Cameroon’s Debt Woes Deepen as 2026 Budget Signals Financial Red Alert

Cameroon’s public finance outlook has entered a critical phase, with mounting debt, heavy dependence on external guarantees, and widening funding gaps placing the country in what analysts describe as a financial “red zone.”
According to a recent report by Financial Afrik, the 2026 Finance Law reveals that Cameroon will need to mobilise more than FCFA 3,100 billion to meet its budgetary obligations, amid escalating debt servicing pressures and persistent reliance on borrowing.
The report warns that the country’s debt trajectory has become increasingly unsustainable, with rising financing needs threatening fiscal stability. Public debt servicing now consumes a significant portion of state revenues, forcing the government to seek external lifelines to stay afloat.
Heavy Dependence on Afreximbank
One of the most striking features of Cameroon’s current financial posture is its growing dependence on guarantees and credit facilities from the African Export-Import Bank (Afreximbank). In late 2025, the country secured a FCFA 159 billion loan backed by Afreximbank guarantees, followed by a FCFA 200 billion currency swap arrangement earlier in mid-2025 to shore up Treasury liquidity.
Financial Afrik notes that such reliance underscores Cameroon’s fragile cash flow position and highlights the structural weaknesses in domestic revenue mobilisation.
Domestic Debt Reorganisation
On the domestic front, AFG Bank Cameroun has emerged as a central player in the restructuring of state liabilities. As of January 2026, the bank had absorbed nearly $83 million (about FCFA 50 billion) in government arrears, signalling a strategic shift in how public debt is being managed internally.
While this move may ease short-term pressure on the Treasury, experts caution that it merely postpones deeper structural reforms needed to restore fiscal sustainability.
Major Projects Starved of Funds
Funding constraints are also weighing heavily on key national projects. Financial Afrik reported in August 2025 that barely 21% of the required financing had been secured for major programmes, including preparations for Cameroon’s highly anticipated 2026 population and housing census.
The shortfall raises concerns over possible delays, scaled-down operations, or increased borrowing to bridge the gap.
Banking Sector Mixed Signals
Within the banking sector, trends remain mixed. While several banks continue to struggle with risk exposure linked to public debt, others such as Afriland First Bank and Société Générale Cameroun are reported to be holding substantial deposits, reflecting uneven liquidity distribution across the system.
Analysts argue that without decisive reforms in public finance management, revenue mobilisation, and expenditure control, Cameroon risks slipping further into a debt trap, with long-term consequences for economic stability and development