Cameroon has launched the disbursement of the third tranche of its 2022-2029 bond on May 27, 2025. This was announced by the Director General of the Central African Stock Exchange (BVMAC), Louis Banga-Ntolo, in a press release issued on June 11, 2025. Payments to investors began on May 28 through brokerage firms and account-holding banks.

A total of CFAF 61.6 billion will be distributed to investors who subscribed to this public bond issuance, which includes CFAF 14.6 billion in interest. The BVMAC specified that “the net coupon per bond amounts to CFAF 2,625, comprising CFAF 2,000 in capital repayment and CFAF 625 in interest.”

Cameroon’s 2022-2029 bond, listed on the BVMAC on September 28, 2022, features a 6.5% interest rate and a seven-year maturity. This issuance allowed the government to raise CFAF 235 billion.

According to the Ministry of Finance, investor interest was strong, with offers totaling CFAF 239 billion, surpassing the initial target of CFAF 200 billion. This robust demand led the government to retain CFAF 235 billion, an amount authorized through an overallocation approval granted by COSUMAF, the sub-regional financial market regulator.

Source: Business in Cameroon

Cameroon’s kola nut production has hovered around 48,500 tons annually over the past five years, accounting for 15.4% of global output. This places the Central African Economic and Monetary Community (CEMAC) economic powerhouse as the world’s third-largest kola nut producer, according to Tridge, an agricultural market intelligence and food product trade platform.

Cameroon trails Nigeria and Côte d’Ivoire, the top two international suppliers of the product. Tridge data indicates that Nigeria, the West African giant, produced 174,100 tonnes in 2022, representing 55.2% of global production. Côte d’Ivoire’s output in 2022 reached 58,640 tonnes, or 18.6% of the world total.

The global top five kola nut producers are completed by two other African nations. Ghana ranks fourth, with a 7.8% market share and 24,643 tonnes produced in 2022. Sierra Leone follows, with 8,450 tonnes during the review period, accounting for 2.7% of the global kola nut market.

Analysts predict that these five market leaders will see increased returns from kola nut cultivation in the coming years due to rising demand. A study published in April 2025 by Cognitive Market Research, cited by Ecofin Agency, estimates the kola nut market to be worth $119 million (approximately 65 billion CFA francs) in 2025. The study projects the market to grow by an average of 3.3% annually through 2033.

This anticipated surge in the global kola nut market is fueled by the diversification of its uses. While traditionally consumed in its raw form across many African countries, market analysts note a growing demand for kola nut in the agri-food industry, cosmetics, and traditional medicine.

Kola nut exports are not explicitly listed in Cameroon’s 2022 and 2023 foreign trade reports, published by the National Institute of Statistics (INS). However, this does not necessarily mean the country has no exports of the product. It is plausible that, similar to other agricultural goods like cotton, cereals, and even cocoa, Cameroonian kola nuts are exported through informal channels to Nigeria, the world’s leading producer. Cameroon shares a long and porous border of approximately 1,500 km with Nigeria.

Despite probable informal exports, as well as local consumption and still-limited artisanal processing, which are the primary uses of kola nut in Cameroon, the forecasted growth in this product presents a significant opportunity for both industry stakeholders and public authorities to better position kola nut on the national and international economic stage.

Source: Business in Cameroon

The Cameroonian cement market is set to welcome a new brand, Cimaco, starting in June 2025. This news was announced in an advertisement by Chinese-owned Sinafcam Sarl, which produces the cement in Edéa, located in Cameroon’s Littoral region. For its market debut, Sinafcam is introducing three product grades: 32.5, 42.5, and 52.5. The plant currently has an annual production capacity of one million tons.

Sinafcam’s entry brings the total number of cement producers in Cameroon to seven. This expansion comes a decade after Cimenteries du Cameroun (Cimencam), a subsidiary of Lafarge Holcim Maroc Afrique (LHMA), ended its 48-year monopoly. Cimencam, with a production capacity of 2.3 million tons, faced its first significant challenge with the arrival of Dangote Cement Cameroon in 2015, paving the way for several new entrants since then.

Current producers include Nigeria’s Dangote Cement (1.5 million tons); Moroccan firm Cimaf, which recently tripled its original output of 500,000 tons through a plant expansion; Medcem Cameroon (600,000 tons), a subsidiary of Turkey’s Eren Holding; Mira Company, which increased its capacity from 1 million to 1.5 million tons with a new production line commissioned in June 2022; and Portuguese group Cimpor (1 million tons).

Additionally, the Ministry of Industry anticipates two more Chinese cement plants in Edéa: Central Africa Cement (CAC) is projected to produce 1.5 million tons annually, while Yousheng Cement aims for 1.8 million tons.

