Cameroon faces debt concerns and market volatility

Cameroon is facing significant economic pressure due to discrepancies in debt reporting and rising political uncertainty. While official figures from the Caisse Autonome d’Amortissement (CAA) report a global debt of 15,607 billion FCFA (44.2% of GDP), analysts suggest the real consolidated debt exceeds 17,350 billion FCFA, surpassing 51% of GDP.

This gap is attributed to the exclusion of short-term arrears, commercial commitments of public entities like Sonara and Camtel, and unpaid debts to local suppliers totaling over 1,026 billion FCFA. These off-balance-sheet liabilities and public-private partnership guarantees are not reflected in the official CAA accounting.

Compounding these fiscal issues is the prolonged absence of President Paul Biya, who has been in Switzerland for approximately two months. This political uncertainty has triggered a reaction in international markets, with Cameroon's Eurobonds experiencing some of the worst performance on the African continent. Investors are liquidating holdings due to perceived transition risks, leading to a spike in yields and making future borrowing increasingly expensive for the nation.