Cameroon Achieves CFA8.65 Trillion in Capital Market Funding Since 2010
Cameroon has raised CFA8.65 trillion from capital markets since 2010, highlighting the Treasury’s strategic shift towards the money market. This funding includes CFA6.2 trillion from the BEAC securities market and reflects the country’s focus on cost-effective financing options for development projects. The transition illustrates a growing trend among CEMAC countries to optimize financial strategies for public projects.
Since December 2010, Cameroon has successfully raised CFA8.65 trillion from capital markets, starting with its first bond issuance on the Douala Stock Exchange. This achievement was highlighted on February 27, 2025, by Samuel Tela, the Treasury Director at the Ministry of Finance, during a seminar focused on infrastructure financing.
Over the last 15 years, Cameroon obtained CFA1.2 trillion from the Central African Stock Exchange, which serves six CEMAC nations after absorbing the Douala Stock Exchange. Additionally, it secured CFA1.24 trillion from international markets through Eurobond issuances and private placements.
Since the inception of the public securities market in 2011, which is managed by the Bank of Central African States, Cameroon has raised over CFA6.2 trillion. This evidence indicates that the money market has become the primary funding source for the country’s Treasury, with BEAC securities market funding outpacing both regional and international markets combined.
By 2019, Cameroon began prioritizing the money market to support development projects and alleviate cash flow troubles. Other CEMAC nations adopted a similar strategy, opting for the money market to raise funds efficiently, sidelining traditional financial markets.
According to expert assessments, the shift is inspired by cost-effectiveness, flexibility, and prudent fiscal management. As noted by Samuel Tela, the government’s strategy emphasizes the use of assimilable Treasury bonds, which have longer maturities and offer repayment grace periods.
The rapid execution of securities issuance on the money market is also a crucial factor. The entire process can be completed within 45 days, in contrast to the lengthy six to eight months required for bond issues. OTA bonds also offer cost savings of approximately 2% compared to traditional bonds, making them an appealing choice for public financing.
Cameroon’s capital market has seen significant growth since 2010, facilitating the raising of CFA8.65 trillion to support development initiatives. Through strategic shifts towards the money market, the Treasury has enhanced funding efficiency, demonstrating a preference for instruments that offer longer maturities and rapid issuance timelines. Overall, the approach not only underscores financial prudence but also reflects a growing trend within CEMAC nations to optimize capital raising methods.
Original Source: www.businessincameroon.com
