“Borrowing today—who pays tomorrow?”
In the bustling markets of Douala and the quiet administrative offices of Yaoundé, a question often whispered over coffee or discussed in heated taxi debates is the state of the nation’s wallet. We see the cranes over new bridges and the expansion of the deep-sea port in Kribi, but we also see the rising prices of bread and fuel. Behind these scenes lies a complex web of numbers: Cameroon public debt.
As of late 2025, the conversation around the country’s financial health has reached a fever pitch. With the 2026 budget on the horizon and global economic shifts, it is time to look at the data and ask: Is our debt a ladder to development or a trap for the next generation?
The Current Landscape: By the Numbers
According to the latest reports from the Caisse Autonome d’Amortissement (CAA) and the IMF, Cameroon’s total public and publicly guaranteed debt stood at approximately 14,591 billion FCFA as of September 2025. This represents roughly 43.9% of the nation’s GDP.
While that number sounds astronomical, economists often look at the “Debt-to-GDP” ratio to measure a country’s ability to pay back what it owes.
| Metric (End-2025 Est.) | Value |
| Total Public Debt | ~14.6 Trillion FCFA |
| Debt-to-GDP Ratio | 43.9% |
| External Debt Share | ~65% |
| Domestic Debt Share | ~35% |
| CEMAC Ceiling | 70% |
At first glance, the 43.9% figure is actually “healthy” when compared to the 70% limit set by the Central African Economic and Monetary Community (CEMAC). However, the devil is in the details.
External vs. Domestic: Who Do We Owe?
Cameroon’s debt is split into two main buckets: External Debt (money owed to foreign lenders like China, the IMF, or private bondholders) and Domestic Debt (money owed to local banks and businesses).
- The External Heavyweight (65%): Most of our debt is in foreign currency. This is risky. If the FCFA (linked to the Euro) fluctuates or if global interest rates rise, the cost of paying back these loans spikes. A significant portion of this is owed to China for infrastructure and to multilateral lenders like the World Bank.
- The Domestic Rise (35%): In 2025, there has been a notable shift. The government is increasingly borrowing from local commercial banks—such as AFG Bank—to clear unpaid arrears to suppliers. This “rebalancing” helps local businesses stay afloat but increases the government’s dependence on the local banking sector.
Why the Concern? The “High Risk” Label
If our debt is well below the 70% limit, why do the IMF and World Bank still classify Cameroon as being at “High Risk of Debt Distress”?
The answer isn’t the amount of debt, but the Liquidity.
- Debt Servicing vs. Revenue: Imagine earning 100,000 FCFA a month but having to pay 50,000 FCFA just in loan interest. That leaves very little for food, health, or school fees. Cameroon’s debt-service-to-revenue ratio has been under pressure, meaning a large chunk of tax revenue goes to paying back interest rather than building hospitals or schools.
- The Eurobond Hurdle: Cameroon has major repayments due on its international Eurobonds. These “installments” require massive amounts of foreign currency at specific times, creating “liquidity crunches” where the government might struggle to find the cash.
What Does This Mean for the Average Citizen?
It’s easy to think of “Public Debt” as a problem for bureaucrats, but it hits the kitchen table in three ways:
- Inflation and Taxes: To pay back debt, the government needs more money. This often leads to higher taxes on goods or the removal of subsidies (like the recent hikes in fuel prices).
- Reduced Social Spending: When the budget is tight due to debt payments, “non-essential” spending is often cut. This can mean slower repairs on the Douala-Yaoundé highway or delayed recruitment of teachers.
- The Infrastructure Trade-off: Much of this debt was used for “Grand Ambitions” projects—dams, ports, and roads. If these projects create jobs and boost trade, the debt pays for itself. If they stay underutilized, the debt becomes a dead weight.
The Silver Lining: A Sustainable Path?
The news isn’t all grim. The government has been actively managing its portfolio. By moving toward concessional loans (loans with very low interest rates) and using domestic banks to formalize “opaque” supplier debts, they are trying to stabilize the ship.
Furthermore, Cameroon’s economy is projected to grow by 4.5% to 4.8% in the coming years, driven by non-oil sectors like agriculture and gas. If the economy grows faster than the debt, the burden feels lighter.
Final Verdict: Should You Be Worried?
Worried? No. Vigilant? Yes.
Cameroon is not on the brink of bankruptcy, but it is walking a tightrope. The real test will be the October 2025/2026 period, where fiscal discipline and the management of state-owned enterprises (like SONARA) will determine if we stay “sustainable” or slip into a crisis.
As citizens, understanding these numbers is the first step in holding leadership accountable for how “tomorrow’s money” is being spent today.