Cameroon is looking for new financing methods to meet its 2030 development goals under the SND30 plan due to limited domestic funds and market access. A seminar organized by GM Finance focused on structured finance alternatives like public-private partnerships and securitization, emphasizing the need for innovative financing strategies to raise significant funds while maintaining manageable debt levels.
Cameroon is actively seeking alternative financing strategies to achieve its National Development Strategy (SND30) goals by 2030, faced with limited domestic resources and access to traditional financial markets. A seminar held from February 26 to 28, 2025, in Douala, organized by GM Finance and the Ministry of Finance, focused on structured finance to enhance understanding among financial professionals from various sectors.
Structured finance involves complex financial instruments that provide customized financial solutions, combining loans, equity, bonds, and derivatives. Experts, including Hubert Otele Essomba, highlighted methods like public-private partnerships (PPPs), hedge funds, and sovereign wealth funds as vital for Cameroon. The Ministry of Finance recognizes the necessity of exploring these alternative funding sources amidst manageable debt levels below the 70% regional limit.
In 2025, Cameroon plans to raise CFA1.795 trillion, primarily from project loans (70.8%) and budget support (29.2%). Between 2025 and 2027, the required funding escalates to CFA5.407 trillion. To secure this amount, Cameroon must innovate beyond conventional financing, utilizing mechanisms that balance risk and return effectively.
Experts advocate for leveraging instruments like sovereign wealth funds, pension funds, and bonds for increased flexibility. “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,” stated Essomba. Securitization is highlighted as a promising method, enabling the conversion of illiquid assets into tradable securities, thus funding development projects more effectively.
In conclusion, evolving structured finance models and embracing innovative strategies like securitization are essential for Cameroon to mobilize resources and meet its ambitious SND30 milestones. Achieving these aims will depend on establishing robust financial expertise, effective governance, and a favorable investment climate to attract global investments.
Cameroon is exploring structured finance and alternative funding solutions to support its SND30 objectives while managing its debt levels. By incorporating innovative financing mechanisms such as securitization, the country aims to mobilize necessary resources effectively. However, success hinges on robust financial expertise and a transparent governance structure that fosters international investment.
Original Source: www.businessincameroon.com
