The Cameroonian public treasury successfully mobilized 800.7 billion Central African CFA francs (FCFA) on the domestic market during the first half of 2026, equivalent to approximately $1.4 billion. This figure, highlighted in the monthly public debt report published by the Autonomous Amortization Fund (CAA), underscores a strategic shift in Yaoundé’s domestic financing approach within the Central African Economic and Monetary Community (CEMAC).
Domestic market issuance slows down
When compared to the 1,525.9 billion FCFA raised throughout 2025, the first half of 2026 shows a clear deceleration in domestic market reliance. If this trend continues, the Cameroonian government could conclude the year with around 1,600 billion FCFA in domestic financing—a figure close to 2025 levels but falling short of earlier growth projections. The pace of public securities issuances, including bons du Trésor assimilables (BTA) and obligations du Trésor assimilables (OTA), appears to have been deliberately adjusted downward or met with more selective investor demand across the region.
Several factors contribute to this slowdown. Banking liquidity in CEMAC, historically linked to oil-related deposits and foreign exchange reserves managed by the Bank of Central African States (BEAC), remains highly sensitive to hydrocarbon revenue fluctuations. Additionally, the surge in competing sovereign issuances from countries like Gabon, Chad, and the Republic of the Congo is increasingly straining the absorption capacity of primary banks, which are the main subscribers to public securities in the subregion.
Regional constraints shape financing strategy
The reduction in mobilized funds also reflects Cameroon’s efforts to manage the rising cost of domestic debt servicing. Recent CEMAC issuance rates have trended upward, driven by both the BEAC’s restrictive monetary policy and heightened risk premiums demanded by subscribers. For the treasury, balancing volume and weighted cost has become a critical challenge, particularly as the average maturity of issued securities impacts future refinancing profiles.
The CAA’s monthly monitoring typically compares treasury cash needs tied to budget execution, debt maturities, and actual resources mobilized. While Cameroon remains the largest economy in CEMAC, reinforcing its role as a benchmark issuer in the public securities market, this position also carries the responsibility of signaling stability to investors. A controlled slowdown may be viewed as prudent fiscal management, whereas an involuntary decline could fuel concerns over long-term budget sustainability.
Outlook for the second half of 2026
The second half’s auction calendar will be pivotal in assessing domestic debt trends. Upcoming operations must align with repayment obligations and the financing needs of public investment programs, particularly in infrastructure and energy sectors. The Ministry of Finance, led by Louis Paul Motaze, has historically balanced domestic market reliance with external funding sources, including multilateral partners like the International Monetary Fund (IMF) and the World Bank.
Yet, the depth of the subregional market remains a pressing question. The Central African Securities Exchange (BVMAC) continues to struggle in attracting investment flows comparable to those seen in West African markets like the BRVM. In this context, the Cameroonian treasury’s ability to diversify its investor base—by engaging pan-African funds or non-bank institutional investors—will be critical to the success of future fundraising efforts. The next six months will serve as a decisive test for Yaoundé’s domestic financing strategy.
