As of September 30, 2024, Cameroon’s outstanding balances (RAP) have reached an alarming level of 559 billion FCFA, representing 1.6% of GDP. Despite a loan contracted from Citi Group, the burden of domestic debt continues to weigh heavily on public finances, highlighting the persistent cash flow challenges of the Cameroonian State.
According to the latest economic report from the Autonomous Amortization Fund (CAA), the body in charge of public debt management in Cameroon, unpaid bills, called outstanding balances (RAP), have reached historic highs. Indeed, the total amount of RAPs in the Public Treasury has more than doubled in one year, reaching 559.1 billion FCFA at the end of the third quarter of 2024. This figure, which represents 1.6% of GDP, includes debts contracted for periods of less than three months as well as those of more than three months, the value of which reaches 494.6 billion FCFA.
The situation of RAPs of more than three months is particularly worrying, showing a 128% increase year-on-year. At the end of September 2023, these debts amounted to 216.9 billion FCFA. This explosion of pending invoices reflects the growing cash flow difficulties faced by the State. Despite a loan of 323.9 billion FCFA mobilized in July 2024 from Citi Group to alleviate this burden, the amount of RAPs continues to increase, demonstrating the limits of the corrective measures undertaken so far.
The CAA also specifies that the overall commercial debt has increased significantly, reaching 1,384.1 billion FCFA, an increase of 27.8% compared to the previous quarter and 38.9% in one year. This debt includes in particular Eurobonds issued in 2015 and 2021, for a total of 511.1 billion FCFA, as well as a private placement contracted in July 2024 with Citi Group. However, uncertainty remains as to the actual release of this loan at the time of data compilation, and it remains to be seen whether this initiative will be sufficient to curb the accumulation of unpaid debts.
However, not all indicators are in the red. Indeed, the CAA reports a notable drop in RAPs of less than three months, which fell by 73.3% compared to June 2024, and by 65% compared to September 2023, to stand at 64.5 billion FCFA. This decline reflects tighter management of short-term debts, although this improvement is overshadowed by the exponential growth of long-term RAPs.
Despite efforts to reduce arrears, Cameroon’s public finances continue to face increasing pressure. The measures undertaken, including recourse to international financing, show the limits of current debt management. The authorities will have to increase initiatives to control these debts, avoid a debt spiral and preserve Cameroon’s fiscal stability.
