Cameroon is in talks with the African Development Bank (AfDB) and the African Trade & Investment Development Insurance (ATIDI) to secure guarantees for a 585 billion FCFA (approximately $945 million USD) loan on the international capital market in 2026. The announcement was made on February 19, 2026, in Douala by the Minister of Finance, Louis Paul Motazé, during a presentation of the state's financing program for the year.
These funds will supplement the 415 billion FCFA already raised on January 30, 2026, in London through a private placement arranged by Citigroup, JP Morgan, and Cygnum Capital. According to Louis Paul Motazé, these discussions with the AfDB and ATIDI aim to establish a credit enhancement mechanism. This mechanism would allow Cameroon to obtain more attractive financial terms and optimize the cost of resources.
Credit enhancement is a financial technique where a specialized institution guarantees a borrower in the financial markets. Thanks to this guarantee, the borrower can benefit from lower interest rates due to the good financial rating of the credit enhancer.
In 2024, Cameroon raised 332 billion FCFA on the international market at a rate of 10.75% without a credit enhancer. On January 30, 2026, 415 billion FCFA were mobilized at 10.12%, but a currency swap (dollar to euro) brought the rate down to 7.79%. The objective of the guarantee under negotiation with the AfDB and ATIDI is to further reduce these rates. However, it is important to note that credit enhancement does not always guarantee lower interest rates, as they also depend on general market conditions.
In 2015, during its first Eurobond issuance ($1.5 billion), Cameroon obtained a partial guarantee from the AfDB of 500 million euros. Despite this, the country mobilized $750 million at a rate of 9.75%, reduced to over 8% after a swap. In the same year, Ghana, despite a partial guarantee from the World Bank, recorded a higher interest rate of 10.75%.
Beyond reducing interest rates, an agreement with ATIDI could strengthen the organization's presence in the Cameroonian public sector. Since Cameroon joined ATIDI in 2021, the organization's interventions have focused on the private sector. ATIDI's guarantees and financial services have enabled Cameroon to attract approximately 130 billion FCFA in investments in four years, particularly in renewable energy, agriculture, financial services, and trade.
ATIDI, established in 2001, is a pan-African multilateral institution that provides insurance solutions against political and commercial risks to attract foreign direct investment to Africa. In May 2025, ATIDI officially launched its operations in Cameroon. Cameroon joined ATIDI in 2021 with financial support from the European Investment Bank (EIB).
The Cameroonian government seeks to diversify its funding sources and sustainably manage its public debt. A presidential decree of January 21, 2026, authorizes the Minister of Finance to raise up to 1,650 billion FCFA on domestic and international markets to finance development projects and settle payment arrears. Cameroon's outstanding external debt amounted to 8,560 billion FCFA as of March 31, 2025.
The operation with the AfDB and ATIDI is part of a context where Cameroon seeks to optimize its borrowing costs and attract more investments, while controlling its debt.
