(Business in Cameroon) - As of September 30, 2022, four public companies in Cameroon accumulated up to CFA555.2 billion in debt with foreign investors. According to official data from the Autonomous Depreciation Fund (CAA), 96.5% of this amount is owed by the national refinery Sonara and the airline Camair Co.

Sonara was ranked the most indebted public company. The company alone accounts for 84.5% of the total amount owed by all public companies to external partners, against only 12.5% for Camair co. The two other indebted public enterprises are the Cameroon Airports Company (ADC) and the Port Authority of Douala (PAD).

To help Sonara face this situation, which has become a great concern for the Treasury and the local banking sector as well as international partners such as the IMF, the Cameroonian government decided last year to restructure the company’s debt. "After the agreement to restructure the amount owed by Sonara (CFA261.4 billion, ed) to local banks (9 banks in total, ed) was signed on October 15, 2021, the government signed on September 22, 2022, a deal to restructure and repay the company’s debt with Swiss trader, Vitol S.A.,” CAA indicated in a recent note on the public debt situation at the end of September 2022.

In line with this agreement, "the State, through the special dedicated account, will have to repay about $172.6 million and €108.7 million (a total of nearly CFA208 billion) over 10 years, with an interest rate of 5.5% excluding taxes," CAA said. Sources say the deal with Vitol SA should apply to six other traders, with whom Sonara is also indebted.  These are Gunvor (CFA39.1 billion), Mercuria (CFA36.2 billion), Addax (CFA15.8 billion), Trafigura (a little over CFA12 billion), PSTV (CFA7.8 billion) and Glencore (CFA6.8 billion)

Because of its level of indebtedness and financial situation, the restructuring of Sonara's debt is officially presented as a prerequisite for its reconstruction. Indeed, the company was ravaged by fire on May 31, 2019.

Brice R. Mbodiam