Yaoundé - 19 January 2020 -

Gabon outperformed Cameroon on BEAC securities market between May 2017 and May 2018, becoming the largest borrower

Gabon outperformed Cameroon on BEAC securities market between May 2017 and May 2018, becoming the largest borrower
  • Comments   -   Thursday, 13 September 2018 18:18

(Business in Cameroon) - Between May 2017 and May 2018, Cameroon lost its position of first borrower on Beac securities market, outperformed by Gabon, the bank revealed in a monetary policy report.

In details, Gabon captured CFA455.6 billion, thus 39.9% of total treasury bills (BTA) issuance. While Cameroon mobilized CFA214.2 billion compared to CFA161.3 billion in May 2016-May 2017.

The high resource mobilization by Gabon is mainly due to its economy’s heavy dependence on crude oil (50% of revenues), despite efforts in recent years to diversify incomes. Indeed, as world oil prices dropped, the country had no choice but to resort to debt to offset strain on public treasury and reduce budget gap. Cameroon, on the other hand, has the most diversified economy in CEMAC, oil revenues represent only about 25% of revenues.

Let’s point out that under an economic program with the International Monetary Fund (IMF), Cameroon is working to shift from non-concessional loans (such as that on the BEAC securities market) to concessional loans from major international financial institutions.

During the period under review, public securities issuance on the BEAC market enabled CEMAC States to mobilize CFA1,142.7 billion through treasury bills (short-term securities), compared to only CFA73.8 billion through fungible treasury bonds which are long-term debt securities (maturing in more than one year).

In financing CEMAC countries with up to CFA1,216.5 billion over a one-year period, the BEAC public securities market has become an important financing vehicle for these nations.

Brice R. Mbodiam

Currently (January 2020), the active portfolio of the Kuwait Fund in Cameroon includes three projects for an amount of US$35.5 million, or about XAF20...
Since December 31, 2019, the farm-gate price per kilogram of cocoa beans in Cameroon's production basins has declined slightly from a high of XAF1,250 to...
Reading through the circular that sets the framework for the implementation of the 2020 Finance bill, it appears that Cameroonian administrations must...
During the 2019 holiday season, the ponds created in Cameroon with the support of the Agropoles project helped provide 50 tons of fish to the...

Mags frontpage

Business in Cameroon n82-83: December 2019-January 2020

CFA: The debate is open in the CEMAC

Cameroon becomes CEMAC’s financial center

Investir au Cameroun n92-93: Decembre 2019-Janvier 2020

Franc CFA : le débat est ouvert en zone CEMAC

Le Cameroun devient la place financière de la CEMAC