Since 2010, Cameroon has raised CFA8.65 trillion from capital markets, mainly through the BEAC money market. This shift to the money market, reflecting competitive advantages in cost and efficiency, has allowed the country to secure funding for development projects while addressing cash flow needs. Samuel Tela emphasized the benefits of issuing assimilable Treasury bonds (OTA) in this context.
Cameroon has successfully raised CFA8.65 trillion from capital markets since the inception of its bond issuance on the Douala Stock Exchange (DSX) in December 2010, according to Samuel Tela, the Treasury Director at the Ministry of Finance. This figure was revealed during a seminar on structured financing for infrastructure development held in Douala on February 27, 2025.
Over the past 15 years, Cameroon’s Treasury raised CFA1.2 trillion from the Central African Stock Exchange (Bvmac), which unifies the financial markets of the CEMAC countries, including Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic. Additionally, CFA1.24 trillion was sourced via Eurobond issues and private placements in international financial markets.
On the public securities market managed by the Bank of Central African States (BEAC), Cameroon has accumulated over CFA6.2 trillion since its launch in 2011. This has established the money market as the dominant source of funds for the national Treasury, generating five times more funding from BEAC than from regional or international markets.
In 2019, following several successful bond issues, Cameroon began prioritizing the money market to secure financing for development projects while navigating cash flow challenges. This trend was mirrored by other CEMAC nations that also turned to the money market for capital-raising efforts.
Experts have attributed this shift to the competitive cost, flexibility, and fiscal prudence associated with these financing methods. Samuel Tela noted, “The government has refocused on the BEAC money market, which is the traditional market for Treasury departments and banks, to issue assimilable Treasury bonds (OTA).” These unique bonds offer extended maturities and grace periods for repayments, distinguishing them from standard bonds.
The issuance process for money market securities is considerably expedited. “All necessary steps—including awareness campaigns, communication, and subscription—can be completed within 45 days, while a bond issue takes six to eight months,” as per an internal document from the Finance Ministry accessed by Business in Cameroon.
Moreover, issuing OTA bonds on the BEAC market proves to be financially advantageous. It saves the Treasury an estimated 2% of the total subscription amount compared to traditional bonds, thus making OTA bonds an optimal choice for funding public initiatives.
The government of Cameroon has made significant strides in diversifying its funding sources since 2010, successfully raising substantial amounts through various capital markets. The preference for the BEAC money market has provided a cost-effective and efficient means of financing, allowing Cameroon to manage cash flow while funding development projects effectively. These developments underscore the importance of strategic financial planning and the evolving dynamics of capital markets in the CEMAC region.
Original Source: www.businessincameroon.com
