(Business in Cameroon) - Between January and September 2021, Cameroon disbursed XAF835.9 billion to service its domestic and foreign debt, according to the national sinking fund CAA; 20.6% of that envelope was devoted to interest and commissions, the sinking fund stresses. 

This means the country disbursed XAF172.2 billion as interest and commission on its debt over the period, which is the equivalent of the funding needed to build a 75MW hydroelectric dam like the Bini à Warak dam, whose construction works have been on standby for two years now due to problems in the disbursement of credit secured from the World Bank.

The interests and commissions paid by the country would have been much higher if the country had stood by the servicing targets set in the 2021 amended finance bill. Per the CAA’s estimates, as at end of September 2021, 67.4% of the XAF1,240 billion target set in the 2021 amended finance law, which takes into account the debt suspension initiative, was effectively serviced.  

The interest and commissions would have also been much higher if the amended 2021 target did not account for the debt suspension initiative through which Cameroon benefited from the deferment of XAF115.3 billion debt during the period under review. Over the said period, Cameroon accumulated XAF299 billion of payment arrears.

Let’s note that 82.9% of the overall debt service was for foreign debt while 17.1% was for domestic debt. 

Brice R. Mbodiam