Cameroon’s Public Debt Falls 2.7%, Still Surpasses CFA1trn

March 23, 2025

(3 Minutes Read)

Cameroon’s public sector debt decreased by 2.7% last year but remains above CFA1 trillion, as reported by the national sinking fund. By December 31, 2024, the debt reached CFA1,024 billion, approximately 3.3% of the nation’s GDP.

The CAA indicates that over half of this debt (51.8%) was accumulated domestically. In contrast, the direct external debt of public companies and institutions is estimated at CFA493.9 billion, which includes supplier debts and operational liabilities related to the Société Nationale de Raffinage (Sonara) and Cameroon Airlines Corporation (Camair-Co). These two companies represent 96.1% of the total external debt for public entities in the country.

The CAA highlights that the debts of these state-owned enterprises reveal the financial difficulties facing essential sectors vital to Cameroon’s economic growth, namely energy and air transport. These sectors operate in highly competitive markets, necessitating a more effective and competitive strategy to enhance their performance.

Over time, the escalating public sector debt in Cameroon has raised significant concerns for both the government and its development partners. This issue is particularly troubling since many of these debts are state-guaranteed, meaning that if these companies’ default, the government would need to intervene financially.

To mitigate this risk, the government is encouraging public companies—often criticized for inefficiency—to pursue non-sovereign loans from development partners. In June 2015, the Ministry of Finance held a workshop for managers of seven public companies (Camtel, Aéroports du Cameroun, Sonara, Feicom, Port Autonome de Douala, Camwater, and Société Camerounaise des Dépôts Pétroliers) to guide them in securing non-sovereign financing from the French Development Agency (AFD).

However, nearly ten years later, only two of these companies, Camtel and the Port Authority of Douala (PAD), have successfully obtained a credit rating from Bloomfield Investment Agency, a crucial step for companies aiming to access capital markets.