Cameroon is seeking effective financing solutions to meet its SND30 development goals by 2030. Due to limited domestic resources and challenges accessing traditional markets, the country is focusing on structured finance, particularly following a recent seminar aiming to enhance understanding among financial professionals. Key strategies discussed include the use of securitization and alternative funding sources to mobilize necessary resources while minimizing risks and maximizing returns.
Cameroon is actively seeking substantial funding to achieve its National Development Strategy (SND30) objectives by 2030. However, the country faces challenges due to limited domestic financial resources and restricted access to traditional markets. To address this funding gap, Cameroon is exploring alternative financing methods, particularly structured finance, which was the focus of a recent seminar held in Douala from February 26 to 28, 2025, organized by GM Finance with support from the Ministry of Finance.
The seminar aimed to enhance the understanding of structured finance among financial professionals across various sectors, including government, state enterprises, private firms, and banks. Hubert Otele Essomba, an associate director at GM Finance, emphasized that structured finance encompasses a range of complex financial instruments, combining loans, equity, bonds, and derivatives to create tailored financial solutions. Examples of such instruments include public-private partnerships (PPPs), hedge funds, sovereign wealth funds, securitization, and credit ratings.
Experts from the Ministry of Finance concur that Cameroon must tap into these alternative sources of funding to satisfy its liquidity needs. With the country’s current debt levels well below the regional limit of 70%, the government aims to raise CFA1.795 trillion in debt for the crucial year of 2025—70.8% from project loans and 29.2% from budget support. Between 2025 and 2027, Cameroon anticipates needing to borrow CFA5.407 trillion, necessitating innovative financing methods that optimize returns while minimizing risk.
Essomba highlighted the potential for Cameroon to leverage instruments such as sovereign wealth funds, pension funds, and bonds, which provide enhanced flexibility. He noted the abundance of international funding but stressed the need for robust financial engineering and an appealing environment to attract this capital. One feasible strategy is securitization, regarded as one of the most efficient ways to finance development projects.
Catherine Gerst, a financial strategy expert, explained that securitization uniquely enables institutions to transform illiquid assets into tradable securities by leveraging their balance sheet assets, such as credit portfolios for banks. This strategy could permit Cameroon to access vital resources necessary to fulfill its ambitious SND30 targets, provided it establishes strong financial acumen, transparent governance, and a favorable business climate for international investors.
Cameroon’s pursuit of innovative financing strategies, particularly through structured finance and securitization, is vital for meeting its development goals outlined in the SND30. With planned comprehensive funding methods, the country aims to raise significant resources while minimizing financial risks. Success will hinge on the establishment of robust financial systems and governance to attract investment effectively.
Original Source: www.businessincameroon.com
