Cameroon has raised CFA8.65 trillion from capital markets since 2010, focusing on the money market for funding developmental projects. The country has generated substantial funds from both regional and international sources, significantly utilizing the BEAC securities market for its financial needs. This shift underscores the importance of cost-effective financing in the country’s economic strategy.
Since December 2010, Cameroon has successfully raised CFA8.65 trillion from capital markets, commencing with its inaugural bond issuance on the Douala Stock Exchange. This information was revealed on February 27, 2025, by Samuel Tela, the Treasury Director at the Ministry of Finance, during a seminar focused on structured financing for infrastructure development.
Over the last 15 years, Cameroon has acquired CFA1.2 trillion from the Central African Stock Exchange, which now represents the unified financial market for the CEMAC region, encompassing Cameroon and five other countries. An additional CFA1.24 trillion has been secured through Eurobond issues and private placements on international markets.
Since 2011, Cameroon has raised over CFA6.2 trillion in the public securities market overseen by the Bank of Central African States (BEAC). This demonstrates that the money market has emerged as the primary funding source for the Treasury, with five times more capital secured on the BEAC market than on regional and global financial markets combined.
In 2019, Cameroon shifted its funding approach to prioritize the money market, aiming to finance developmental projects and mitigate cash flow issues. This approach was followed by other CEMAC nations, as they too sought to utilize the money market for capital raising due to its cost-effectiveness and flexibility.
Experts note that the BEAC money market offers significant benefits. Samuel Tela remarked, “The government has refocused on the BEAC money market… to issue assimilable Treasury bonds (OTA),” which feature longer maturities and a repayment structure that enhances financial prudence. Furthermore, the security issuance process on this market is expedient, typically completed in 45 days, significantly faster than the six to eight months required for traditional bond issuances.
The financial advantages of issuing OTA bonds on the BEAC securities market are notable, saving the Treasury approximately 2% of the total subscription cost compared to conventional bonds. This factor makes OTA bonds an appealing choice for financing public projects in Cameroon.
In conclusion, Cameroon has effectively raised over CFA8.6 trillion from capital markets since 2010, transitioning to the money market to secure funding for infrastructural development. This strategic shift highlights the advantages of cost-effectiveness and flexibility inherent in the money market, particularly through the use of assimilable Treasury bonds. The streamlined process for issuing securities further enhances Cameroon’s ability to meet its financial needs efficiently.
Original Source: www.businessincameroon.com
