Domestic Debt: Also An Emergency!

C ameroon’s economic outlook shows positive signs with perspective for economic growth of 3.5 per cent in 2026 and 3.7 per cent in 2027, according to the International Monetary Fund (IMF) which also highlighted that inflation rate is at 2.6 per cent as at June 2026 against 4.1 per cent a year earlier. The economic situation of the country is ho­ wever not dissociated with the global economic perspective and the challenges posed by geopolitical tensions in the Middle East and Eastern Europe which continue to have a nefarious effect on the global economy. Despite the relatively positive eco­ nomic situation, Cameroon is still riddled in debts. According to the recent publication by the Autonomous Sinking Fund, the government structure in charge of managing public debt, Cameroon’s outstanding debt as at June 2026, stood at FCFA 15,607 billion, repre­ senting 44.2 per cent of the Gross Domestic Product (GDP). Though pundits are expressing worries on the increasing indebtedness of the State, government authorities have persistently argued that Cameroon is still below the debt sustainability ceiling fixed at 50 per cent of the GDP in the National Debt Strategy 2026-2028 and the threshold of 70 per cent of GDP by the Central Africa Economic Community (CEMAC). The central administration’s total debt as at June 2026 is 93.9 per cent while debts owed by pubic es­ tablishment and enterprises represents 5.9 per cent and 0.2 per cent debt for decentralized territorial entities. Thus, in absolute terms, direct central ad­ ministration debt stands at FCFA 14.659 billion while debt of public establishment and enterprises revolves around FCFA 923 billion. These outstanding debts constitute both external and internal debt of the State. Specifically, external State debt as at June 2026, external public debt re­ presents 64.5 per cent as against 35.5 per cent for domestic debt according to the Autonomous Sinking Fund statistics. This partition reflects the preponderant role of external resources mobilized by the government in fostering the development agenda of the country. However, domestic debts contracted through go­ vernment bonds, commercial banks and supply of essential goods and services to the State, are not negligible in advancing the State apparatus. Whatever be the case, the government is making efforts in re­ paying its debts though external debt servicing seems to be taking more government attention than domestic debts. For instance, all external debts pay­ ment due through the end of June were made within the contractual deadline with no arrears recorded. During the first six months of 2026, the government paid FCFA 444.5 billion in external debt servicing, equivalent to 85 per cent of the amount projected under the Finance Law for the period. Conversely, domestic debt servicing has not had similar attention. The government explicitly prioritizes external debts repayment to protect its international credit reputation, leaving domestic creditors and local companies doing business with the government to face prolonged delays. Cameroon government owed FCFA 520.2 billion to suppliers of goods and services as of March 31, 2026, according to the public debt report relea...