Cameroon Eyes International Markets for $348 Million Funding Boost
Cameroon plans to raise 200 billion CFA francs ($348 million) from international markets to support its 2025 budget. The finance ministry may use syndicated loans and other market instruments. The move aims to address delays in revenue and maintain economic stability as global interest rates and regional monetary policies shift.
Cameroon's finance minister is set to tap into international financial markets, seeking up to 200 billion CFA francs ($348 million) for the fiscal year 2025, as reported by a recent presidential decree.
Kelly Mua Kingsly, head of Finance Operations at the Cameroon's Ministry of Finance, indicated that the government plans to explore various market instruments, with a focus on syndicated loans due to their rapid structuring and flexible drawdown features. He highlighted the potential of concessional and semi-concessional loans for budget support and mentioned they could also look into treasury bonds or bills via the Bank of Central African States (BEAC) market.
Kingsly pointed out that Eurobonds are less appealing because of current high global interest rates and low sovereign credit ratings. The plan is aimed at addressing slow external funding disbursements and a lag in tax revenue collection, amidst the central bank's tight monetary policies to combat inflation and stabilize the CFA franc.
(With inputs from agencies.)
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