By Synthia Lateu
Following President Paul Biya’s decree authorising Cameroon to borrow up to 1,650 billion CFA francs to finance development projects and clear outstanding payments, economists have warned that the plan could heighten the country’s debt risks.
The decree empowers the Minister of Finance to resort to both external and domestic borrowing for the 2026 financial year.
However, economist Louis-Marie Kakdeu has criticised the approach, arguing that it risks deepening the country’s economic challenges.
“A country should not go into debt to finance the day-to-day functioning of the state, such as paying salaries,” Kakdeu said on Equinox Television. “Nor should it borrow to finance non-productive projects. When projects are spread over 10 or 20 years, the country continues to service debt that becomes increasingly expensive.”
Kakdeu added that Cameroon’s economic growth remains insufficient to sustain rising debt levels.
“For a long time now, Cameroon has not been generating enough wealth and can no longer rely on growth to increase state revenues,” he said. “There is a need to attract capital, particularly through direct investment from the diaspora, rather than relying solely on debt.”
Under the decree, the borrowing package includes 400 billion CFA francs to be raised on the domestic market through the issuance of Treasury bonds and bills, 250 billion CFA francs through direct loans from private sector institutions, and 1,000 billion CFA francs to be mobilised on international financial markets.
The decree, does not specify the timeline or the financial instruments that will be used to raise the external funds. It also provides no details on maturities, currencies or borrowing costs, leaving the Treasury with broad discretion.
According to financial sources, the funds could be mobilised through eurobonds, syndicated international loans, bilateral financing, or concessional support from international financial institutions. The choice of instruments will depend on market conditions, Cameroon’s sovereign credit rating and ongoing discussions with technical and financial partners. The decree states that borrowing must be conducted under conditions that safeguard the state’s financial interests, as well as its economic and political sovereignty.
Cameroon’s public debt surpassed 14,000 billion CFA francs in December 2025, according to official data. Economists warn that the new borrowing could add to inflationary pressures already affecting households
