Since 2010, Cameroon has raised CFA8.65 trillion from capital markets, primarily through the money market, demonstrating a successful financial strategy shift. The Central African Stock Exchange has contributed CFA1.2 trillion, complemented by CFA1.24 trillion from international markets. The government’s focus has shifted to more cost-effective financing models and quicker bond issuance processes.
Since December 2010, Cameroon has successfully raised CFA8.65 trillion from capital markets, marking a significant shift in government funding strategies. This figure was presented by Samuel Tela, the Treasury Director at the Ministry of Finance, during a seminar on structured financing held on February 27, 2025. The issuance began with Cameroon’s first bond issue on the Douala Stock Exchange (DSX).
Over the past 15 years, the Central African Stock Exchange (Bvmac), which now integrates the DSX, has facilitated CFA1.2 trillion in funds for Cameroon. Additionally, the nation has secured CFA1.24 trillion through international Eurobond issues and private placements. Notably, since the launch of the public securities market in 2011, Cameroon has raised over CFA6.2 trillion through the Bank of Central African States (BEAC), establishing the money market as a primary funding source.
In 2019, Cameroon pivoted to the money market for financing development projects due to cash flow challenges. This transition was mirrored by other CEMAC countries, gravitating towards the money market as their primary capital-raising venue. Samuel Tela indicated that the government’s renewed focus on the BEAC money market allows for the issuance of assimilable Treasury bonds (OTA), featuring longer maturities and grace periods on principal repayments.
The procedural efficiency of the money market is also a significant advantage, with all steps taking roughly 45 days, compared to the traditional bond issuance, which spans six to eight months. Financial Ministry documents reveal that OTA bond issuances save approximately 2% of total subscription costs, presenting a compelling case for funding public projects more economically.
Cameroon’s strategic financial maneuvers since 2010 have led to the substantial accumulation of CFA8.65 trillion from capital markets, primarily through the money market. The shift towards cost-effective and flexible financing options, alongside the quicker issuance process of OTA bonds on the BEAC market, has made it the preferred capital-raising method. This transition marks a pivotal development in the funding landscape for public projects in Cameroon and the wider CEMAC region.
Original Source: www.businessincameroon.com
