Cameroon Seeks 930 Billion CFA Loan to Finance Development Projects

        Paul Biya, President of Cameroon

President Paul Biya’s government has announced a new borrowing plan worth 930 billion CFA francs, a move that underscores both the scale of the country’s development ambitions and the mounting financial pressures facing the state.

According to official documents, the Minister of Finance, Louis Paul Motaze has been authorized either directly or through delegation to secure funds from domestic and international sources. The financing package will target development projects and the settlement of outstanding payments.

The borrowing is structured into three main components. About 350 billion CFA francs will be raised through the issuance of Treasury Bonds and Fungible Treasury Bonds on the domestic market. An additional 250 billion CFA francs will come from direct loans provided by local private institutions. Finally, 330 billion CFA francs will be sought on external banking markets.

Decree Signed by President Paul Biya on August 18, 2025.

Government officials argue that the loan is necessary to sustain ongoing infrastructure works, strengthen public investment, and meet short-term financial obligations. However, critics warn that Cameroon’s increasing reliance on borrowing raises concerns about long-term debt sustainability. The country’s public debt has been steadily climbing over the years, fueled by repeated recourse to external and domestic financing.

In recent times, Cameroon has turned frequently to treasury bonds and international financial institutions to cover budgetary gaps, while simultaneously grappling with the costs of security operations in conflict-affected regions and the economic aftershocks of global crises. Observers caution that while loans can stimulate economic activity, they also increase repayment obligations that weigh heavily on future budgets.

For now, the government maintains that these funds will be channeled toward productive investment, helping to accelerate growth and improve public services. Yet questions remain about transparency, the efficiency of project execution, and whether the benefits will trickle down to ordinary citizens struggling with rising living costs.

As the Finance Ministry moves ahead with this latest loan plan, the balance between funding development and managing debt risks is set to remain at the center of economic debate in Cameroon.