banks, which traditionally serve as the main subscribers to regional public debt instruments.

Regional constraints shape financing decisions

The dip in mobilized funds also reflects Cameroon’s efforts to curb the rising cost of servicing domestic debt. Recent issuance rates within CEMAC have climbed, driven by both the BEAC’s tight monetary policy and heightened risk premiums demanded by investors. For the Treasury, striking a balance between the volume of funds raised and their weighted cost has become a complex balancing act. Furthermore, the average maturity of issued securities directly impacts future refinancing profiles, adding another layer of complexity to debt management.

The CAA’s monthly monitoring typically aligns cash flow needs driven by budget execution, debt maturities, and actual resource mobilization. As Cameroon remains the largest economy in CEMAC, it holds a benchmark status in the public debt market, but this role comes with the added responsibility of maintaining investor confidence. A controlled slowdown may signal prudent fiscal management, whereas an involuntary decline could fuel concerns about long-term debt sustainability.

What’s next for the second half of 2026?

The second-half auction calendar will be critical in determining the trajectory of domestic borrowing. Upcoming operations must account for upcoming repayment deadlines and funding requirements for key public investment programs, particularly in infrastructure and energy. The Ministry of Finance, led by Louis Paul Motaze, has historically relied on a balanced approach, leveraging both domestic markets and external sources such as multilateral partners like the International Monetary Fund (IMF) and the World Bank.

Yet, the depth of the regional market remains a pressing question. The Central African Securities Exchange (BVMAC) continues to struggle in attracting capital flows comparable to those seen in West African markets like the BRVM. In this context, the Treasury’s ability to diversify its investor base—by drawing in pan-African funds or non-bank institutional investors—will be pivotal to the success of future bond issuances. The next six months will serve as a real-world test for Cameroon’s domestic financing strategy.