Cameroon is seeking new financing strategies, particularly structured finance, to meet its development goals outlined in the National Development Strategy (SND30) by 2030. Due to limited domestic resources and restricted access to traditional markets, the country is exploring innovative mechanisms like securitization. A recent seminar focused on equipping financial professionals with the tools needed to navigate structured finance.
Cameroon is actively seeking substantial funding to fulfill the goals outlined in its National Development Strategy (SND30) by 2030. The nation faces significant challenges due to limited domestic resources and restricted access to conventional financial markets. Consequently, Cameroon is exploring alternative financing options, particularly structured finance, which was the subject of a recent seminar held from February 26 to 28, 2025, in Douala, organized by GM Finance under the Ministry of Finance’s patronage.
The seminar aimed to enhance the understanding of structured finance among financial professionals from various sectors, including government agencies and private enterprises. Hubert Otele Essomba, a financial expert from GM Finance, described structured finance as a combination of intricate financial instruments, including loans, equity, bonds, and derivatives, tailored to create customized financial solutions. Key components of structured finance include public-private partnerships (PPPs), hedge funds, sovereign wealth funds, and credit ratings.
Both the Ministry of Finance and financial experts recognize the necessity for Cameroon to explore alternative funding sources in light of its liquidity needs. The country’s current debt level remains well below the regional threshold of 70%. Notably, for the year 2025, which is crucial for development plans, the government intends to generate CFA1.795 trillion in debt, primarily through project loans and budget support.
From 2025 to 2027, Cameroon requires CFA5.407 trillion in borrowings. To secure this funding, the country must employ innovative financing mechanisms that not only minimize risks but also optimize returns. Mr. Essomba highlighted opportunities such as sovereign wealth funds, pension funds, and bonds, which offer enhanced flexibility. He remarked, “There is plenty of funding available on the international market. However, Cameroon must develop strong financial engineering and create an attractive environment to draw in these funds.”
Securitization emerges as a promising option. Catherine Gerst, a financial strategy expert and former managing director of Moody’s France, emphasized that securitization is one of the most effective means for financing development projects. She stated, “What makes securitization unique is that it allows institutions to leverage the assets on their balance sheets—credit portfolios for banks or receivables for companies—by selling them to a special-purpose entity that raises funds from the market.”
In conclusion, structured finance and innovative approaches such as securitization hold the potential to enable Cameroon to amass the necessary resources to achieve its ambitious SND30 goals. However, this endeavor will rely heavily on strong financial expertise, transparent governance, and a supportive economic environment to attract international investors.
In summary, Cameroon is adopting alternative financing strategies, particularly structured finance, to meet its development targets set for 2030. The government recognizes the need for innovative mechanisms such as securitization to secure substantial funding. By enhancing financial expertise and governance, Cameroon aims to create a favorable environment for attracting international investments essential for its growth ambitions.
Original Source: www.businessincameroon.com
