Cameroon has raised CFA8.65 trillion from capital markets since 2010, significantly utilizing the money market through BEAC. The Treasury’s strategy focuses on assimilable Treasury bonds (OTA) to maximize funding efficiency and flexibility, showcasing a general trend among CEMAC countries in capital sourcing.
Since December 2010, Cameroon has raised CFA8.65 trillion from capital markets, marking a significant shift in funding strategy. The announcement, made by Samuel Tela, Treasury Director at the Ministry of Finance, occurred during a seminar on structured financing for infrastructure development on February 27, 2025, in Douala.
From the Central African Stock Exchange (Bvmac), which consolidated the previous Douala Stock Exchange, Cameroon secured CFA1.2 trillion over the past 15 years. Additionally, the country has raised CFA1.24 trillion through Eurobond issues and private placements in international markets.
The Bank of Central African States (BEAC) has been pivotal, aiding Cameroon in raising over CFA6.2 trillion in public securities since 2011. This indicates that the money market has become the Treasury’s primary funding source, outperforming regional and international financial markets.
In 2019, Cameroon shifted focus to the money market for development funding, a move echoed by other CEMAC countries. This adaptation stems from competitive pricing and increased flexibility, as highlighted by Samuel Tela. The Treasury has implemented assimilable Treasury bonds (OTA), which allow longer maturities and grace periods for repayment at maturity, unlike traditional bonds.
Issuing securities on the money market has proven more efficient, taking only 45 days to complete all procedures compared to the six to eight months for a bond issuance. Moreover, OTA bonds save the Treasury approximately 2% of the total subscription amount compared to traditional options, enhancing their appeal for financing public projects.
Cameroon’s effective shift to capital markets since 2010 has yielded substantial financial resources, with CFA8.65 trillion raised primarily through the money market. The strategic focus on BEAC and efficient processing times for bonds has allowed the Treasury to better fund infrastructure and development projects, indicating a trend among CEMAC nations towards utilizing flexible and cost-effective capital-raising methods.
Original Source: www.businessincameroon.com
