CEMAC Governments Borrow More on Regional Debt Market Despite Higher Rates

CEMAC governments increased their borrowing on the regional public securities market in July 2026 despite slightly higher financing costs, with outstanding debt rising 3.34% from the previous month to CFA10.56 trillion.

The figure covers government securities issued by Cameroon, Congo, Gabon, Equatorial Guinea, Chad and the Central African Republic, according to data released Aug. 26 by the Bank of Central African States (BEAC).

Average borrowing costs edged up to 8.53% in July from 8.29% in June, an increase of 0.24 percentage point. The rise came even as investor participation strengthened and subscriptions covered a larger share of the amounts sought by governments.

According to the central bank’s securities settlement and custody unit, participation by primary dealers rose to 22.05% from 20.13% between June and July.

The subscription rate also increased, reaching 76.23% from 72.44%. In other words, investors offered to finance just over 76% of the amount governments sought in July, compared with about 72% a month earlier.

Longer-term bonds dominate the market

Gabon remained the largest borrower on CEMAC’s government securities market, accounting for 31.6% of total outstanding securities. Congo followed with 29.4%, Cameroon with 19.7%, Chad with 11.3%, the Central African Republic with 4.2% and Equatorial Guinea with 3.9%.

Longer-term Treasury bonds, known as fungible treasury bonds (OTAs), represented 81.3% of the total outstanding stock. Their dominance reflects CEMAC governments’ increasing use of the regional market to raise medium- and long-term financing.

OTAs have maturities ranging from two years to more than 10 years and are generally used to raise financing for public projects.

Short-term Treasury bills, or Fungible Treasury Bills  (BTAs), accounted for the remaining 18.7% as of July 31. These securities mature within one year and are typically used to cover short-term government cash needs.

BRM