The latest International Debt Report 2026, released on November 5, underscores the growing strain on Cameroon’s external finances. The country allocated 1,101 billion FCFA—equivalent to $1.896 billion—to servicing its foreign debt in 2025, a 12.3% increase from $1.685 billion in the prior year. This surge is driven primarily by principal repayments, which climbed by 19.7% to $1.38 billion, while interest payments dipped slightly to $510 million. The total external debt stock also rose by 10.5% to $17.57 billion, or roughly 9,812 billion FCFA, by year-end.
Public outrage grows as debt repayments consume foreign revenue
The external debt service ratio, closely monitored by the World Bank and International Monetary Fund, has worsened dramatically. In 2025, debt repayments gobbled up 22.1% of Cameroon’s earnings from exports, services, and primary income—up from 19.1% in 2024. Foreign-exchange inflows from exports dipped by 2.9% to $8.57 billion, signaling a shrinking revenue base. Structural decline in oil production—a trend since the mid-2010s—coupled with softer cocoa and timber prices have contributed to this erosion, leaving Cameroon heavily reliant on hydrocarbons and agro-industry for its hard currency.
The spike in principal repayments stems from a cluster of maturities tied to loans contracted a decade ago, particularly from Asian bilateral creditors that funded major infrastructure projects such as the Kribi port, Memve’ele dam, and road networks. Eurobonds issued in 2015 and refinanced in 2021 are also entering their heaviest repayment phases. On the multilateral front, IMF buybacks surged to $130.4 million in 2025, up from $84.3 million the previous year, reflecting the aftermath of pandemic-era financing facilities.
Public investment pays the price as debt service drains funds
The fiscal squeeze arrives at a pivotal moment. Net inflows of new external financing plunged by 32.8% in 2025 to $624 million, while net transfers after interest payments collapsed by 71.5% to just $113 million. This erosion means external debt is no longer a source of net resource inflows for Cameroon’s budget—it has become a net outflow channel. While neighboring Gabon and the Republic of the Congo face similar pressures within the Central African Economic and Monetary Community (CEMAC), Cameroon remains the most exposed in absolute terms.
The scarcity of foreign exchange is already weighing on capital spending. First-quarter 2026 budget execution data from the Ministry of Finance shows public investment dropping by 27.7% compared with the same period in 2025. This mirrors the austerity measures embedded in the IMF program and the rising burden of combined domestic and external debt service, with an estimated 600 billion FCFA in external obligations due in 2026 through the regional public-debt market.
Post-Biya era faces stiff budgetary challenges
The International Debt Report 2026 corroborates findings from the joint IMF-World Bank debt-sustainability analysis released on March 9, 2026, and the Fund’s October 1 statement. Yaoundé remains classified as at high risk of debt distress, even though debt levels are deemed manageable over the medium term. With external debt standing at 30.3% of gross national income but a staggering 205.1% of foreign-exchange earnings, vulnerability lies not in overall debt magnitude but in the ability to generate the dollars required for repayment.
The 2026–2027 period is shaping up as a defining test. The impending presidential transition, marking the end of four decades in power, coincides with a cycle where every franc directed toward servicing debt impacts social spending, salaries, and national security. The next administration’s room for maneuver will hinge largely on its ability to renegotiate bilateral loans, revive issuance on the BEAC regional market, and broaden the non-oil tax base.