This article provides a comprehensive view of the nation’s public finance landscape, revealing a country navigating the complexities of economic development against a backdrop of increasing debt, albeit one that remains within regional limits. While the overall public debt-to-GDP ratio is manageable, mounting pressure from debt servicing and contingent liabilities requires careful, strategic management for long-term fiscal stability.
The Current State of Public Debt
Cameroon’s public debt is generally considered sustainable, but the country is often classified by international financial institutions like the IMF as being at a high risk of external and overall public debt distress due to specific vulnerability indicators, particularly those related to liquidity.
Key Debt Metrics (2024-2025 Data)
| Metric | 2024 (Approx.) | 2025 (Projected/Preliminary) | Regional Threshold (CEMAC) |
| Public Debt-to-GDP Ratio | 39.8% to 42.7% | 40.0% to 43.9% | 70% |
| External Debt Share | approx 75.7% of total public debt | No major change from 2024 | N/A |
| External Debt-to-GDP Ratio | 28.2% to 31.1% (2023) | approx 27.6% (Projected) | 50% |
- Debt-to-GDP Ratio: Cameroon’s public debt-to-GDP ratio is significantly below the 70% convergence ceiling set by the Economic and Monetary Community of Central Africa (CEMAC). As of late 2025, the figure is around 43.9%, reflecting compliance with regional standards.
- Structure: External debt constitutes the majority of Cameroon’s public debt, historically accounting for over 75% of the total. This highlights the country’s reliance on foreign financing.
- Risk Classification: Despite a relatively low debt-to-GDP ratio, the country’s classification as being at “high risk of debt distress” is primarily driven by liquidity issues and debt service indicators, especially the external debt service-to-exports ratio, which has historically breached the sustainability threshold.
Major Creditors and Debt Composition
The composition of Cameroon’s debt reveals a preference for official financing, though there has been a strategic shift toward domestic and non-concessional commercial debt in recent years.
External Debt: Who is Lending to Cameroon?
The external debt portfolio is heavily dominated by official creditors:
- Multilateral Creditors: These include institutions like the World Bank (IDA) and the International Monetary Fund (IMF). They account for a large share, roughly 44.4% of the total external debt, and often provide financing on concessional (favorable) terms.
- Bilateral Creditors: This category includes sovereign nations like China, which is a significant lender to Cameroon, especially for infrastructure projects. They account for approximately 39.9% of the external debt.
- Commercial Creditors: Although a smaller component, the issuance of a US$550 million Eurobond in 2024, at a high interest rate of 10.75%, signaled an increasing, and more costly, reliance on non-concessional market borrowing.
Domestic Debt and Contingent Liabilities
While the focus is often on external debt, the domestic debt market and off-balance-sheet liabilities are equally critical to understanding Cameroon’s Debt Situation.
- State-Owned Enterprises (SOEs): Debts of key SOEs, particularly the National Refining Company (SONARA), represent a significant contingent liability—a potential financial obligation that could become actual debt for the government. The restructuring of SONARA’s debt is a key risk factor monitored by international bodies.
- Domestic Arrears: The government has been actively addressing a stock of unpaid government obligations (arrears) to domestic suppliers and contractors. In 2025, the government allocated substantial funds (CFA 110 billion) for clearing outstanding debts of public entities, a necessary step to boost private sector confidence and liquidity.
Drivers of Debt Accumulation
Several factors have influenced the trajectory of Cameroon’s debt in recent years:
1. Infrastructure and Development Projects
The government’s focus on realizing its National Development Strategy (NDS), which emphasizes industrialization and the modernization of basic infrastructure (roads, energy, ports), has necessitated large-scale borrowing. Projects like the Yaounde-Nsimalen highway and energy sector investments are often financed through external, and sometimes non-concessional, loans.
2. COVID-19 Pandemic Shock
The pandemic severely impacted Cameroon’s fiscal health:
- Revenue Loss: The economic slowdown, coupled with tax relief granted to businesses, led to a significant reduction in customs and tax revenues.
- Increased Expenditure: The government incurred unexpected costs for the pandemic response (health spending, social support), widening the budget deficit.
- Debt Relief: Cameroon benefited from the G20’s Debt Service Suspension Initiative (DSSI), which allowed it to postpone debt payments, freeing up resources for the health crisis.
3. Global Economic Volatility
As a commodity-exporting nation (oil, cocoa), Cameroon’s revenues are vulnerable to fluctuations in global commodity prices. A downturn can sharply reduce export earnings and tax revenue, making debt servicing more challenging. Moreover, a weaker CFA franc against the US dollar (the currency of denomination for many loans) increases the real cost of external debt in local currency terms.
Read our article on: The CFA Franc and the Debate Over Monetary Sovereignty
Debt Management Strategy and Outlook
Cameroon’s debt management strategy is focused on a dual approach: fiscal consolidation and active debt portfolio management.
1. Fiscal Consolidation and Revenue Mobilization
The government, in collaboration with the IMF through its Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, is implementing reforms to:
- Boost Non-Oil Revenue: Modernizing the tax framework and digitalizing public services to broaden the tax base and improve collection efficiency.
- Rationalize Spending: Gradually reducing costly subsidies (e.g., fuel subsidies) and improving public spending efficiency.
2. Shifting Debt Composition
The government is strategically working to:
- Increase Concessional and Domestic Financing: Prioritizing loans with favorable terms from multilateral partners and further developing the regional domestic financial market to diversify funding sources and reduce reliance on expensive commercial borrowing.
- Strengthen Debt Management: Improving the capacity to monitor debt service obligations and the scope of reporting on contingent liabilities, especially for Public-Private Partnerships (PPPs) and SOEs.
In conclusion, the nation’s debt is currently sustainable relative to its economic size, remaining well within regional limits. However, the persistent risk of debt distress signals that the challenge lies in liquidity and managing the high cost of debt service. Sustained fiscal discipline, effective management of non-guaranteed liabilities from SOEs, and continued economic diversification will be essential to ensure that Cameroon’s Debt Situation in the future remains one of stability and growth.