Despite a decade-long surge in cement production facilities, the retail price for a 50kg bag of cement remains high, hovering between 5,100 and 5,300 CFA francs in major cities like Douala and Yaoundé. Both producers and government officials attribute these high prices to the elevated cost of importing clinker, the primary ingredient in cement production.

However, with prices showing little movement despite increased supply, Trade Minister Luc Magloire Mbarga Atangana has repeatedly voiced suspicions of “illegal price-fixing agreements” among producers.

Source: Business in Cameroon

Orange Money has achieved significant penetration and usage in Cameroon, ranking the country among the leading African markets for the platform. Representatives from Orange Money Cameroon presented data to the Directorate General of Customs (DGD) in Yaoundé on May 27, 2025, highlighting the service’s extensive reach as part of a proposal to the customs administration.

Orange Money, a subsidiary of Orange Cameroon specializing in mobile payments, now serves more than 11 million customers in Cameroon. This figure represents over 11.5% of the 96 million Orange Money users across 17 African countries.

Official data also show that more than 100,000 sales outlets in Cameroon provide Orange Money services, supporting the creation of over 200,000 jobs to date. These outlets account for more than 25% of the 400,000 points of sale dedicated to Orange Money distribution across Africa, according to Orange Group figures.

The widespread adoption of mobile payment services such as Orange Money and MTN Mobile Money in Cameroon reflects their popularity since launch. Their flexibility in enabling money transfers, withdrawals, merchant payments, mobile banking, and tax payments has fueled a surge in mobile money usage in recent years.

The expansion of mobile money in Cameroon was notably accelerated by restrictions imposed during the COVID-19 pandemic. The global lockdown prompted many Cameroonians to adopt mobile money services, as reducing cash handling in financial transactions was a key preventive measure promoted by the government to curb the spread of the virus. Authorities encouraged the use of mobile money, e-payment, and mobile banking. In response, mobile money operators reduced fees and ramped up promotional offers to attract more users.

Intense Competition for Market Leadership

The impact of these measures, along with the broader benefits of mobile money in promoting financial inclusion, is reflected in the results of the 5th Cameroon Household Survey (Ecam 5), published on April 24, 2024, by the National Institute of Statistics (INS). The survey shows that mobile money usage in Cameroon “increased significantly,” rising from 29.9% in 2017 to 42.7% in 2022 among people aged 15 and older—a 12.8 percentage point increase over five years.

The 2022 Report on Payment Services in the CEMAC region published by the Bank of Central African States (BEAC), underscores Cameroon’s dominance in mobile money within the six-nation bloc. According to BEAC, Cameroon accounted for the majority of mobile money transactions in the region in 2022, both by volume (71%, or 1.7 billion transactions) and by value (55%, or 59,003 billion CFA francs).

Local subsidiaries of Orange and MTN are engaged in fierce competition for market leadership. Orange Cameroon claims a 70% market share in mobile money, while MTN contests this, asserting superior performance. “I believe I can also say that we have now become the leader in the mobile financial services market, as our subsidiary Mobile Money Corporation now has the largest active mobile money user base in the country,” said Mitwa Ng’ambi, then CEO of MTN Cameroon, in an interview with Investir au Cameroun in early 2023.

Source: Business in Cameroon

Fitch Ratings has affirmed Cameroon’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B’ with a Negative Outlook.

Key Rating Drivers

Ratings Affirmed; Negative Outlook: Cameroon’s ratings are supported by resilient GDP growth, a manageable debt maturity schedule and our expectations that moderate debt levels will be supported by non-oil revenue mobilisation and spending restraint. This is balanced against low GDP per capita, weak governance indicators and persistent security challenges. The Negative Outlook reflects political risks related to potential succession issues and structural weaknesses in public finance management (PFM), evidenced by weak liquidity management, late external debt payments and accumulation of domestic arrears.

Political and Potential Transition Risks: Fitch assumes the 92-year-old President Paul Biya, in power since 1982, will win the presidential election, scheduled for October 2025, guaranteeing political and policy continuity (which underpin bilateral support). Nevertheless, social and political tensions could increase in the run-up to the election, increasing concerns about political stability. The lack of a succession plan and political divisions and rivalries within the ruling party increase the risk of an eventual disorderly transition of power.

Persistent PFM Challenges: PFM weaknesses weigh on the rating, as evidenced by recurrent late external debt service payments (although settled within grace periods). It was revealed in July 2024 that Cameroon was late in making external debt payments to one commercial creditor in March 2024. Fitch understands that there have since been additional delays in non-commercial external debt payments, all of which were cured within the grace periods. Moreover, the World Bank’s budgeted financing for 2024 (USD200 million, 0.4% of GDP) was postponed to 1Q25 due to delays in implementing structural reforms.

