Cameroon’s Short-Term Borrowing Costs Hit a New High in CEMAC Debt Market

Cameroon’s cost of short-term borrowing on the CEMAC government securities market reached a new high in July 2026, underscoring how much more expensive it has become for the government to raise funds through a market that has been a major source of financing since 2019.

Cameroon paid an average interest rate of 6.97% on Treasury bills during the month, according to data from the Bank of Central African States (BEAC). That was above the regional average of 6.83% and marked the country’s highest rate since the regional government securities market was launched in 2011.

Across CEMAC the average rate paid on Treasury bills edged down from 6.99% in July 2025 to 6.83% in July 2026, according to BEAC’s securities settlement and custody unit. Three countries paid rates above that average. Equatorial Guinea had the region’s highest borrowing cost at 7.87%, followed by Congo at 7.24% and Cameroon at 6.97%.

Elsewhere, Chad paid an average 6.91%, the Central African Republic 6.83% and Gabon 6.48%. Treasury bills are government securities with maturities of no more than one year. Governments use them primarily to cover short-term cash needs.

Higher rates reshape Cameroon’s borrowing costs

Cameroon’s July rate illustrates a sharp change in borrowing conditions on the regional market. For more than a decade, the country generally offered the lowest interest rates among CEMAC governments.

Sylvester Moh, director general of the Treasury at the Finance Ministry, previously noted that Cameroon had been able to borrow at rates below 3% on short-term securities and below 7% on longer-term government bonds. That advantage has eroded in recent years.

Several factors have driven borrowing costs higher, including the tighter monetary policy BEAC introduced in late 2021 to fight inflation, higher rates offered by other CEMAC governments, growing demand for financing from member states and the large amount of government securities already held by banks that act as market intermediaries.

Cameroon’s average Treasury bill rate more than doubled from 2.67% in 2020 to 6.33% in 2024, according to Finance Ministry figures.

In February 2025, the country paid an average 6.95%, then a record for Cameroon since the regional market began operating. The 6.97% recorded in July 2026 set a new high.

Cameroon looks beyond banks for more investors

The rise in borrowing costs is leading Cameroon to explore ways to broaden the investor base in a market that has become one of the government’s main sources of financing since 2019. “Our banking system, as resilient and dynamic as it may be, is now reaching certain limits in terms of its exposure to Cameroonian sovereign securities,” Moh said during a presentation of the government’s 2025 financing program to investors in Douala on February 13, 2025.

He said Cameroon needed to attract a wider range of investors, particularly insurance companies, small savers and people who do not have bank accounts. The government sees insurers as one potential source of additional financing because of their substantial resources and long-term investment horizon. According to Moh, their participation in Cameroon’s sovereign debt market remains below its potential.

Authorities also want financial products and debt instruments that are better suited to insurers’ regulatory requirements while offering attractive returns. Another option is to make subscriptions more accessible through digital channels, which could allow members of the Cameroonian diaspora to participate in financing government projects.

Cameroon also wants to bring people outside the traditional banking system into the government securities market. Authorities plan to build on the widespread use of Mobile Money and the services offered by fintech companies to reach those potential investors.

Brice R. Mbodiam