Cameroon has raised CFA8.65 trillion from capital markets since 2010. The Central African Stock Exchange contributed CFA1.2 trillion, while CFA1.24 trillion came from international markets. The BEAC money market has become the primary funding source with CFA6.2 trillion raised since 2011. The government focuses on cost-effective and flexible financing through assimilable Treasury bonds, enhancing efficiency in the funding process.
Since December 2010, Cameroon has successfully raised CFA8.65 trillion from capital markets, marking the beginning of a diversification effort in funding through its first bond issue on the Douala Stock Exchange (DSX). This noteworthy statistic was presented by Samuel Tela, the Treasury Director at the Ministry of Finance, during a seminar focused on structured financing for infrastructure development in Douala on February 27, 2025.
In the last 15 years, Cameroon garnered CFA1.2 trillion from the Central African Stock Exchange (Bvmac), which now functions as the unified financial market for the six CEMAC countries, following its consolidation of the DSX. Furthermore, CFA1.24 trillion was procured via Eurobond issues and private placements in international markets.
Since its launch in 2011, the public securities market managed by the Bank of Central African States (BEAC) has contributed over CFA6.2 trillion to the Treasury. These figures illustrate that the money market is now the primary funding source for Cameroon, providing five times more resources than regional and international financial markets combined.
In 2019, the Cameroonian government shifted focus towards the money market, aiming to finance development initiatives and alleviate cash flow pressures. Other CEMAC nations soon adopted similar strategies, utilizing the money market as their main capital source, relegating financial markets to a secondary role.
Experts credit this change to the cost-effectiveness, flexibility, and prudent financial management of the new approach. According to Samuel Tela, “The government has refocused on the BEAC money market, which is the traditional market for Treasury departments and banks.” He further noted that the assimilable Treasury bonds (OTA) have longer maturities than typical bonds and provide a grace period for repayment.
The efficiency of issuing securities on the money market is another advantage, with the entire process, from awareness campaigns to subscriptions, completed within 45 days, compared to six to eight months for bond issues. Additionally, OTA bonds significantly reduce costs for the Treasury, saving approximately 2% of the total subscription amount, thus emerging as a favorable option for public financing.
In conclusion, since 2010, Cameroon has effectively raised significant funds from various capital markets, with the BEAC money market emerging as the principal source. The shift towards this market, primarily post-2019, underscores the nation’s intent to enhance financial efficiency and prudence. By leveraging cost-effective funding options through assimilable Treasury bonds, the government is strategically addressing developmental needs while maintaining fiscal responsibility.
Original Source: www.businessincameroon.com