Domestic Arrears: The authorities have made some progress in reducing domestic arrears, clearing XAF732 billion (2.3% of GDP) in 2024 using an Afreximbank loan (0.5% of GDP) and external commercial borrowing (1.9% of GDP in 2024, from 0.1% in 2023). Total arrears stood at XAF342 (1.1% of GDP) at end-2024, comprising entirely of longer-dated arrears (90 days or over), which are incorporated in our domestic debt figures. In 2023, longer-dated arrears stood at only 0.5% of GDP. We see continued risk of arrears accumulation, given weak public finance management.

Tight Financing Flexibility: The regional market remains tight, with Congo (CCC+) and Gabon (CCC) recently implementing local-currency debt exchanges to lengthen maturities in a context of liquidity pressures. Cameroon’s market access remains stronger than other countries in the regional market and it faces an easier amortisation profile. In 2024, Cameroon’s regional local-currency marketable debt was 6.1% of GDP in 2024, unchanged from 2023, with only 1.6% of GDP amortising within one year

We expect Cameroon’s funding needs will be covered through the IMF programme, ending June 2025, and official creditor support tied to the completion of the reviews (including the World Bank loan). Our baseline assumes strong support from official creditors will continue over the medium term, with a potential new IMF programme in 2026, the lack of which is a key risk for the financing plan.

Manageable Maturity Schedule:We estimate fiscal financing needs will decline to 4.7% of GDP in 2025 (from 5.7% of GDP in 2024), owing to a narrower cash deficit and lower arrears repayment. We project fiscal financing needs will increase to 5.4% of GDP in 2026 as domestic debt amortisation will amount to 2.6% of GDP from 2.1% in 2024. External debt amortisation will increase from 2.0% of GDP in 2024 to 2.1% in 2025 and 2.2% in 2026, including Eurobond payments at 0.1% of GDP per year.

Oil Revenue Drops: The fiscal deficit on a commitment basis deteriorated to 1.4% of GDP in 2024, from 0.6% in 2023, on a drop in oil revenue, from 2.9% of GDP in 2023 to 2.1% in 2024. We expect the fiscal deficit will remain at around 1% in 2025-2026. In our baseline, oil revenues will continue to decline due to lower oil prices and production, but non-oil revenues will gradually improve through revenue mobilisation measures, tax exemptions reduction, and improvement in tax and customs administrations.

Larger Cash Deficits: The fiscal deficit on a cash basis widened from 0.4% of GDP in 2023 to 3.5% in 2024, on a larger commitment fiscal deficit and net repayment of arrears. We expect the cash deficit will stabilise at 1.5% of GDP in 2025 and 2026, below the forecast 3.2% ‘B’ median, although the pace of net repayment of arrears casts uncertainty on the fiscal trajectory. There are risks of fiscal slippage from security and election-related spending over the forecast period.

Debt Lower Than Peers: We project government debt will continue to decline, although at a slower pace than in our previous forecast. We project government debt will decline from 41.7% in 2024 to 40% of GDP in 2026, below the ‘B’ median forecast of 50.6%. Our debt metrics include arrears (1.1% of GDP at end-2024), public guaranteed debt (less than 0.02% of GDP), and the debt of SONARA (1.9% of GDP).

Resilient Economic Growth: Real GDP growth increased to 3.9% in 2024 from 3.2% in 2023, and we forecast it will remain broadly stable at 3.9% in 2025 and 4.1% in 2026 (‘B’ median forecast of 4.6%), driven by agriculture, construction, and the coming on-stream of infrastructure and electricity projects. Downside risks to growth stem from geopolitical uncertainties, leading to renewed commodity price volatility, and inflationary pressures. The 2025 presidential election threatens reform implementation and increases security and social risks.

Narrowing CAD: We forecast the current account deficit (CAD) will continue to narrow to 3% of GDP in 2025 and 2026, from 4.1% in 2023 and an estimated 3.4% in 2024, owing to higher cocoa prices supporting exports. In 2025-2026, the decline in oil production will be offset by the implementation of the import substitution policy, while exports will increase thanks to stronger agricultural production.

ESG – Governance: Cameroon has an ESG Relevance Score (RS) of ‘5’ for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in our proprietary Sovereign Rating Model. Cameroon has a low WBGI ranking at the 16th percentile, reflecting the absence of a recent track record of peaceful political transitions, weak institutional capacity, uneven application of the rule of law, a high level of corruption and persistent security issues.

Culled from Fitch