Cameroon Secures CFA8.65 Trillion Through Capital Markets Since 2010

Cameroon has raised CFA8.65 trillion from capital markets since 2010, primarily through the money market. The shift in focus from traditional financing sources has led to significant advantages in terms of costs and efficiency. Notably, the issuance of assimilable Treasury bonds (OTA) highlights the government’s commitment to infrastructure development and financial prudence.

Since December 2010, Cameroon has successfully raised a total of CFA8.65 trillion from capital markets, marking a significant step in diversifying its funding sources. This achievement was highlighted during a seminar on structured financing for infrastructure development, attended by Samuel Tela, the Treasury Director at the Ministry of Finance, on February 27, 2025, in Douala.

In the last 15 years, the Cameroonian Treasury has secured CFA1.2 trillion from the Central African Stock Exchange (Bvmac), which unifies the financial markets of six CEMAC countries, after taking over the Douala Stock Exchange. Additionally, CFA1.24 trillion was raised through Eurobond issues and private placements in international financial markets.

Furthermore, on the public securities market managed by the Bank of Central African States (BEAC), Cameroon has garnered over CFA6.2 trillion since its inception in 2011. This data indicates that the money market has become essential for government financing, with Cameroon raising significantly more funds through BEAC than from regional and international markets combined.

In 2019, Cameroon transitioned to primarily utilizing the money market to secure funding for development projects, motivated by shifts in financial strategy. Other CEMAC nations mirrored this movement, indicating a trend toward prioritizing money markets over traditional financial avenues.

Samuel Tela noted the advantages of this approach, stating, “The government has refocused on the BEAC money market…to issue assimilable Treasury bonds (OTA).” These bonds feature extended maturities and repayment terms that differ favorably from traditional bonds.

Moreover, the efficiency of issuing securities in the money market is markedly higher. The entire process can be completed within 45 days compared to the six to eight months typically required for traditional bond issues. This accelerated timeline complements the cost-effectiveness of OTA bonds, which can save the Treasury around 2% in total subscription costs.

In conclusion, Cameroon has made significant strides in capital market funding, demonstrating a strong reliance on the money market as a primary financial resource. With the advantages of quicker processes and cost savings from bond issuances, such strategies are expected to facilitate further infrastructure development and financial stability in the region.

Cameroon’s strategic shift to the money market has resulted in remarkable fundraising achievements, totaling CFA8.65 trillion since 2010. The emphasis on cost-effective and efficient financing, as evidenced by the utilization of assimilable Treasury bonds, underscores the government’s commitment to infrastructure development. This approach not only enhances financial flexibility but also ensures a more sustainable economic future for the nation.

Original Source: www.businessincameroon.com