(Business in Cameroon) - In December 2021, the average interest rate on treasury bills issued by Cameroon in the debt market of the Bank of Central African States (BEAC) was 4.34%. According to data compiled by the BEAC, central bank of CEMAC countries, this is the lowest average interest rate agreed by investors for Cameroon’s bills since June 2019.
It is 1.69% down from the average rates in June 2019 and 2.42% down compared to the average 6.76% interest rate investors accepted to buy Cameroon’s treasury bills in June 2020, just months after the onset of the coronavirus pandemic in the CEMAC zone. Between June and December 2021, the rate went down by 1.83%, going from 6.17% to 4.34%.
The reason for that improved situation is the solvency of the country, according to the Ministry of Finance. The officials of this ministry mention that from November 2011 when the BEAC debt market was launched to date, Cameroon has raised XAF2,998 billion of funds in that market without a single payment default.
This adds credibility to Cameroon’s signature. It also continually attracts investors to the public securities the country issues, despite tough competition from medium and long-term securities issued in the same market by Gabon and Congo. In addition, it offers Cameroon tools to implement a prudential interest rate policy.