Cameroon’s Public Debt Increases by 7.8% in 2024 Due to Government Borrowing

Cameroon’s public debt increased by 7.8% in 2024, reaching CFA14.237 trillion, equating to 45.6% of GDP. This rise is chiefly due to government borrowing. The National Sinking Fund assures that the debt remains manageable, targeting to keep it under 50% of GDP by 2026, well below the 70% regional cap.

In 2024, Cameroon experienced a significant increase in public debt, which rose by 7.8% to CFA14.237 trillion, representing approximately 45.6% of the nation’s gross domestic product (GDP). According to a report from the National Sinking Fund (CAA) released in March 2025, this rise can primarily be attributed to borrowing activities initiated by the central government.

Despite the upward trend in public debt, the CAA asserts that the situation remains manageable and is in accordance with the country’s Medium-Term Debt Strategy for 2024-2026. This strategy is designed to keep the debt ratio below 50% of GDP by the end of the target period, which is significantly lower than the regional threshold of 70%.

The composition of public debt reveals that an overwhelming 92.6% originates from the central government, while public enterprises contribute 7.2%, and local governments occupy a mere 0.08% of the total debt. Furthermore, the report highlights that central government borrowing increased by 8.7% during the year, reflecting escalating budgetary obligations.

In conclusion, Cameroon’s public debt has risen by 7.8% in 2024, largely due to heightened government borrowing. The National Sinking Fund indicates that the increased debt is manageable and is intended to remain within crucial limits. With the bulk of debt held by the central government, the strategy implemented aims to sustain economic stability while fulfilling budgetary requirements.

Original Source: www.businessincameroon.com