(Business in Cameroon) - The Cameroonian Public Treasury is going back to the BEAC securities market this 14 June 2017, to attempt to raise FCfa 5 billion, through the issuance of fungible Treasury bonds with a maturity of 26 weeks.

Contrary to previous years, during which fundraising operations by the State of Cameroon always led to a rush of investors operating on this market, this new issuance of Cameroonian public securities could turn out to be a lot harder.

Indeed, in addition to subscription rates which moved from 600% a few years ago, to 200% or even 97% only (1 February 2017 issuance) since the beginning of the year, Cameroonian public securities are not as popular as in the past.

Proof of this, a compilation of various official press releases announcing the results of selling sessions reveal that the interest rates demanded by investors for Cameroonian public securities increased by approximately 1% during the 2^nd quarter of 2017, now reaching 3.5% on average, against 2.5% only until 2016.

At the origin of this increase in the Cameroonian debt on the market of the Bank of Central African States, according to analysts, is the high demand in financing from other CEMAC countries.

Indeed, as main and sole operator on this market since its launch in 2011, Cameroon is now facing competition from other countries in the CEMAC such as Gabon, Chad and Equatorial Guinea.

Since the beginning of this year, these three oil Central African emirates, who are facing treasury tensions, due to the decrease in international oil prices (representing between 50 and 80% of public revenues in these countries), have become very active on the BEAC securities market, thereby reducing the flexibility of the Cameroonian Public Treasury.

In this situation, we should expect, at the end of 2017, a slight increase in the domestic debt of the country, due in part to higher interest expenses registered on the securities market, where the Cameroonian government is planning to raise a total of FCfa 300 million in 2017.

Brice R. Mbodiam