Cameroon plans to borrow up to $2.5 billion in 2027
By the AFREEQUE newsroom, based on Camer.be
Cameroon plans to raise between 1,000 billion CFA francs and $2.5 billion on international markets in 2027, according to a Finance Ministry official cited by Reuters. The timetable and terms are to be specified in the 2027 Finance Act, while the downgrade of its sovereign rating to B- is making borrowing more expensive.
Cameroon plans to raise between $1.7 billion and $2.5 billion on international financial markets in 2027 through one or more bond issues. The $2.5 billion ceiling would represent about 4% of gross domestic product, estimated at $59 billion, according to Reuters, which cited a senior official at Cameroon’s Ministry of Finance.
The lower limit of 1,000 billion CFA francs is set out in the 2027-2029 Economic and Budgetary Programming Document. The final amount, timetable and terms are to be specified in the 2027 Finance Act, while ministry officials continue their economic analysis, according to the official cited by Reuters.
The financing requirement is part of a projected budget of 3,161.5 billion CFA francs, including 84 billion to reimburse companies for VAT credits. The government also expects 866.7 billion CFA francs in project loans, 300 billion in budget support linked to a possible new programme with the IMF, 400 billion in public securities on the CEMAC market, 250 billion in direct bank financing and 131.5 billion drawn from the state’s reserves at BEAC.
The move comes after Fitch downgraded Cameroon’s sovereign rating from B to B- around 18 October, citing uncertainty over the succession of President Paul Biya. The yield on Cameroon’s eurobond maturing in 2033 reached a record 10.65%, according to Reuters. These political tensions had also prompted the MRC on 29 October to call for a declaration of a vacancy in the presidency of Cameroon.
